Acquiring Minds: “Buying and Building a Xerox Dealer to $30m”

Guest: Jeff Horn
Host: Will Smith
Date: August 18, 2025

Overview

In this episode, Will Smith sits down with Jeff Horn, the entrepreneur who bought Benchmark Business Solutions—a Xerox agent in Lubbock, Texas—when it was doing about $5 million in revenue. In five years, Jeff transformed and scaled the business to $30 million in revenue via a combination of vision, operational discipline, and multiple acquisitions. The episode explores Jeff’s decision to leave a secure job, the intricacies of buying and growing a dealership business, the agent-to-dealer transformation, and the journey to a life-changing exit. Jeff also shares lessons on leadership, M&A, and advice for aspiring acquisition entrepreneurs.

Key Discussion Points

Jeff’s Background & Why He Bought a Business (03:53–08:52)

• Started career in technology sales, moved to specialty finance (equipment leasing, factoring).
• Entrepreneurial itch: After 15 years in the workforce, wanted to lead and own a business.
• Family context: Three young boys, wife with a stable pharmacy career, significant professional success (“I was making more money than I ever thought I would make,” 07:30).

Quote:

“I just felt a strong sense to lead... I guess, an entrepreneurial itch to do something for myself and my family and to control my own future.” — Jeff Horn (05:38)

Taking the Leap: Convincing Family and Leaving Opportunity Behind (08:52–10:42)

• Wife was supportive; her steady career enabled the risk.
• Left significant equity behind at his previous company (“took a 70–80% discount on my stock value,” 49:35).

Quote:

“My wife said, ‘Hey, if this goes bad, I’m...this was 100% your decision.’ But...she was always extremely supportive.” — Jeff Horn (09:30)

The Search: Finding the Right Fit (11:07–13:58)

• Looked for a business matching his skills: sales-orientated, technology-forward, finance-heavy.
• Chose Benchmark for its combination of these qualities.

Buying Benchmark: The Deal & Structure (13:58–16:45; 44:31–50:12)

• Benchmark at purchase (2012): ~$5–6 million revenue, ~20% EBITDA margins (~$1 million EBITDA).
• Deal structure: 4–5x EBITDA, 80% paid up front, 20% as an earnout over 3-4 years; stock purchase for seller’s tax benefit; financed via a community bank with Jeff’s equity (from prior employer) as down payment.
• Personal risk: Signed personal guarantees—"That's when the moment becomes real..." (47:43).

Quote:

“I took a 70–80% discount on my stock value to...leave and do my own thing…it came at a tremendous financial cost, but...it was something that I wanted to do.” — Jeff Horn (49:35)

Vision and Execution: Agent to Dealer Transformation (15:12–27:18)

• Benchmark was a Xerox agent—selling on commission without building much infrastructure.
• The strategic move: Transform into a dealer, purchasing from Xerox wholesale, handling service and support in-house, and owning the ongoing revenue (“golden goose”).
• Required heavy investment in back office, service, and infrastructure.
• Jeff co-developed the vision with the seller, even pre-close, and maintained a strong, trust-based relationship.

Quote:

“The very first box you have to check is that character box…their character is as important as anything.” — Jeff Horn (20:44)

• Dealer model allowed more autonomy and better margins than being an agent or a franchisee.
• Differences between dealership and franchise models: more control, less fixed pricing, fewer royalties, but less territory protection as a dealer.

Growth by Acquisition & Integration (39:14–43:40; 52:42–55:51)

• Benchmark grew through five acquisitions: four nearby Xerox dealers, plus one HP-focused business to expand into managed IT.
• Acquisitions expanded territory and recurring revenue base.
• Integration lessons: Needed to be careful with comp plans and cultural integration—every business was unique.

