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In our continued quest of radical transparency, follow along as we are openly sharing information to build trust and keep all stakeholders updated through a monthly newsletter. Thanks for joining us on this journey!
TLDR
Deal Team assembled and we are ready to execute on the right deal
Ramping up the deal flow
The SMBootcamp Experience: An Accelerator for Search Entrepreneurs
Final Thoughts: Riding the search rollercoaster and building momentum
Shoutouts
The entire SMBootcamp team for hosting us in Tampa for 3 days this month.
Garth Fasano for his insights, support, and deal flow!
Gregg Kunz for being a leading force and high-quality broker and advisor in our market, plus shedding some amazing tips & wisdom with us. We sincerely appreciate the feedback.
Wins & Losses
Win: Deal team formation → Through networking and other resources, we feel our deal team is extremely strong. We have personal relationships with the service providers necessary to efficiently conduct due diligence post-LOI and close a deal.
Win: Pre-LOI due diligence → The more reps we get, the more efficient and better we are getting. This month, we honed our financial model and due diligence for an opportunity, moving from having assumptions in the model to plugging actual numbers through primary research to make an informed “pass” decision.
Loss: Deal flow → We constantly work to keep our pipeline full of high-quality opportunities. However, this is easier said than done. Traveling to Tampa this month slowed our pipeline down. We are hitting the gas and filling up our pipeline.
Activity by the Numbers: May
34 = Deal-specific outreach to CO business brokers
21 = Deals evaluated
2 = LOIs submitted
Subject Deep Dive:
The SMBootcamp Experience - An Accelerator for Search Entrepreneurs
SMBootcamp, led by Sam Rosati, provides a comprehensive three-day in-person workshop in Tampa, Florida, aimed at self-funded searchers. The program covers every aspect of the acquisition process, from identifying potential targets to closing deals and managing transitions. Participants benefit from hands-on, practical insights rather than purely theoretical knowledge. This approach mirrors renowned startup accelerators' intensive, mentor-driven environment (i.e., Techstars, Y-Combinator, etc.), where entrepreneurs are equipped with the tools and networks they need to succeed quickly.
The key benefits of SMBootcamp were the expert guidance and resources from a dedicated deal team, networking, peer support, case studies, and real-world examples. A special asterisk goes to the deal team -- learning firsthand about the quality of earnings, legal, tax, and insurance providers has left us immensely more confident in the closing process.
Key Takeaways from SMBootcamp
"Get Off Your A**" and See Some Deals: Buying a business is a numbers game. The more deals we can look at, the better we will quickly determine what company is or is not a good fit. Finding a great deal is a sales exercise; build your funnel and hit the phones!
Build a Relationship with Local Business Brokers: The pool of potential buyers is growing daily, and the likelihood that local brokers have the time or energy to connect for an informational coffee meeting is slim. Pick up the phone and build a relationship by showing you are a serious buyer. Ask thoughtful questions that show you've done your research and come to quick No's so you're not wasting time.
Eliminate Delays and Be Ready for the Next Steps: Never let the delays or bottlenecks be on your hands. Collect and engage potential partners early, and have all of your paperwork lined up so that when you find a deal, you can have confidence in your ability to close, and the Seller has confidence that you can close.
The Value of Accelerator Programs
Both of us have seen firsthand the transformative impact of accelerator programs like Techstars coming from the Venture Capital asset class. These programs are known for their ability to fast-track entrepreneurial success by providing intense mentorship, valuable connections, and a structured environment for learning and growth. Recognizing the parallels from our working at Techstars, we found immense value in the SMBootcamp experience, which offers similar support and acceleration for search entrepreneurs. The support system enhances our chances of success and accelerates the journey from aspiring business owners to successful acquirers.
Final Thoughts
Josh here - As we rapidly approach the six-month mark in our search, I’m feeling a growing sense of excitement and confidence that we’re on the right path. The journey has been a rollercoaster of emotions - there’s nothing quite like the thrill of finding a great company and sending out an LOI, but it’s equally challenging to handle the lows when deals fall through or the pipeline dries up. Despite the frustrations and moments of doubt, the support from our wives, friends, family, mentors, and former classmates has been incredible and keeps us moving forward.
We’ve learned so much from this search process, and our recent experience at the SMBootcamp has only strengthened our resolve. We’re more optimistic than ever that the right deal is just around the corner. Now, more than ever, we’re leaning into the process, committed to finding a company that aligns with our vision and values. Thank you for being part of this journey with us, and stay tuned - exciting times are ahead!
Your support fuels our journey forward, and we are immensely grateful.