Chris Hoffmann @STLChrisH Twitter profile | Pikagi

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Chris Hoffmann

@STLChrisH

19,236

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Home Service CEO @ HB Solutions Group // building an enduring, privately held business // Former Intelligence Officer @ Marine Corps

United States

https://t.co/8TuDhtm1xT

Joined January 2014

Don't wanna be here? Send us removal request.

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@STLChrisH

Chris Hoffmann

2 months

There's no magic bullet. No unlock. No shortcut. But if you have the (1) mental horsepower and (2) are willing to do the work— the path to $100 million is in reach for your business. What is the path? Executing “the basics" well, over long periods of time. Here are 14 of

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@STLChrisH

Chris Hoffmann

4 months

My dad’s warehouse was in a not-so-great part of the city. He needed to buy several adjacent homes to expand his business— and was able to buy most for $15,000 each. These were homes with boarded up windows, no AC, and very run down. But one gentlemen refused to sell his

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@STLChrisH

Chris Hoffmann

10 days

My dad’s warehouse was in a not-so-great part of the city. He needed to buy several adjacent homes to expand his business— and was able to buy most of these homes for $15,000 each. These were homes with boarded up windows, no AC, and very run down. But one gentlemen refused to

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@STLChrisH

Chris Hoffmann

4 months

This same guy (who sold us his house) would go outside with a shotgun to chase off looters back in the 90s and 2000s. Why did we have looters? Because we would store cages full of copper AC coils in the yard in the rear. Copper would fetch a nice price per pound at metal

@STLChrisH

Chris Hoffmann

4 months

My dad’s warehouse was in a not-so-great part of the city. He needed to buy several adjacent homes to expand his business— and was able to buy most for $15,000 each. These were homes with boarded up windows, no AC, and very run down. But one gentlemen refused to sell his

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@STLChrisH

Chris Hoffmann

4 months

Part 2

@STLChrisH

Chris Hoffmann

4 months

This same guy (who sold us his house) would go outside with a shotgun to chase off looters back in the 90s and 2000s. Why did we have looters? Because we would store cages full of copper AC coils in the yard in the rear. Copper would fetch a nice price per pound at metal

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@STLChrisH

Chris Hoffmann

8 months

My dad started our business in 1988. He aspired to reach $10m (rev) during his career. He passed the torch to my brother and I in 2016. At $10m. 2024 budget: $141 million (organic) to $180 million (post-acquisitions) My dad taught us a few invaluable lessons (THREAD)...

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@STLChrisH

Chris Hoffmann

9 months

I would have paid $100k to have been given this lesson when we were a 50-employee company. It would have returned 50x over the last 7 years. Here it is: Scaling culture is hard, and leaders don't typically think about it until it's too late. On the journey from 50 to 500

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@STLChrisH

Chris Hoffmann

10 days

This same guy (who sold us his house) would go outside with a shotgun to chase off looters back in the 90s and 2000s. Why did we have looters? Because we would store cages full of copper AC coils in the yard in the rear. Copper would fetch a nice price per pound at metal

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@STLChrisH

Chris Hoffmann

4 months

@postsalot The last sentence is the truth!

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@STLChrisH

Chris Hoffmann

7 months

When our company "wins," so do our team members. Here is what this looked like on our journey from $13 million to $140 million... 2016... $13 million revenue Added 100% paid health insurance (roughly $18k per team member for family coverage) 2017... $18 million revenue Awarded

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@STLChrisH

Chris Hoffmann

11 months

My brother & business partner, Joe, and I have distributed to ourselves less than 5% of the $50 million of cash flows generated by our businesses over the last few years. Choosing instead to re-deploy this capital on on our combined balance sheet. Here is why & how we do

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@STLChrisH

Chris Hoffmann

10 months

As CEO, I did not always have the information I required to lead our organization effectively. The monthly reporting package that I want to see every month has evolved over the years and now includes the following: - turnover / retention data - safety results - actual hires vs.

