If I could go back in time and meet myself when I first got into ETA, I’d tear that guy apart.

I started in ETA the same way most of you did. I saw a video on social media that said you could buy small businesses at 4x EBITDA with as little as 5% down. That’s all I needed to hear. I picked up the old staple HBR Guide to Buying a Small Business, made some adaptations (their strategy felt geared toward trust-fund kids with access to Mommy and Daddy’s network), and went to work. First, I set up my Holdco, Fleming Capital LLC, and launched a website, flemingcap.com. (I still keep it around for some unknown reason.) My expectation was to do roll-ups and multiple acquisitions. I requested info on everything I saw. My criteria were purely financial, with little to no consideration of whether I was qualified. I used my entity for the search and put it on the NDAs. That original search was unsuccessful, and here’s why: 1) Brokers knew I wasn’t the PE firm I was pretending to be. I looked like a jackass. (Brokers I’m now friends with admitted they stonewalled me because of this back then.) 2) I was a terrible fit for the businesses I was chasing. I came across as a tire kicker who cared only about whether the “numbers worked.” I didn’t understand how personal the SMB space is. Sellers want someone who fits their customers and employees, not a finance bro. 3) I didn’t realize there were more buyers than sellers. I thought brokers should hand me information and make introductions because “that’s their job.” It’s not. Their job is to protect the seller’s time and private info, not entertain some jackass. It wasn’t until I understood a few key principles that I was able to actually acquire a business: 1) Use your own name and Gmail account. I’m not private equity, and that’s my biggest advantage. Sellers don’t want to sell to PE; they want to sell to people. Pretending to be PE costs you your best asset. 2) If I can’t sell myself as the best person to buy a business, I shouldn’t be looking at it. Fit matters. We eventually focused on childcare centers because I was treasurer for a Montessori school and played an active role in its management and growth. I could credibly say I understood and cared about the business. 3) I’m being interviewed throughout the entire process. Brokers and sellers decide who gets to buy. Money alone doesn’t win deals in this space. 4) There is no perfect deal. Every deal has hair. You have to make decisions without perfect information. No QofE or diligence process will give you all the facts. If you’re hunting for perfect, you’ll be a perma-searcher. I share this because so many people here behave the same way I once did. I’ve been a principal in over 20 acquisitions and advised on roughly 20 others. Learn from my mistakes if you want to make the jump from searcher to buyer.