Owned and Operated - Episode #213: Behind the Scenes of Buying a Business

Release Date: June 20, 2025

In episode #213 of the "Owned and Operated" podcast, hosts John Wilson and Jack Carr delve deep into the intricate process of acquiring a business. Featuring insights from guest Chris Barr, this episode offers a transparent look into the challenges and strategies involved in buying a business, navigating broker relationships, and the importance of personal branding in the acquisition landscape.

1. Introduction and Guest Update

The episode kicks off with Jack welcoming Chris Barr back to the show, expressing enthusiasm about Chris's latest endeavors in the business acquisition space.

• Jack [00:00]: "Welcome back to Jackisitions. We got Chris Barr on today for some awesome updates."
• Chris Barr [00:45]: "As I mentioned, just in time for Easter, we are up from the dead."

These opening remarks set the stage for a candid discussion about Chris's recent activities and progress since their last conversation.

2. Engaging with Private Equity Firms

Chris shares his experiences reaching out to micro Private Equity (PE) firms in his localized search area, highlighting both successes and limitations.

• Chris Barr [01:13]: "I did reach out to some micro PE firms... they're definitely hunting through their pile to see if they're passing anything small that might be good for me."

Jack underscores the mutual benefits of this relationship, emphasizing the potential for future partnerships if Chris encounters opportunities beyond his immediate purchasing capacity.

• Jack [01:54]: "At the end of the day, if you find something, it's a win for you and a win for them..."

3. Exploring Acquisition Channels Beyond Brokers

The conversation shifts to alternative methods for sourcing business deals, with Chris detailing his ventures into B2B cold calling and leveraging freelancers to build targeted lists.

• Chris Barr [03:11]: "I engaged some freelancers on Upwork to help create a big list of CPAs and bookkeepers in my area to reach out to for some off-market deals."

Jack relates this to his experience, sharing a story about a colleague who found greater value in direct cold calling over third-party services.

• Jack [04:23]: "I think that there's a push for people who are willing to push and do cold calling themselves, buy the list and just do it."

4. Challenges with Broker Relationships

Both hosts discuss the frustrations and inefficiencies associated with broker interactions, particularly in fragmented markets like HVAC.

• Jack [06:34]: "If you called the top 50 brokers in the US and said, 'I want an HVAC deal,' they'd probably control only 5% of the market."
• Chris Barr [08:14]: "I'm just getting such broker burnout... I still feel like the momentum of finding higher quality deals is from more off-market avenues."

Chris admits feeling overwhelmed and underwhelmed by the repetitive nature of broker-sourced deals, advocating for broader acquisition strategies.

5. Evaluating Specific Business Opportunities

The duo examines specific business sectors Chris is exploring, notably the pool cleaning industry and an art framing business in West Palm Beach.

a. Pool Cleaning Business

Chris discusses a potential pool cleaning acquisition, weighing its pros and cons.

• Chris Barr [09:35]: "This one is really gonna be put on the back burner... there aren't a lot of competition on it, which really does not bode well."

Jack provides a critical analysis of the business's financials, cautioning against what he terms a "buyer's trap."

• Jack [10:33]: "It was a $1 million purchase price and almost a 270, 280 in SDE... it's running at a what, 4.4x multiple on a young pool business."

b. Art Framing Business

The conversation shifts to a more promising opportunity in the art framing sector, highlighting its scalability and alignment with high-end markets.

• Chris Barr [24:43]: "Service is really where I'm putting the premium at... it's a pretty on-brand business for this market in the service sector."
• Jack [30:42]: "This sounds like a good business. I'm excited to hear more."

6. Navigating LOIs (Letters of Intent)

A significant portion of the episode is dedicated to understanding the nuances of LOIs in business acquisitions. Chris elaborates on crafting competitive offers and the importance of flexibility during negotiations.

• Chris Barr [17:49]: "We're assuming that it's going to be very, very streamlined... we have a lower tolerance for red flags on this deal."
• Jack [18:57]: "It's pretty standard stuff. I would highly recommend, I mean, you're working with your broker..."

The hosts emphasize the importance of professional guidance when drafting LOIs and the tactical advantages of a well-crafted offer.

7. The Role of Personal Branding in Acquisitions

Jack introduces the concept of personal branding as a solution to broker burnout, suggesting that establishing a distinct online presence can enhance trust and memorability among brokers.

• Jack [42:09]: "If you were to be Chris the painter, paint acquirer... there's a lot of trust and memorable interaction for them."

Chris reflects on his own branding efforts, acknowledging areas for improvement to better align his online persona with his acquisition goals.

• Chris Barr [46:45]: "I did not brand as accurately as I initially thought I did... it's probably time for me to revisit that a bit."

8. Considering Lifestyle Businesses

The episode concludes with a philosophical discussion on the nature of lifestyle businesses versus scalable enterprises. Chris shares his preference for stability and sufficient income over exponential growth.

• Chris Barr [35:19]: "Not the scaling, not the growth is not something that's been the highest priority to me... do I need to grow it? I'm a simple man with simple needs."
• Jack [36:29]: "There are some wonderful lifestyle businesses out there that have no potential for growth whatsoever... it really depends on who you are and what you're looking for."

This segment encourages listeners to introspect on their personal goals and the type of business that best aligns with their desired lifestyle.

9. Final Thoughts and Takeaways

As the episode wraps up, Jack and Chris summarize their discussions, reiterating the importance of diversified acquisition strategies, effective personal branding, and aligning business choices with personal life goals.

• Jack [39:58]: "Do you have any questions that, that came up that you're like, hey, I needed to ask Jack that, what should I have done here?"
• Chris Barr [40:20]: "I'm excited to report back, let you know what I've learned... the universe just has a way of putting something in your lap."

Listeners are left with actionable insights and the encouragement to continuously adapt and refine their acquisition approaches.

Notable Quotes

• Chris Barr [01:13]: "I did reach out to some micro PE firms... they're definitely hunting through their pile to see if they're passing anything small that might be good for me."
• Jack [04:23]: "I think that there's a push for people who are willing to push and do cold calling themselves, buy the list and just do it."
• Jack [42:09]: "If you were to be Chris the painter, paint acquirer... there's a lot of trust and memorable interaction for them."
• Chris Barr [35:19]: "I'm a simple man with simple needs and maybe I'm being naive here or maybe I'm self-aware, I don't know."

Conclusion

Episode #213 of "Owned and Operated" offers a comprehensive exploration of the business acquisition journey, blending practical strategies with personal philosophies. Chris Barr's candid experiences, coupled with Jack Carr's expert insights, provide listeners with valuable lessons on overcoming industry challenges, leveraging personal branding, and making informed decisions that resonate with their individual aspirations.

For more episodes and resources on growing your home service business, visit www.ownedandoperated.com.