Yes. And exactly.
Acquiring Minds
SBA Acquisition to $9m Cash Exit in 5 Years
Excerpts · 407 segments · ~1:27:37 long
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By revenue growth.
Yeah, it's, it's a case of, it's the, the case that we, the pattern that we so often see where a seller has run things really, really lean because they're trying to, to extract as much of the profit out of the business for themselves.
Yeah.
And then when we get in there as new owners, we're trying to build more robust businesses and, and really. And build something much more, less lean and less fragile. And that means investing permanently, spending more permanently on SGNA and other and other things which necessarily means less margin.
Yep.
Anything else?
The only other thing I would say is that I still think this is a great path. So I think sometimes there's more pessimism these days of hey, you know, this is too crowded, there's not good deals anymore, prices are going up and I still see, and you know, I've made, you know, put my money where my mouth is in 2025 in terms of additional investments.
I think there is still a ton of great deals and very niche spaces that are a great fit for a searcher or self funded searcher. And there's I think a lot of room to run in the space. So I think people who are, are more pessimistic, aren't, are doing it more based off of vibes than actual Data.
People in 2017 said the space was too crowded. So it's something where they're like oh, the good days were 2012 when there was only two self funded searchers coming at HBS instead of 20 of us. So it's something where I still think.
There'S room to run well and you made the point about multiples. Are reported to have increased a lot since 2017 when you bought and down in the small SBA size deal there's been some inching up but there really hasn't been that much multiple growth.
That's right.
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