Acquiring Minds Podcast Summary

Episode Title: Taking a Single-City Acquisition Nationwide
Host: Will Smith
Guest: Edward McDonnell
Air Date: February 26, 2026

Overview: Full Cycle of a Traditional Search Fund—From Acquisition to Nationwide Growth and Exit

In this episode, Will Smith interviews Edward McDonnell, who took a one-branch indoor plant services business in Seattle and expanded it to a multi-state operation with hundreds of employees, culminating in a successful exit to private equity. The conversation offers deeply practical insight into the traditional search fund model, geographic expansion, operational upgrades, and the personal journey of first-time operator-turned-successful acquirer.

Key Topics and Insights

I. Edward’s Background and Choosing the Search Fund Path ([05:06]-[11:48])

• Edward’s Engineering and Early Career: Grew up in Virginia, mechanical engineer at UVA, worked at Honda and an aerospace company. Realized a desire to pursue entrepreneurship.
• Discovery of Search Funds: First learned about search funds in 2015 while in business school (UVA Darden). Explored various models (accelerator, self-funded, traditional) before opting for the traditional path.
• Rationale for Traditional Search Fund:
  • Limited personal capital and student debt made self-funded search less viable.
  • Sought access to resources (travel, quality due diligence) and valued mentorship/network from investors.
  • Mentors-turned-investors played a key role in his decision.
• Quote:

  "I wanted resources to be able to do things like hop on a plane if I needed to...I wanted to do my proper due diligence...I didn't want to have to worry about spending this much on a quality of earnings...I wanted to do it right."
  —Edward McDonnell ([07:47])

II. The Role of Capital and Geographic Flexibility ([09:22]-[18:26])

• Traditional vs. Self-Funded Search: Traditional search is more resource- and support-rich, facilitating broader due diligence and more objective deal flow.
• Nationwide (or "Super Regional") Search Expectation: Traditional searchers are typically expected to relocate for the right business. Edward exemplified this, showing openness to opportunities nationwide, eventually relocating from North Carolina to Seattle.
• Advice/Insight:

  "It’s a numbers game...If you're looking in one city...to find a $3 million EBITDA company...it's extremely difficult."
  —Edward McDonnell ([17:39])

III. Search Process and Acquiring Botanical Designs ([19:58]-[29:26])

• Search Focus: Targeted B2B, recurring revenue services (excluding software), aiming for predictability and scalability.
• Acquisition Details:
  • Company: Botanical Designs, Seattle
  • Employees at Acquisition: 80
  • Revenue: ~$11M
  • Customer Base: Highly diversified; no single customer >5%
  • Recurrence: 75%+ recurring revenue
• Transition: Moved with a pregnant wife, jumped from never formally managing anyone to leading a team of 80.
• Quote:

  "I had never...formally supervised an individual...And now I have 80..."
  —Edward McDonnell ([29:26])

IV. Operating and Professionalizing the Business ([30:11]-[39:00])

• Reception on Day 1:
  • Smooth transition, supported by strong managers and helpful founder.
  • Emphasized humility, learning from managers, and listening to field staff.
• Operational Upgrades:
  • Immediate focus on systems, starting with implementing a CRM for better communication and customer records.
  • Broader digital transformation and organizational improvements.
• Quote:

  "If I can help remove these barriers...everyone currently there [is] more effective and honestly happier..."
  —Edward McDonnell ([36:41])

V. Implementing EOS as an Operating System ([40:27]-[46:01])

• Decision to Use EOS:
  • Initial attempts at self-implementing operational improvements led to adoption of EOS (Entrepreneurial Operating System).
  • Hired a certified implementer for guidance.
• Results:
  • Improved clarity in vision, better structured and productive meetings, company-wide alignment.
  • EOS’s Vision Traction Organizer and codified values served as persistent reference points for decision making and leadership communication.
• Quote:

  "EOS for me was a really good off-the-shelf type of thing...even just the one page Vision Traction Organizer..."
  —Edward McDonnell ([40:27])

  • On Leadership Repetition:

    "He [COO] would sort of jokingly but not call me Chief Repeater Officer..." ([50:10])

