I’ve had my guest, Nick Haschka, on once before for episode 5 and I wanted to have him on again to talk through a thesis of his more in depth. The core element of his thesis is acquiring a small company, between $200k and $500k in cash flow, quickly can often be more beneficial for someone looking to buy a business than going the traditional search route. This is the path he’s taken and so draws a lot from personal experience as well as deals he’s seen over time.
We talk about advantages and disadvantages of acquiring small, some unconventional ideas of his such as not using accountants or lawyers, unique items to look for in due diligence, and a few stories. If your plan is to acquire a company in the next few years, this is an idea you should listen to and pay some consideration. I hope you pull a few lessons from Nick’s thinking here.
Think Like an Owner Sponsors
Live Oak Bank – Live Oak Bank is a seasoned SBA lender focused on search funds, independent sponsors, private equity firms, and individuals looking to acquire small companies. Live Oak has closed billions of dollars in SBA financing and is actively looking to help more small company investors across the country. If you are in the process of acquiring a company or thinking about starting a search, contact Lisa Forrest or Heather Endresen directly to start a conversation or go to www.liveoakbank.com/think.
Hood & Strong, LLP – Hood & Strong is a CPA firm with a long history of working with search funds and private equity firms on diligence, assurance, tax services, and more. Hood & Strong is highly skilled in working with search funds, providing quality of earnings and due diligence services during the search, along with assurance and tax services post-acquisition. They offer a unique way to approach acquisition diligence and manage costs effectively. To learn more about how Hood & Strong can help your search, acquisition, and beyond, please email one of their partners Jerry Zhou at [email protected].
Oberle Risk Strategies – Oberle is the leading specialty insurance brokerage catering to search funds and the broader ETA community, providing complimentary due diligence assessments of the target company’s commercial insurance and Employee benefits programs. Over the past decade, August Felker and his team have engaged with hundreds of searchers to provide due diligence and ultimately place the most competitive insurance program at closing. Given August’s experience as a searcher himself, he and his team understand all that goes into buying a business and pride themselves on making the insurance portion of closing seamless and hassle-free.