Acquiring MindsJune 12, 2023

Owner vs CEO: 2 Approaches to Buying a Business

with Derek Turner · Roll-A-Shield

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LenderHawk analysis. Not affiliated with or endorsed by Acquiring Minds.

The Deal

Business

Roll-A-Shield

Industry

Rolling shutter manufacturing and installation

State

Year

2023

SDE at Purchase

$1.5M

Deal Source

proprietary

Financing Structure

Investor Equity

Strategic Rationale

Professionalizing small niche technical service with stable municipal clients.

Post-Acquisition Performance

Experienced 40% top-line growth but faced high CapEx and seller difficulties; sold in 2022.

Key Takeaways

1Self-funded ownership model creates stronger alignment with employees and stakeholders compared to traditional search fund CEO model where external investors are represented.
2Sustainable moderate growth is preferable to aggressive growth targets that strain operational capacity, quality, and team sustainability.
3Having an engaged board of investors provides valuable accountability and strategic thinking forced discipline even in self-funded deals, improving decision quality.
4Previous operational experience with a difficult business improves confidence and reduces anxiety about personal guarantees in subsequent acquisitions.
5Seller quality and relationship dynamics are critical factors that are difficult to assess during diligence but significantly impact post-acquisition success.

Matched SBA Loan Records

SBA loan filings we matched to this deal

First Bank of the Lake64%

$3.8MP + 1.00%FY2023

First Bank of the Lake64%

$200KP + 2.25%FY2023

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The Deal

Business

Roll-A-Shield

Industry

Rolling shutter manufacturing and installation

State

Year

2023

SDE at Purchase

$1.5M

Deal Source

proprietary

Financing Structure

Investor Equity

Strategic Rationale

Professionalizing small niche technical service with stable municipal clients.

Post-Acquisition Performance

Experienced 40% top-line growth but faced high CapEx and seller difficulties; sold in 2022.

Key Takeaways

1Self-funded ownership model creates stronger alignment with employees and stakeholders compared to traditional search fund CEO model where external investors are represented.

2Sustainable moderate growth is preferable to aggressive growth targets that strain operational capacity, quality, and team sustainability.

3Having an engaged board of investors provides valuable accountability and strategic thinking forced discipline even in self-funded deals, improving decision quality.

4Previous operational experience with a difficult business improves confidence and reduces anxiety about personal guarantees in subsequent acquisitions.

5Seller quality and relationship dynamics are critical factors that are difficult to assess during diligence but significantly impact post-acquisition success.