From Marine Corps to Business Owner: Barker Squire's Journey with Crane Works

Barker Squire's Path to Business Ownership

Barker Squire, a former Marine Corps infantry officer, made the transition to business ownership through a self-funded search that led him to acquire Crane Works in 2019. His journey from military service to entrepreneurship offers valuable insights for aspiring business owners, especially those with a military background.

Why Buy a Business?

After serving four years in the Marine Corps, Squire found himself at a crossroads. He had gained invaluable leadership and management experience but faced the prospect of years of bureaucracy before reaching a position where he could truly influence an organization's culture and direction. This realization led him to pursue business ownership as a way to continue leading people and organizations.

Squire enrolled in the University of Virginia's Darden School of Business, initially with the idea of starting a business from scratch. However, during his first year, he was introduced to the concept of entrepreneurship through acquisition. After extensive research and conversations with successful searchers, unsuccessful searchers, and investors, Squire determined that searching for an existing business to acquire was the best path forward.

The Self-Funded Search Model

Squire opted for a self-funded search model rather than the traditional search fund approach. His reasons included:

1. Desire for autonomy and control
2. Geographic preferences (wanting to stay in Virginia or North Carolina)
3. Aiming for majority ownership, even if it meant acquiring a smaller company

He began his search in July 2017, looking for businesses with $500,000 to $1.5 million in EBITDA. Squire had saved diligently during his time in the Marine Corps, which provided him with the resources to fund his search and contribute to the equity portion of a deal.

Finding Crane Works

Squire discovered Crane Works through a business broker in early 2019. The company specialized in servicing overhead cranes for military customers, aligning well with Squire's background and industry preferences. Key factors that made Crane Works an attractive acquisition target included:

1. Historical profitability
2. Recurring revenue from 3-5 year inspection contracts
3. Serving military bases Squire was familiar with from his Marine Corps service
4. Geographic location (about 1.5-2 hours from where Squire grew up)
5. Alignment with Squire's industry focus on industrial services

The Acquisition Process

The deal to acquire Crane Works was structured as follows:

• 45% senior debt (conventional loan)
• 20% seller notes
• 10% personal equity from Squire
• 25% equity rolled by the founder

Squire faced challenges in securing conventional financing, as it's uncommon for self-funded searchers. He reached out to about 25 different financing sources before finding two regional lenders willing to provide terms that made the deal work.

Growing Crane Works

Since acquiring Crane Works in January 2019, Squire has led the company through significant growth:

• Revenue and EBITDA have tripled
• Employee count has grown from 11-12 to 26

Squire attributes this success to focusing on delivering high-quality services and growing through existing customers and word-of-mouth referrals. The company has prioritized safety and maintaining a strong reputation in the industry.

Challenges and Lessons Learned

Squire faced early challenges, including:

1. A division within Crane Works imploding shortly after acquisition, resulting in a loss of enterprise value
2. Sales not meeting expectations in the first six months

Despite these setbacks, Squire and his team implemented a new strategy using the Entrepreneurial Operating System (EOS) framework. This approach, combined with a focus on execution and customer satisfaction, has driven the company's growth over the past six years.

Government Contracting Insights

Working in the government contracting space has provided Squire with unique insights:

Pros:

1. Serving important customers doing cutting-edge research and supporting key military units
2. A sense of purpose similar to what Squire experienced in the Marine Corps
3. High barriers to entry, providing some protection from competition

Cons:

1. Extensive regulations and bureaucracy (Federal Acquisition Regulation)
2. Challenges for small businesses to navigate complex compliance requirements

Future Plans and Vision

Squire's long-term vision is to build a portfolio of companies that may or may not be related. Recent developments include:

1. Promoting the COO to CEO of Crane Works in July 2022
2. Focusing on inorganic growth opportunities for Crane Works
3. Exploring acquisitions of other businesses, potentially in different industries

Squire aims to create a small holding company of high-quality businesses that he can hold indefinitely. He prefers this model to serially buying, building, and exiting businesses, as he values the relationships and processes built within each company.

Lessons for Aspiring Searchers

Squire's experience offers valuable lessons for those considering entrepreneurship through acquisition:

1. Leadership experience, such as that gained in the military, can be invaluable in running a small business
2. The search process can be challenging, but persistence pays off
3. Focus on building strong relationships with employees and customers
4. Reinvest in the business to drive growth before taking significant distributions
5. Consider the long-term vision when structuring deals and making strategic decisions

Conclusion

Barker Squire's journey from Marine Corps officer to successful business owner demonstrates the potential for veterans to excel in entrepreneurship. His experience with Crane Works highlights the importance of aligning personal strengths and interests with business opportunities, as well as the value of perseverance and strategic thinking in building a thriving enterprise.

For those interested in following a similar path or connecting with Squire, he welcomes outreach through LinkedIn and remains open to investing in other searchers' deals as a side activity.

Article created from: https://www.youtube.com/watch?v=E9n15v4Yn9g