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Happy Friday!
On Monday, I told you about Sam, the Amazon operations manager who closed on a 30-year-old outdoor lighting franchise in the Dayton-Cincinnati area for $90K out of pocket…
Just nine months after joining Acquisition Ace.
Today I’m sharing his biggest lessons from that deal, and our complete conversation about the intricacies of the deal. 👇
Before sharing Sam’s big takeaways, here’s another Acquisition Ace community success spotlight story.
Mario bought an $1.8M homecoming mum and party supply store for just $20K out of pocket, and 10x’d his investment in 6 months.
“It was everything… you can have everything there but if it’s not on you you’re not going to achieve anything. But the fact that you have the tools there that is 99% of it… the responsiveness from the coaches… all the other students… without it, I mean, obviously I wouldn’t be here.”
He went from CPG sales to owning a seasonal retail business making 40% more than the previous owner.
👉 Want all the tools, responsive coaches, and community support you need to succeed in your first acquisition? Book a call with our team here.
“I see at least $800,000 in additional revenue just from holiday lighting - and the previous owner was putting in almost no effort on that side of the business.”
That’s what Sam told me one month into ownership, when he was already seeing the upside that a semi-retired seller had been leaving on the table for years.
3 key takeaways from our conversation
1. Don’t automatically skip franchise resales
Sam’s first instinct was to pass on this deal because it was a franchise.
When he learned it was the original founding location - over 30 years old, with a 15-year sales manager and a 9-year service manager - he reconsidered.
Don’t let structure be a dealbreaker before you understand what’s actually underneath it.
2. A higher multiple is justified when you’re truly not buying a job
Sam paid roughly 4x cash flow (on the higher end of the standard range).
That multiple made sense specifically because the business came with a fully functioning team, 7,000+ existing clients, and inbound leads already flowing.
When you’re genuinely not replacing the owner’s labor, you can justify paying more for the stability that comes with it.
(Sam reviewed over 1,000 businesses and submitted five offers before one closed. Inside Acquisition Ace, members learn how to build the deal pipeline and persistence that make this process work. To learn how our community can help you buy your first business, book a call with our team here.)
3. Look for what a checked-out seller stopped doing
The previous owner was winding down toward retirement and barely promoting holiday lighting services - a high-margin offering in a market that’s perfect for it.
Sam saw that immediately.
The best growth opportunities in acquired businesses are often things the seller stopped caring about, not things that need to be built from scratch.
This week’s action item
When evaluating any business this week, add one question to your conversation with the seller:
“What services or revenue streams have you pulled back from in the last few years - and why?”
The answer may reveal where the upside is hiding.
To hear how Sam structured and closed this deal while working full-time and recovering from surgery…
Watch our full interview here.
P.S. Sam said the most valuable part of the process was knowing he wasn’t alone, and that he could reach out and get real answers from people who could help.
That support is what the Acquisition Ace community is built around.
If you want it behind your search too…
👉 Book a call with our team here to see if Acquisition Ace is right for you.
 | Onward, Ben Kelly PS: Check out our latest YouTube video. We reveal how one entrepreneur built a multi-million dollar pool company from scratch with no industry experience. |
This is the tool I use to find deals: SMBMarket.com
