How to 4x EBITDA in 3 Years Without Growing Sales

Today's guest had a phenomenal run buying a business using a traditional search fund. But his ownership started ominously soon after closing on the asset rental business with a supposed $2.5 million in earnings, Ned Tomasevic realized that in fact earnings were more like $1.5 million. We hear how that terrifying crisis affected.

Ned as a young first time CEO.

And how he pushed through on the positive side, we also hear how a key insight unlocked earnings in dramatic fashion. In just three years, Ned grew EBITDA from 1.5 million to 6 million and almost all of that was in margin improvement, not new sales, which is to say a key change to the business's existing function. Quadrupled EBITDA without revenue growth.

A great reminder that revenue is vanity, profit is sanity. Today, Ned is a search fund investor and we spend time on his perspective from that side of the table. Listen for his caution that you should do search as an end in itself, not as a means to some other.

End like becoming an investor.

Here is Ned Tomasevic, former CEO of EZrack and and general partner at Searchers Fund. Webinars When SBA lenders consider a searcher's acquisition, they're not just underwriting the business, they're underwriting you. In a webinar today, Thursday, June 25, leading SBA loan broker Heather Anderson will explain how lenders evaluate a buyer's background when deciding whether to approve an…

Topics covered to include how SBA lenders evaluate buyer experience, how to frame your resume for lender confidence, common buyer weaknesses that raise concerns, and how lenders think about leadership, operations and industry experience, or lack thereof. The webinar is transferable Crafting your resume for SBA lenders and it is today, Thursday, June 23, noon Eastern.

Link to register is right at the top of this episode's show notes or on the Acquiring Minds homepage. Acquiringminds Co. Welcome to Acquiring Minds, a podcast about buying businesses. My name is Will Smith.

Acquiring an existing business is an awesome opportunity for many entrepreneurs, and on this podcast I talk to the people who do it. Running payroll, paying your bills, closing your books, and producing financials. These are critical tasks every business owner must do or oversee.

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Chris, Tim and the System 6 team understand firsthand the challenges the Opportunities of jumping into a business as its new owner. So whether you own your business already or have one under LOI, talk to System 6 about how they can give you time back and improve your financial operations. Mention Acquiring Minds and they'll provide a free review of your books and financial ops, a $500 value.

Check out system6.com link in the show notes or email helloystem6.com Ned Tomasevic, welcome to Acquiring Minds. Thanks for having me, Ned. You bought a business as a traditional.