First-Timer Buys a $15m Business in Distress | Mike Bourgeois Interview

Synopsis

Mike Bourgeois and a search partner bought Cardinal Heating & Air, a Kirkland HVAC company with $12 million to $15 million of revenue that was losing about $3 million a year. They paid cash without bank debt or a personal guarantee, betting that cost cuts, culture change, gross-margin improvement, and lead generation could take the company to more than $1 million of EBITDA. The episode covers a distressed acquisition where the main risk is operational chaos instead of leverage.

Ideas in this episode

• Buying cash-flowing lifestyle businesses

  Mike Bourgeois paid cash without bank debt for Cardinal Heating & Air, a $12M-$15M HVAC business losing $3M a year, betting on cost cuts and gross-margin repair to reach $1M+ EBITDA.