The Magic of Low Multiple + Growth | David Graf Interview

Synopsis

David Graf bought Danhard, an HVAC business for specialty vehicles, for $2m against $750k of adjusted EBITDA, a 2.7x multiple. He used reps and warranties insurance instead of escrow, wholesaled the real estate in a sale-leaseback-style maneuver, and grew EBITDA 58% in 19 months through operational improvements.

Ideas in this episode

• Buying cash-flowing lifestyle businesses

  David Graf bought Danhard, an HVAC business for specialty vehicles, for $2m at a 2.7x multiple against $750k of adjusted EBITDA. He used reps and warranties insurance, wholesaled the real estate, and grew EBITDA 58% in 19 months.

• Small business acquisition (no experience required)

  David Graf acquired Danhard, an HVAC business for specialty vehicles, at a 2.7x multiple against $750k of adjusted EBITDA. He grew EBITDA 58% in 19 months through operational improvements after the acquisition.