Disruptive Successor Podcast

Episode 158 - The Entrepreneur’s Investment Partner” with Kevin Bibelhausen of Fruition Capital

Episode Summary

In this episode of the Disruptive Successor, Jonathan Goldhill delves into the world of acquiring family businesses with Kevin Bibelhausen, Principal at Fruition Capital. Discover the secrets of acquiring stable operating businesses, the challenges faced, and the strategies to navigate the complex acquisition market. From overcoming obstacles to finding the right deals, this episode provides insights and inspiration for next-generation leaders looking to disrupt the status quo in family businesses. KEY TAKEAWAYS Diversify or Decline: Kevin emphasizes the importance of diversifying both customers and suppliers to mitigate risks associated with concentration in business relationships. Reducing Owner Dependency: The attractiveness of businesses lies in their ability to operate successfully without heavy dependence on the owner. For buyers, this opens opportunities for active management and growth. Macro-Economic Trends: Explore the impact of interest rates, the micro private equity space, and the continuous demand for businesses in the lower middle market. Check Size Dynamics: Learn about the sweet spot for deal sizes, the role of syndication with other investment groups, and how strategic partnerships enhance the potential for success. QUOTES "Diversifying your suppliers, diversifying your customers for sure... Being able to get what's happening right now." - Kevin Bibelhausen on adapting to supply chain challenges. "It is a family environment, and the same is true for a lot of the entrepreneurs that knock on our door." - Kevin Bibelhausen on maintaining a family-oriented culture in acquired businesses. "The business did record numbers in January. We grew 20% over last. I wasn't here for half the month. Like that's what you're looking for when you're a buyer." - Kevin Bibelhausen on the value of reducing owner dependency. Connect and learn more about Kevin Bibelhausen. https://www.linkedin.com/in/bibelhausen/ If you enjoyed today’s episode, please subscribe, review, and share with a friend who would benefit from the message. If you’re interested in picking up a copy of Jonathan Goldhill’s book, Disruptive Successor, go to the website at www.DisruptiveSuccessor.com

Episode Notes

In this episode of the Disruptive Successor, Jonathan Goldhill  delves into the world of acquiring family businesses with Kevin Bibelhausen, Principal at Fruition Capital. Discover the secrets of acquiring stable operating businesses, the challenges faced, and the strategies to navigate the complex acquisition market. From overcoming obstacles to finding the right deals, this episode provides insights and inspiration for next-generation leaders looking to disrupt the status quo in family businesses.

KEY TAKEAWAYS

• Diversify or Decline: Kevin emphasizes the importance of diversifying both customers and suppliers to mitigate risks associated with concentration in business relationships.
• Reducing Owner Dependency: The attractiveness of businesses lies in their ability to operate successfully without heavy dependence on the owner. For buyers, this opens opportunities for active management and growth.
• Macro-Economic Trends: Explore the impact of interest rates, the micro private equity space, and the continuous demand for businesses in the lower middle market.
• Check Size Dynamics: Learn about the sweet spot for deal sizes, the role of syndication with other investment groups, and how strategic partnerships enhance the potential for success.

QUOTES

• "Diversifying your suppliers, diversifying your customers for sure... Being able to get what's happening right now." - Kevin Bibelhausen on adapting to supply chain challenges.
• "It is a family environment, and the same is true for a lot of the entrepreneurs that knock on our door." - Kevin Bibelhausen on maintaining a family-oriented culture in acquired businesses.
• "The business did record numbers in January. We grew 20% over last. I wasn't here for half the month. Like that's what you're looking for when you're a buyer." - Kevin Bibelhausen on the value of reducing owner dependency.

Connect and learn more about Kevin Bibelhausen.

https://www.linkedin.com/in/bibelhausen/

If you enjoyed today’s episode, please subscribe, review, and share with a friend who would benefit from the message. If you’re interested in picking up a copy of Jonathan Goldhill’s book, Disruptive Successor, go to the website at www.DisruptiveSuccessor.com