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This week’s case study is all about Kris - a 20-year oil industry veteran working at Chevron who had zero experience buying businesses.
Just five months after joining Acquisition Ace, he closed on a niche oil pump maintenance company…
And already has his second deal in the pipeline.
Community Spotlight
Before we get to Kris’s case study, I’ve got another spotlight success story from our Acquisition Ace community.
Avi and Jay bought a $1.3M cleaning company from another ACE member, and are now building a portfolio of cleaning businesses.
“The conversation that you can have with your network is probably the most important thing once you start doing this. I was able to get something that was forwarded to me from another ACE member. The community itself is what actually allows this to happen.”
Their first deal came directly from networking inside the group, and now they're acquiring their second and third companies.
👉 Want to join a community where members share deals and partner together? Book a call with our team here.
Kris had nearly two decades in the oil industry, and had always been drawn to owning his own operation.
When a steel supply company at his workplace sold without him even knowing it was on the market, he decided to figure out how business acquisitions actually worked.
He joined Acquisition Ace as a complete novice and had to learn almost everything from scratch.
Finding the Deal
Kris actually spent months chasing a steel supply company first.
When that deal stalled and kept going back and forth with no progress, he made the call to walk away and pivot to his second choice:
AC Pumping Unit Repair, a Los Angeles-based company specializing in oil pump maintenance.
The business had been operating for over 30 years, had virtually no competition in its niche, and both sellers were willing to stay on, with one planning to stick around for at least 10 years.
(Inside Acquisition Ace, members learn how to structure deals creatively, just like Kris. Want to learn how? Book a call with our team here.)
The Deal Breakdown
Purchase price: $2.6M
Down payment: 5% (~$137K) + seller matched 5% on full 2-year standby
Cash out of pocket: ~$150K total (including closing costs)
Annual cash flow: ~$550K
Debt service: ~$350K/year
Net to Kris: ~$250K annually
Cash-on-cash return: ~166% in year one
Both sellers took salary cuts post-close, which freed up additional cash flow to cover Kris’s compensation.
What He’s Doing Now
Kris is still working his W2 at Chevron on a 4/10 schedule, visiting the business every few weeks and spending roughly 10 hours a week on ownership duties.
The sellers continue running day-to-day operations while he gets up to speed on systems and payroll.
He’s also planning to leverage his existing Chevron relationships to bring the company new business, including a potential contract with Chevron’s Bakersfield operation, which isn’t currently a client.
Oh, and he’s already signed an LOI on his second deal - a $1M fabrication shop in San Diego!
The Key Lesson
“Don’t let anybody tell you you can’t do something. Hang in there, give the bank what they want, and once the deal’s done, you just start looking for the next one.”
Kris was a complete novice five months before closing.
He didn’t have a finance background or acquisition experience.
What he had was industry knowledge, persistence, and the willingness to walk away from a bad deal and chase a better one, and that combination made all the difference.
Ready to find and close your first acquisition?
Join the Acquisition Ace community with 2,000+ members who are learning to find, finance, and close deals.
👉 Just book a quick call with our team here, and we’ll have a short chat to see if it’s a good fit.
 | Onward, Ben Kelly PS: Check out our latest YouTube video. I show you how I bought a profitable boring business without spending a dime and how you can do it too. |