VI. Expansion—Taking the Business Nationwide ([55:37]-[66:14])

• Growth Through Acquisition:
  • Opened new branches by acquiring similar businesses: initial two years focused on organic/local Seattle growth before expanding to Denver and Twin Cities, then Florida, Georgia, and Spokane.
  • Maintained local brands and integrated company-wide systems (EOS, CRM, fleet management SaaS, etc.).
• Post-Acquisition Integration:
  • No regional management layer at first; Edward and COO Nick Moreno closely managed integration and traveled extensively between branches.
• Quote:

  "If we want to grow and we want to stay in our niche, we need to do a really good job in our existing market, but we also need to go to other markets."
  —Edward McDonnell ([55:37])

VII. Exit and Reflections on the Traditional Search Model ([66:14]-[80:50])

• Exit Structure:
  • After four and a half years, sold to PE; stayed two more years as CEO under new ownership.
  • Company grew from 80 to 200+ employees, from one to eight branches.
  • Maintained a minority equity stake post-exit.
• On Selling:
  • The sale process was the hardest aspect: juggling operations and transaction, emotional attachment to the business.
  • Ran a broad, structured process with an investment banker to ensure best fit and outcome.
• Returns:
  • Exceeded investor hurdle rates; achieved full carry (approx. 35% IRR for investors).

  “It was a good outcome…for the investors, for me, for I think everyone involved.”
  —Edward McDonnell ([72:10])

• Autonomy and Traditional Search:
  • Rejects the myth that traditional search offers less autonomy. Found significant agency in strategy and execution because of company size and cash flow.

  “Size and scale of company gives you more autonomy; the business is not controlling you…”
  —Edward McDonnell ([78:40])

  “Cash flow is oxygen, more cash flow is, is breathing room.”
  —Will Smith ([80:29])

VIII. Advice for Aspiring Searchers ([81:10]-[84:33])

• Know What You Want:
  • Self-reflection is key: Do you really want to operate? What size, sector, geography, team size, and capital/mentor structure suits you?
  • No one-size-fits-all; decision is personal, not purely driven by others’ outcomes.
• Next Steps for Edward:
  • Intends to acquire or back an operator in his home state of Virginia; considering both SBA-sized opportunities and larger deals.

Notable Quotes & Memorable Moments

• On search fund resources:

  "Deal flow helps you be more objective...doing proper due diligence saves a lot of headache later."
  —Edward McDonnell ([11:48])

• On transition:

  “It took very little time. I’m talking less than a half an hour and everyone's back out the door taking care of plants…it could have gone very differently.”
  —Edward McDonnell ([31:34])

• On EOS and repetition in leadership:

  “You have to repeat those things, what do they say, seven times or more before it really sets in.”
  —Edward McDonnell ([48:15])

• On life after exit:

  "I ended up spending 2025 being able to travel a lot of different places with my family…It was unbelievable."
  —Edward McDonnell ([69:06])

Key Timestamps

• [05:06] Edward’s background / intro to search funds
• [07:47] Why traditional search (capital & mentorship)
• [16:57] Willingness to relocate nationwide
• [20:41] Acquisition target: Botanical Designs
• [29:26] Transition to CEO—leading 80 employees
• [36:41] Early systems upgrades (CRM, digitization)
• [40:27] Implementing EOS (game-changing for ops)
• [55:37] Expansion: rationale for multi-market growth
• [66:03] Structure and results of exit
• [77:21] Autonomy in traditional search
• [81:10] What Edward tells prospective searchers
• [84:33] Edward’s next chapter

Conclusion: The Entrepreneur’s Journey—From No Management Experience to Successful, Multi-State Exit

Edward McDonnell’s path encapsulates the potential of the traditional search fund: a resource-rich, mentorship-heavy route that empowers ambitious operators to scale organizations with recurring revenue, operationalize systems, and achieve life-changing outcomes without giving up meaningful autonomy. He stresses the importance of self-knowledge, the tradeoff between independence and resources, and the operational demands of owning and scaling a business. His career now comes full circle, as he prepares to re-enter the founder/investor/operator arena in Virginia.

Contact Edward:

• [LinkedIn — link in show notes]
• Email: a.m@monroehillgp.com

This episode is a must-listen for searchers weighing search fund models, aspiring acquirers eyeing multi-market growth, or anyone interested in the realities of scaling and exiting an acquired business.