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@STLChrisH

Chris Hoffmann

11 months

"Win-Win-Win" - Here it is in action: 2016: $13 million revenue, we added 100% paid health insurance for team members and their families (today, this is roughly $18k per team member) 2017: $18 million revenue, we awarded all PTO days on the date of hire (no waiting period)

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@STLChrisH

Chris Hoffmann

9 months

I may be an idiot for choosing to be one of a handful of $100+ million residential HVAC shops left in the country that has not sold to private equity. But then I did the math below. When everyone else is turning left, it can be hard to choose to turn right. To "swim against

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@STLChrisH

Chris Hoffmann

10 days

Here are the terms on our $25 million line of credit at HB Solutions Group. In this thread, I share how we manage bank relationships. Our banking partners enable us to acquire other companies WITHOUT taking a check from private equity. Commercial banks will lend up to 3x

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@STLChrisH

Chris Hoffmann

7 months

2024 skilled plumber compensation: $55 per hour ($77.50 / hr overtime) 100% company paid health insurance ($18,000 per year family coverage) 8% 401k match 20 PTO days 9 paid holidays Cell phone reimbursement Company service van Company provided tools and training

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@STLChrisH

Chris Hoffmann

11 months

Over the last 7 years, our residential service business has spent an average of 4% of gross revenues on marketing and generated an organic CAGR >30%. Here are a few things our marketing team did particularly well on our journey from $10 million to >$100 million: Know our

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@STLChrisH

Chris Hoffmann

4 months

The collapse of many private equity backed HVAC roll-ups will be driven by the convergence of 2 critical issues: 1. Lack of depth on leadership bench 2. Broken incentives, misalignment upon founder's exit at "2nd bite" Let me unpack this approaching trainwreck... 🧵

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@STLChrisH

Chris Hoffmann

6 months

Our first $500,000 working capital line of credit was really difficult to obtain. The bank didn't "get our business" Today, we have $12,500,000 of unrestricted LOC facilities. Bank relationship lessons-learned along the way ... (thread)

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@STLChrisH

Chris Hoffmann

4 months

@adamislucky One of my favorite stories about how my dad made decisions

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@STLChrisH

Chris Hoffmann

10 months

When we acquire HVAC, plumbing, electrical, or roofing & exteriors businesses - here is our deal structure and value proposition: - we purchase a controlling interest, between 60% - 80% of equity. - we purchase the controlling interest (typically at a value less than market

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@STLChrisH

Chris Hoffmann

10 months

Graduating college, and you want to be a millionaire in 2 years? Don’t become a lawyer or a doctor. Or IB analyst or aspiring strategy consultant. Start a company servicing pools. I'm not kidding or being flippant. The guy who cleans our pool charges $220 an hour. That’s a

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@STLChrisH

Chris Hoffmann

10 months

Here is my 13-year journey from mediocre Economics student at a small Catholic university to the CEO of our 9-figure, diversified family of companies. 2009: Completed Marine Corps Officer Candidate School (OCS) in between my junior and senior year of college 2010: Commissioned

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@STLChrisH

Chris Hoffmann

6 months

I die unexpectedly tomorrow (morbid, I know). Our assets are held by dozens of entities. Here is how these assets would be treated per our existing operating agreements & estate planning. (entity map below) 1. "Minimum Distribution" provisions would be activated up my death (a

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@STLChrisH

Chris Hoffmann

3 months

Our first $500,000 working capital line of credit was difficult to obtain. The bank didn't "get our business" Today, we have $12,500,000 of unrestricted LOC facilities. Banking “lessons-learned” as we grew from $10m to $140m ... (thread)

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@STLChrisH

Chris Hoffmann

6 months

This front-line innovation saves us over 2,500 field labor-hours per year. It also reduces call-backs/warranties. Pre-fabricating piping for boilers and tankless hot water heaters is an innovation that delivers 6 figures of value to the business and was developed by an hourly

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@STLChrisH

Chris Hoffmann

7 months

Being private equity owned is like having a board of directors that is composed entirely of activist investors. Unhealthy tension. Singular, relentless focus on enterprise value. Talent is expendable. Cut all costs without an immediate payback. Preparing to sell - always.

