Acquiring Minds Podcast Episode Summary
Title: New Way to Pursue ETA: Searcher-in-Residence
Host: Will Smith
Release Date: June 30, 2025
Episode Link: Acquiring Minds on YouTube | Sign Up for Summaries
Episode Overview
In this compelling episode of Acquiring Minds, host Will Smith delves into innovative strategies within Acquisition Entrepreneurship (ETA). The episode is divided into two insightful segments:
- Matt Brunig’s Success Story: Exploring Matt’s journey from a high-stress job in the power plant industry to building a thriving holding company through strategic business acquisitions.
- Introducing Kevin Peer – The Searcher-in-Residence: Unpacking the novel role of Searcher-in-Residence (SIR) through the experience of Kevin Peer, who transitioned from a traditional search fund searcher to a pivotal operational role within Matt’s growing portfolio.
Segment 1: Matt Brunig’s Journey to Acquisition Entrepreneurship
Transition from Power Plant Industry
Matt Brunig, owner and President of Octal Ventures, shares his path from a demanding 90-hour workweek in power plant turnarounds to embracing acquisition entrepreneurship. Faced with the choice between another high-stress job or buying a business, Matt discovered an unexpected opportunity close to home.
The Discovery and Acquisition of Sunrise Yacht Products
While browsing Biz Buy Sell, Matt initially overlooked a small manufacturer near his St. Petersburg, Florida residence. Upon revisiting, he found Sunrise Yacht Products—a specialized manufacturer with under $700,000 in revenue but boasting quality employees and an international reputation. Trusting his instincts, Matt purchased the business and set the foundation for substantial growth.
Matt Brunig (00:00): "Matt was eager for an off ramp to his high travel 90 hour week life in the power plant industry."
Growth Strategies: Organic and Inorganic Expansion
Under Matt’s leadership, Sunrise Yacht Products experienced remarkable growth, scaling revenue from $700,000 to over $3 million. This was achieved through both organic growth initiatives and strategic acquisitions, leveraging the company’s strong brand and expanding its market reach.
Matt Brunig (22:16): "So it's growing organically and inorganically to over 3 million in revenue."
Financial Considerations and Risk Management
Matt discusses the financial dynamics of acquiring small businesses, including the use of SBA loans and the associated risks. Initially, the acquisition required sacrificing a portion of his salary, but the long-term vision aimed at surpassing his previous income through growth.
Kevin Peer (22:36): "But the way I looked at it was one, I was ready to move out of what I was doing. I was ready to settle down..."
Day One Experience: The Donut Story
On his first day, Matt made a memorable gesture by bringing donuts to the team, fostering goodwill and building strong relationships from the outset. This small act had a lasting positive impact on employee retention and morale.
Kevin Peer (37:20): "One of the key employees ... would have left that day if I hadn't brought donuts."
Segment 2: Introducing Kevin Peer – The Searcher-in-Residence
Kevin Peer’s Background and Motivation
Kevin Peer, originally from Pennsylvania, transitioned from a traditional search fund approach to becoming a Searcher-in-Residence at Octal Ventures. With a background in industrial engineering and diverse international experience, Kevin sought operational experience while remaining in St. Petersburg.
Kevin Peer (07:00): "I would say initially it was not so much with intentionality. I was looking to invest outside of the business as we grew..."
The Searcher-in-Residence (SIR) Model Explained
The SIR concept bridges the gap between search fund searchers and business owners seeking operational support. It allows searchers to gain hands-on experience within an existing business, providing mutual benefits:
- For Searchers: Offers real-world operational experience, credibility, and a potential pathway to business ownership.
- For Business Owners: Access to high-caliber talent to drive growth, manage special projects, and potentially facilitate a smoother exit strategy.
Will Smith (20:11): "So what did you see? Did you feel like you were seeing decent options on Biz Buy Sell?"
Benefits and Trade-offs
Benefits:
- Operational Expertise: Searchers like Kevin bring fresh perspectives and specialized skills, enhancing business growth.
- Smooth Transitions: Building relationships over time fosters trust, making future ownership transitions seamless.
- Flexibility: The model accommodates various outcomes, from searchers purchasing the business to taking on key leadership roles.
Trade-offs:
- Relationship Risks: The potential for misalignment or conflicts can jeopardize both the business and the searcher’s career path.
- Compensation Challenges: Searchers may take below-market salaries as an investment in their future ownership opportunities.
- Time Constraints: Searchers embedded in a business may have limited capacity to pursue their independent acquisition searches.
Kevin Peer (86:18): "There's a large relationship risk. You could go one to two years, everything's going great...something happens in the relationship."
Case Studies: Multiple Acquisitions Under Octal Ventures
Matt shares insights from acquiring additional businesses, illustrating the scalability and adaptability of the SIR model. From specialized manufacturing to pan rack baking covers, each acquisition highlights the strategic benefits of embedding experienced operators.
Kevin Peer (52:41): "We grew from 150 to just under 600 last year. That's substantial growth driven by strategic improvements and market demand."
Future Vision and Long-Term Goals
Octal Ventures aims to expand into a $15 million holding company by acquiring complementary sewing-based manufacturing businesses, with plans to diversify beyond sewing. The partnership between Matt and Kevin emphasizes a visionary and integrative approach, leveraging their combined strengths to build a resilient and scalable enterprise.
Kevin Peer (61:26): "We're piecing that together to see what we can grow out of this as a base with our base being essentially the core values in Traction and the operations and processes that we're building right now."
Addressing the Robinson (ROBS) Plan
Matt discusses the complexities introduced by the Robinson (ROBS) plan, where his 401(k) holds significant equity in Octal Ventures. This structural hurdle presents challenges in fully optimizing business ownership and equity distribution.
Kevin Peer (67:59): "It puts me in a less cash, a lower cash position. It's not terrific."
Searcher-in-Residence in Action: Roles and Responsibilities
Kevin elaborates on his role as Director of Growth and Improvements, spearheading special projects and enhancing business operations. This position not only supports Octal Ventures’ growth but also serves as a testing ground for searchers looking to embed themselves within a business environment.
Kevin Peer (71:10): "We have built our own software with metrics for the entire business sitting in front of the employees so they can see real time productivity."
Conclusion
This episode of Acquiring Minds offers a deep dive into innovative acquisition strategies through Matt Brunig’s entrepreneurial journey and the pioneering Searcher-in-Residence model introduced by Kevin Peer. By fostering collaborative relationships and embedding talented searchers within businesses, Octal Ventures exemplifies a forward-thinking approach to growth and succession planning in the ETA community.
Notable Quotes:
- Kevin Peer (12:29): "When you buy a good operating business, it has a very high probability of success if you don't go breaking things."
- Matt Brunig (26:50): "There's a lot of risk buying such a small business. There's a lot, and in fact we're going to get to it."
- Nick Huber (89:57): "For business owners that money isn't the number one thing and they care about their legacy and the future of their employees."
Additional Resources:
- YouTube Channel: Acquiring Minds
- Episode Summaries Signup: acquiringminds.co
- Searcher-in-Residence One-Pager: Available in the show notes
Join the Conversation:
If you’re an entrepreneur considering acquisition or a business owner exploring innovative transition strategies, the Searcher-in-Residence model offers a promising pathway. Reach out to Matt Brunig or Kevin Peer via LinkedIn to learn more about their experiences and explore potential collaborations.
This summary captures the essence and key points of the podcast episode, providing a comprehensive overview for those who haven’t listened.