Acquiring Minds Podcast Summary: "A Searcher’s Second Act: Building a $25m Holdco"

Hosted by Will Smith, the "Acquiring Minds" podcast delves into the journeys of entrepreneurs who have successfully navigated the path of acquisition entrepreneurship. In the episode titled "A Searcher’s Second Act: Building a $25m Holdco," released on August 14, 2025, host Will Smith interviews Eric Calderon, owner of TX Partners, to explore his transition from a traditional search fund to building a substantial holding company in the testing, inspection, and calibration (TIC) sector.

1. Introduction to Eric Calderon and His Entrepreneurial Journey

Will Smith introduces Eric Calderon, highlighting his decade-long journey into business acquisitions. Initially enrolled in Harvard Business School with aspirations of climbing the corporate ladder, Eric's path took a transformative turn after attending Rick and Royce's class, leading him to embrace the search fund model.

Notable Quote:
Will Smith [00:00]: "Today's guest's journey into buying businesses began 10 years ago."

2. Discovering the Search Fund Model

Eric recounts his unexpected discovery of the search fund concept during his time at Harvard Business School. Originally intent on a conventional engineering career, a chance enrollment in a class recommended by a friend introduced him to the entrepreneurial opportunities of owning and operating a business.

Notable Quote:
Eric Calderon [06:40]: "I was fully believing I would graduate to be an engineer... and then found the path to search as just something that wasn't necessarily expected."

3. Focused Search: Targeting the Oil and Gas Sector in Houston

Eric explains his strategic decision to concentrate his search within the oil and gas industry in his native Houston. This focused approach involved building a local network with accounting firms and attorneys to uncover acquisition opportunities, diverging from the traditional volume-based search methods.

Notable Quote:
Eric Calderon [11:19]: "I was approaching the search not as a volume game... I wanted to be much more constrained in trying to find something in this local geography and in this industry."

4. Acquiring LK Industries: The First Acquisition

The acquisition of LK Industries marked Eric's initial foray into business ownership. The deal was facilitated by a broker in Iowa who utilized a unique strategy of cold mailing, resulting in a 15-month search leading to the successful purchase of a niche manufacturing firm specializing in oil testing equipment.

Notable Quote:
Eric Calderon [13:00]: "It took me about 15 months to find LK. From first day of searching to being under LOI took about 15 months."

5. Navigating Challenges: Industry Cyclicality and Operational Hurdles

Post-acquisition, Eric faced the inherent cyclicality of the oil and gas industry, prompting necessary operational adjustments such as staff reductions and inventory management improvements. These challenges underscored the importance of understanding industry-specific risks and maintaining flexible financial strategies.

Notable Quote:
Eric Calderon [39:36]: "Emotionally, the hardest moments are coming in there and having to let people go... It's hard to change people's livelihood."

6. Exit Strategy: Selling LK Industries to a Private Equity Firm

After approximately three years of ownership, Eric sold LK Industries to a New York-based private equity group aiming to expand their TIC portfolio. This exit provided Eric with a double-digit return and valuable experience within a private equity environment, setting the stage for his subsequent ventures.

Notable Quote:
Eric Calderon [49:00]: "We sold the business at the end of 2018 to a private equity group... it was a good exit."

7. Building TX Partners: Transition to Testing, Inspection, and Calibration Businesses

Leveraging his positive experience with TIC services through LK Industries, Eric founded TX Partners, a holding company aimed at acquiring and consolidating small TIC businesses across various industries. This strategic pivot capitalized on the recurring revenue and fragmented nature of the TIC sector.

Notable Quote:
Eric Calderon [52:43]: "The thought was let's attack that sector, let's find opportunities in that sector... industrial testing."

8. Embracing a Shared Services Model

A pivotal aspect of TX Partners' strategy is the implementation of a shared services model. By centralizing functions like marketing, finance, and HR, Eric ensures operational efficiencies and cost savings across his portfolio of TIC businesses. This approach contrasts with the decentralized models favored by conglomerates like Berkshire Hathaway.

Notable Quote:
Eric Calderon [61:29]: "We don't overbuild the shared service offering... just add services that are common and recurring."

9. Balancing Operator and Investor Roles

Eric discusses the ongoing tension between his roles as an operator and an investor. While he enjoys hands-on involvement with businesses, the expanding portfolio necessitates a shift towards a more investment-focused role. To mitigate this, TX Partners has hired a Manager of Strategic Growth to oversee daily operations, allowing Eric to maintain strategic oversight.

Notable Quote:
Eric Calderon [70:47]: "I like being an operator... but as we have more companies, it'll be harder to do."

10. Reacquiring LK Industries: Coming Full Circle

In an unexpected turn, Eric reacquired LK Industries from the same private equity group that had previously acquired it. This reacquisition reaffirmed his commitment to the TIC sector and allowed him to reintegrate LK into TX Partners, benefiting from his deepened expertise and established relationships.

Notable Quote:
Eric Calderon [90:43]: "I was able to buy back LK... it's a business very close to home in a very literal way."

11. Current Status and Future Vision of TX Partners

Today, TX Partners boasts aggregate revenues of $25 million, positioning it as a significant player in the TIC market. Eric articulates a long-term vision focused on sustainable growth, leveraging shared services, and expanding the portfolio with well-integrated TIC businesses. The company emphasizes creating value through operational excellence and strategic acquisitions, with a commitment to holding businesses for a decade or more.

Notable Quote:
Eric Calderon [92:57]: "It's about holding these for 10 or more years and making decisions where we can be really long-term holders."

Conclusion

Eric Calderon's journey from a traditional engineer to an acquisition entrepreneur exemplifies the transformative potential of the search fund model. Through strategic focus, operational efficiency, and a commitment to long-term value creation, Eric has successfully built TX Partners into a thriving holding company in the TIC sector. His insights offer valuable lessons for aspiring acquisition entrepreneurs seeking to navigate the complexities of buying and scaling businesses.

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