Quote:

“Changing comp plans was a big deal. I was probably a little bit naive to that the first time..." — Jeff Horn (40:53)

Building Recurring Revenue & Launching an In-House Financing Arm (57:12–61:44)

• Developed a finance division: allowed customers to lease equipment directly from Benchmark, providing one monthly bill for all services.
• Created a separate entity for financial services, which also became a distinct asset at exit.
• At exit: ~45% of $30M revenue was high-quality recurring service revenue—key to PE interest.

Quote:

"Having that recurring revenue made it a lot easier as the business owner to forecast..." — Jeff Horn (56:42)

Memorable Moments & Notable Quotes

Leadership Transition & Culture Building (61:49–67:01)

• Jeff took a year before making himself CEO post-buyout; spent initial months riding along with every employee.
• This relationship-building laid critical groundwork for subsequent success and smooth transitions.

Quote:

“I took the first 90 days...to not have any specific duty. My sole goal was...to get to know [every employee] personally and to develop a relationship. That was the single greatest decision I made.” — Jeff Horn (61:49)

• Scaling made these personal touches harder, requiring trust in newly hired leaders.

The Exit: Private Equity’s Entry (67:12–71:42)

• Jeff was approached by PE firm that had rolled up similar Xerox dealerships.
• Benchmark at sale: $30M in revenue, $3–4M EBITDA, ~90 employees.
• Sale at 6–7x EBITDA versus initial 4–5x multiple for purchase.
• Exited main business, sold finance company separately, and stayed on three years as regional president.

Quote:

“I exited the business and...I still have those stock options today, eight years later. That business is still doing well.” — Jeff Horn (70:55)

• Life-changing wealth realized for Jeff and inherited partners.

Why It Worked (73:15–74:54)

• Key factors: alignment of business and buyer skill set, selection of a high-quality company with strong seller character, hard work, and disciplined acquisition strategy.
• Emphasis on discipline—sometimes the best deals are the ones you pass on.
• Family support critical.

Quote:

“I bought a good business. I can't stress that enough...Don’t let ‘I want to be in business for myself’...overshadow the fact that you need to start with a really good business.” — Jeff Horn (73:15)

Moving into Investing: Masked Rider Capital (74:57–79:39)

• Jeff co-founded Masked Rider Capital, a Lubbock-based hybrid family office/private equity firm.
• Now manages $500M+ across 25–30 businesses; leverages operational know-how from his journey at Benchmark.

Timestamps for Major Segments

• Background & Getting the Itch: 03:53–08:52
• Taking the Leap & Search: 08:52–13:58
• Benchmark Business Model & Agent/Dealer Debate: 13:58–27:18
• Deal Structure & Funding: 44:31–50:12
• Acquisition & Integration Lessons: 39:14–43:40
• Revenue Growth & Recurring Revenue: 55:51–57:12
• Leadership & Culture: 61:49–67:01
• Exit & Aftermath: 67:12–71:42
• Reflections on Success: 73:15–74:54
• Masked Rider Capital: 74:57–79:39

Key Takeaways & Lessons

• Buy for Fit, Not Just Opportunity: Choose businesses where your natural skills and interests can add value.
• Seller Character is Critical: The right partner makes an enormous difference post-close.
• Transformation, Not Just Optimization: Identify industry shifts (e.g., agent-to-dealer model) to create outsized value.
• Growth by Acquisition Needs Careful Integration: Every business is unique—cultural due diligence is as important as financial.
• Recurrence Wins: High recurring revenue drives higher valuations and smoother forecasting.
• Don’t Rush Leadership Transitions: Building personal relationships early pays dividends.
• Prepare for Risk: Personal guarantees, walking away from equity, and family support are all part of the journey.

Conclusion

Jeff Horn’s story is a masterclass in disciplined, vision-driven acquisition entrepreneurship. He shares not only the numbers and tactics but also the personal, human side—including risk, relationships, and humility in leadership. This episode is essential for anyone considering buying and scaling a business.

Find Jeff Horn on LinkedIn.
Learn more about Acquiring Minds at acquiringminds.co.