Acquiring Minds Buying Small to Then Buy Larger ($1m SDE)
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Dec 31, 2025 Joe Solberg, acquisition entrepreneur and owner of branding agency Sonny and Ash, shares his journey from corporate life to business owner. He discusses his first acquisition of a 3D rendering firm, the challenges of pitching to his wife, and the strategic pivot during COVID. Joe highlights the differences between branding and marketing, how he built recurring revenue models, and the importance of hiring skilled managers. He also delves into the complexities of his second acquisition, Point B, including valuation strategies and the role of seller continuity.
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Seek Retainers For Revenue Stability
- When evaluating service businesses, prefer recurring revenue like retainers to stabilize cash flow.
- Look for creative/branding agencies that convert one-off projects into monthly retainers and productized services.
Buyers Capture Future Pipeline Upside
- Look beyond historical earnings to identify share-of-wallet and pipeline opportunities you can convert.
- Future value often comes from wins you can drive, not value the seller already captured.
Maxed SBA Leverage To Buy Point B
- Joe bought Point B Communications for about $5.5M using aggressive SBA leverage (5% down + seller note).
- The deal closed with roughly 90% financing and allowed him to scale into a $9M revenue, $1M SDE agency.