Run It for 6 Months Before You Buy It | Jeff Thompson Interview

Synopsis

Jeff Thompson left Honeywell to become general manager of Charter Elevator, a roughly 30-person elevator-servicing company that was unprofitable. Through a hire-to-acquire arrangement, he ran the company as a salaried general manager for six months, then bought one-third at a pre-agreed price and the remaining two-thirds over up to three years, ultimately financing the final purchase with an SBA loan. The episode covers his turnaround priorities, incentive alignment, profit sharing and dividends, revenue and funding, and why operating a business before buying it can substitute for traditional due diligence.

Ideas in this episode

• Small business acquisition (no experience required)

  Jeff Thompson acquired the roughly 30-person Charter Elevator through a hire-to-acquire arrangement after running it for six months. He bought one-third at a pre-agreed price and the rest over up to three years, financing the final purchase with an SBA loan.