Acquiring Minds Podcast Summary

Episode Title: 4th Time's the Charm: 3 Broken Deals to Buy a Great Business
Podcast: Acquiring Minds
Host: Will Smith
Guest: Brian Hauck (Owner, Extra Credit Projects)
Date: August 21, 2025

Overview: The Road to a Successful Acquisition After Three Failed Deals

This episode is a deep dive into the acquisition journey of Brian Hauck, who, at age 57, pivoted from serial entrepreneurship and consulting to buy a traditional Mad Men-style creative agency in Grand Rapids, Michigan called Extra Credit Projects (ECP). Hauck and host Will Smith discuss the lessons learned across three broken deals and finally closing on a thriving business, the critical role of buy-side advisors, the nuances of proprietary search, and the emotional and financial realities facing late-career acquisition entrepreneurs.

Key Discussion Points & Insights

Hauck's Background and Career Transitions

• Early Career in Corporate America: 15 years at Cintas, rose quickly, became youngest plant and general manager. Left due to misalignment with company culture despite financial stability.

  "I joined the company because of the culture, and I left the company because of the culture." — Brian Hauck [05:41]

• First Foray into Entrepreneurship: Founded My Way Mobile Storage. Despite sophisticated systems and a promising franchise model, lost everything during the 2008 financial crisis due to a hostile investor-led takeover.

  "I went through a hostile takeover. I personally lost everything at age 41 ... not a great experience to go through. I don't recommend it." — Brian Hauck [08:56]

• Persistence in Entrepreneurship: Hauck never considered returning to a traditional job, instead launched further ventures and eventually became a consultant and executive coach.

Why Buy, Not Build?

• Desire to “Fix” Businesses: Consulting was rewarding, but Hauck wanted to directly implement his ideas, not just advise others.

  "A lot of situations ... there was always just so much left on the table. It just felt like we were squandering opportunities ... If you’re so sure that you know what you’re doing, then just go do your own thing again." — Brian Hauck [14:16]

• Skillset as a Fixer: Pattern of seeking out turnaround cases, but the reality of acquisition meant ending up buying a strong "Super Bowl team" type of business, not a fixer-upper.

The Search Process & Role of Buy-Side Advisors

• Working with Calder Capital:

  • Chose “platinum” package: $5,000/month retainer, which is credited against the closing commission if a deal is done.
  • Advisors sourced over 34 prospects in 10 months (well above minimums promised).

  "Wisest decision I ever made was to hire a broker, a good broker on the buy side." — Brian Hauck [19:25]

• Costs and Calculations:

  • The upfront retainer rolls into the final commission, so long as a deal is closed.
  • Risk: money spent is forfeited if a deal never closes.
  • Hauck spent ~$50,000 during search before successful acquisition.

• Benefits and Trade-Offs:

  • Advisors do effective outreach, but with proprietary (non-market) deals, sellers are less likely to have made up their minds—creating higher deal risk.

Lessons from Three Broken Deals

• Why the Deals Failed:

  • Sellers often not truly ready or emotionally committed to selling (one used Brian’s offer as leverage with a preferred buyer).
  • Inherent risks: emotional fatigue, lost time, and substantial outlay with no guarantee.

• Key Learning: Build Early Seller Rapport:

  "The shift I made was ... I needed to set it up so that I had more frequent touches with the seller ... I would've been able to flush out whether it was a real deal or not much earlier." — Brian Hauck [31:58]

  • Advice: Get “belly to belly” as early as possible—meet, build trust, and directly assess the seller’s motivation.

The Acquisition: Extra Credit Projects

• Why this Business?

  • Met the owner, Rob Jackson, early and built rapport.
  • Owner had proactively started stepping away post-Covid and offered the business to key employees (removing succession drama).
  • Business had strong financials, national reputation, unique creative culture.

• Business Profile:

  • 18-year-old traditional, in-person creative agency; 10 W2 employees, several 1099 collaborators.
  • Not project-based work; highly awarded campaigns; mix of creative and media placement services.
  • Hauck: “I bought a Super Bowl team.”

