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Turning $25k into a $3.2m Exit in Under 4 Years

Acquiring Minds

Thu Mar 26 2026

Summary

Acquiring Minds Episode Summary

Podcast: Acquiring Minds
Host: Will Smith
Guest: Corey Mullins
Episode: Turning $25k into a $3.2m Exit in Under 4 Years
Date: March 26, 2026

Episode Overview

In this episode, Will Smith interviews Corey Mullins, a seasoned HVAC (Heating, Ventilation, and Air Conditioning) tradesman turned acquisition entrepreneur. Corey shares the journey of parlaying a $25k investment into a $3.2 million exit in less than four years, buying a struggling HVAC business, rebuilding and rebranding it, and selling it to private equity. The episode explores hands-on trade experience vs. business acumen, the challenges and advantages of being an operator-owner, and the realities of acquisition entrepreneurship in a highly competitive industry.

Key Discussion Points & Insights

1. Corey's Background & Path to Acquisition

[07:34 – 09:52]

Corey grew up in the HVAC trade, working alongside his father and running the family business (eventually as general manager).
Expected to take over the family business, but the succession plan failed late 2021, forcing him to strike out on his own.

“I found myself walking out the door with no real plan… By January 1st of 2022, I was, you know, on the way, running, just starting my own business while in the process of trying to acquire another business.” (Corey, 09:58)

2. The Simultaneous Launch and Acquisition

[12:46 – 14:54]

Corey started his own HVAC business, Cool by Design, and simultaneously pursued the acquisition of a local competitor, McConnell Air Conditioning, a once-thriving but now declining company with significant local history.
Acquired McConnell Air for $100k, including a $50k van (highly valuable amid COVID vehicle shortages), the business’s phone number/goodwill, and eventually gained a burnt-out but experienced technician (the owner’s son).

“The value to me was the 1975 phone number… You could get a call from a customer who hasn’t called you in 15, 20 years… and you can convert that to a sale, a service contract, [etc.]” (Corey, 17:02)

3. The Phone Number as an Asset

[17:02 – 18:49]

In trades like HVAC, phone numbers and labels on existing units act as evergreen marketing assets, funneling service calls for years—even decades.
Corey viewed the phone number as the central reason for the acquisition, essentially shortcutting the arduous process of building a customer base from scratch.

4. Acquisition Economics & Immediate Returns

[18:49 – 23:02]

The purchase price: $100k ($50k for the van, $50k for goodwill/phone numbers).
With an established stream of service calls, Corey recouped more than the $50k “goodwill” portion within the first year.

“In the first year we netted more than that $50,000 off that customer base.” (Corey, 22:53)

5. Differentiation from Typical Searchers – Industry Expertise

[23:58 – 25:24]

Will and Corey stress that acquiring a small, technical business as an industry outsider would be challenging, if not impossible; only someone with deep trade experience could successfully take over and grow such a business.
Searchers (non-industry buyers) generally seek businesses large enough to support existing management—most sub-$1M businesses don’t have that luxury.

“If you have somebody from outside this industry [they] couldn’t have bought this business and made it work. It wouldn’t.” (Corey, 23:58)

6. Building to Sell: Operational & Financial Discipline

[29:09 – 34:53]

Corey intentionally built Cool by Design as a saleable business: proper pricing, clean financials, avoiding “creative accounting.”
He positioned the firm as a premium service provider (not the cheapest provider), ensuring margin and eventual attractiveness to a buyer.

“If you want to have a sellable business, you’re not going to get the value if you’re… creative accounting.” (Corey, 30:11)
The initial goal: grow to $5M in sales, $1M EBITDA, and a ~$5M after-tax exit; in reality, the exit came much sooner.

7. The Growth Trajectory

[36:05 – 40:55]

Scaling relied on specialized marketing, steady organic growth, lean use of employees with subcontractors as needed.
Key inflection points were hiring a field manager (to step back from day-to-day field work) and an office manager (for back-office systems and customer experience).

“That was probably one of the biggest mistakes I think I made, was waiting too long to hire those people… I would have added more, been able to focus on the business more…” (Corey, 38:58)
By late 2024: $2M+ in annual revenue, running with a small, focused team.

8. Navigating “Normal” in a Tough Industry

[26:48 – 28:40; 76:20]

Post-COVID (“the best four years for home service businesses ever”) conditions faded, returning to a much more competitive environment—tight margins, price-sensitive customers, and higher sales difficulty.
Will and Corey discuss the myth vs. reality of the “easy” trade business—good margins possible but only with excellent execution and discipline.

