Acquiring Minds: From Tech Sales to Forklift Repair with Sean Lindley
Episode Released: March 17, 2025
Host: Will Smith
Guest: Sean Lindley, Owner of R&R Lift
Introduction
In this episode of Acquiring Minds, host Will Smith welcomes Sean Lindley, an entrepreneur who transitioned from a decade-long career at SAP to owning a successful forklift repair and maintenance business, R&R Lift. Sean shares his journey, challenges, insights, and the strategic moves that led him to his current path in acquisition entrepreneurship.
Guest Profile: Sean Lindley
Sean Lindley embarked on his entrepreneurial journey early, purchasing his first business—a franchise restaurant—at 23 years old. After selling it three years later, Sean pursued a corporate career, eventually rising to the position of Regional Vice President (RVP) at SAP. Despite his success, Sean's path took an unexpected turn due to layoffs in 2022 and 2023, prompting him to reevaluate his professional trajectory.
The Turning Point: Layoff from SAP
While vacationing in Hawaii, Sean received the unexpected news of his layoff from SAP. As he narrates:
Sean Lindley [05:20]: "I was on my way to Hana in Maui when I got the message asking me to hop on a quick call. I knew what it meant—my position was being eliminated."
This abrupt end to his corporate career became a catalyst for Sean to return to his roots in entrepreneurship, deciding to purchase a business as his next chapter.
Sean Lindley [10:53]: "It was a great experience. I felt like I got an MBA in how to run a business—payroll, hiring, being a leader—all the things that come with owning a business."
Transition to Acquisition Entrepreneurship
Having previously experienced owning a business, Sean recognized the potential of acquisition entrepreneurship (ETA) as a viable path forward. Determined to regain control over his professional life and spend more time with his growing family, Sean immersed himself in the ETA community, leveraging resources like Acquiring Minds to guide his search.
Sean Lindley [14:39]: "I listened to every single Acquiring Minds podcast show—two to three a day. The community you've created is incredible and extremely helpful."
The Search Process
Initial Approach: Proprietary Search
Sean began his search by casting a wide net through proprietary methods, including mailing personalized letters and emails to potential sellers. He targeted businesses in sectors aligned with his interests and expertise, such as home services and landscaping, avoiding industries like franchises and restaurants based on his past experiences.
Sean Lindley [25:57]: "I created a one-page PDF letter with my picture and sent out 150 mailers, leading to about 10 responses—a 7% conversion rate."
Challenges and Adjustments
Despite his organized approach, Sean faced setbacks, including missing out on a promising forklift repair business initially listed on BizBuySell. This experience underscored the importance of speed and persistence in deal-making.
Sean Lindley [50:24]: "I submitted my LOI, but the broker hadn't informed me they were reviewing offers. They accepted another offer before I could follow up."
Mentorship and Coaching
Recognizing the need for expert guidance, Sean sought mentorship from Mike Loftus, a former guest on Acquiring Minds. Unlike traditional free mentorship, Sean formalized the engagement by compensating Mike, ensuring dedicated support throughout his acquisition journey.
Sean Lindley [34:19]: "I wanted to show I was serious, so I offered to pay Mike for his time. It was an investment in my future business."
This paid mentorship model proved invaluable, providing Sean with strategic insights, deal reviews, and operational advice tailored to his specific acquisition and growth plans.
Acquiring R&R Lift
Why R&R Lift?
After broadening his search criteria beyond landscaping, Sean identified R&R Lift, a 31-year-old forklift repair and maintenance business in Austin, Texas. The business boasted strong financials, a healthy mix of recurring and repair revenue, and minimal overhead, making it an attractive acquisition.
Sean Lindley [46:17]: "We did about $1.2 million in 2022 and 2023 with an SDE of $550,000. It was a high-margin, asset-light business with no customer concentration."
Financial Details
R&R Lift's financial health was a key factor in Sean's decision:
- Revenue (2022-2023): $1.2 million
- Seller's Discretionary Earnings (SDE): $550,000
- Purchase Price: $1.8 million (2.7x multiple on SDE)
- Deal Structure: 80% SBA loan, 10% seller financing, 10% down payment
Business Operations and Insights
Revenue Mix
R&R Lift maintained a balanced revenue stream:
- Recurring Maintenance Jobs: 43%
- Repair Jobs: 57%
This blend ensured steady cash flow while capitalizing on emergency repair needs, critical for the business’s sustainability.
