Home Services Home Run: How Carrie Kelsch Built and Sold a $35M Business | Built to Sell Radio
November 1, 2024 |
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When Carrie Kelsch was encouraged to start a garage door business back in 2004, she had no experience in the industry.
By 2022, her company, A Plus Garage Doors, was generating $35 million in revenue with 30% EBITDA margins. This week on Built to Sell Radio, host John Warrillow shares Carrie’s journey—from her first steps in the home services industry to the personal tragedy that ultimately pushed her to consider selling.
In this episode of Built to Sell Radio, you discover how to:
- Enter a new industry as an outsider and succeed
- Build a trusted brand that stands out to customers
- Avoid getting ground down by savvy acquirers during negotiations
- Play the game of musical chairs private equity triggers when they roll up an industry
Carrie ultimately received offers of 10–11 times EBITDA and settled on a deal that handsomely rewarded both her and her employees.
Show Notes and Links
Connect with Carrie on LinkedIn
Definitions
Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.
Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.
Letter of Intent (LOI): This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up. It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.
Quality of earnings (or “Q of E”): When an acquirer has secured an exclusive position to purchase your business via an LOI, and the transaction is over $1 million or $2 million in value, the acquirer will often hire an outside CPA firm that specializes in reviewing financial documentation, to provide an analysis of your historical EBITDA compared with the values provided in your CIM. A Q of E report can often be a milestone, enabling an acquirer to consider a major portion of their due diligence completed.
Re-Trading: This occurs when a buyer attempts to renegotiate the purchase price of a deal after initially agreeing to one. It is often seen unfavorably as it occurs after due diligence, seemingly exploiting newly discovered information.
About Our Guest
Carrie Kelsch
Carrie Kelsch is the co-founder of A Plus Garage Door, a leading name in the garage door industry. With extensive experience in business management and customer service, Carrie has helped grow A Plus Garage Door into a respected company known for quality and reliability. Her leadership, market insight, and commitment to excellence have driven the company’s growth and built a loyal client base.