“It’s a tough business. It’ll always be a tough business, but when done right, it’s a very rewarding business and the margins are high.” (Corey, 76:20)

9. Exiting: The Sale Process and Buyers Landscape

[44:25 – 50:45]

Decision to sell came opportunistically after stabilizing the business and seeing multiples softening—but still strong.
Engaged broker Patrick Lang, who specializes in HVAC businesses.
Several offers from PE groups and searchers. Private equity provided both the best financial outcome and, in Corey’s judgment, the best post-sale stability for the business and team.
Searcher offers were all less competitive; PE buyers could pay more due to access to capital and platform synergies.

“All the searcher offers were not competitive… It’s hard to compete with private equity when you’re using your money.” (Corey, 50:28)
Sold the business for $3.25 million in late 2025, largely in cash (93%, with a 7% seller note).

10. Owner-Operator vs. Outsider Buyer: Tradeoffs and Cautions

[51:37 – 56:59]

Corey is candid that outsiders buying HVAC businesses without trade knowledge are, in his view, “a little insane.” Success is possible—but exceedingly difficult, especially with small businesses lacking robust management layers.
However, he acknowledges that not knowing the technical trade can, paradoxically, force an owner to focus on scalable systems and management—critical for stepping out of daily operations.

“There is some strength to not knowing the field, the tech side of it… it’s almost a strength because you don’t get pulled into the truck, you don’t get pulled into the field, and you can stay working on the business…” (Corey, 55:32)

11. Why Don’t More Tradespeople Become Entrepreneurs?

[59:15 – 60:36]

Barriers: fear of risk, comfort with steady job, lack of capital, and the glamorization of entrepreneurship not matching the brutal work required.
Many tradesmen with the right skills never jump in; Corey credits necessity and timing for his leap.

12. Changing Perceptions of the Trades

[61:17 – 67:25]

The “trade dad” image: formerly overworked, underpaid, and unglamorous—now, skilled technicians (and especially owners) may enjoy attractive incomes, assets, and lifestyle.
Corey reflects that growing up with a tradesman father didn’t deter him, but the shift in societal attitudes and improved trade economics may lure more young people today.

13. Advice for Searchers & Future Acquisition Entrepreneurs

[77:24 – 79:18]

For non-technical buyers: Target businesses with $3M–$5M in sales and clear middle management; ensure key technical staff are loyal and incentivized.
Ideally, partner with a technical co-owner or manager (with upside/skin in the game) to bridge knowledge gaps and de-risk the acquisition.

“I think the hugest strength would be somebody with the business acumen and somebody with the tech field knowledge. Becoming business partners would be a huge strength too…” (Corey, 56:59)
Don’t overpay for businesses—avoid competing with PE’s pricing.

14. Honest Reflections on Sacrifice and Struggle

[84:12 – 85:34]

While Corey didn’t experience a single “fetal position” payroll crisis, he underscores the massive sacrifice in time, lifestyle, and emotional energy required.

“I say 90% of owning a business is doing stuff you don’t want to do, but knowing you got to do it and doing it anyways.” (Corey, 85:34)

Notable Quotes & Memorable Moments

On Family Business Heartbreak:

“You kind of, you know, think, one day I’m going to take this over… And, you know, that doesn’t always pan out for everybody… I found myself walking out the door with no real plan.” (Corey, 09:58)
On Why the Tiny Acquisition Mattered:

“The value to me was the 1975 phone number… I wanted phones that were going to be ringing day one.” (Corey, 17:02)
On Playing to Strengths:

“Anybody from outside the H Vac business that is looking to buy an H Vac business, I think they’re a little insane, to be frank.” (Corey, 51:37)
On Building to Sell:

“If you want to have a sellable business… you’re not going to get the value if you’re… creative accounting.” (Corey, 30:11)
On When to Hire:

“The biggest mistake I made was waiting too long to hire those people. I think we could have got twice as far if I hired sooner.” (Corey, 38:58)
On Owner Burnout:

“You can do a lot more with the right people than you can do by yourself… Burnout’s a real thing.” (Corey, 38:58)
On Searchers vs. PE:

“It’s hard to compete with private equity when you’re using your money. A lot of these people are using SBA loans. They got a lot more risk on the table.” (Corey, 50:45)
On Entrepreneurship’s Price:

“It’s been romanticized. It’s not easy, it’s not fun. It can be very rewarding. And there are times it is fun—to say it’s the highest of highs and lowest of lows.” (Corey, 59:15)
On Trades’ Changing Fortunes:

“Now you can make good money being a technician or sales… There’s people in sales and trades making six figures… you start to see the trade dads… vacations… nice cars…” (Corey, 61:40)
On Partnering for Success:

“Partnerships work best when people bring different things to the table. Just think of it like a marriage.” (Corey, 81:55)

