Graham Weaver

So we started off in plumbing and HVAC and we had this, a guy named- It's always HVAC. Yeah, exactly. This guy, AJ Brown was a CEO in training. We put him in to be CFO of one of our companies. He did great there. We sold the business. We repatriated him. We said, okay, you're ready for prime time. They're going to be the CEO of a platform.

So we started off in plumbing and HVAC and we had this, a guy named- It's always HVAC. Yeah, exactly. This guy, AJ Brown was a CEO in training. We put him in to be CFO of one of our companies. He did great there. We sold the business. We repatriated him. We said, okay, you're ready for prime time. They're going to be the CEO of a platform.

And then we paired him with another CEO in training that was just coming in, this guy, Will Mattson. So they become president and CEO or CEO and CFO initially. We picked HVAC. We had a little experience in that space. They were excited about that space. And then we started just going and visiting tons of companies.

And then we paired him with another CEO in training that was just coming in, this guy, Will Mattson. So they become president and CEO or CEO and CFO initially. We picked HVAC. We had a little experience in that space. They were excited about that space. And then we started just going and visiting tons of companies.

And when you go visit 20 companies in the space, you learn more in one three-hour management visit than you do in three weeks in a conference room. And then what you're picking up in those meetings is what does great look like? And what's cool about it, each company probably does one thing great. The company does recruiting great.

And when you go visit 20 companies in the space, you learn more in one three-hour management visit than you do in three weeks in a conference room. And then what you're picking up in those meetings is what does great look like? And what's cool about it, each company probably does one thing great. The company does recruiting great.

This company does purchasing, training, marketing, IT systems they use and how sophisticated they are with them. But if you add that up across 20 companies and you grab every single piece of that playbook, you have the best playbook in the world. So you're starting to architect what does that look like before you even have bought a company. So we're hiring the CEO, getting the industry right.

This company does purchasing, training, marketing, IT systems they use and how sophisticated they are with them. But if you add that up across 20 companies and you grab every single piece of that playbook, you have the best playbook in the world. So you're starting to architect what does that look like before you even have bought a company. So we're hiring the CEO, getting the industry right.

We're getting part of the management team right. And then we're getting the playbook right before we've ever even written a check. Then we start going and buying companies. The first couple, we try to buy pretty small. I think our first deal here was $8 million of EBITDA. And we learned a ton. And we bought another one that was like two of EBITDA and building along the way.

We're getting part of the management team right. And then we're getting the playbook right before we've ever even written a check. Then we start going and buying companies. The first couple, we try to buy pretty small. I think our first deal here was $8 million of EBITDA. And we learned a ton. And we bought another one that was like two of EBITDA and building along the way.

And then we're also building our holdco. So we're building out the CEO, CFO, chief people officer. And that's the platform.

And then we're also building our holdco. So we're building out the CEO, CFO, chief people officer. And that's the platform.

Yeah, the holdco is the platform. Our best companies, we've really overinvested early in those platforms. It's really expensive to do that. And we have platforms that are pretty young that have a $15 million hold co expense. But that's really your foundation going forward.

Yeah, the holdco is the platform. Our best companies, we've really overinvested early in those platforms. It's really expensive to do that. And we have platforms that are pretty young that have a $15 million hold co expense. But that's really your foundation going forward.

And where does that $15 million come from? That comes from the fund? Yeah, yeah. So you're just putting the money, capitalizing a new company. That's the...

And where does that $15 million come from? That comes from the fund? Yeah, yeah. So you're just putting the money, capitalizing a new company. That's the...

But it's not quite that bad because we're pretty quickly buying companies that have EBITDA that we're using to fund the businesses. So they're cashflow positive pretty quickly. So this particular deal, one of the early things we figured out is, you said there's a lot of HVAC companies, but we figured out that every competitor in HVAC was doing the same thing.

But it's not quite that bad because we're pretty quickly buying companies that have EBITDA that we're using to fund the businesses. So they're cashflow positive pretty quickly. So this particular deal, one of the early things we figured out is, you said there's a lot of HVAC companies, but we figured out that every competitor in HVAC was doing the same thing.

They were buying the five to $10 million EBITDA business that had a great management team. They were all buying the same company. It turns out 90% of the market is below that and management wants to leave and cash out. And so we said, why don't we build a system to go buy that company? And that included talent, was a huge lever. So I give AJ and Will a ton of credit, but they tapped into...

They were buying the five to $10 million EBITDA business that had a great management team. They were all buying the same company. It turns out 90% of the market is below that and management wants to leave and cash out. And so we said, why don't we build a system to go buy that company? And that included talent, was a huge lever. So I give AJ and Will a ton of credit, but they tapped into...