Acquiring Minds Podcast Summary

Episode: One Year, 3x Revenue, and a Clear Path to $15M
Release Date: July 21, 2025
Host: Will Smith
Guest: Enrique Rodriguez, Owner of Mac General Power Solutions

Introduction

In this compelling episode of Acquiring Minds, host Will Smith engages in an in-depth conversation with Enrique Rodriguez, the successful owner of Mac General Power Solutions. Enrique shares his journey of acquiring a small electrical contracting business and transforming it into a thriving enterprise with projected revenues tripling within a year. This summary delves into the key points discussed, offering valuable insights for aspiring acquisition entrepreneurs.

Guest Background

[05:46] Enrique Rodriguez:
Enrique Rodriguez hails from Northern Virginia, originally moving from Peru at the age of seven. With a strong educational foundation in electrical engineering from Virginia Tech, Enrique accumulated diverse experiences across various engineering firms, from small startups to a Fortune 500 company. This extensive background equipped him with the necessary skills to navigate the complexities of business acquisition and management.

The Acquisition Journey

Identifying the Opportunity

[06:04] Will Smith:
Will introduces Enrique's acquisition of Mac General Power Solutions, an electrical contractor specializing in commercial, industrial, and wastewater projects. Despite its modest size with $1.4 million in revenue and $240,000 in Seller's Discretionary Earnings (SDE), Enrique saw significant growth potential.

Initial Hesitations and Preparation

[06:57] Enrique Rodriguez:
Enrique initially considered starting his own engineering firm but pivoted towards acquisition upon discovering the SBA program. He acknowledges his wife's skepticism about his readiness, prompting him to pursue an MBA and obtain a master electrician license to bolster his business acumen and technical credentials.

[11:19] Enrique Rodriguez:
"Before I did that, I wanted to be comfortable with business... It was a natural progression."

Financial Strategy

Enrique leveraged personal savings, a Home Equity Line of Credit (HELOC), and a personal line of credit on securities to amass approximately $750,000 for the acquisition. This financial foundation allowed him to purchase Mac General Power Solutions primarily through cash, minimizing financial risk and emphasizing execution risk instead.

[15:07] Enrique Rodriguez:
"I have like over half a million dollars in cash... which is more execution risk."

Post-Acquisition Transformation

Immediate Actions and Strategic Changes

Upon acquiring Mac General, Enrique implemented several strategic changes to streamline operations and drive growth.

[19:10] Enrique Rodriguez:
"He showed me his bid log... It was always coming in."

Enhancing Bid Flow

A significant aspect Enrique capitalized on was the business's robust bid flow. By increasing the number of bids submitted, he aimed to secure more projects, thereby stabilizing revenue and maximizing crew utilization.

[20:31] Enrique Rodriguez:
"We send about 17 estimates... and we send a lot more than 17 a month."

Operational Overhaul

Enrique undertook a comprehensive cleanup of the company's workspace, replacing outdated technology with modern ERP systems and automating the estimating process. This overhaul not only improved efficiency but also positioned the company for scalable growth.

[24:30] Enrique Rodriguez:
"I transferred my, instead of having big financial risk... I have execution risk."

Building a Management Team

Embracing the Rewild Group's growth framework, Enrique focused on developing a strong management team to delegate responsibilities and foster a professional organizational structure.

[34:28] Chelsea Wood:
"There's a lot of staging from small businesses development mature..."

[40:05] Enrique Rodriguez:
"I ripped everything out and put something else in."

Addressing Challenges

Enrique candidly discusses the hurdles faced, including limited initial backlog and the necessity of aggressive bidding to secure new projects. His proactive approach in addressing these challenges was pivotal in achieving rapid growth.

[43:34] Enrique Rodriguez:
"I actually started helping them bid for stuff..."

