oday's guests set out to acquire cleaning companies.
Their search was proprietary, looking in the greater Seattle area.
Turns out most cleaning companies are very small, sub-million dollars of revenue.
But Kyle Boyden & Jake Furfaro were open to such micro-acquisitions, and stacked the acquired revenue in their nascent platform up to $2.5m.
At that point, they decided to go bigger; their next 2 acquisitions got them to the $5m where they are today. And only for the most recent acquisition, their seventh, did they finally use an SBA loan.
The previous 6 acquisitions were structured with generous seller financing and low down payments, a key benefit to their approach.
Kyle & Jake have only put a combined $100k of equity into the project. Even after servicing seller notes, their take-home cash today stands at $650k. And the duo owns 90%.
Pretty impressive.
Now, this model is not the for the faint of heart. Buying such small businesses flouts the conventional wisdom on target size. It was very difficult operationally. They plowed what little money the fledging roll-up generated back in, so they had to make money elsewhere.
They themselves say they wouldn't recommend it.
But for them, and their journeys, it enabled a couple of hungry, scrappy, action-oriented entrepreneurs to move quickly and learn.
They acquired the revenue very inexpensively.
Risk was low. No personal guarantees on those first 6 acquisitions.
They built operating muscle, integration muscle.
The confidence and competence to run and grow their platform today is leagues beyond where it would have been if they'd just acquired a single $5m business at the outset.
See what you think of how Kyle Boyden and Jake Furfaro have built Rainier Cleaning Solutions. Enjoy.