ETA Unicorn: $1 Billion in Revenue in 5 Years

Today's guest thought he would buy a business with an SBA loan, pay down. The debt, cash, flow it and live happily ever after. Instead, he has rolled up dozens of businesses in commercial H vac and adjacent services to over $1 billion in annual revenue.

Yes, a billion. Traditionally, for searchers who develop a vision to consolidate their industries, 100 million in revenue is the big hairy, audacious goal. Well, today's interview with Steve Carroll might reframe what's possible in his deck to the private equity fund that backed him. Steve's plan was to acquire his way to $10 million of EBITDA over five or so years.

A pretty traditional roll up play, but. He got to $10 million of EBITDA in a year and a half. It was working so well at that point, he had to keep going.

Now, Steve didn't give us EBITDA numbers of where he is today, but he has said that margins at Kelso industries are around 10%, which would suggest 100 to 150 million of EBITDA. More remarkable still, he's done that in five years. From would be SBA buyer in late 2020 to 1.2 billion as Kelso Industries as of November 2025.

Wow. Now, obviously the formula for this success is multifaceted and we can't cover all of it in an hour and a half. So Steve and I focused on key inflection points early in the journey, points that might help you. Now, I assume you're not yet to a billion.

One of the key points of this entire journey was Steve going from acquisition number one to acquisition number two. Acquisition number one was a business he bought and operated himself. Even moonlighting for a while.

While he maintained a W2, he was drowning during this time working 100 hour weeks, the idea that he could ever really grow seemed remote. He was too in the weeds of this business. And then he and his partner, another Steve, considered a shift in their model.

For acquisition number two. And that was a big unlock. It remains the foundation of a model that they've refined over five years and two dozen plus subsequent acquisitions.

So this interview could have been hours longer, but hopefully we did justice to at least the first couple of years of Steve's remarkable journey to build Kelso Industries to this unicorn of entrepreneurship through acquisition. Please enjoy Steve Carroll, CEO and co founder of Kelso Industries. You know that getting a business under LOI is a key milestone, but also a starting gun.

Getting your deal from LOI to a closed SBA funded acquisition is a race and Most business buyers don't realize how many hurdles are ahead until they hit one. Today, Thursday, December 4, leading SBA loan broker Heather Anderson will host a webinar walking you through the acquisition process like a coach preparing you for a race.

You'll learn how to increase your speed, avoid painful delays, outmaneuver other buyers, and anticipate obstacles before they appear. The webinar is how to run the SBA Deal Race and it is today, Thursday, December 4th, noon Eastern. Link to register for the webinar is right at the top of this episode's show notes or on the Acquiring Minds homepage.

Acquiring Minds Co. Are you drawn to the opportunity of small business acquisition, but don't seek to acquire a business yourself? Well, this coming Tuesday, Niklas James, my partner in Mind's Capital, is hosting a webinar about investing in, not leading small business acquisitions. You'll hear the occasional guest on Acquiring Minds talk about investing in search deals.