Podcast Summary: Acquiring Minds

Episode Details

• Title: It’s All Your Fault: How to Become CEO of Your Acquisition
• Host: Will Smith
• Guest: Mike Curry, CEO of Apex Physics Partners
• Release Date: January 3, 2022
• Theme: The real challenges and lessons learned from becoming a CEO by acquiring a business, emphasizing the transitions in leadership, building trust, and the reality of search fund entrepreneurship.

Episode Overview

Will Smith interviews Mike Curry, who purchased a medical physics business in 2014 via the search fund model, with no prior experience in the industry. Mike shares his unconventional path to entrepreneurship through acquisition (ETA), the harrowing early years as a new CEO, and the importance of "earning the hearts and minds" of employees. This episode is packed with honest advice about the psychological transition from individual contributor to leader, and practical suggestions for anyone considering acquiring a business.

Key Discussion Points and Insights

1. Mike Curry’s Background & Discovery of ETA (02:08–09:39)

• Origin: Grew up in Atlanta, started in investment banking in the UK.
• Turning Point: Father’s death made him reconsider career ambitions and revisit his entrepreneurial interests.
• First Venture: Started (and closed) a bootstrap men’s custom clothing business.
• Discovery of ETA: Inspired after a client asked, “Have you ever thought about buying a business instead of trying to start one from scratch?” (08:04)
• Early Research: Watched limited online videos about ETA; cold-called Irv Grousbeck (Stanford) who advised and mentored him for nearly an hour.
• Education: Returned to business school (University of Chicago) to gain relevant skills and experience.

Quote:
"I never thought about entrepreneurship through acquisition...that you could actually buy an existing business, get in the business, identify opportunities to grow the business, to grow as a person, as a leader, and produce not only a good living, but a really good result for the company and for the people that work for you." — Mike Curry, (08:31)

2. The Evolution of Search Funds and Accessibility (09:45–13:45)

• Booth’s Early Involvement: Few Booth alumni were engaged in search funds when Mike attended, compared to today’s robust community.
• Diversity in ETA: Not just for young MBAs—people in their 40s and 50s are also entering this path successfully.

Quote:
“One of the beautiful things about entrepreneurship through acquisition is it is not solely the path for newly minted MBAs…opportunities for them to identify interesting businesses that they want to be involved in.” — Mike Curry, (12:22)

3. Commitment to ETA During Business School (14:33–17:04)

• Mike was “90% sure” he’d pursue ETA before starting business school, and deliberately chose an internship with low odds of a job offer to keep on track.
• Valuable internship experience in private equity: learning to evaluate businesses (not just crunching Excel numbers), and understanding the human element in buying and operating businesses.

4. ETA Without Finance/PE Experience: Pathways & Resources (17:04–19:39)

• You Don’t Need PE Experience: Many accessible resources now—online communities (like Searchfunder.com), LinkedIn groups, books, and a culture of “pay it forward” mentorship in ETA.
• Advice: Do your homework, use the ETA community, and don’t embark alone.

Quote:
"What I find that's really encouraging about the ETA community is folks who have done it tend to be pretty open minded about paying it forward and passing along wisdom." — Mike Curry, (18:41)

5. Why Traditional Search Fund, Not Self-Funded? (19:39–24:14)

• Financial Reality: No funds to “self-fund” after business school loans.
• Community Matter: Traditional model chosen for access to an investor community with relevant operator experience, giving Keith and Mike a “brain trust” to learn from.
• Value: The guidance extends beyond business and into the personal, emotional, and leadership transitions of new CEOs.

6. Leadership Transition: From Individual Contributor to CEO (24:14–32:28)

The Toughest Transition (24:53–27:23)

• Crisis Point: Two years in, overwhelmed by stakeholder demands, Mike and Keith sought advice from a seasoned search fund CEO.
• Game-Changing Advice:
  • Read The Hard Thing About Hard Things (Ben Horowitz).
  • Embrace radical responsibility: “As the leader of the company, you should recognize that it's all your fault.” (26:41)
  • Internalize that the locus of control shifts to you as CEO; you can't blame predecessors, circumstances, or legacy culture.

