Acquiring Minds

Damon Chlarson had 3 key criteria, and he found them in an insulation supplier doing $380k EBITDA and selling for $1.1m.  Themes from Damon’s interview: Defining your acquisition criteria  Finding your niche in the market Imagining yourself doing the job before buying the business Tapping into people’s talents Mental health and business success Finding opportunities in times of crisis Looking back...

Frustrated after losing 3 jobs, Bruce Vann used savings to acquire a 25-employee, 7-figure curtain manufacturer for 2x.  Themes from Bruce’s interview: Paying 2x for a growing 70-year-old business Buying a business to pull out of a career rut Why finding a business is like a full court shot The need for persistence Abandoning a proprietary search because of seller overvaluations Chasing down leads...

After seeing 9-figure businesses built through acquisition, Adrian Pinto bought a landscaping biz to build one himself.  Themes from Adrian’s interview: Buying a $3-5M landscaping business with 15-20% margins Paying 3x, but rapid growth making it more like 2x What a buy-side advisor is and when it might make sense to work with one How COVID helped his search process Why doing his own search was le...

The 3 founders of Chenmark left promising corporate careers to pursue a multi-decade path of acquiring small businesses.  Themes from the interview with James & Palmer Higgins: Why the Chenmark founders decided to do this Lessons learned from 30+ acquisitions How the founding thesis is performing 7 years in The value of an "extreme delayed gratification muscle" Intellectual stimulation in corp...

With 4 acquisitions since starting in 2018, Justin Turner explains how his team is building a permanent equity holdco.  Themes from Justin’s interview: The appeal of holding on to companies for a longer period Why buying a $4-5M business might be easier than buying a $1M one Letting the seller relationship develop naturally Why paving companies make great acquisitions Waiting to finalize the equit...

@Fundof1 was searching for a business in a tight geography, and found a great fit in a $760k appliance repair company.  Themes from John’s interview: Buying a $760k appliance repair company How to balance very specific search criteria Choosing a steady industry Walking into a business with an established sense of community Deciding between using investors or not Focusing on improving the business...

Knowing zero about manufacturing, Josh Paulson found purpose when he bought a small & struggling producer of pet cages.  Themes from Josh's interview: Owning the business saved his life What manufacturing is like Firing all but 1 employee (who spoke little English) Reducing the product line from 2000 SKUs Rebuilding a business with limited resources Reach Josh at: Quality Cage

Devin Wanzor went from a corporate gig with 50 employees to buying a $3M liquor store and playing golf 3 times a week.  Themes from Devin's interview: What makes Devin's liquor store so profitable The major risk involved in acquiring a liquor store The self-image shift from corporate manager to liquor store owner Boosting revenue with an easy price cleanup Maintaining a 15-hour workweek Reach Devi...

Mike Curry bought a business only to struggle for years as its new CEO. He shares the lessons that unlocked 2x growth.  Themes from Mike’s interview: Entrepreneurship through acquisition (ETA) isn’t just for MBAs Buying a business is art and science The perks of the traditional search fund model Building a strong community of fellow entrepreneurs Becoming CEO of an established company Earning your...

JD Klein bought a print shop for $100k, thinking such a small acquisition carried little risk. The opposite was true.  Themes from JD's interview: Running a strong-growth, low-margin business Selling your house to make ends meet Why very small businesses come with higher risk Acquirers should hire a financial planner Pivoting your strategy when uncontrollable roadblocks emerge Pros & cons of t...

Geoff Oliver bought 2 laundromats in rural Texas. He shares his numbers & what to consider when acquiring a laundromat.  Themes from Geoff's interview: How working as an SBA lender lit a fire for acquisitions Looking for a real estate investment and finding a great business instead What makes laundromats competitive Self service vs. full serve Why quality of laundromat equipment can matter mor...

Harvard's acquisition entrepreneurship conference took place last week. Organizer Michael Ledecky shares 5 takeaways.  Themes from Michael's interview: Buy a good business in a great industry 4+1 Model for searching 3 industries for acquisition entrepreneurs to consider Mental health in search Women in search Thai Lee, acquisition entrepreneur who became a billionaire Diversifying paths of search...

