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.
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