Minds Capital Podcast Buy Small ($1m EBITDA at 4x), Keep Winning
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Nov 5, 2025 Join Ryan Sullivan, founder of North Park Group and a savvy acquirer of small manufacturing firms, as he shares insights into his strategic model of buying $1M EBITDA businesses at 4x. He reveals how this approach secures impressive 25% annual returns by combining real estate with smart leveraging of SBA debt. Ryan emphasizes the importance of professionalizing operations and creating value in aging family-owned businesses, all while advocating for long-term stewardship in communities and employee welfare.
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Returns From Cash Flow, Not Paper Gains
- North Park reports mid-20% annualized returns by counting cash distributions plus debt paydown and cash on balance sheets without valuing appreciation.
- They assume future sale at purchase price to avoid dependence on market uplifts and show strong cash-on-cash performance.
Deliberately Underlever For Optionality
- De-risk acquisitions by using 50% equity and owning the building so businesses keep large free cash flow post-close.
- Use that free cash flow for capex, hires, and optionality instead of loading the company with near‑100% debt.
Real Estate Enables Better Debt Mix
- Buying both business and real estate enables blended financing with long amortization and lower interest costs.
- That structure produces roughly 20% post‑debt free cash flow on a $1M EBITDA target business.