Acquiring Minds Podcast — Episode Summary

Podcast: Acquiring Minds
Episode: Passion & Profit in an American Pastime
Date: December 29, 2025
Host: Will Smith
Guest: Mike Fagan, “King of Swing,” former world champion bowler and current bowling alley owner

Episode Overview

In this engaging episode of Acquiring Minds, host Will Smith interviews Mike Fagan, a world champion bowler turned acquisition entrepreneur. The discussion explores how Mike transitioned from pro sports to business ownership, specifically through acquiring and revitalizing bowling centers. The episode’s central theme is the tension and synergy between passion and profitability—how Mike balances his love for the sport and community-building with the practical, financial demands of running and improving a bowling business.

Key Discussion Points and Insights

1. Mike Fagan’s Background and Journey to Entrepreneurship

• Bowling Career & Inspiration (03:18–10:15)

  • Mike began bowling at age five, quickly escalating from local leagues to becoming a world champion and touring globally. His love for the communal energy of bowling centers was rooted in childhood.
  • “I got to live my childhood dream. I played on the professional bowling tour for 13 seasons… My parents would let me out of school on a Friday to go watch the match play rounds, and the buildings there were always packed to the edge.” (03:18, Mike)
  • Retired after realizing the tour’s diminishing returns, extensive travel demands, and desire to explore new frontiers.

• Transition to Business & Education (10:15–12:30)

  • Attended UC Berkeley Haas for an MBA, seeking to combine entrepreneurial drive with formal business training.
  • Initial post-MBA roles in finance and corporate entertainment (MGM Resorts) but ultimately joined a private equity-backed effort to roll up bowling centers due to his unique expertise.

2. Understanding the Bowling Center Business Model

• The Role of Leagues and Community (16:26–18:04)

  • League bowlers are the “recurring revenue backbone” of the industry—providing steady, repeat business and a sense of community, though not the highest-dollar customers.
  • “Being able to acquire businesses that already have this [league base] in place is very powerful. It’s not going to make you rich as a proprietor, but it’s going to make sure that you can pay your bills every month.” (17:05, Mike)

• Cultural Impact & Decline (and Return) of Bowling (19:21–29:07)

  • Bowling was a formative institution in mid-century America, but urban real estate pressures and societal changes have shrunk its footprint, driving it into suburban and rural markets.
  • Reference to Bowling Alone by Robert Putnam—bowling’s decline mirrors broader “atomization” of American social life.
  • Recent stabilization and even increase in league participation as people seek genuine community, especially post-pandemic.

3. Industry Structure: Roll-ups, Chains, and Premiumization

• Integration vs. Local Culture (30:07–35:56)

  • Discussed the challenges and value in rolling up mom-and-pop alleys into a cohesive group — how much to centralize versus preserve local loyalty and management.
  • “The general manager and the culture within those four walls usually drive the business more than any corporate initiative.” (35:14, Mike)

• Competition and Premium Chains (22:38–24:46)

  • Bolero and Lucky Strike represent “high-end” bowling with greater integration, modernization, and focus on parties/events rather than league bowlers.
  • Mike’s niche is more community-oriented, steady, and resilient to economic shifts.

4. Mike’s Acquisition Story: Ten Pins and More

• Deal Sourcing and Seller Dynamics (37:05–41:36)

  • Mike sourced his deal via both general and bowling-specific brokers. Seller expectations often inflated by emotional attachment and lack of reinvestment—common in small business M&A.
  • Deal structure included SBA lending, friends and family equity, and a seller note.

• Deal Numbers (45:43–50:48)

  • Purchased the business and associated real estate for ~$2M (with $1.8M value allocated to land/building).
  • Business generated ~$250K EBITDA on $1.5M revenue, but required substantial reinvestment—CAPEX funded via additional financing.

• Operating Challenges and Early Wins (66:50–73:33)

  • Major transition friction: staff turnover, especially as new processes/technology replaced legacy roles (e.g., automated pinsetters reduced need for traditional mechanics).
  • Introduced Brunswick point-of-sale system, online reservations, professionalized sales/event management, and modernized the kitchen/food service.
  • Return on digital advertising (especially Meta ads) was substantial: “We saw in that first weekend a 10x ROAS.” (77:31–78:55, Mike)
  • Notable operational insight: The best bowling centers make the most money with a “60-minute wait” where guests patronize other attractions (bar, arcade, kitchen) while waiting.

5. Financial Mechanics and Real Estate

• SBA Lending and Capital Structure (54:30–58:15)

  • Used a 25-year amortization SBA 7(a) loan, with plans to refinance via a 504 to lower rates after the prepay period.
  • Took on additional debt to fund $600K of immediate improvements (e.g., new pinsetters, arcade, digital systems).

