Minds Capital Podcast

Join Mike Healy, an independent sponsor and founder of Gardner Standard, as he shares his fascinating journey from attorney to deal-maker. He discusses his strategic shift towards legally complex transactions that others often avoid, outlining types of 'legally messy' deals. Mike delves into his hands-on approach to underwriting and managing legal risks, as well as sourcing unique opportunities through various channels. He also recounts his pivotal deals, including a consultancy that defined his early years, all while emphasizing the importance of flexibility and perseverance in a challenging market.

Peter Lehrman, Founder and CEO of Axial, shares his insights from overseeing 10,000 attempted deals in the lower-middle-market M&A arena. He emphasizes the success of independent sponsors, highlighting their need for disciplined entry valuations to generate profitable returns. Peter reveals that most deals close below 7x EBITDA and discusses the importance of strategic partnerships with private equity. He also advises on differentiation through responsiveness and sector specialization, while stressing the value of quality content in building authority.

G.R. Kearney, a former inner-city Chicago teacher, was thrust into leadership when his senior partner tragically passed away. He navigated the emotional and legal complexities of sustaining the firm and ultimately rebranded it as Stacker Holdings, reshaping the platform into an employee-centric, EOS-driven, long-term investment firm.References and how to contact today's guest:G.R.Kearney | LinkedInMinds Capital invests equity into deals by independent sponsors and searchers. For independent sponsors with a deal under LOI, visit Minds Capital to start a conversation. Our website also contains more information about this podcast and for prospective investors.Connect with Minds:See past + future interviews on the YouTube channelConnect with hosts Will Smith and Niklas JamesVisit Minds CapitalCredits:Edited by Anton Rohozov

Dan Tamkin, co-founder of Resurgent Capital Partners, is a turnaround investor with a tech-savvy background. He discusses why the lower-middle market offers better value creation than failed VC ventures. Dan emphasizes avoiding $2M EBITDA deals, which often yield poor economics and founder frustration. He highlights the strategic focus on acquiring small businesses outright or pursuing larger deals and reveals insights on managing technical debt as an asset. His experience with the Sonent turnaround showcases the importance of emotional intelligence in dealmaking.

Sam Turner, a UK entrepreneur and founder of Advantos, shares his journey from a difficult first acquisition to leading a successful facilities maintenance roll-up. He emphasizes the importance of disciplined capital stacking and shares insights on self-funding add-ons. Sam discusses his transition from organic growth strategies to his upcoming expansion into facilities management. He also candidly reflects on overcoming initial deal failures and underlines his commitment to mentorship, dedicating time to help aspiring business founders.

Craig Duper, founding partner of Elan Growth Partners, discusses his innovative 'partner equity' approach, which aims to align incentives through high seller rollover. He explains how a 40%-49% rollover is key to minimizing risks in deals. Delving into the challenges faced when sellers can’t or won’t roll equity, Craig offers insights into filtering potential partners. He also emphasizes the importance of building robust fund-grade infrastructure, and shares a compelling case study of a successful battery-pack manufacturer exit that achieved a 3.21x net MOIC.

Michael Kornman, co-founder of NCK Capital and Align Collaborate, shares his journey from independent sponsor to capital provider. He discusses the evolution of the independent sponsor model, highlighting how it supports lower-middle-market buyouts. Kornman explains Align's unique approach to fundraising, emphasizing sponsor relationships and collaboration. He offers insights on evaluating deal pipelines, credible sponsors, and the importance of operational expertise. Listeners hear about a successful turnaround case study and the lucrative opportunities within the independent sponsor landscape.

Robert Graham, founding partner of SIG and founder of Pillar Health Group, shares insights from his dynamic journey in healthcare. He reveals how Pillar skyrocketed to $30M in EBITDA, powered by strategic mergers and organic growth fueled by sales and marketing. Robert discusses the unique structure of SIG, contrasting it with traditional private equity, and the importance of supporting self-funded searchers. He also highlights the future of home care, the impact of demographics, and the advantages of focusing on lower-middle markets.

William (Bill) Boffa, founder of Willistown Capital, and partner Darren Fultz share insights on executing complex acquisitions with precision. They discuss their award-winning deals for Quiltcraft and Fabtex, emphasizing the importance of selecting the right partners to mitigate risks. The duo reveals how local attorneys foster smoother negotiations and the challenges of managing simultaneous transactions. They also explore the strategic role of transparency in seller relationships and the benefits of their independent sponsor model in navigating deal complexities.

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.