Invest Like the Best with Patrick O'Shaughnessy
Royce Yudkoff & Rick Ruback - Entrepreneurship Through Acquisition - [Invest Like the Best, EP.423]
May 13, 2025
Rick Ruback and Royce Yudkoff, Harvard Business School professors, dive into entrepreneurship through acquisition. They discuss the evolution of the search-fund ecosystem, highlighting the differences between funded and self-funded models. Insights on finding ideal acquisition targets emphasize the importance of aligning personal strengths with business choices. The duo also addresses the impact of government-backed loans, niche service industries, and the challenges of transitioning ownership, offering a treasure trove of wisdom for aspiring entrepreneurs.
01:27:52
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Quick takeaways
- The evolution of the search fund ecosystem highlights a growing divide between funded searchers pursuing larger companies and self-funded entrepreneurs targeting smaller businesses.
- Critical criteria for evaluating acquisition targets include high-quality recurring revenue, minimal concentration risks, and personal alignment with the business for sustainable profitability.
Deep dives
The Importance of Focus on High-Value Work
Many finance leaders struggle with spending excessive time on low-value tasks, such as manually tracking expenses and reconciling statements. This leaves them with little time to focus on impactful work that drives business growth, often leading to frustration among finance teams. A significant shift is necessary for these professionals to maximize their productivity and ensure their time is spent on high-value activities that contribute to overall business objectives. Leveraging technology, such as automated solutions like Ramp, allows finance teams to reclaim their time and redirect their energy towards strategic initiatives.
