Think Big, Buy Small

You Don't Need an MBA to Pursue ETA

41 snips
Sep 22, 2025
In this engaging discussion, Tom Allsworth, an acquisition entrepreneur and veteran, shares his unconventional journey from the Merchant Marine Academy and the Marine Corps to leading Pacific Opportunities, a company that supports adults with intellectual disabilities. He dives into the intricacies of sourcing acquisition deals and the significance of understanding the financial multiples involved. Tom also emphasizes the emotional rewards of entrepreneurship, the challenges of company culture, and the risks connected to government-funded services. His story is a powerful reminder of the diverse paths to success.
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ADVICE

Self-Fund First, Prepare A Funded Fallback

  • Consider self-funding a search to gain experience and credibility before raising outside capital.
  • Prepare a funded-search private placement memorandum as a fallback to pivot if self-funding runs out.
ANECDOTE

Deal Came Back Through An Investor

  • Tom first saw the CIM for Pacific Opportunities but missed the LOI deadline, then later received it via his investor group after the original searcher backed out.
  • He called himself "the luckiest guy in the world" when the deal returned at ~5.24x EBITDA.
INSIGHT

Multiples Matter, But Context Matters More

  • Small differences in purchase multiple (e.g., 5x vs 5.25x) rarely determine deal success by themselves.
  • Evaluate price alongside business quality, recurring revenue, growth, and risk rather than fixating on a single multiple.
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