The “No-A$$hole” Rule for Acquisitions

Welcome to the JackQuisitions newsletter,

Buying an existing HVAC business gives you an immediate advantage with legacy customers, brand recognition, and day-one service calls. But there’s something to remember: success depends on smart branding, cultural fit, and selective acquisitions.

Below, I talk about the “no-a$$hole” rule for acquisitions along with other tips to guide you.

Don’t forget: I’m hosting an “Acquisitions Happy Hour Meetup” on September 5th in Miami, FL. Sign-up (it’s free). It’s not too late to register :)

The Fastest Way to Make an Acquisition

Want first crack at HVAC, plumbing, and electrical businesses for sale?

Join the Business Modification Group buyer list.

Rather than fight hundreds of prospective buyers for the best deals, get notified the moment a trades business hits the market.

✅ Be the first to see new deals
✅ Get a complimentary deal review
✅ Access exclusive off-market opportunities

Join the list here — before the next deal drops. It could be the difference between making a deal and finding yourself stuck at square one.

Ready For Your Next Acquisition?

Finding your next acquisition target can be just as stressful as the process itself. Let me help. Here are some listings for your review:

This $440K revenue HVAC business nets $140K—90% residential, 10% commercial, with no new construction or refrigeration. Operates with flat-rate pricing, Trane as the primary brand, QuickBooks for accounting, and Jobber as its CRM. Serves ~800 active customers, with the owner as the sole technician and installs subcontracted.

This $1.66M revenue HVAC business nets $155K—serving both residential and commercial customers with no industry experience required for ownership. Established in 2016, the company has nearly a decade of goodwill and operates with a trained team of technicians providing 24/7 heating, cooling, and air quality services. Positioned in a high-demand, recession-resistant market with strong growth potential and a well-established reputation.

This $863K revenue HVAC business nets $339K—60% residential, 40% commercial, with less than 3% new construction. Operates with outsourced payroll, QuickBooks for accounting, and in-house extended warranties. Serves ~2,000 active customers and has completed 27 changeouts in the last 12 months.

This HVAC business nets $117K—established in 2019 with a trained team of technicians serving both residential and commercial customers. Ownership does not require industry experience, with staff handling all service work including heating, cooling, and air quality solutions offered 24/7. The business benefits from repeat customers, steady growth since inception, and a strong reputation in the market.

Tuck-Ins Over Big Plays?

When you’re buying in the trades, size isn’t everything. The easier wins often come from the smaller operators, the “chuck-in-truck” shops with a customer list, a couple of techs, and phones that keep ringing.

Jeff Bates has bought two HVAC companies in Michigan. His lesson is clear: tuck-ins are cleaner, faster, and usually more profitable than trying to absorb a big, messy business with years of baggage.

Why Smaller Can Be Better

With a tuck-in, you avoid the headaches that come with a larger purchase.

You do not inherit a fleet of trucks that need thousands in repairs.
You do not get stuck with legacy systems that never made sense.
You do not spend months trying to convince employees to adapt to your culture.

Instead, you get what matters most:

• A phone list of paying customers you can put into your system immediately.

• A brand people in the area already know, which means calls on day one.

• Techs who may be loyal to the previous owner but are usually happy to keep steady work under new leadership.

Jeff shared that one seller had almost nothing of value other than a customer list, but even that was worth considering because it could be folded in without the overhead.

The Culture Factor

The financials are important, but Jeff says the people are what make or break an acquisition. At both companies he bought, there was at least one employee who became a problem. One asked for a massive raise right after the deal closed. Another dragged down morale until they were finally let go.

That is why Jeff applies a strict “no-a$$hole policy.” If someone undermines culture or causes friction, they are gone. Even if they can sell or install better than anyone else, the cost to the team is too high.

Lessons for Operators

When you are weighing an acquisition, you can keep your filter simple:

• Does this deal give me customers and cash flow on day one? With both of Jeff’s purchases, the phones were ringing immediately because of the brand equity he bought.

• Can I absorb this business without breaking my systems? Jeff avoided overcomplicated deals that would stretch him thin and instead focused on ones that fit into his existing processes.

• Is the culture going to fit, or am I inheriting a problem I will regret? In both cases, he found employees who were not a match and cut them quickly.

The Takeaway

Growth through acquisition is not always about swinging for a big deal. Sometimes the smartest play is the smaller one that gives you customers, brand presence, and steady work without creating chaos. A clean tuck-in can move the needle faster than a large acquisition weighed down by trucks, overhead, and drama.

The Quickest Path to a Winning Lead Gen Strategy

Every job, every payroll, every growth plan. It all depends on a full pipeline.

But here’s the problem…

Consistently generating leads is harder than it looks. One week your phones are buzzing, the next you are staring at a slow board and wondering what happened.

There’s only so much you can manage internally, so it’s important to find a lead gen agency you can trust.

That’s where Service Scalers can step in. They keep the engine running in the background while you focus on other areas of your business.

PPC, LSA, SEO, and more. They do whatever it takes (and whatever you need) to generate quality leads for your home service business.

For a limited time, Service Scalers is offering 1 month free with any 12-month contract. A deal like that is worth a closer look.

Tell Me What You’re Thinking

What do you think about the no-a$$hole rule? How about the other tips Jeff shared?

Obviously, there’s some gray area, but it’s good practice to keep these lessons in mind as you move through the acquisition process.

Got questions or require guidance? Get with me on X or LinkedIn.

Disclosure: Some of the content and links in this newsletter are sponsored or affiliate links, which means we may receive payment or earn a commission if you click through or purchase. However, all opinions expressed are entirely my own.

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