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From $2.5M to $7M in 12 Months

From $2.5M to $7M in 12 Months

Are you next?

Jack Carr
January 05, 2026

Welcome to the JackQuisitions newsletter,

Growing from $2.5M to $7M in 12 months is no easy task, but that’s exactly what the most recent guest of the JackQuisitions podcast accomplished.

His story has me excited about what the new year will bring. Keep reading for the details.

But first, would you mind leaving me a podcast review?

Ready For Your Next Acquisition?

Check out these acquisition opportunities that caught my eye this week:

A residential HVAC service and installation business in Missoula, Montana, established in 2022, listed for $350,000, generating approximately $237,000 in gross revenue and $135,000 in cash flow, with a lean operation and significant room for growth.
A residential and commercial painting business in the Philadelphia area, established in 2013, listed for $440,000, generating approximately $925,000 in annual revenue and $150,000 in cash flow, operating with a small team under a well-established national brand.
A family-owned roofing and exterior services business in Ohio, focused on roofing, gutters, siding, and custom sheet metal work, listed for $4,800,000, generating approximately $3,000,000 in gross revenue and $1,000,000 in cash flow, with established operations, a skilled team, and decades of market presence.

Scaling Looks Fast Until You’re Inside It

From the outside, going from $2.5M to $7M in 12 months looks like momentum.

More revenue. More people. More locations. More traction.

After sitting down with Ian Smith, partner at South River Capital, it became clear that the internal experience felt much heavier. The business entered a higher weight class almost overnight, and existing systems revealed their limits immediately.

Acquisitions pushed the organization to $7M first. Operational maturity had to follow.

Revenue Did Not Create the Scale

Ian was direct about where the jump came from.

The growth came from buying revenue. One landscaping business turned into three operating companies inside six months. Headcount nearly quadrupled. Locations multiplied. Complexity arrived immediately.

Scale followed operations. Revenue followed decisions.

Acquisitions accelerated exposure long before structure fully caught up.

The Platform Assumption Breaks Early

One acquisition carried the label of a platform company.

On paper, it had SOPs, middle management, and structure. Day-to-day execution relied on pen and paper, magnets on boards, and an owner deeply embedded in decisions.

That difference mattered.

Ian explained that building a platform required rethinking tools, workflows, and accountability. Once the owner stepped back, the operating reality surfaced quickly.

Owner Dependency Defines Risk

This theme came up repeatedly in our conversation.

One business relied heavily on the owner for scheduling, decisions, and customer flow. Another continued operating smoothly during extended absences.

That contrast explained everything.

Owner dependency became the clearest indicator of long-term risk.

Integration Functions as a Survival Phase

Ian walked through how consolidation actually unfolded.

Each company stayed separate at first. Workflows were observed closely. Systems rolled out deliberately. Brand consolidation followed clarity.

That sequence reduced customer confusion and employee friction. It also created space to correct early assumptions before they became permanent problems.

Systems Debt Converts Into Cash Pressure

Some of the most damaging issues stayed invisible early on.

Invoicing lagged behind production. AR appeared healthy while cash stretched thinner each week. A platform decision created phantom AR that masked timing issues.

Ian described this as one of the hardest lessons of rapid scale.

Mistakes surfaced later through margin erosion and delayed visibility.

Financial Cadence Restored Control

Monthly financial reviews became a turning point.

One major division drifted toward breakeven while revenue still looked stable. That visibility triggered targeted hires and operational focus early enough to reverse the trend.

Financial cadence preserved optionality during a volatile period.

Size Amplifies What Already Exists

The jump from 20 people to 75 surfaced pay inconsistencies, cultural gaps, and management strain immediately.

Ian was clear that alignment does not appear automatically with size. Structure, communication, and reinforcement scale with intent.

Revenue magnifies whatever already exists.

The Real Lesson

This episode was not about fast growth. It was about forced evolution.

Acquisitions created momentum. Complexity followed. Control returned through deliberate operational rebuilds.

As Ian put it, revenue can be acquired quickly. Endurance comes from building structure that can actually hold it.

Tell Me What You’re Thinking

What do you think? Is 2026 the year you make your first (or next) acquisition?

Share your feedback with me on X or LinkedIn.

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