The Flywheel of Buying Businesses in a Single Region

How much deployed capital does that represent? I don't know the exact number offhand. I probably, I probably wouldn't want to go into that right now.

Okay, can we talk about what you, how many have you had a single fund vehicle or more and what the size of those funds is in our. Yeah, so I, so I can say that, you know, we, our first fund was 34 and a half million and we've also done a few little sidecars to, as a part of that in the, in the seventh seven acquisitions that we've made and then too early to announce. But we will be bringing to…

These are larger than SBA deals. A typical transaction for Sleeping Giant is a enduringly profitable business. It's been around for 30, 40.

I mean we, we just did one that's 75 years old, very typically consistent in terms of their economic performance. Pretty boring often in the, call it 2 to 5 million in, in EBITDA size, 50 to 100 employees, usually too big for an SBA and you know, individual sponsor, probably not as sophisticated and large enough to be a PE platform, but in a pretty sizable add on or a strategic acquisition.

Yeah, so it's kind of in that, yeah, 4 million earning zone where they're kind of, it's a little bit of a no man's land, but they do get calls from, from PE folks and, and they're kind of considering that as maybe some kind of option.

And, and especially if they get to that, that four, five size, they might even start thinking about an ESOP as, as an exit option where we're almost, you know, in competition with that as an alternative as well exit to their employees.

You know that one of the most common levers to pull in a target acquisition is technology updating the systems of a business that may still be running off a spreadsheet or even pen and paper. But tech is complicated with tons of solutions out there. So choosing the right cloud platform CRM, telephony compliance and cybersecurity, not to mention implementing all that is a job in itself.

Acquiring minds Guest Nick Akers knows this firsthand. As a former searcher who now owns Inzo Technologies, Nick has seen the tech challenges searchers face when acquiring businesses. His team at Inzo regularly works with searchers and their acquisitions, offering a complimentary IT audit of the target company.

Nick takes a personal interest in all their searcher clients, drawing from his own experience in the search phase. Enzo dates back to 1989. So this is a company that has managed the tech for hundreds of small businesses over decades.

And one last thing, no long term contracts with Enzo. A big differentiator. Check out inzotechnologies.com I N Z O or email Nick directly@nicknzotechnologies.com and don't forget to tell them you're a searcher.

In our investing via Mines capital and we invest in independent sponsored deals. Our actual across our portfolio that it's about 4 to 5 million of EBITDA is the average acquisition of our sponsored deals. So I do, you're probably bumping up against independent sponsors.