Results and Growth Trajectory

Financial Milestones

Within nine months of acquisition, Mac General Power Solutions projected revenues to soar to $4 million for 2025, with SDE reaching $750,000. By early next year, the company aims to achieve $15 million in revenue, marking a clear path to substantial growth.

[61:01] Enrique Rodriguez:
"By the end of January, it's like it never happened. We're break even and then we're growing."

Strategic Expansion

Enrique plans to leverage a $5 million SBA working capital line of credit to further accelerate growth, targeting a run rate of $15 million by year three. This strategic financial maneuvering underscores his commitment to scaling the business sustainably.

[63:23] Enrique Rodriguez:
"If I can get a line of credit through the SBA... I'm basically doing the SBA in reverse."

Insights on Project-Based Construction Businesses

Advantages

Enrique highlights the inherent strengths of project-based businesses, such as diverse revenue streams from multiple projects, scalability through larger and more profitable contracts, and reduced competition in specialized niches.

[77:43] Chelsea Wood:
"...you can fit your manpower around and you can project a year or two out how much manpower you need."

Mitigating Risks

Enrique emphasizes the importance of maintaining a healthy bid flow to ensure consistent project acquisition and managing working capital to handle the cyclical nature of construction projects.

[81:07] Enrique Rodriguez:
"You just keep bidding. That's why I got my sales funnel always bidding."

Personal Reflections and Advice

Importance of Business Buyer Fit

Enrique attributes his success to his deep industry knowledge, technical expertise, and local presence, underscoring the criticality of aligning personal skills and experience with the business being acquired.

[23:46] Enrique Rodriguez:
"I'm a master electrician, so all... I have all the licensing to own a day one."

Leveraging Support Systems

He acknowledges the pivotal role of his wife, father, and business consultant in providing support and guidance, illustrating the value of a strong support network in entrepreneurial ventures.

[90:32] Enrique Rodriguez:
"She's basically my independent sponsor, so I appreciate that too."

Encouraging Strategic Acquisitions

Enrique advises aspiring buyers to focus on industries they are passionate about and possess expertise in, highlighting the challenges and rewards of project-based businesses.

[88:36] Enrique Rodriguez:
"I always recommend that. And sometimes the business will tell you what it needs..."

Conclusion

Enrique Rodriguez's journey with Mac General Power Solutions serves as a testament to the potential of acquisition entrepreneurship in the construction industry. Through strategic planning, operational excellence, and leveraging industry-specific advantages, Enrique has not only mitigated the inherent risks of project-based businesses but also paved the way for substantial growth and success.

[72:50] Enrique Rodriguez:
"...sometimes some of your guests talk about their fetal moment. I didn't have a fetal moment per se..."

For entrepreneurs considering a similar path, Enrique's experience underscores the importance of thorough preparation, strategic execution, and the unwavering belief in one's ability to drive meaningful business transformation.

Notable Quotes:

• Enrique Rodriguez [11:19]: "Before I did that, I wanted to be comfortable with business... It was a natural progression."
• Enrique Rodriguez [19:10]: "He showed me his bid log... It was always coming in."
• Enrique Rodriguez [20:31]: "We send about 17 estimates... and we send a lot more than 17 a month."
• Enrique Rodriguez [34:28]: "I ripped everything out and put something else in."
• Enrique Rodriguez [61:01]: "By the end of January, it's like it never happened. We're break even and then we're growing."
• Enrique Rodriguez [63:23]: "If I can get a line of credit through the SBA... I'm basically doing the SBA in reverse."
• Enrique Rodriguez [88:36]: "I always recommend that. And sometimes the business will tell you what it needs..."

Additional Resources

• YouTube Channel: Acquiring Minds
• Episode Summaries Signup: acquiringminds.co
• Enzo Technologies: inzotechnologies.com

This detailed summary encapsulates the essence of Enrique Rodriguez's insightful discussion on Acquiring Minds, providing a roadmap for acquisition entrepreneurs aiming to replicate similar success in project-based construction businesses.