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@STLChrisH

Chris Hoffmann

11 months

We received roughly 6000 Google reviews across all of our GMB locations over the last year. Our marketing team would respond to every single one. Now Zapier + ChatGPT do this for us. 4 or 5 star reviews? Instantly generates and posts a personalized response on Google. 3

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@STLChrisH

Chris Hoffmann

3 months

This mission-critical tool will enable your leaders to make decisions (1) faster and (2) with greater confidence. It’s called “Do-Ask-Tell” When we onboard new leaders, we will create a custom template to be used by the new leader and their direct manager. As trust &

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@STLChrisH

Chris Hoffmann

8 months

Considering a sale to private equity? Don't be one of the many sellers I've spoken with who are learning about PE after they have sold their business. See thread...

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@STLChrisH

Chris Hoffmann

4 months

My dad started our business in 1988. He aspired to reach $10m of revenue during his career. He passed the torch to my brother and I in 2016 having achieved this goal. In 2024, our current brands will reach $140m. My dad taught us a few invaluable lessons… (thread)

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@STLChrisH

Chris Hoffmann

4 months

Take a look at what our Hoffmann Bros University students found inside of this 20 year old heater… Do you flush your water heater? Have a water treatment / filtration system in your home?

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@STLChrisH

Chris Hoffmann

11 months

If your annual budgeting process sounds like this: “we want to grow 20% next year because the best companies are” … then you are doing it wrong. Here is how we approach our annual budgeting process. I don’t like “top down” budgeting. We start from the bottom and build up to

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@STLChrisH

Chris Hoffmann

11 months

4 years ago, we didn't have an inside sales function. Today, our best inside sales rep will sell over $2 million by following-up on unsold opportunities. What are unsold opportunities? Every option we provided to our customers that was not selected. From estimates for new

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@STLChrisH

Chris Hoffmann

15 days

Our company will pay roughly $5,000,000 in health insurance premiums for our team in 2024. How I thought it worked vs. How it actually works I thought our company’s claims were pooled with other insured populations. And therefore, our specific claim history was not the

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@STLChrisH

Chris Hoffmann

9 months

CEOs of a $10 million business often misunderstand what the role entails at this scale. And making the transition from $10m CEO to $100m CEO is difficult. At $10m, a CEO... Will be wearing many hats. Hiring + Firing, leading team meetings, project planning, making capex

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@STLChrisH

Chris Hoffmann

8 months

Want to know what the inside of your 20 year old water heater looks like? You may not want to. We replace thousands of tanked water heaters each year. This one came from a customer's home. Our students at Hoffmann Brothers University opened this up for everyone to see...

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@STLChrisH

Chris Hoffmann

11 months

The roofing and exteriors industry has not yet been consolidated by institutional capital. Here is why we purchased a $10 million roofing & exterior business on August 1st: 1. Less sophisticated competitors, resulting in lower customer acquisition costs 2. The industry is

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@STLChrisH

Chris Hoffmann

6 months

The single biggest factor contributing to our accident rate declining from 33% to 14% while our fleet grew from 200 to 300 trucks? We installed cameras in every truck. We implemented this change a couple years ago. As you'd expect, our drivers weren't thrilled. We tried to

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@STLChrisH

Chris Hoffmann

10 months

What was the key driver behind our growth from $10m to $100m? No single action or strategic decision. No "magic bullet" or "big unlock." It was our commitment to executing "the basics" very well, over a long (7 years) period of time. What are the basics? Giving your team a

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@STLChrisH

Chris Hoffmann

8 months

I received a call from an attorney representing a recent widow. She had a 26,000 square foot warehouse that her husband had managed, and she now needed to sell. The attorney said he called me because he was told I can move quickly and provide his client with certainty. The

