First-Timer Buys a $15m Business in Distress

September 7, 2026

M

ost people in our world strive to buy a business that works.

Today's guest bought one that was not working, and he did so on purpose.

Mike Bourgeois and his search partner acquired Cardinal Heating & Air in Kirkland, Washington in December, a business doing $12 to $15 million in revenue — but losing about $3 million a year.

And that combination is the whole thesis.

The demand side was fine; the problem was cost structure.

‍So Mike could underwrite this the way a deep value investor would.

If it worked, a million-plus of EBITDA within a couple of years. If it didn't, they could probably liquidate the assets and roughly break even.

Heads I win, tails I don't lose much.

‍We rarely hear this story on Acquiring Minds. First-time searchers seek healthy, profitable businesses. That's what the playbook says to do, and it's what SBA lenders underwrite.

So today's conversation with Mike is a chance to think about risk and opportunity a little differently. The conventional acquisition looks safer — real earnings, a clean QoE — but you pay a price that assumes those earnings persist, and you personally guarantee the loan if they don't.

Mike's deal inverts that.

Everything he had, paid in cash. But no bank debt, and no personal guarantee. What he took on instead was the operational chaos, and the chance of losing it all.A different shape of risk, not less of it.

Here he is, Mike Bourgeois, CEO and co-owner of Cardinal Heating & Air.

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September 7, 2026

First-Timer Buys a $15m Business in Distress

Mike Bourgeois bought an HVAC company bleeding $3m a year, all cash and no SBA, then cut $1.4m of costs in 2 weeks.

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Acquisition Snapshot

Industry

Technology

Acquisition Model

Search Fund

SBA Acquisition

Yes

No

Multiple Acquisitions

Yes

No

Country

United States

State/Province

Texas

Key Takeaways

Introduction

Listen to the introduction from the host

Most people in our world strive to buy a business that works.

Today's guest bought one that was not working, and he did so on purpose.

Mike Bourgeois and his search partner acquired Cardinal Heating & Air in Kirkland, Washington in December, a business doing $12 to $15 million in revenue — but losing about $3 million a year.

And that combination is the whole thesis.

The demand side was fine; the problem was cost structure.

‍So Mike could underwrite this the way a deep value investor would.

If it worked, a million-plus of EBITDA within a couple of years. If it didn't, they could probably liquidate the assets and roughly break even.

Heads I win, tails I don't lose much.

‍We rarely hear this story on Acquiring Minds. First-time searchers seek healthy, profitable businesses. That's what the playbook says to do, and it's what SBA lenders underwrite.

So today's conversation with Mike is a chance to think about risk and opportunity a little differently. The conventional acquisition looks safer — real earnings, a clean QoE — but you pay a price that assumes those earnings persist, and you personally guarantee the loan if they don't.

Mike's deal inverts that.

Everything he had, paid in cash. But no bank debt, and no personal guarantee. What he took on instead was the operational chaos, and the chance of losing it all.A different shape of risk, not less of it.

Here he is, Mike Bourgeois, CEO and co-owner of Cardinal Heating & Air.

Show Notes

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Episode Transcript

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