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)