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@STLChrisH

Chris Hoffmann

7 months

What differentiates a plumbing professional who sells and self performs $900,000 of work in a year vs a plumber that sells and self performs $400,000 of work in a year? They both work the same hours. They run the same types of calls. It's about education, customer service and

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@STLChrisH

Chris Hoffmann

9 months

Below are the specific roles that existed in our business at $10 million. And below that are the roles that exist today at $100+ million. Scaling functions (and roles within those functions) can be challenging. At $10 million, we had 8 basic position types: President

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@STLChrisH

Chris Hoffmann

6 months

When my business income crossed $1 million, I lived in a $400k house and drove a Chevy. When my business income crossed $5 million, I lived in a 400k house and drove a Chevy. Why should this matter to entrepreneurs who do not want to raise outside capital? While my house has

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@STLChrisH

Chris Hoffmann

5 months

Today we placed a “sell” order for $11,000,000 of public equities to pay down $11,000,000 of floating rate real estate debt. The timing feels right… (when the market rips in 2024… everyone can tell me how wrong I was 😁) But I’ll sleep better tonight.

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@STLChrisH

Chris Hoffmann

6 months

CEOs of $10m businesses often misunderstand what the role entails at this scale. At $10m, a CEO... Will be wearing many hats. Hiring + Firing, leading team meetings, project planning, making capex decisions, approving payroll. At $100m, a CEO... Will have their

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@STLChrisH

Chris Hoffmann

7 months

The failure of many private equity (PE) backed HVAC roll-ups will be driven by the convergence of 2 critical issues: 1. Lack of depth on leadership bench 2. Broken incentives, misalignment upon founder's exit at "2nd bite" Let me unpack this approaching trainwreck... (thread)

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@STLChrisH

Chris Hoffmann

7 months

We received roughly $1,100,000 in 2023... with $0 cost-of-goods-sold Straight to the bottom-line Why? 10% of our membership program subscribers pay us monthly for only one thing... Priority Service. Peace of mind knowing they go to the "front of the line" when they need us.

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@STLChrisH

Chris Hoffmann

6 months

Fire fast… when an employee is not values aligned. Fire slow… when values are aligned, but performance is not (yet) meeting expectations. Too often, leaders fail to respond differently to the two cases above. They mistakenly fire both, when one just needs more coaching.

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@STLChrisH

Chris Hoffmann

11 months

My best residential sales professional will sell over $4 million in 2023. Here is a list of key considerations when designing your sales processes & incentives: We let “Dollars Per Lead” drive our sales lead allocations. Dollars Per Lead = Average Ticket x Closing Rate.

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@STLChrisH

Chris Hoffmann

6 months

I've had bankers and brokers tell me for years that "there will never be a better time to sell than NOW." That "market conditions next year will be FAR worse." But then I did the math below. 2015: $750k EBITDA, $3.75m enterprise value (5x) 2016: $1.5m EBITDA, $9.0 enterprise

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@STLChrisH

Chris Hoffmann

10 months

When my business income crossed $1 million, I lived in a $400k house and drove a Chevy. When my business income crossed $5 million, I lived in a 400k house and drove a Chevy. Why should this matter to bootstrapping entrepreneurs? While my house has since changed from these

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@STLChrisH

Chris Hoffmann

10 months

Below is a critical cash-management / liquidity management approach used throughout our businesses. My dad (and many SMB owners in his generation) has a strong conviction that: (1) all debt is bad; and (2) businesses should carry a lot of cash What I think my dad was really

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@STLChrisH

Chris Hoffmann

11 months

I have not met @fortworthchris or anyone at @FortCapitalLP . But I’ve put $100,000 into nearly every deal of theirs since 2022. Roughly $1,500,000 total. I guess I like his pod.. but what I like most: their “Class A Mezz” offering. The latest offering was at an 11% yield.

