Rick Ruback

They want to diversify who owns their business. And so that naturally invites a dispersion among investors. So I'm with Rick. I don't see the Harvard, Stanford searchers as dominated by two or three or four big institutional investors.

They want to diversify who owns their business. And so that naturally invites a dispersion among investors. So I'm with Rick. I don't see the Harvard, Stanford searchers as dominated by two or three or four big institutional investors.

So Rick and I, since we launched our podcast a couple of years ago, which is really directed beyond the business school campuses, it's got us more tuned into what's going on away from the MBA ecosystem.

So Rick and I, since we launched our podcast a couple of years ago, which is really directed beyond the business school campuses, it's got us more tuned into what's going on away from the MBA ecosystem.

And that's a world which, unlike the business schools, is overwhelmingly self-funded, using SBA loans, tuning into smaller businesses that Rick was describing, this kind of $750,000 million EBITDA businesses. That world today dwarfs what we talk about in the MBA world.

And that's a world which, unlike the business schools, is overwhelmingly self-funded, using SBA loans, tuning into smaller businesses that Rick was describing, this kind of $750,000 million EBITDA businesses. That world today dwarfs what we talk about in the MBA world.

It's actually got its own population of individual recurring investors writing quite small checks for the reasons of the math we discussed earlier. It's got many times the number of participants

It's actually got its own population of individual recurring investors writing quite small checks for the reasons of the math we discussed earlier. It's got many times the number of participants

all of whom are able to get this favorable government-backed financing, line up investors, buy these attractive businesses at low multiples, and often don't have MBAs, but have a lot of useful professional experience or just outside this top MBA schools. And it is a big opportunity. big place out there. Rick, would you add anything to that?

all of whom are able to get this favorable government-backed financing, line up investors, buy these attractive businesses at low multiples, and often don't have MBAs, but have a lot of useful professional experience or just outside this top MBA schools. And it is a big opportunity. big place out there. Rick, would you add anything to that?

I think your description is exactly right, Patrick, which is the seller who is the center of the bullseye for searchers is someone who is an expert in this product or service and started their business and spent 25 years building it. And now they're 65 years old and have run the business for 20 years and several things have changed. One is the business has gotten larger and it really, at the top,

I think your description is exactly right, Patrick, which is the seller who is the center of the bullseye for searchers is someone who is an expert in this product or service and started their business and spent 25 years building it. And now they're 65 years old and have run the business for 20 years and several things have changed. One is the business has gotten larger and it really, at the top,

no longer needs an expert artisan, but it really needs a trained manager. And this person isn't that in most cases. If it's a blue collar business, maybe it was an HVAC guy who got fired, bought a truck, built up a business. It makes a million and a half dollars a year, but it really needs a manager at this point because it employs 60 people and has lots of customers.

no longer needs an expert artisan, but it really needs a trained manager. And this person isn't that in most cases. If it's a blue collar business, maybe it was an HVAC guy who got fired, bought a truck, built up a business. It makes a million and a half dollars a year, but it really needs a manager at this point because it employs 60 people and has lots of customers.

Second, the business is at a size where he really doesn't have an understudy CEO in that business. It's not like a larger company, which has a thick bench of talented middle managers. And so he needs someone or she needs someone who can not only organize the capital for the transaction, but can then step in and run it because he has no internal successor. Because if he or she did,

Second, the business is at a size where he really doesn't have an understudy CEO in that business. It's not like a larger company, which has a thick bench of talented middle managers. And so he needs someone or she needs someone who can not only organize the capital for the transaction, but can then step in and run it because he has no internal successor. Because if he or she did,

They could retire and just keep owning the business. Some businesses are suited to that, but most businesses aren't. And the third thing is they've reached an age where, as Rick and I like to say, they now have more money than time and they're behaving accordingly. They don't want to work Fridays anymore to launch a new territory, but a searcher who's not wealthy and energetic and hungry, they do.

They could retire and just keep owning the business. Some businesses are suited to that, but most businesses aren't. And the third thing is they've reached an age where, as Rick and I like to say, they now have more money than time and they're behaving accordingly. They don't want to work Fridays anymore to launch a new territory, but a searcher who's not wealthy and energetic and hungry, they do.

And levered. And levered. And levered. And so this is the catalyst moment. This is why these sellers sell to searchers. And this is why the searchers see opportunity there. But Rick, I don't know if we have a view that somehow we're at a peak of supply.

And levered. And levered. And levered. And so this is the catalyst moment. This is why these sellers sell to searchers. And this is why the searchers see opportunity there. But Rick, I don't know if we have a view that somehow we're at a peak of supply.