Acquiring Minds Buying Small to Then Buy Larger ($1m SDE)
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Dec 31, 2025 Joe Solberg, acquisition entrepreneur and owner of branding agency Sonny and Ash, shares his journey from corporate life to business owner. He discusses his first acquisition of a 3D rendering firm, the challenges of pitching to his wife, and the strategic pivot during COVID. Joe highlights the differences between branding and marketing, how he built recurring revenue models, and the importance of hiring skilled managers. He also delves into the complexities of his second acquisition, Point B, including valuation strategies and the role of seller continuity.
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Bought Small First To Afford Bigger Buy
- Joe bought a $1.3M 3D rendering shop (Sonny and Ash) as his first acquisition to gain experience and cash flow.
- That business now generates about $200k/year for a few hours weekly under a manager, enabling a second, larger buy.
Prioritize Size, Loosen Other Constraints
- Set clear financial criteria for target size and leverage geographic/industry flexibility to meet it.
- If you prioritize size, loosen constraints on location and industry to increase deal flow.
Seek Retainers For Revenue Stability
- When evaluating service businesses, prefer recurring revenue like retainers to stabilize cash flow.
- Look for creative/branding agencies that convert one-off projects into monthly retainers and productized services.