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1. (Thread)
Pre Acquisition Reflections:
I got into SMB 5y ago by purchasing my family business from my parents. It became my platform to for Micro PE portfolio.
I am the 3rd generation owner of this company which is both an awesome and terrifying place to be.
Pre Acquisition Reflections:
I got into SMB 5y ago by purchasing my family business from my parents. It became my platform to for Micro PE portfolio.
I am the 3rd generation owner of this company which is both an awesome and terrifying place to be.
2. Awesome:
a. I can continue a legacy built by people better than myself.
b. All the hard work is done now I just have to scale it, invest/operate/handle cash conservatively and NOT SCREW IT UP. Easy?
a. I can continue a legacy built by people better than myself.
b. All the hard work is done now I just have to scale it, invest/operate/handle cash conservatively and NOT SCREW IT UP. Easy?
3.
c. Be a good steward. It’s cool to be a steward. I really like the idea that the company isn’t about me. I’m not the founder. I’m not the builder. I’m the steward. I am here to safeguard the asset and to not run it into the ground so that it can continue beyond me.
c. Be a good steward. It’s cool to be a steward. I really like the idea that the company isn’t about me. I’m not the founder. I’m not the builder. I’m the steward. I am here to safeguard the asset and to not run it into the ground so that it can continue beyond me.
4. Terrifying:
I have absolutely no interest in being the guy that destroys three generations of work.
I’m reflecting on this as I prepare to buy someone’s small family business tomorrow (I think about this at every closing). They’re the founders and operators.
I have absolutely no interest in being the guy that destroys three generations of work.
I’m reflecting on this as I prepare to buy someone’s small family business tomorrow (I think about this at every closing). They’re the founders and operators.
5. I wonder what was my grandfather thinking when he founded.
He could have never known it would still be stewarded by his heirs 62 years later. It started as a side hustle.
How many times did he or my father sit across from a buyer only for it to get sold to me?
He could have never known it would still be stewarded by his heirs 62 years later. It started as a side hustle.
How many times did he or my father sit across from a buyer only for it to get sold to me?
6. I can’t help but think, is this possibly a generational business I am cannibalizing before it has a chance?
Did my grandfather almost sell the business, did my father?
How many things had to go right for it to end up in my hands?
How many things had to go “wrong”?
Did my grandfather almost sell the business, did my father?
How many things had to go right for it to end up in my hands?
How many things had to go “wrong”?
7. Most of these questions will never get answered but I think it helps me to keep perspective when approaching the closing table with a seller:
8.
a. I am the product of those that came before me and although I can take some credit for scaling this thing and integrating best practices - I had a base to build from.
Be humble.
a. I am the product of those that came before me and although I can take some credit for scaling this thing and integrating best practices - I had a base to build from.
Be humble.
9.
b. I have a healthy respect for legacy and reputation. Name is important, not my name because I am just the steward, but the name of the asset, founder and builder.
Be humble.
b. I have a healthy respect for legacy and reputation. Name is important, not my name because I am just the steward, but the name of the asset, founder and builder.
Be humble.
10.
c. When you buy a good family business, don’t mess it up. There are people you don’t even know exist that are watching.
Be humble. Don’t mess it up.
c. When you buy a good family business, don’t mess it up. There are people you don’t even know exist that are watching.
Be humble. Don’t mess it up.
