Alex Holley·February 13, 2025

Networking His Way to $800k SDE | Alex Holley Interview

Alex Holley, a Louisville-based technology consultant turned small-business operator, closed on two complementary home-services businesses on August 31, 2024 after an intensive six-month networking search: B-Dry Systems of Louisville (a basement waterproofing company founded in 1980) and RamJack of Louisville (a foundation stabilization franchise). The combined package — sold together with the commercial real estate — generated approximately $4.5m in trailing revenue and north of $800k in SDE. Alex financed the acquisition through six separate debt facilities including SBA loans and a 504 real estate loan, with a silent minority business partner holding ~10% of the operating companies and a larger slice of the real estate. The core thesis was strategic: B-Dry revenue is rain-driven while RamJack work is drought-driven, so the two lines partially hedge each other, smoothing the monthly revenue cycle. Twenty weeks in, Alex is operating hands-on alongside crews, has increased close rates by focusing on quality salespeople over volume, and is actively tapping his extensive Louisville network for lead generation. Key early stumbles included a payroll-system failure on day one and a 15-week gap before gaining his own QuickBooks access. Alex is prioritizing debt paydown over salary, treating this as a long-term hold.

Deal facts

purchase price: mid-threes (all-in, including real estate); exact figure not disclosed
multiple: implied ~3x-4x SDE (not stated explicitly)
sde ebitda: ~$800k+ SDE (5-year rolling average ~20% of ~$4.5m revenue)
revenue: ~$4.5m (5-year rolling average)
financing structure: SBA loans (separate notes for B-Dry and RamJack operating companies) + 504 loan and bridge loan for commercial real estate; lines of credit for each operating company; 6 total debt facilities; 6-month interest-only period at outset; silent partner contributed ~10% equity
notes: Acquired two businesses together (B-Dry Systems of Louisville + RamJack of Louisville franchise) plus commercial real estate in a single transaction. Seller would not sell them separately. Three entities created: one for B-Dry, one for RamJack, one for the building. Silent business partner owns ~10% of operating companies and a larger share of real estate. Closed August 31, 2024. B-Dry founded 1980, third owner. RamJack franchise added by prior owner in ~2018.

Why this business

Alex recognized the B-Dry brand name immediately and was struck that it was a need-to-have service (not discretionary). He noted that AI or technology shifts would not change what the business does. The pairing of B-Dry waterproofing with the RamJack foundation stabilization franchise appealed because the two businesses counterbalanced each other seasonally — rain drives waterproofing demand while drought conditions drive foundation settling and stabilization work — smoothing the revenue curve. He also had the longest list of network contacts he believed could move the needle for this business compared to any other he evaluated.

What's working

Strong brand recognition in Louisville; B-Dry name carried significant local weight
Counter-cyclical synergy between B-Dry (rain-driven) and RamJack (drought-driven) smooths monthly revenue swings
Close rate has increased meaningfully after focusing on quality salespeople running leads rather than adding headcount
Network-driven lead sourcing: Alex actively leverages his personal network to capture market share from competitors
Seller-facilitated transition: prior owner stayed involved, taught operations thoroughly, and helped manage employee relations
Strong employee retention and morale; key VP and crew leaders have been supportive and collaborative
November 2024 was highest sales month of the entire year; December 2024 was second highest
RamJack franchise headquarters provides a second-opinion resource when evaluating bids and proposals
Six-month interest-only period on debt is providing cash flow breathing room in the transition

What's hard

Running multiple field crews and scheduling complex multi-day construction jobs was the steepest learning curve
First payroll nearly failed — payroll provider was not set up in time despite months of advance notice; employees did not get paid on time on day one
Alex did not have his own QuickBooks access for 15 weeks after closing, relying on his VP's login in the interim
Revenue is recognized only when work is installed, not when jobs are sold — so strong sales months (November/December) don't immediately convert to cash
Weather dependency remains: although the two business lines partially offset each other, the company is still subject to seasonal volatility
Managing B-Dry brand/trademark risk — prior franchise system was dismantled through arbitration; legal diligence was required but some risk acknowledged
Accepted a below-market personal salary initially to prioritize debt paydown

Notable quotes

I tell everyone that Alex Holly was going to be buying a business in 2024. Now I didn't go and shout that off the mountaintops but I did start to believe it more than I thought about it that way and I think it made me a lot more confident but a lot more inspired to go and actually try and do this.

When it's raining outside that's going to end up getting work for the B-Dry out of the company but when it's dry or a drought the dirt pulls the ground pulls back from the foundation allowing it to settle a little bit so to stabilize that or even jack the foundation up — that's where the RamJack portion comes in.

I don't know that I could have done this without him especially during the deal phase but it's been great to have somebody along for the ride.

I don't get paid until we get work in the ground so that's something that we're working through — where we may need to grow a little there.