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@STLChrisH

Chris Hoffmann

5 months

Considering a sale to private equity? Don't be one of the many sellers I've spoken with who are learning about PE after they have already sold their business. Here’s what you need to know… 🧵

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@STLChrisH

Chris Hoffmann

3 months

Some people look at Barcelona and see a culturally rich city steeped history. I see ductless mini splits. Everywhere. Fujitsu. Mitsubishi. Daikin. Everywhere.

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@STLChrisH

Chris Hoffmann

7 months

So you want to buy a home service business? Don't choose a service line that is in the later stages of consolidation. You will pay more in these "hot" verticals. And there are fewer quality companies remaining. Below is a list of home service verticals ranked from most

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@STLChrisH

Chris Hoffmann

9 months

I served 4 years as an officer in the Marine Corps before joining Hoffmann Brothers. Here are 6 leadership lessons I learned in the Marine Corps that have helped me scale our business from $10m to >$100m. 1. A leader needs a strong "command presence." When you stand up in

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@STLChrisH

Chris Hoffmann

7 months

No matter how intelligent or capable you may be… If you don't have a sense of urgency, now is the time to start developing it. The world is full of very competent people who honestly intend to do things tomorrow or as soon as they get around to it. Their accomplishments,

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@STLChrisH

Chris Hoffmann

6 months

Do you have a partner in any of your businesses? Your operating agreement should answer the following questions: What happens if a partner wants to exit the business? How will the business value be determined in a transaction between shareholders? Can you be a shareholder if

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@STLChrisH

Chris Hoffmann

10 months

Why does private equity love the residential HVAC space? These two charts tell the story. Nearly 100 million installed base of central AC units. With 45% of the installed base >10 years old. This translates to 45 million (and growing) AC units needing replacement...

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@STLChrisH

Chris Hoffmann

11 months

So you want to buy and operate a home service business? Don't choose a service line that has already seen a significant influx of institutional capital over many years. Below is a list of home service verticals ranked from most institutionalalized to least. Some of the most

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@STLChrisH

Chris Hoffmann

7 months

Here is how we created a "Shared Services" capability inside of our 9-figure HoldCo. These 80 team members support our wholly owned operating businesses, real estate holdings, and our investment activities. Let's dig deeper. And please poke holes & challenge. See THREAD...

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@STLChrisH

Chris Hoffmann

6 months

@sweatystartup In the Marines, we would patrol with 1 tourniquet in a pocket on each arm & leg. With the timely application of a tourniquet— deaths from exsanguination of an extremity should move to zero!

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@STLChrisH

Chris Hoffmann

11 months

Home Service Businesses: If you want to maximize the utilization of your field installation crews, you must have a structured discounting process that allows you to fill tomorrow's unsold crew days. This is how it works for our HVAC installation crews: If at noon today we have

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@STLChrisH

Chris Hoffmann

5 months

What happens when the entire HVAC value chain is owned by private equity? We will find out soon enough. First contractors… and now distributors… Family businesses and independent operators are steadily… vanishing. Take a look:

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@STLChrisH

Chris Hoffmann

4 months

@check1309 Isn’t this the truth!

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@STLChrisH

Chris Hoffmann

11 months

Below is the holy grail of operating a residential service business. Have you ever tried "coaching" your field professionals by telling them to "increase their conversion rate," "sell more," or "drive more revenue"? Let me know how that went. Here is what we do: Design an

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@STLChrisH

Chris Hoffmann

11 months

Here is how we have grown from 4,000 monthly service plan subscribers to over 15,000 monthly subscribers, with our membership covering over 50,000 pieces of HVAC equipment. 1. Transition from annual payment plans to monthly subscriptions that never expire. Your membership

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@STLChrisH

Chris Hoffmann

6 months

When our business wins, so do our team members. Here is what these “wins” have looked like along the 8-year journey from $10m to $140m 100% employer paid health insurance (family coverage = $18,000 per employee) 8% 401k match Up to 20 PTO days, awarded day 1 9 paid holidays

