How I Completed 12+ Acquisitions and Still Built a New Roll-Up
HoldCo Builders
Hiring, growing, and the decision to scale quickly
Nick reflects on possibly growing too fast to replace the seller's multiple roles and the need for earlier recruiting and candidate pipeline work.
My guest today is Nick Hatchka, founder of Cub Investments, which has completed over a dozen acquisitions. Nick is now building a regional platform of generator dealers and service businesses in California alongside his operating partner, Dylan Ferguson. We discuss his journey:
- to independent sponsorship,
- lessons from 12+ acquisitions,
- what makes a good business model,
- partnering with operators,
- and buying seller-dependent companies.
Sponsors
This episode is brought to you by CapitalPad. A marketplace that connects acquisition entrepreneurs who need capital with investors who want exposure to small-business deals. Standardized terms, governance, and distributions included. If you’re raising for a deal - or want to back operators - check out https://capitalpad.com/
Our sponsor Spacebar Studios builds and runs your newsletter so you stay top-of-mind with founders, brokers, LPs, and talent - without adding to your workload. HoldCo Builders listeners also use their two-week free trial. Go to https://www.spacebarstudios.co/inquire and get started for free.
We cover:
0:00 Nick Hatchka on 12+ acquisitions and a California generator platform
0:35 Background: MIT → McKinsey → 2 startups → Fortune 500 clean tech
1:54 Founding Cub (2016): SBA and personal capital for the first deal
2:49 Scaling: 12+ acquisitions across interior plants and landscaping, later divested
4:09 New platform thesis: generators in California and why the model is capital intensive
5:27 Investing focus: market and model selection over operator heroics
8:16 Capital discipline: self-funded pace vs raising outside capital
9:18 Sponsor CapitalPad: standardized terms, governance, and distributions for acquirers and investors
12:03 Generator business explained: sell, install, maintain, and test backup power (monthly, quarterly, annual PMs)
13:22 Sponsor Spacebar Studios: done-for-you newsletters with a two-week free setup
20:11 Partnering with Dylan Ferguson: 20-30 interviews and complementary skills
25:54 First acquisition Conti: sourced direct, LOI-to-close ~6 months, closed Jan 2024
28:16 Post-close playbook: replace owner-operator and rebuild systems for scale
33:39 Early lessons: grew fast to replace 4–5 seller hats and would build recruiting pipeline earlier
34:38 Results: revenue ~$3M → ~$6M and team 7 → ~14
42:13 Second acquisition PowerGen: 5–6 months later with larger C&I footprint in Bay Area and Sacramento
45:04 Capital and operating philosophy: seller note fixed ~8 years, target ≥3x DSCR, keep strong cash reserves and focus on service quality
51:32 Book and wrap: The Science of Success and expanding the circle of competence
Support our Sponsors:
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This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.
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