Having searched, acquired, and exited a business himself starting back in 2007, today Mark Sinatra invests in searchers.  Themes from Mark's interview: Running a traditional search fund How search has changed over the last 15 years The challenge of staying optimistic during a traditional search The capacity of small and mid-sized companies to absorb change Client management during a recession Deal...

Casey Clark talks hot industries, identifying growth potential in a business for sale, and avoiding common SMB pitfalls.  Themes from Casey's interview: Choosing the right industry for you 3 hot industries for acquisition   Acquisition opportunity checklist How to convince a seller to let you speak with management The “propeller” methodology 3 common traps for small business owners Reach Casey at:...

Resisting at first, Mark Litton eventually realized that buying the family biz was the perfect path to entrepreneurship.  Themes from Mark's interview: Buying a business from a family member Redefining “real” entrepreneurship Structuring a deal with 100% financing Understanding the business’s numbers before you buy Getting through struggles in your first year Recession-proofing your business Free...

Learn how to find a lawyer for your deal, how much you'll spend, what to look for, and how to avoid suing the seller.  Themes from the interview with @SMB_Attorney : Absolutely necessary: a good lawyer What to look for References? Reviews? Hmm, difficult What you'll pay Don’t be afraid to negotiate price Do they need to be in the same location as your deal? You don’t want to sue Indemnification: G...

A husband & wife bought a therapy practice for $120k, almost dumped it, then grew it for 8 years when PE came knocking.  Themes from Neil's interview: Growing a mental health practice from $615k/year to $2M.  How working in your acquired business (not on it) can save you Owning a business with your spouse Equipment leasing as a solution to keeping overhead costs low  To sue or not to sue (the...

Jordan Carter & Robert Graham argue for self-funded search over traditional search funds or the "buy small" approach. Themes from the interview with Jordan & Robert: Self-Funded Over Traditional Buy Bigger Turning $200k into $4M+ How Much Money You'll Need Be Prepared to Move No Deal Experience? No Problem What Makes a Good Searcher Reach Jordan & Robert on LinkedIn: Jordan Carter Robe...

Sarah Romer bought a large but tired hair salon in Austin for $80k. Her first year as owner was the hardest of her life. Themes from Sarah's interview: The formula for estimating the value of a salon or beauty business What to do when sellers overestimate the worth of their company Where to cut costs after you’ve made an acquisition  Underestimating the importance of company culture The stress of...

Neil Granberry bought a bubble ball business to prove himself as an entrepreneur while pursuing an MBA at the same time. Themes from Neil’s interview: The advantages of a small starter business as a first acquisition Looking past media hype that paints billionaire startup founders as the only entrepreneurs The value of a customer list The beauty of acquiring a small business that is already profit...

Thanks to changing his search from traditional to self-funded, Chris Williams bought a $1m EBITDA bookkeeping business. Themes from Chris's interview: Traditional versus alternative search fund models The advantages of self-funded search (if you can afford it) The appeal of bookkeeping businesses How to stand out to potential sellers who have heard it all before The first six months after acquisit...

Steve Divitkos shares tips from his acquisition, from the solitude of search to the delicate balance of being a new CEO. Themes from Steve's interview: The full lifecycle of a traditional search The biggest myth about entrepreneurship Surviving the search process Why he bought Microdea Managing relationships with the sellers (the price of peace) What to do in your first two weeks as CEO  Why you s...

A podcast exposed Jason Budd to buying businesses. After 10 years in corporate, he'd found his path to entrepreneurship. Themes from Jason's interview: How Jason found the right business with the help of a mentor and a podcast Due diligence when it comes to finances and staff Keeping your options open in case a sale falls through Technical understanding of your acquired business What the history o...

Closing on his 2nd acquisition in 10 months, Mike Botkin just became Central Florida's largest landscaping business. Themes from Mike's interview: Acquiring a second landscaping business Dropping customers to grow  Developing a playbook for operating a landscaping business Treating your employees right Downsides of SBA loans and traditional search funds The invaluable resource of keeping the previ...

Jessica Markowitz used a traditional search fund to search for & ultimately buy a great business. But the road was long. Themes from Jessica's interview: Acquiring a business through a traditional search fund Leveraging an army of interns to power the search Search fund partnership with a close friend  Maintaining a good relationship with a business owner even after they decline you Running a...