• Sale-Leaseback Strategies (59:27–66:31)

  • Sale leaseback (selling the property and leasing it back) is a common way to unlock cash—especially valuable as chains grow, less so for a single site initially.
  • May pursue this after boosting cash flow and business value.

6. Balancing Capitalism and Community Mission

• Profit vs. Passion (86:09–109:51)
  • Mike candidly discusses the tightrope between maximizing profit (e.g., optimizing lane turnover, raising prices, replacing discounts with loyalty programs) and cultivating the communal, cross-generational magic of bowling alleys.
  • “It is a conundrum…I have to think with two different sides of my brain… The mission is to grow the sport of bowling. But there’s also the economics of the business.” (106:28, Mike)
  • He seeks to support league bowlers and host events, but only after ensuring the business is sustainable through parties, open play, and modern food/bar programs.
• Scaling Up (94:48–98:07)
  • Mike’s thesis: Build regional scale (3-5 locations, $8–10M revenue) before ramping up further—allowing for back-office specialization but maintaining local autonomy.
  • Hesitant to take on too much investor capital and lose control of the mission: “I don’t want to be in that dynamic. I just need to be careful and not necessarily just grow for the sake of growth. It has to be the right fit.” (96:20, Mike)
• Operating Remotely (99:28–103:59)
  • Running Ten Pins and More from Dallas rather than relocating to New Mexico is intentional, forcing him to focus on scalable systems and trust on-site management.

Notable Quotes

• On Business-Buyer Fit:
  “I believe I was the right type of buyer for the seller… He was looking for someone to continue that legacy of 25 years. Not every buyer wants to keep leagues, but that was my focus.” (42:21, Mike)

• On Real Estate and Sale-Leasebacks:
  “If you improve revenue 50% or you know, 1 or 2x depending on, you know, the improvements that are going into the business, then that makes essentially that real estate worth more and the sale leaseback proceeds higher.” (63:49, Mike)

• On Operating Model Tension:
  “It is almost impossible to work in the business and on the business simultaneously… If I was closer, I would just get sucked into the day-to-day.” (99:28, Mike)

• On Balancing Passion and Analysis:
  “There’s the analytical side… and then there’s the passion that a lot of days doesn’t come front and center… The mission is to grow the sport of bowling. And it can be done in many different ways. But we’ve got to, we’ve got to not lose sight of that.” (106:28, Mike)

Important Segments and Timestamps

| Segment Description | Start Time | End Time | |-----------------------------------------------------|------------|------------| | Mike Fagan’s Pro Bowling Background | 03:18 | 10:15 | | Transition to Business School & Corporate Roles | 10:15 | 12:30 | | Bowling Center Industry Model | 16:26 | 19:21 | | Social Role & Decline of Bowling | 19:21 | 29:07 | | Roll-Up Strategy and Integration Insights | 30:07 | 35:56 | | Mike’s Deal: Sourcing, Price, and Terms | 37:05 | 50:48 | | Real Estate Value, CAPEX, and Sale-Leaseback | 54:30 | 66:31 | | Operating Changes and Tech-Driven Growth | 66:50 | 81:01 | | Mission & Profitability; Scaling Plans | 86:09 | 98:07 | | Remote Ownership & Systems Thinking | 99:28 | 103:59 | | Passion vs. Economics: Final Thoughts | 106:28 | 109:51 |

Memorable Moments

• Adoption of Reservation and Digital Marketing:
  Launching online reservations and Facebook/Meta ads, resulting in a “10x ROAS” during the Albuquerque Balloon Fiesta, proved the effectiveness of modernizing the business.

• Transition Lessons:
  Upgrading vintage pinsetters meant mechanics’ roles had to be repurposed, exemplifying the difference between passion-driven “museum piece” operation and financial efficiency.

• Meta-Reflection:
  Mike acknowledges, and even celebrates, the tension between passion and profit—in some ways, embodying the soul of small business acquisition entrepreneurship.

Conclusion

This episode offers an unusually personal and nuanced look at acquisition entrepreneurship. For Mike Fagan, owning a bowling center isn’t just a financial endeavor but a mission to revive and sustain a beloved American tradition. The financial mechanics—SBA loans, seller notes, CAPEX, evolving labor models—are all discussed with uncommon candor and detail, making this a must-listen for entrepreneurs eyeing “boring” but beloved local businesses.

“The mission is to grow the sport of bowling. And it can be done in many different ways. But we’ve got to not lose sight of that.”
— Mike Fagan (106:28)