$35m acquisition and zero management fees

I may not be the most experienced in terms of acquiring a profitable $12 million revenue company…but I am willing to share my vision and goal over and over again…

As this could lead to a future co-founder or just a very lucrative partnership…

When meeting and talking to people. Be more open about what you build or WANT to build.

I know founders who became partners thanks to this.

They watched their kids practice tennis, started talking, which led to more talking, which led to eventually starting a business together.

Today, they are 50% / 50% partners and manage more than $1.3 billion in assets

- - - -

Talking about great Win-Win-Win partnerships:

I’m super proud to announce that two very special people – Brandon and Rand – said they would like to reach a very strong niche audience of business buyers, builders and investors.

They are the first two sponsors I partnered with.

And why is it a Win-Win-Win partnership?

1. You win by using their products and services

2. They win, they pay even more

3. As I reinvest all the earnings, I get to hire full-time researchers and as a result, you see better content, learn more, and most importantly, more and more top investors and holdco builders come to the podcast.

Again, you win, big time! (I've already hired a small team of full-time social media editors. You'll see their work soon. Next hire is a researcher!)

What a great cycle all that would be, wouldn't it?

So, if you find yourself wanting to become a better investor and allocator of capital (which I am sure you do):

1/ If you own a business, you're probably making mistakes left and right, mistakes that cost you time and money

Rand from Scalepath has built a community of other business owners who've already made those mistakes, and will share their experiences to help you avoid them.

Each group is small. Just seven operators with similar business models and revenue. You meet once a month on Zoom to get direct feedback on your biggest challenges, and often hear about opportunities in other industries that might apply to your own.

Apply to join Scalepath at joinscalepath.com and schedule a call with the founder Rand Larsen.

2/ If you're running a portfolio company or working inside a private equity-backed business, you know how hard it is to build pipeline, shorten sales cycles, and improve win rates - all without bloating your team

That’s where Brandon and Spacebar Studios comes in. They act as a flexible growth team for B2B companies doing between $1M and $50M in revenue -handling everything from messaging and outbound to paid media. The result? High-ROI campaigns that actually move the needle.

So if you’re ready to scale without hiring a small army, head over to spacebarstudios.co and check them out.

- - - -

On weekends, I go to large building materials stores, where I like to Google different products - just to see how the companies are doing.

Today's hidden gem. They’ve been mastering sealants, foams and construction chemicals. Very niche.

The numbers below are proof that very "boring" and niche industries can generate big numbers. A company owned by two friends.

- - - -

I spent most of my early 20s selling things, until I finally attended a university class in Geneva, Switzerland.

During one of the sessions, we had a guest lecture and a founder of a local investment firm.

He shared that he had done the exact same thing (being a salesperson) till his early 40s, only to realize that earning monthy and quarterly high commissions is all great, but owning assets is way better.

He continued working in sales, but with a major shift:

1. Started talking to business owners, to persuade them selling their businesses to him;

2. Talking to investors, convincing them to back him in acquiring those companies.

10 years later, he's still a great salesperson, but now playing the game of owning assets.

That day sparked my interest and changed my perspective on sales, life, and investing in profitable businesses.

- - - -

Had a small BBQ at a friend’s place.

There was a gentleman who 10 years ago worked 9-5 but decided to chop wood after work to sell it.

Today he’s full time in the wood business and a lot has changed… 

Now building his second home:

Very nice location next to a lake. 700m2 for the main building and 220m2 for a sauna and wellness building on the same property.

He said the first 4 years were brutal, but then on year 5 he paid himself healthy dividends which changed his life forever.

Age today?

Late 40s.

- - - -

Here’s how to get good at dealmaking...

Here’s the best way to understand an industry...

Here’s how to find the best people...

- - - -

Talked to a guy who made hundreds of investor calls to find out what private investors actually want:

• 8% dividend yield starting in year 3

• clear secondary market exit plan

• zero management fees

• 20% carry only if investors get paid

I hope I didn't miss anything.

- - - -

How to stand out in a brokered deal:

A group of investors won a $35M acquisition because they weren't private equity.

(This is surprisingly often true when talking to people who buy businesses)

What they did was they told the 65-year-old owner that they weren’t buying the business to flip, but that they were here to build and protect a legacy.

That approach has beaten out many higher offers.

- - - -

From a salesperson to 100% owner of a sub-$1m EBITDA biz.

There’s a guy in my hometown who 8-9 yrs ago went to work for a local heating and plumbing business.

He worked his way up to become the right-hand man to the owner. He knows every single product code by heart. A true master of his craft. Great guy.

I know all this because I called the owner 2.5 years ago asking if he would be interested in selling the company:

$4m in sales, $800–900k EBITDA

He said yes, and we started working on it…

He then ignored me for 3–4 months and later picked up the phone to tell me he sold it to his right-hand man.

I saw the guy today. The company is doing even better. What he has also started to do is use more debt, so returns are much better. The previous owner used zero debt and owned all the buildings as well.

I guess there are many such opportunities for people working in small businesses next to founders in their 50s, 60s, and 70s.

People often just don’t believe they’re able to acquire such business.

Definitely worth asking - you might get extremely good financing from the current founder. I’ve heard cases where it’s 100% seller-financed, and people can pay off the debt in 3–5 years.

- - - -

How has been the week in the small holding company world?

Traditional business

I am working on a deal to acquire a $12M heavy equipment rental company.

Planning to meet with local banks. Never done it before. The seller's broker has done a great job with the introductions.

Last week I asked a Twitter audience about what I should know before meeting with banks. This reply got the most overall feedback:

That said, the banks have received all the information. We are waiting for their response and next steps.

- - - -

What if the real edge in investing isn’t another framework or deal structure—but how you learn?

This week’s solo episode I covered how elite investors stay sharp for 30+ years (yet many overlook It).

And don’t take it all from me.

I break down a mental model that quietly powers the world's top capital allocators, HoldCo founders, and hedge fund managers.

Inspired by the teachings of Alix Pasquet (Prime Macaya Capital), we explore why the highest IRRs often come from behavioral change. Not spreadsheets.

• Why “learning” is useless unless it changes your behavior

• The overlooked relationship between physical tension and decision-making

• How elite investors maintain sharpness across decades

• How to build your personal ‘learning laboratory’ for real feedback

• Why you only need 7 right people to change your life

• The power of teaching as leverage and how it compounds

• How Buffett, Howard Marks, and others sharpen their edge by thinking out loud

• The “Futsal Principle” of rapid feedback loops for capital allocators

• How elite investors stay sharp across decades (continued)

I hope you (learn a ton) and enjoy it.

Here are the links to Spotify, Apple Podcasts and YouTube.

That’s all for today.

Thanks for reading and talk to you again next week.

Take care,

PrivateEquityGuy / Mikk Markus