Bruce Van·March 11, 2022

Overcoming a Career Rut by Buying a Business

Bruce Van is a Black entrepreneur from Hampton, Virginia who bought Lux Out Stage Curtains — a Richmond, VA manufacturer of theatrical stage curtains for schools, churches, and performance venues — in February 2020 after a roughly 15-month self-funded search. He found the business on BizBuySell through a broker and closed at approximately 2x EBITDA, a dramatically low multiple enabled by the broker's error in presenting net income (post-owner-salary) rather than true EBITDA. Bruce negotiated to retain all working capital (receivables and cash) in the business, accepting a slightly above-asking price in exchange — a key structural win given the company's labor-intensive, long-cycle cash flow profile. The company's long sales cycle (orders placed up to two years ahead) insulated it during COVID-19 shutdowns, making 2020 the business's best year on record, though the delayed effect reduced profits sharply in 2021. Bruce's story is framed around overcoming a painful career rut — losing three jobs in four years after business school — and the personal and historical significance of building wealth as a Black man in what was once the capital of the Confederacy. By 2022 the business had a team of ~25, had entered two new markets, and was projecting 25-50% revenue growth.

Deal facts

multiple: 2x EBITDA
revenue: seven figures
financing structure: SBA loan + personal savings (10-20% down); no outside/investor capital
notes: Seller kept receivables/cash initially; Bruce negotiated to keep all receivables and a cash balance in the business, paying slightly above asking price. Broker had undervalued the business by reporting net income (after owner salaries) rather than true EBITDA, which allowed Bruce to acquire at an exceptionally low multiple. Business founded in the 1940s as Tuckahoe Drapery Cleaners. Profits up ~1/3 in 2020 vs 2019; down roughly half in 2021 vs 2020. Staff of ~25. Projecting 25-50% growth in 2022.

Why this business

Bruce was not industry-specific in his search; he wanted something he could 'wrap his head around,' felt he couldn't mess up, and could acquire at an acceptable (low) multiple. He found Lux Out Stage Curtains on BizBuySell through a broker listing. The niche manufacturing business had geographic insulation from competition, a long sales cycle that provided stability, and was underpriced due to broker miscalculation. Its location near his home in Richmond, VA was a coincidence he saw as confirmation he was on the right path.

What's working

Acquired at approximately 2x EBITDA due to broker undervaluation — immediate equity uplift at close
Long sales cycle (orders placed up to two years in advance) insulated the business during COVID-19 shutdowns; 2020 was actually the company's best year
Geographic moat: nearest competitor to the north is Pittsburgh, giving Lux Out a strong foothold in the mid-Atlantic
Proprietary online quote tool — only one in the industry — used by both customers and sales staff
Custom, labor-intensive product (each stage is different) makes outsourcing to low-cost overseas manufacturers impractical
Aggressive sales culture — pursuing every lead rather than waiting for inbound orders
Discovered two entirely new markets entering 2022, projecting 25-50% revenue growth
First-year profit exceeded Bruce's salary from prior jobs, compensating for years of financial setback

What's hard

COVID-19 caused order volume to drop substantially in Q2 2020; the delayed effect hit 2021 profits hard (down roughly half vs 2020)
Severe labor shortage in 2021: could not fill installer roles even offering above-market wages; Bruce personally went out to do installs
April 2021 brought a flood of orders at the exact moment they had no installers — a very difficult operational squeeze
No documented processes from prior owner; had to write all SOPs from scratch
Managing 25 people with no prior experience managing sales or operations teams; first week involved employees crying and interpersonal conflicts
Encountered racial hostility during search (e.g., a landscaping seller called him a 'nuisance' when he asked about add-backs)
Small-business family dynamics: employees bring personal and interpersonal issues to work that a new CEO must navigate

Notable quotes

The moment I purchased the company my net worth went up substantially — which was great. You could flip the business and turn a profit.

The broker had reported cash flow but didn't really understand that the cash flow that you reported wasn't even EBITDA — it was the net income after the previous seller and his wife paid themselves a salary. That's how I was able to get it at such an aggressive multiple.

These people made an entire country to keep people like me from doing what I'm doing right now and I just feel elated that I'm able to do that and realize the dream.

I think I should have done this a long — well, I mean I think I did it at the right time for my journey — but I didn't understand how realistically doable it was.