• Deal Structure:

  • Near-4x multiple on earnings (self-funded, SBA 7(a) loan).
  • 80% financed by SBA loan, 10% seller note on 2-year standby (interest accrues, no payments initially, then paid back over three years), 10% buyer equity.
  • Personal guarantee required (Haus discussed emotional weight of this decision at age 58).
  • Out-of-pocket: $400-500k (from liquidity, but without liquidating properties).

Risk and Challenges at Closing

• Client Transfer Risk:

  • No formal client contracts (purchase orders common instead).
  • Introduced himself as new owner after closing—made personal calls, successfully retained all key accounts (15 for 15).
  • Scariest moment: “I started sleeping about a month later.” [63:28]

• Customer Concentration:

  • 3-4 major clients represent significant revenue; rest is diversified.
  • Fortunate that former owner had already stepped back and that clients trusted the broader team.

Culture and What Makes ECP Unique

• Mad Men-Style, In-Person Collaboration:

  “All of the employees are full time in person. It’s a collaborative environment ... they’re able to elevate the idea ... without ego. That’s our secret sauce.” — Brian Hauck [37:43]

  • Unique workplace where all feedback is direct, helpful, not personal—unusual in creative industries.

• Creative Process and Agency Model:

  “Creativity is just intelligence having fun. ... The parallels [with entrepreneurship] are amazingly similar.” — Brian Hauck [52:00], [66:24]

• Value Provided vs. Price:

  • ECP’s value: delivering strong creative and integrated media placement, justifying premium over digital-only/offshore agencies (scope discussions, not just price).

Age & Mindset: Doing This at 58

• Perspective on Risk and Fulfillment:
  • Many peers don’t want the risk; Hauck credits energy, curiosity, and his wife’s full support.
  • Doesn’t shy from the personal guarantee or depleted liquidity. “It is a lot. ... You have to encumber everything.” [47:57]
• Philosophy—Find Your “Stupid” (with two O’s):

  “If something’s stupid, ... you involuntarily smile when you think about it ... Everyone has stupid ... That is why I’m doing what I’m doing.” — Brian Hauck [71:44]

  • Framework for big life decisions: do what lights you up, not just what seems practical.

Notable Quotes & Memorable Moments

• On leaving corporate safety:
  “I gave them four weeks notice. ... [My boss] privately said, ‘I’m jealous.’ ... I haven’t spent 30 seconds second guessing that decision.” [06:53]
• On failed deals:
  “We were ten months in at that point. ... $50,000. ... Lighting that money on fire, that’s not a great feeling.” [30:33]
• On cultural insight in creative teams:
  “The feedback is all so carefully crafted that it’s very direct and helpful ... but none of it is personal.” [39:43]
• On risk at an older age:
  “It’s actually probably harder for somebody in my position to do it ... at age 58, certainly not something you want to do.” [47:57]
• Closing wisdom:
  “Just keep brainstorming until you find yourself subconsciously smiling. ... That’s what you should do.” [71:44]

Timestamps for Important Segments

• [04:36] — Hauck’s corporate background and transition to entrepreneurship
• [08:56] — Story and lessons of losing his first company in the 2008 crash
• [14:16] — Frustrations in consulting, motive to buy a business
• [19:25] — Decision to use a buy-side advisor, buy-side fees explained
• [27:52] — The unique risk of proprietary search and why deals fail
• [31:58] — Key learning: build direct seller relationships early
• [37:43] — What makes Extra Credit Projects unique, agency culture
• [43:35] — Deal structure: price, multiple, and financing details
• [63:28] — Client retention risk and how Hauck approached introductions
• [66:24] — Adapting to a new industry and finding creative fulfillment
• [71:44] — The “stupid” (with two O’s) framework for decision-making

Takeaways for Acquisition Entrepreneurs

• Direct engagement with sellers is crucial in proprietary searches.
• Be ready for fallen deals: emotional resilience and financial runway are necessary.
• Buy-side advisors may be costly but can pay off (and their fees credited at closing).
• Understand your motivations and strengths—Hauck’s “fixer” mentality was only partly relevant, as his eventual acquisition was a strong team, not a turn-around.
• Cultural due diligence is as important as financials—especially in creative and people-driven businesses.
• Risk and reward at any age: Age is not a disqualifier; fulfillment is key.
• **Find your “stupid”—do what makes you involuntarily smile.

For more resources or to subscribe to episode summaries: acquiringminds.co