Synopsis
David Connolly became a business owner in 2014 when he purchased Service Minds from his long-time associate. At the time, the company consisted of one location—a provider of household electrical repair services called Mister Sparky Electric—in Sarasota, Florida.
With ongoing support from Truist, David grew the business over the next eight years to 12 locations across Florida and Alabama. Today, Service Minds operates more than 40 locations in the southeastern United States under the trade brands of Mister Sparky Electric, One Hour Heating & Air Conditioning, and Benjamin Franklin Plumbing.
When David decided he was ready to sell the business in 2020, he turned to his Truist relationship manager, Skip Miller, to help navigate the transition. Learn how his Truist team made it happen with mergers and acquisitions (M&A) advisory services from Truist Securities and transition advisory from Truist Wealth.
Headquarters: Bradenton, Florida; founded in 2007
Industry: Residential services (HVAC, electrical, and plumbing)
Employees: About 690
Annual revenue: $150 million
Website: serviceminds.com
Relationship: Truist client since 2014
Building on experience: A partner for the business lifecycle
As a general manager for Mister Sparky Electric, David Connolly was one of only three employees. He did just about every job there was to do—including working closely with the company’s founder.
“He showed me how to run the business successfully,” says David. “When I had the opportunity to buy the business, my wife and I decided to put everything on the line and grow the company.”
After funding the purchase with a Small Business Administration (SBA) loan, David turned to Truist for help financing his growth plan and managing capital. Because service companies typically don’t have physical assets to use as collateral, Service Minds needed a financing partner that could lend on future cash flows instead.
“Our biggest asset is our people,” says David, “but that doesn’t really show up on the balance sheet.”
Backed by his Truist team, David was able to secure real estate and acquisition loans and a revolving line of credit to help aggressively grow the business. But by the end of 2020, David had come to a decision: He was ready to sell.
Navigating a life-changing business transition
As it did for many people, the COVID-19 pandemic prompted David to rethink what was most important to him.
“It caused me to step back and realize that I needed to spend more time with my family,” says David. “As I was weighing different options for the company, I asked Truist for a business valuation. And from there, I decided to go ahead and list it.”
All David had to do to get the ball rolling was to let his Truist relationship manager, Skip Miller, know his intentions.
“My role was to be the conduit between David and my teammates across the organization who could help make the transition as smooth as possible,” says Skip. “With Truist Business Lifecycle Advisory, we take a holistic view of the sale of a business, which means it encompasses both the owner’s professional interests and their personal financial goals.”
Finding a good fit financially and culturally
On the business side of things, Skip brought in teammates from Truist Securities to navigate the sale of the company. They zeroed in on the best ways to market Service Minds to potential buyers—and net the best return for David.
But money wasn’t the only priority. David also wanted to ensure the buyer was the right fit for the culture that he’d shaped during his years leading Service Minds.
“We spent a lot of time and energy building a growth-oriented company,” says David. “I wanted someone who could step into that mindset and continue to run with it.”
George Calfo, managing director of Mergers & Acquisitions, led the M&A advisory team as they researched potential buyers and narrowed them down to a list that met David’s criteria and shared a deep understanding of the industry. Then the team worked with him to select his top choice.
“The company David felt was the best fit wasn’t the highest bidder,” says Skip, “so our investment banking team went to the negotiating table and was able to bring back a higher offer. It was a win-win in terms of both culture and value.”
The Truist team also took steps to ensure that all due diligence and proper governance requirements were met. And they made sure David understood each step from beginning to end.
“They spent a lot of time educating me on what to expect,” says David. “It’s a time-consuming process, but they made it seamless.”