Sean Lindley [58:14]: "43% of the jobs are recurring—a nice mix that supports our repair work."
Customer Base and Moat
The business served a diverse range of industries, including warehouses and construction, with minimal customer concentration (no single customer accounted for more than 6% of revenue). This diversified client base reduced risk and enhanced stability.
Sean Lindley [61:08]: "There's no customer concentration—only one customer made up 6% of our revenue."
Hiring Challenges
A significant hurdle Sean encountered was recruiting skilled forklift technicians. The specialized nature of the trade meant a limited talent pool, compounded by high turnover due to uniform pay rates across competitors.
Sean Lindley [65:52]: "Hiring has been one of the biggest challenges. The industry needs to rethink pay structures to retain quality technicians."
Marketing and Modernization
Upon acquisition, Sean identified vast opportunities for modernizing R&R Lift’s operations and marketing efforts. Enhancements included updating the outdated website and leveraging digital marketing strategies.
Sean Lindley [76:41]: "Our website was from 1999 and not on Google. After modernizing, we received two new customer leads within 30 minutes."
Transaction Details
Deal Structure and Financing
Sean leveraged an SBA loan to finance the acquisition, securing favorable terms through diligent negotiation and relationship-building with lenders like Wells Fargo.
Sean Lindley [80:10]: "I secured a prime rate minus 2.5%, allowing me to allocate more working capital toward growth initiatives."
Deal Negotiation Insights
Understanding the importance of acting swiftly, Sean emphasized the need for urgency in deal-making and maintaining professional relationships to stay on sellers’ radars for future opportunities.
Will Smith [52:02]: "You should hang around the hoop and follow up with the broker or seller because deals die three times before they happen."
Lessons Learned and Advice
Sean’s journey offers several key takeaways for aspiring acquisition entrepreneurs:
- Persistence is Key: Utilizing multiple deal-sourcing strategies increases the likelihood of finding the right opportunity.
- Leverage Mentorship: Investing in paid mentorship can provide tailored guidance and accelerate the acquisition process.
- Act with Urgency: In competitive deal environments, prompt action can make the difference between securing a deal and missing out.
- Diversify Revenue Streams: A balanced mix of recurring and repair revenue enhances business stability.
- Modernize Operations: Updating digital presence and marketing strategies can unlock new business opportunities.
Sean Lindley [54:05]: "Develop relationships with lenders and push for additional lines of credit to support growth plans."
Future Plans
Sean envisions expanding R&R Lift beyond Austin, potentially acquiring additional businesses to build a family-oriented conglomerate. His long-term goal is to create a sustainable, scalable enterprise that allows him to remain actively involved while maintaining work-life balance.
Sean Lindley [94:17]: "I want to build a family business that my son can ride around with me and continue to grow through M&A activity."
Conclusion
Sean Lindley’s story is a testament to the resilience and strategic planning required in acquisition entrepreneurship. From overcoming a corporate layoff to successfully acquiring and modernizing R&R Lift, Sean exemplifies the entrepreneurial spirit Acquiring Minds seeks to inspire. His insights on mentorship, deal-making, and operational excellence provide valuable lessons for anyone looking to embark on a similar journey.
Sean Lindley [93:56]: "I'm in this to build a family business and stay engaged long-term without burning out."
Key Quotes:
- Sean Lindley [05:20]: "I knew what it meant—my position was being eliminated."
- Sean Lindley [10:53]: "I got an MBA in how to run a business—payroll, hiring, being a leader."
- Sean Lindley [34:19]: "I wanted to show I was serious, so I offered to pay Mike for his time."
- Will Smith [52:02]: "You should hang around the hoop and follow up with the broker or seller."
- Sean Lindley [93:56]: "I'm in this to build a family business and stay engaged long-term without burning out."
Resources Mentioned:
- Acquiring Minds YouTube Channel: Acquiring Minds YouTube
- Email Sean Lindley: Find Sean on X (formerly Twitter) as @Seaugndley
- Acquiring Minds Newsletter: acquiringminds.co
By following Sean’s journey and applying these lessons, aspiring entrepreneurs can navigate the complexities of buying and running a business, turning challenges into opportunities for growth and success.