Justus Luttig·May 28, 2026

Buying $1.5m of Earnings Without an SBA Loan | Justus Luttig Interview

Justus Luttig is a South African-born operator who left a career in VC and PE in San Francisco to move to Dallas and buy an HVAC and plumbing business. After two years running Stow's Independent Services under a handshake CEO-to-acquisition arrangement that ultimately fell apart, he pivoted to acquire two complementary businesses — Copeland (HVAC) and First American Plumbing — combining them into a single entity with $8m in pro forma revenue and $1.5m in EBITDA at a 5x multiple (~$8m purchase price). Unable to use SBA financing due to his H-1B visa status (and later the rule change excluding green card holders), he assembled a creative capital stack of equity from a South African-American investor network, convertible notes from existing equity investors, and seller notes from both sellers, who also rolled meaningful equity. Both sellers remained involved as operators. The deal closed September 2025 and the business grew from 30 to 35 employees in roughly eight months, with a long-term ambition to become the largest home services platform in DFW. Key themes include the advantage of local ownership against PE-backed competitors for technician recruiting, the importance of servant leadership and field presence over desk-based management, and a detailed breakdown of non-SBA deal financing using convertible notes.

Deal facts

purchase price: just over $8m
multiple: 5x EBITDA
sde ebitda: EBITDA $1.5m (pro forma, combined)
revenue: $8m (pro forma, combined)
financing structure: equity (including anchor investor and South African-American network), convertible notes from existing investors, seller notes from both sellers, seller equity rollover (both sellers rolled equity, larger than typical); no SBA loan
notes: Acquisition of two businesses simultaneously: Copeland (HVAC, ~3 years old, larger) and First American Plumbing (~7 years old, formed 2017). Both consolidated under Copeland brand at one location. Combined ~30 employees at close, 35 at time of interview. Guest owned ~25-30% equity (in line with traditional search fund model). Closed September 2025. Guest was on H-1B visa during deal; continued consulting/sponsorship from prior employer (Stow's) enabled deal to proceed. SBA was unavailable due to visa status and recent rule changes excluding green card holders.

Why this business

Justus grew up on a ranch in South Africa and spent a decade in banking, PE, and VC before feeling disillusioned — he wanted a hands-on business he could 'see, touch, and feel' and where his operational instincts from ranch life were an asset. Exposure to HVAC and construction business owners as safari clients showed him they had more happiness and purpose than his white-collar peers. The Copeland opportunity came through a searcher network contact whose deal had fallen apart, and the combined HVAC-plumbing platform in DFW aligned with his vision for a scalable home services business.

What's working

Culture and servant leadership: spending time in the field with technicians and building organic relationships rather than leading by title drove team buy-in across two merged companies
HVAC-plumbing combination creates cross-sell opportunity — the same lead can be flipped across trades, lowering effective customer acquisition cost
Both sellers rolled equity and remained involved, providing continuity and operational support during transition
Being locally and family-owned (vs. PE-backed national chains like Blackstone-owned operators) is a strong hiring advantage with trade technicians who distrust Wall Street ownership
Deal was oversubscribed by investors; anchor investor with PE/operations credibility helped unlock the rest of the capital
Texas heat arrived early in summer 2026, generating strong seasonal volume and helping the business hit stride after a tough shoulder-season stretch
35 employees and growing, added three trucks in the weeks before the interview

What's hard

Acquiring two businesses simultaneously during a 4.5-month diligence process was extremely complex — 'I probably bit off too much that I could chew'
No SBA access due to H-1B visa status forced creative financing; credit funds quoted high-teen rates plus warrants; regional banks unwilling to underwrite asset-light cash flow deals
Shoulder season (September through March) created cash flow uncertainty in the first months of ownership — 'through February there were a lot more tough moments than easy ones'
Prior deal at Stow's Independent Services fell apart after two years on April 8, 2025 (his birthday) — emotionally devastating and required resetting investor relationships
Visa complexity throughout: H-1B tied to employer, no SBA access, required creative structuring to maintain legal work status during the search
Balancing investor updates and reporting expectations against time needed for relationship-building and field presence with technicians
Gap between initial LOI price and diligence findings created tension with sellers unfamiliar with deal process

Notable quotes

I didn't come into the trades to work for Wall Street.

The magic happens when you leave your desk.

I would overindex or I would anticipate it not working out with that specific deal, but act like it will work out and put your whole life, your blood, sweat, and tears into that.

April 8th hit — my birthday. And my dream of everything that I've left in San Francisco for acquiring this business was a failure.