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@STLChrisH

Chris Hoffmann

5 months

Our company will pay roughly $5,000,000 in health insurance premiums in 2024. How I thought it worked vs. How it actually works. I thought our company’s claims were pooled with other insured populations. And therefore, our specific claim history was not the primary

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@STLChrisH

Chris Hoffmann

16 days

Our dad wasn’t interested in bringing his sons into the business straight out of college. The way he put it: "Show me that someone else will promote you. Then I’ll consider bringing you in." Our dad, Robert, started Hoffmann Brothers in 1988. By 2014, HB was a $9 million

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@STLChrisH

Chris Hoffmann

8 months

Fire fast when an employee is not values aligned. Fire slow when values are aligned, but performance is not (yet) meeting expectations. Too often, leaders fail to respond differently to the two cases above. They mistakenly fire both. Is this differentiation appropriate?

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@STLChrisH

Chris Hoffmann

6 months

We have a saying at Hoffmann Brothers. We make decisions 100% fast and 70% right. I learned to have a “bias for action” while serving as an officer in the Marine Corps where I frequently found myself in situations where we had to make decisions with incomplete information. We

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@STLChrisH

Chris Hoffmann

4 months

@PriteshSMB Appreciate you. Thanks for tuning in 😁

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@STLChrisH

Chris Hoffmann

10 months

My brother and I are 50/50 business partners in everything that we do. This arrangement can be challenging and full of pitfalls. Sometimes, we must remember which of our 3 "hats" we are wearing in a given conversation. Employee hat. Shareholder hat. Brother / friend hat.

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@STLChrisH

Chris Hoffmann

10 months

Who would be interested in attending a 1-day event at my "Shared Services" office? Optional dinner hosted by my team the night before. Who? Residential service SMB owners and Hold Co owners. Some seats reserved for ETA / searchers and select SMB service providers. What?

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@STLChrisH

Chris Hoffmann

3 months

I redesigned the MBA curriculum for Harvard to better meet the needs of small business owners: Leadership 101: “CEOs - how to clean the office bathrooms and run board meetings in the same day” Human Resources 101: “I found air plane alcohol bottles on the floor of company

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@STLChrisH

Chris Hoffmann

11 months

How has private equity's consolidation of the residential HVAC, plumbing, and electrical industry changed the competitive landscape over the last 5 years? 1. Good operators to include General Managers have seen their compensation shoot up dramatically 2. Small mom & pops are

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@STLChrisH

Chris Hoffmann

10 months

I'll show you mine (gross margin) if you show me yours. For each residential service line, post your gross profit margin year-to-date for 2023 (so we'll have an apples-to-apples view). Here are my GPMs for each business unit: HVAC Residential Svc - 58.5% HVAC Residential

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@STLChrisH

Chris Hoffmann

10 months

An MBA can prepare you for a lot of things you may encounter in a small business. But here are a few things that it didn’t prepare me for: Field professional entering home filled with life-sized sex dolls (some used). Gun pointed at the face of one of your field professionals

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@STLChrisH

Chris Hoffmann

11 months

This front-line innovation saves us over 2,500 field labor-hours per year while also reducing call-backs/warranties: pre-fabricating piping for boilers and tankless hot water heaters. An innovation that delivers 6 figures of value to the business and was developed by an hourly

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@STLChrisH

Chris Hoffmann

7 months

The roofing and exteriors industry is in the early stages of consolidation by institutional capital. Here is why we purchased an 85 year old, 3rd generation, $10 million roofing & exterior business on August 1st, 2023: 1. Less sophisticated competitors, resulting in lower

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@STLChrisH

Chris Hoffmann

6 months

I would have paid $100,000 for this lesson when we were a 50-employee company. This would have returned 50x since 2016… Scaling culture is hard, and leaders don't typically think about it until it's too late. On the journey from 50 to 500 employees, it is very easy for

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@STLChrisH

Chris Hoffmann

8 months

Many SMBs think they need a "CFO" when what they really need early in their journey is an accountant who can prepare GAAP financials. Without timely and accurate financials, you are blind. Hire a CPA with 5 years of public accounting experience. Not a CFO.

