Acquiring Minds Podcast Summary

Episode: Started Mid-Career, Grew to $38m in 3 Years
Host: Will Smith
Guest: Sean Stimson, CEO of Mitten Fluid Power, Flynn Maher Rubber and Plastics, Frank Merkin Products
Date: October 30, 2025

Episode Overview

This episode features Sean Stimson, who pivoted from a 20-year career in wealth management to acquisition entrepreneurship in his 40s, ultimately growing a portfolio of three industrial distribution companies generating $38 million in revenue within three years. Host Will Smith explores Sean’s mid-career transition, deep dive into industrial distribution, deal sourcing strategies (notably cold calling), hands-on growth tactics, and his vision for long-term company ownership. The episode offers both inspiration for mid-career professionals and practical advice for aspiring acquisition entrepreneurs.

Key Topics & Insights

1. Sean’s Background and Decision to Pivot

• Sean’s Career Path (04:37–10:12)
  • Grew up in Boston, spent 20 years in wealth management at Morgan Stanley and Bank of America Private Bank, the last 13 in sales leadership roles.
  • "It's really 90% business development ... much more sales, business development heavy." (05:44, Sean)
• Catalyst for Change
  • While earning an MBA at Babson, exposure to entrepreneurial alumni planted a seed for buying a business.
  • A lunch with a private equity client made Sean realize the potential of buying and growing companies.
    • "He did that 50 more times. And that's how he accumulated his wealth … maybe I should do a little bit more digging and figure out how this guy did this." (10:16–11:40, Sean)
  • Spent five years studying 'search', networking with searchers and experts before launching his own search in 2021.

2. Building a Search Skillset Mid-Career

• Filling Knowledge Gaps through Education (16:47–25:49)
  • Returned to Babson for targeted finance and M&A classes, which were "invaluable advisors" during his search.
    • "Private equity is nothing more than a complex math problem." (17:32, quoting his mentor)
  • Highly recommends additional education for non-finance backgrounds
    • "I think that's an imperative part of the diligence process … I saved quite a bit of money in the search phase." (17:32–19:22, Sean)
• Benefit of Academic/Professional Networks
  • Professors and fellow students became key advisors.
  • "I don't think I would have been successful had it not been for the guidance and the advisory relationship that they have." (25:49, Sean)

3. Developing an Industrial Distribution Thesis

• Why Industrial Distribution? (27:09–37:39)

  • Inspired by a client who owned an industrial distribution business, saw multiple advantages:
    • Low customer concentration risk
    • Owners often had no succession plan—many in their 60s-70s
    • Technical expertise wasn’t solely with the owner, making transitions feasible
  • Contrarian play: most searchers were looking for SaaS businesses; Sean stood out at ETA (Entrepreneurship Through Acquisition) conferences.
    • "They looked at me like I had 10 heads. But ... it's worked out so far." (36:50, Sean)
  • Value proposition is in high-quality products, advisory service, rapid response, and local presence.

• Sample Products & Value Proposition

  • "50% of our sales are fluid connectors … fancy term for rubber hoses or hydraulic hoses."
  • Emphasis on recurring business: Mitch companies had 81–85% of customers purchase every year for five years (34:09–36:31).

4. Proprietary Deal Sourcing: The Power of Cold Calling

• Philosophy & Execution (44:39–54:05)

  • Inspired by other successful searchers, Sean pursued proprietary outreach over brokers.
  • "I would call the owner ... Hi, my name's Sean Stimson. I'm a well capitalized buyer looking to buy a business in the industry that you operate in ..." (46:51, Sean)
  • Made ~1200 cold calls; about a 25% response rate (though most were "no").
  • Key finding: Owners responded because he picked up the phone instead of just emailing.
    • "I get a lot of emails. I don't get a lot of calls." (53:43, Sean)
  • Virtual meetings post-pandemic reduced travel and expenses.

• Drawbacks & Advantages

  • Downsides: Many owners not ready to sell or lacked financial prep.
  • Upside: Proprietary approach set him apart, enabled direct negotiation, and led to good fit acquisitions.

5. Acquisition and Growth of Mitten Fluid Power

• Acquisition Story (54:06–57:16)
  • Acquired Mitten Fluid Power in Dec 2022 (founded 1971, $14M revenue at purchase).
  • Strategic actions: Added salespeople, opened new locations, invested in inventory and marketing.
  • Revenue grew from $14M to $22M (50%) in ~three years.
    • "We've grown it over the last, you know, two and a half years. And, you know, it wasn't rocket science..." (54:40, Sean)
• Low Capex Model
  • Major investments: Inventory, new people, locations. No heavy machinery required.
  • Focus on diversifying customer base and servicing MRO market.

