Entrepreneur John Hood shares how he moved from early business ownership into home improvement and construction acquisitions, what went wrong on his first deal, and how deal flow, deferred consideration, and buy and build discipline changed the strategy.
Listen to the EpisodeEpisode 194 | Runtime: 27:37 | Audio Episode
Hear John Hood explain the practical lessons from buying home improvement and construction businesses, including deal flow, seller motivation, deferred consideration, and avoiding first acquisition mistakes.
Episode
194
Runtime
27:37
Topic
Business buying strategy
Format
Founder interview
Three acquisition lessons from John Hood's experience buying and building in home improvement and construction.
John explains how a lack of choice pushed him into paying too much, accepting the wrong structure, and letting the seller control timing on his first acquisition.
A later acquisition used cash assets in the target business for initial consideration, with the remaining price paid over three years through deferred consideration rather than personal cash.
Buy and build only works when systems, management accountability, and delegation replace the founder doing every operational task.
Jonathan Jay is joined by entrepreneur John Hood, whose acquisition experience started early with furniture, distribution, IT, retail jewellery, and a major administration led retail transaction backed by PwC. The conversation then moves into John's later focus on home improvement and construction, a sector he identified as fragmented, old fashioned, and full of owners approaching an age where they were motivated to sell.
John is direct about the mistakes in his first home improvement acquisition. He paid too much, bought the shares, accepted the liabilities, had limited alternative opportunities, and allowed the seller too much control over the timing. That experience reinforced the need for serious deal flow, because a buyer with one option has very little leverage and is more likely to accept a weak deal structure.
The episode then covers how John's later acquisitions became more disciplined, including using deferred consideration, negotiating away personal guarantees, simplifying heads of terms for smaller deals, and building toward a sector focused buy and build. Jonathan and John also discuss why larger businesses can be easier to run when management systems are in place, why perfect businesses do not exist, and why new buyers must start with seller enquiries rather than theory.
John says he paid too much, bought the shares, accepted the liabilities, had too few alternative deals, and let the seller control the timing. The lesson is to build deal flow before committing.
Deal flow gives a buyer choice. With multiple seller conversations in motion, a buyer can walk away from weak structures, compare opportunities, and avoid jumping into the first business that shows interest.
Deferred consideration can reduce the need for personal cash at completion by spreading payments over time. In John's example, part of the price was paid from business cash assets and the balance was deferred over three years.
Discover how to acquire your first business in 100 days without risking your own money. Complete the form to receive your toolkit immediately.
We respect your privacy. No spam, ever.