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@STLChrisH

Chris Hoffmann

7 months

Too often, cash flows from early success are siphoned away to support a rapidly growing lifestyle. A 2nd house, private aviation, exotic cars, a new watch... the real cost of these items is far more than the sticker price. It’s the opportunity cost that you have foregone by

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@STLChrisH

Chris Hoffmann

8 months

Company provided health insurance. How I thought it worked vs. How it actually works. I thought our losses were pooled with other insured populations. And therefore, our specific claim history was not the primary determinant of our premiums. How it actually works? The cost

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@STLChrisH

Chris Hoffmann

10 months

Here is how we structure our "daily huddle" in our $100 million residential service business. This is a mission-critical, high value daily meeting. WHO: for each operating location, all business unit leaders (P&L owners), marketing rep, CX leader, inside sales leader, sales

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Chris Hoffmann

10 months

What is 60% gross margin, non-discretionary in nature, and experiencing accelerating demand from aging infrastructure? Residential sewers and drains. We run thousands of sewer & drain calls each year. From a clogged floor drain to a collapsed lateral sewer line. Our drain

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Chris Hoffmann

7 months

A plumber recently joined our team after working for a high-end hotel. He’s quickly become one of our top performers. Here’s why: While working in the hospitality industry, this plumber was trained on the equipment in the hotels. But he also got training on how to treat

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Chris Hoffmann

6 months

Adding a $25,000 flag pole doesn’t have an immediate ROI. But it sure makes me happy when I walk by it every morning. Anyone know what the second flag represents?

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Chris Hoffmann

11 months

We launched an organic new market entry effort (or "Greenfield") in Nashville in 2020. 36 months later, we had built a $10+ million operation from the ground up. Below is how we defined success for our Greenfield strategy. And how our definition of success looks different

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Chris Hoffmann

29 days

A very successful founder was asked what it takes to succeed. He responded with this: "The same thing it took to get started—a sense of urgency about getting things done." The world is full of competent people who honestly intend to do things... tomorrow... or as soon as they

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Chris Hoffmann

10 months

No matter how intelligent or capable you may be, if you don't have a sense of urgency, now is the time to start developing it. The world is full of very competent people who honestly intend to do things tomorrow or as soon as they get around to it. Their accomplishments,

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Chris Hoffmann

8 months

20 years ago, HVAC companies would trade for 2x - 4x EBITDA. Today, residential HVAC businesses with >$10 million of earnings are trading at ~15x EBITDA. In the comments is a table of multiples "pre 2018" vs. "post 2018." Multiples have pulled back in 2023.

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Chris Hoffmann

10 months

We have over 15,000 monthly subscribers to our Home Protection Plan (HPP), covering over 50,000 pieces of HVAC equipment. Here is what we learned about residential memberships over the last few years... If your business is multi-trade, extend the membership benefits to all

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Chris Hoffmann

11 months

There is a lot of talk about "Hold Co's" on here. Building a "shared service" capability can be a great way to improve your operating leverage across your companies, particularly if the following 3 things are true: 1. Your Hold Co has multiple businesses in verticals with

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Chris Hoffmann

2 months

If anyone ever gives you shit about inheriting/buying your dad’s company. Tell them Alexander the Great inherited his father’s army, and then proceeded to take over the world with it. Credit: Tim Ryan randomly DMing me this last night

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Chris Hoffmann

10 months

Too often, cash flows from early entrepreneurial successes are diverted to support a rapidly growing lifestyle. Scaling an organization with the intent to reach significance requires a level of financial discipline and commitment that many entrepreneurs fail to embrace. I've

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