Think Big, Buy Small

Connor McCarthy and Caroline Matthews are not only a married couple and new parents, but they’re also funded searchers turned co-CEOs at Canyonlands Camps. The outdoor recreation industry is little explored in the world of search and their ETA journey is also distinct in that, through the acquisition of summer camps and travel programs, they’ve taken ownership of business-to-consumer businesses, which constitute only a minority of search targets. In this conversation, the pair reflect on the experiences of buying and then operating businesses with a spouse; how they approached investors with their unique thesis; the characteristics that they look for in acquisition opportunities; and the extra complexities involved in the buyer-seller relationship, particularly in cases where multiple generations of one family have been involved in camp operations. They also share steps they’re taking to upgrade facilities and professionalize their camps; how they’re thinking about repeat customers and the progression of programming; along with thoughts on the advantages that have now come with being preferred buyers in the space, ones with a reputation of honoring family legacies. This is an episode about human relationships in ETA, and listeners will learn a great deal from the journey that Connor and Caroline are on.

William Young became CEO of Aerowave Technologies in January of 2021. While he has no regrets about his pursuit of the ETA path, his journey to the company’s helm was a difficult one. His story is distinct in that he started out in a partnered, brokered search but ended up as a solo searcher, focusing on proprietary outreach in Dallas-Fort Worth and Boston. Once he closed on Aerowave, Will was met with a number of challenges, including a seller transition that ran over a year; COVID; supply chain issues; running a technical business with very little technical expertise of his own; early culture problems; and the ever-daunting task of hiring talented salespeople. In this conversation, Will also reflects on Aerowave’s many tailwinds, his decision to implement a new enterprise resource planning system, the benefits of speaking directly with his customers, and how he views being CEO through the lenses of fatherhood. Though Will has some scars to show from his search process and early days at the company, listeners will learn a great deal from his accomplishments and his ultimate success in adapting the business to the life he wants to lead.

Sam Rosati is a former searcher turned active equity investor in self-funded searches and, given his experiences, an important focus of this conversation is on the evolution of the self-funded market. It used to be the case that self-funded searchers had to create their investor base from scratch, out of pure networking. Now, however, a path is emerging where a searcher can reach out to a recurring investor in self-funded searches, like Sam, and that investor can then make further introductions, helping searchers who started their ETA journeys with few contacts to more easily find pools of equity to back their deals. Sam discusses how searchers find him, including through his SMBootcamp; his thoughts on when self-funded searchers should start reaching out to investors, along with strategies for building relationships with them; the qualities he looks for in searchers and in the businesses they’re looking to acquire; why he finds this to be such an attractive asset class, and more. Listen to learn about this next chapter in search and the many opportunities it brings for self-funded searchers.

Betsy Harbison, CEO at Softrip, successfully completed a funded search in 2021. Her story, however, is rather unique in that the business she acquired is a remote, vertical software company that was also a carve out, meaning that a crucial part of Betsy’s journey involved the daunting task of untangling Softrip from its parent company. In this episode, she considers the pros and cons of self-funded versus funded search; why she ended up buying a remote company when her search had initially focused on the Midwest; the thinking behind her decision, in purchasing the business, not to raise any debt; and the challenges she encountered in doing due diligence on a carve out, including the seller’s insistence that she not speak with employees or customers prior to close. She also shares reflections on her first years as CEO, comprising the excitement and the difficulties around not having the luxury to wait before making changes, the transition from too much product customization to a rebuilding of that core product,  and also her recent focus on an entirely new product offering. It’s a distinct story of acquisition entrepreneurship and a fascinating conversation.

In May of 2024, after a self-funded search, Brian Seeling became CEO of PGM Service, a Florida-based company that focuses on maintenance, service, and repair of commercial food equipment. His journey to become an acquisition entrepreneur is distinct in that he first worked as a software engineer, was then involved in startup life for a number of years, and only recently embarked on the ETA path. In this episode, Brian reflects on the decision to pursue ETA, including his experiences of entrepreneurship through startup versus through acquisition; how implementation of a preventative maintenance service is empowering him to turn an episodic revenue business into a recurring revenue business; his thoughts on Rick and Royce’s suggestion to focus on synergies and cross-selling opportunities via the acquisition of a cold-side business; and more! Brian bought a company in which there are “many ways to win”, an important attribute in assessing acquisition opportunities, and listeners will learn a great deal from Brian’s accomplishments in the ETA space.