Timestamps for Key Segments

[07:34] – Corey’s HVAC background & failed family succession
[12:46] – Launching his own firm, targeting McConnell Air
[17:02] – Phone number value & acquisition logic
[22:53] – Acquisition ROI & early returns
[29:09] – Building to sell: philosophy & best practices
[36:05] – Team building, pivotal hires, and scaling
[44:25] – Deciding to sell; connecting with broker
[50:28] – Searchers vs. PE buyers: offers & rationale
[55:32] – The double-edged sword of technical vs. business knowledge
[61:40] – “Trade dad” then and now; shifts in perception
[76:20] – The “tough but rewarding” reality of HVAC and trades
[77:24] – Sizing and structuring an acquisition for outsiders
[84:12] – Honest take: sacrifice, struggle, and what it takes

Final Thoughts & Reflections

Corey’s journey is a candid look at the intersection of trade expertise and entrepreneurial grit—showing how even small, overlooked service businesses can become life-changing assets in the right hands. He demystifies the process, highlights the danger of overpaying and under-preparing, and encourages outsiders to seek technical partners if they want to win in such industries.

Contact Corey Mullins:
Best via email (see show notes for address)

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Transcript

Will Smith (0:00)

Today's guest thought he would take over his family's H Vac business. Corey Mullins was himself an H Vac technician and had worked his way up since graduating high school. But alas, that original plan didn't pan out and Corey had to figure out what next answer. Start his own H Vac business, which he did with $10,000 in a single truck. But right around the same time, he connected with another local H Vac owner looking to sell. That business was tiny, less than $200,000 in revenue and falling. But it was a decades old business. And as you may know, H Vac companies put labels with their phone numbers on the units they install. So this business's phone number was clearly displayed on the side of probably thousands of units throughout South Florid, waiting to be called when those units inevitably had issues. That phone number had real value and Corey bought the business for $150,000.

Ian (1:11)

He only had to bring the 10%

Will Smith (1:14)

required by SBA, so $15,000. And if you add the aforementioned $10,000 that he was using to bootstrap, Corey invested $25,000 all in. He spent the next three years building before selling to private equity for $3.2 million, mostly in cash. $25,000 to $3.2 million in under four years.

Ian (1:43)

How about that MOIC?

Will Smith (1:46)

A key theme of today's story is how Corey was a tradesman by background, so he knew the business of H Vac Corporation cold, an obvious advantage that many searchers don't have. He's shocked that so many people in our community buy these businesses without any

Ian (2:03)

experience in the trade.

Will Smith (2:05)

But of course, what searchers lack in trade knowledge, they make up for in business building ability. Hopefully having both is the killer combination. Private equity knows this. They often install operating partners from the target industry into their acquisitions. But searchers generally don't do that. They become the operators themselves. Well, hearing Corey's story should make you wonder about the possibilities of partnering with someone like him. What might that model look like? See what you think and enjoy this story of tradesman now acquisition entrepreneur Corey Mullins. And if you're interested in a story with a similar pattern, check out Patrick Norris from April 2024, who started on the back of a garbage truck and eventually bought, grew and exited his own trash business for 4.4 million. A lot of your success buying a business depends on assessments you make before you become its owner. When you're asking yourself essentially, is this a good deal? Well, the team at forensic accounting firm LCS has performed due diligence for over a thousand transactions in the small business market. And today, Thursday, they'll be hosting an office hours webinar to share the patterns they look for that suggest a good deal. They'll go deep on factors like low entry, multiple business buyer fit, quality of revenue, seller alignment, and industry tailwinds. Now, regular listeners of Acquiring Minds know what these terms mean, but the LCS team will go deep on really understanding why they are such important characteristics. The webinar is what actually makes a good deal. Patterns from over 1,000 transactions. It's today Thursday, March 26th noon Eastern. Link to register is right at the top of this episode's show Notes or on the Acquiring Minds homepage.

Corey Mullins (36:05)