6. Sales-Driven Growth: An Underleveraged Opportunity

• Distribution as Sales Engine (59:53–63:48)
  • Sought businesses lacking sales strategy—saw opportunity to professionalize sales function.
  • "A lot of business owners do a great job of working in their business, but they don't do that great of a job working on their business." (60:19, Sean)
  • Added local locations to boost response for urgent customer needs.
• Targeting “Sleepy” Companies
  • Many industrial distributors under-invest in sales and growth; new energy unlocks growth.
  • "If you are the one to bring new energy to an industry, there's presumably a lot of opportunity." (64:51, Will)

7. Deal Structuring, Financing, and Ownership

• Deal Structure Details (67:13–74:48)
  • Did not pursue a traditional search fund; instead had a single sponsor (Robert Wolf) covering search expenses.
  • Raised $6M equity (from network), used leverage (over 3x EBITDA), with both mezzanine and term debt.
  • Ownership split: Sean and sponsor own 25% together, remaining held by investors.
  • For other acquisitions, mix of seller roll-over equity, more debt, and additional capital raises.
  • Used a "profits interest LLC" for latest acquisition to preserve founder equity.

8. Multiplying Acquisitions & Scaling Up

• Timeline & Results
  • Mitten: $14M revenue (now $22M).
  • Frank Merkin Products: $6M revenue.
  • Flynn Maher Rubber and Plastics: $9M revenue.
  • Current portfolio: $38M revenue (74:48).
  • "Three acquisitions, started in your 40s … look what you’ve accomplished in three years." (74:48, Will)
• Deal Flow Accelerates Post-First Acquisition
  • Credibility and network expand rapidly after first deal close; follow-on deals came easier.
  • "Once you own one business … so many more people are willing to talk to me." (77:23, Sean)
  • Built pipeline from both previous targets and inbound brokered opportunities.

9. Long-Term Vision: Building, Not Flipping

• Strategy Diverges from Traditional ETA (82:12–88:49)

  • No intention to exit in a standard 5–7 year ETA timeline; committed to owning and growing business for 20–25 years.
  • Growth plan to reach $100M sales via organic and acquisition-driven expansion.
  • Openness to ESOP or IPO eventually, but no short/medium-term exit planned.
    • "I'm not looking to exit and I hope to run this company for the next 20 to 25 years." (82:37, Sean)
  • Investors on board, provided Sean remains at the helm.
    • "As long as you're involved, you know, we'll still be involved. The minute you step away is when we're going to want our capital back." (88:49, Sean)

• Philosophy on Risk & Career Change

  • Sees staying in corporate America as riskier than searching.
  • "I thought that was a riskier decision than launching a search." (92:23, Sean)
  • For mid-career listeners: search can be a less risky, highly rewarding second act.

Notable Quotes & Memorable Moments

• On Timing Mid-Career
  “I was in my mid-40s when I acquired my first business. But once I was in the game, things accelerated, as they so often do. 0 to $38 million in under three years.” (01:00, Will Smith)

• On Acquisitions as Math "Private equity is nothing more than a complex math problem." (17:32, quoting Sean’s mentor)

• On Owners’ Response to His Cold Calls “I get a lot of emails. I don't get a lot of calls. And so, I think it is a way, you know, to separate yourself ..." (53:43, Sean)

• On Why Industrial Distribution? “Low capex, predictable cash flow … lot of retiring owners … if the right employee base exists, they're great acquisition targets for searchers.” (37:44, Sean)

• On Sales & Growth "A lot of business owners do a great job working in their business, but they don't do that great a job working on their business. That sales strategy was lacking …" (60:19, Sean)

• On Escaping Corporate Risk “I thought that was a riskier decision than launching a search ... staying in corporate America ... granted it was a fruit of my labor ... a new regime could come in and I could be out on the street, like that. There was risk to being in corporate America.” (94:07, Sean)

• On Long-Term Building vs. Exit “I’m not looking to exit and I hope to run this company for the next 20 to 25 years. ... I think we have an opportunity to make something huge and we’re certainly well on our way.” (82:37 & 84:22, Sean)

Timestamps for Key Segments

• Introduction & Career Background - 00:00–10:12
• Pivot to Search and Education - 10:13–25:49
• Developing Industry Thesis & Value Proposition - 27:09–37:44
• Deal Sourcing & Cold Calling - 44:39–54:05
• First Acquisition & Growth of Mitten - 54:06–57:16
• Sales Philosophy & Execution - 59:53–64:51
• Deal Structuring & Financing - 67:13–74:48
• Scaling, Credibility, and Pipeline - 77:23–82:12
• Long-Term Vision & Risk Perspective - 82:12–95:12

Final Thoughts

This conversation is an inspirational and real-world playbook for how acquiring and scaling existing businesses can be a powerful mid-career path. Sean’s approach emphasizes leveraging sales experience, investing in tangible growth levers, strong deal structuring, and building a sustainable, long-term business—contrasting sharply with the typical search fund exit model.

For those considering entrepreneurship through acquisition, especially in non-tech “sleepy” industries, this episode offers a blueprint to follow and proves it’s never too late to make the leap.