Acquiring Minds How to Use an SBA Loan to Roll Up from $6m to $140m
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May 15, 2025 Michael Davidov, managing partner at Pine Street Group and a self-funded searcher, shares his incredible journey of scaling a home care agency from $6 million to $140 million. He discusses his strategic use of SBA loans for acquisitions, the importance of seeing employees as customers, and his effective hiring criteria for leaders. Davidov also highlights the challenges of integrating technology and managing payroll during rapid growth, alongside treating caregivers as essential partners, all while navigating the complexities of the healthcare sector.
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SBA Loans Enable High Leverage
- SBA loans provide unusually high leverage up to 90%, enabling buyers to retain maximum equity while acquiring small businesses.
- This leverage is a rare advantage not typically available with conventional lenders, facilitating entrepreneurship.
Digitize to Accelerate Growth
- Digitize all manual processes to increase efficiency and employee satisfaction.
- Implement digital HR systems and weekly payroll to speed hiring and improve the nurse onboarding experience.
Invest in Quick ROI Enhancements
- Invest in high ROI improvements like recruiters who immediately bring revenue.
- Focus on variable costs rather than heavy capital expenditures to grow profitably in service businesses.