Yeah. One of the most crucial pieces was partnering with a good online marketing company that specialized in the trades. That was a crucial part helping us grow. I mean, if you can't get the phone ringing, everything starts with a sale. So that, you know, that was a very crucial part. And we, you know, we did good there and we just saw good, organic, rapid growth, but, you know, not too rapid. You know, my goal was to grow quick but not so fast that you lose control, you lose, you know, you lose profitability. I want a profitability through growth. So I think at the point When I acquired McConnell Air, I had a tech and an apprentice. So I brought on, you know, then I had two techs in Apprentice. After I acquired McConnell Air, we ran like that for probably two years. But we did lean on a lot of subcontractor. I had a lot of subcontractor relationships for installs and duct replacement, stuff like that. So it allowed us to keep our employee count lower for our revenue, not to buy as many trucks, you know, keep insurance lower. Um, so we pretty much ran like that for two years. And then, you know, I hit a wall where I got to a point where, like, I need help. You know, I think everyone gets that point in their business, right? I need help. And luckily, you know, we had the revenue to support it. I was able to bring on a field manager to help free me up, because at this point, I'm running the field. I'm doing a lot of the sales. I'm doing the back office stuff. And I think that was a pivotal point. When I brought on the. The field manager, that freed me up to kind of work a little bit more on the business. And then probably six months later, I brought in an office manager, and that was another pivotal point. And then I'm starting to see a little light at the end of the tunnel where, you know, I don't have to work 80 hours a week anymore, and this business can run more without me. And I think that was probably one of the biggest mistakes I think I made, was waiting too long to hire those people. I think we probably could have got twice as far as we did if I hired sooner.

Corey Mullins (41:35)

Yeah. So that I guess at that point we're in 2024, I didn't really have a serious thought about selling. It's always in my mind like we need to do this, we need to do that so we can get to this goal. And I mean, you always have those days as a business owner. I mean, especially in the trades. I'm done. I, you know, I, I, I don't know how much longer I can do this. You know, this is, you know, but I never, I didn't have that pivotal moment, like, this business is ready, it wasn't ready to sell. You know, if I'm running around that way, it's not, it's not sellable business. So I didn't have that thought yet. Um, so we go through, we finish out 2024, we have a great year. I mean, we went from zero revenue to just over, just over 2 million within was it three years? So we're doing, you know, we're doing good, we're growing, and then we get into 2025, we're moving along, everything good, you know, get to a point where I didn't, I didn't even think about hiring an office manager yet, which I should have. But I get an email from somebody who's experienced, have experience in the home service business. They're looking for a job. And I'm an opportunist. I'm like, this guy's emailing me, let me have a conversation with him. He was the right fit for the job. I brought it. That was pivotal. He got our office cleaned up, systems in place. Very organized person. Follow up, he's following up on sales. You know, should have hired, you know, I should have hired both those managers six months in, if I knew better. Um, and then, so we're going through 2025, everything's going good, and I think maybe, you know, I might, I think I might have been getting to the point where I'm getting, maybe I was getting a little bored because I wasn't working 80 hours a week. I don't know what it was. But, you know, I'm still involved in the business, um, as far as working that much. I, even in the first year in business, I, I took vacations, I still took time off. I'm like, if I, what's the point in doing this if I'm a slave? So I'll be a slave when I'm here, but I gotta take time off. So I always, you know, my first year in business, I took two weeks off. People told me I was crazy. I'm like, I'd be, you know, I'm gonna go crazy if I don't. And then from there on, I collectively took probably, you know, three to four weeks off a year, and then 20, 25, everything's going good, we're still growing. And I wake up one morning and decide maybe it's time to sell. And this I, I, I execute fast. When I have an idea, I just, I run with it. So I've been connected with a broker. He's a broker that sells H vac businesses. That's all he does. He's well known in the business I've been connected with.

Corey Mullins (61:40)

Yeah, I think that's part of, that's part of the reason why we have a short or had a shortage of people, young kids coming in the trades. I think it's starting to come back. But, you know, in my generation growing up, you, you know, your dad was in the trade. You saw that, you barely saw him. He was always working a lot, coming home late, barely scraping by, always tired. And, you know, so you see that growing up and you're, why the hell do I want to do that? You're going to go college, try to do something else. And I think that's part of the reason we've had a shortage of people going into the trades and you can't blame them. And then now I think it's Coming for, you know, full circle. People in trades are making more. When I started in this trade, if you made $50,000 a year as a technician, you were a top technician. I mean, now really. Yeah, $20, you know, 20, $22 an hour was a top technician. And everything cost less back then, too. But now, you know, you can make good money being a technician or a salesperson or in the trade now and not have to own your own business. And there's plenty. There's people in sales and trader, you know, there's always outliers, right. Making, you know, six figures. It just depends where you're at and what you're doing. So I think now, you know, you see the trade, dads third, especially the business owners or, you know, you start, you go over your friend's house and they live in a, you know, nice house, nice cars, vacations that, you know, as a kid, that attracts you to, you know, what's this dad do? Or, yeah, you know, on career day that, you know, the plumbing dad shows up in his Porsche. You know, that's how those things that, wow, young boys, you know, like your kids were in the cars, you know, you want that fast car and you start seeing that it's not just the doctor showing up in the porches. And I think that's part of going to start attracting people back to the trades. And then we got to create that work life balance, if there is such a thing. But, you know, some people believe in that.