Memorable Quote:
"As the leader of the company, you should recognize that it's all your fault...There's just a different level of accountability and responsibility. And until you make the transition to say, right, I did not cause all of the problems in the business…but until I kind of make that switch in my brain, that I am responsible for the results and that I have to take the reins..." — Mike Curry, (27:00–27:45)

Winning Hearts and Minds (28:00–32:28)

• Key Lesson: “When you buy a business, you don’t buy the hearts and minds of the employees.” (29:48)
• Transformation:
  • Early efforts to solicit feedback met with skepticism; credibility was built slowly by acting on feedback.
  • Culture change didn’t happen overnight: “It took us about two years to really feel like the team trusted us.”
• Practical Actions:
  • Regular interaction and empathy-building (e.g., having lunch with admin staff, taking out the trash).
  • Reinforce that employee feedback leads to visible, tangible action.

7. Building Organizational Trust and Ownership (32:28–41:08)

• Emotional Ownership: It takes time and dozens of “deposits”—more than a new org chart or inspirational speech.
• Trust Cycle: Initial skepticism yields, through demonstrated consistency, to genuine buy-in.
• Patience Required: “This path is not a microwaved path to success…people probably overestimate what they can do in a year and underestimate what they can do in five.” (39:54)

8. Concrete Results: Company Growth Metrics (41:08–45:03)

• From 16 to 34 Employees: Doubled technical staff and revenue in five years.
• Benefits & Career Paths: Expanded admin roles, created internal promotions, improved benefits—demonstrating a tangible, positive culture shift.
• Personal Impact: Watching a part-time hire become Director of HR.
• Direct Influence: The feedback loop from CEO to business culture and employee development is immediate and rewarding.

Quote:
"I don't think there's a greater feeling than seeing potential, grooming potential, and being a part of helping somebody achieve their goals and vision and mission in life and give them access to opportunity." — Mike Curry, (43:39)

9. Advocating for ETA & Broadening Access (45:03–49:43)

• Why Write About ETA Now? The social justice movement, combined with a lack of visibility into ETA’s accessibility, motivated Mike to demystify the process for a wider audience.
• Reality of Entrepreneurship: Success stories are often oversimplified; Mike shares his emotional lows to encourage others.

Quote:
"I just want people to know that it's not easy, but it's doable. And I want more people to at least investigate it as an option and as a path if they truly have that entrepreneurial bug." — Mike Curry, (48:40)

10. Contact Information and Closing (49:43–50:34)

• Connect with Mike:
  • LinkedIn: Michael Curry, CEO of Apex Physics Partners
  • Email: mcurry@apexphysicspartners.com
• Will Smith’s thanks: Gratitude for Mike’s candor about “the downs and the ups—and congratulations on those first two years!” (50:23–50:34)

Notable Quotes & Moments (with Timestamps)

• On discovering ETA:
  “Have you ever thought about buying a business instead of trying to start one from scratch?” — Mike’s client and friend, (08:04)

• On leadership accountability:
  “As the leader of the company, you should recognize that it’s all your fault.” — Mike, quoting a mentor, (27:00)

• On the real timeline for transformation:
  “People probably overestimate what they can do in a year and underestimate what they can do in five.” — Mike Curry, (39:54)

• On culture-building:
  “When you buy a business, you don’t buy the hearts and minds of the employees.” — Mike Curry, (29:48)

• On the emotional reality of ETA:
  “There was a time early in our leadership period where, you know, I drove home and I sat in a grocery store parking lot and I cried, and I called my mom and asked her, you know, I spent all this money to go to business school. Am I doing the right thing? Am I really cut out to be a CEO or a leader of a small business?” — Mike Curry, (47:35)

Timestamps for Key Segments

• [02:08] — Mike’s background and initial entrepreneurial experience
• [09:39–13:45] — Early days of search funds and ETA community at Booth
• [17:04] — Resources for ETA beginners
• [19:39] — Why Mike chose traditional search over self-funding
• [24:53] — Transition from contributor to leader; “it’s all your fault” advice
• [28:00] — Earning trust and winning over employees’ hearts and minds
• [41:20] — Company growth metrics after five years
• [45:36] — Why advocate for ETA now, diversity, and demystification
• [49:58] — How to contact Mike Curry

Final Reflections

This episode offers a refreshingly honest account of the emotional and operational hurdles new CEOs face after an acquisition. Mike Curry's journey is a masterclass in patience, servant leadership, and the real work behind transforming a team and a business. His advice and lived experiences provide critical context and inspiration for anyone considering entrepreneurship through acquisition, especially those coming from fields outside of direct business operations or who feel daunted by the task ahead.