Acquiring Minds — Episode Summary
Podcast: Acquiring Minds
Host: Will Smith
Episode: The Dream Outcome: From $300k to $5m EBITDA
Date: November 20, 2025
Guest: Ling Tran, Owner of Advanced Commercial Group, Co-Founder of Apex Fund Group
Episode Overview
This episode tells the remarkable story of Ling Tran’s journey from purchasing a fragile, $300k-SDE commercial refrigeration business to building a group of robust companies generating $5m+ in EBITDA, all while prioritizing family, leadership, and investing in others. Ling shares actionable insights on buying and operating businesses, the realities of growth, maintaining work-life balance, and investing in the next generation of entrepreneurs. The discussion radiates humility, operational wisdom, and candid reflections on success, making it a blueprint and inspiration for aspiring acquisition entrepreneurs.
Guest Background: Ling Tran’s Unconventional Path
[04:32]
- Originally trained as a doctor, Ling had a change of heart after passing out in the ER.
- Entered the investment world “by accident” through connections, not intention:
“It’s who you know, not exactly what you know.” – Ling Tran
- Developed an entrepreneurial itch by working with business-owning investors.
- Ran small eBay and import businesses in business school, then returned to investing.
- By 2010, married with two daughters, he realized life was good—but lacked freedom.
“I have a pretty good life, but I’m not free to do what I want, with who I want, when I want.” – [04:59]
- Opted to buy a business to create income and time flexibility (“self-funded search” before the term existed).
The Search Criteria & First Acquisition
[06:52], [07:26]
- Targeted old-school, low-tech businesses with little industry competition from people like him (Asian, post-MBA).
- Wanted “the 3 Rs”: Recession-proof, Required services, Recurring revenue.
- Settled on trades (commercial refrigeration).
About the Business:
- <10 employees, family-run, mix of unpaid contributions, SDE on paper $300k, but effectively much less.
- Topline $2M–$3M revenue, margin <10%.
- Acquired with seller staying for a transitional period, which proved invaluable.
“Undercover Boss”: Secret Owner for Trust-Building
[10:10] – [15:28]
- For 18 months post-acquisition, Ling introduced himself as the “IT guy.”
- Used this to build relationships, learn the business, and guide change non-disruptively.
- Steps towards improvement were gradual, always empowering employees to own ideas.
- Example: Solving the post-it notes dispatch board problem incrementally, not replacing it outright.
- Only revealed as owner when pressed; built respect by humility and listening.
“I know nothing about this company. Be very, very humble. … I’m not going to do what I want because I’m the owner. I’m going to do something because I believe in it. But if you don’t believe that I’m correct, you need to speak up.” – [15:28]
Leadership Philosophy
[19:06], [20:54]
- Never held big leadership roles before, but a health scare gave him clarity:
“If I make it through this, I’m going to be a good person.”
- Leadership approach: Treat people how you want to be treated; be kind but firm.
“Don’t mistake Ling’s kindness for weakness because you know he will cut you if you don’t do your job.”
- Let people go with dignity; maintain clear, respectful tension—not backstabbing or passive aggression.
Growth Arc: From Fragile Microbusiness to 5m+ EBITDA
Initial Lessons
[22:24]
- Miscalculated SDE due to unpriced (family) labor.
- Family businesses often mask real costs, and replacing family roles is expensive.
Scaling Up
- Grew the company to 100+ employees, multi-service platform (added electrical, plumbing, construction).
- Reinvested profits for consistent growth; never “dressed up” the company for sale.
On Financial Outcomes:
“If you can’t live off 3 to 5 million dollars a year, you may want to think about your lifestyle choices.” – [48:31]
Why Not Sell?
- Sees money as a scoreboard & means of compounding impact (not an end).
- Finds meaning in helping others, maintaining a family-first lifestyle, and building for the long-term.
Work-Life Balance & Family
[31:28], [36:15]
- Original motive for buying a business: family time. Inevitable early sacrifice, but strove to recalibrate.
- “Non-negotiables”: Never missing family events, being present and off the phone at home.
- Book vacations first, then fill the calendar with work—forces delegation and process-building.
- Advice: Procedurize family time as rigorously as company processes.
“Kids spell love T-I-M-E: time.” – [33:57]
Lessons from the Growth Journey
[37:17]
-
Early years require extreme effort (4:30am–10pm, 5+ years): learn every function, gain credibility with staff.
-
Limit overtime culture: Moved company to 40-hour work week (despite resistance, turnover) for a sustainable life.
- Resulted in a happier, more supportive workforce, higher quality of work, and self-selection for those with healthy priorities.
“If you can’t do your work in 40 [hours], are you the right person for the job?” – [39:28]
-
Don’t over-optimize in early years: focus on major lever points, not just incremental savings.
Sales and Margin Growth
[43:34], [43:50], [49:56]
- Never sold on price, but on reliability and value—charged more, but delivered consistently.
- Focus on world-class service rather than sales:
“Our customers are losing $150,000 per pallet of meat… If I charge $10,000 to fix it instead of $5,000, they aren’t going to care.”
- Avoided long-term service contracts unless mutually beneficial: valued flexibility over “dressing up” recurring revenue for an exit.
- Growth is not always optimal; overzealous tech/AI implementations can backfire, as in their own $1m loss using AI on estimates.
Extracting the Owner (and Ling) from the Business
[53:04]
- The “secret": Accept 80% is good enough from others—don’t strive for control or perfection:
“If you can do it 80% as well as I can, I will take that as a win.” – [53:54]
- Create systems, delegate! Develop people to push buttons, and others to design new buttons.
- Insist on leadership redundancy—no “terrorists,” i.e., critical employees who could hold the company hostage by leaving.
“You don’t want to be the only person who can push that button, because that means you’ll always have to sit here pushing that button.” – [57:13]
Operationalizing Passive Ownership
[58:58], [60:22]
- Stepped back as CEO at ~2–3m EBITDA, expected growth to stop but successor grew business 36% first year.
“I was the rate limiting step here, for years.”
- Wisdom: True professional management may unlock growth beyond the founder’s personal effort.
On Search, Investing, and Fund Building
Criteria for Investment
[86:45]
- “Three Rs” still the gold standard: Recurring, Recession-proof, Required.
- Likes self-funded search or small group deals where the operator keeps majority (51%+), supports structures with seller notes and conservative deal risk.
- Ideal target: $1M–$3M SDE.
- Too small (sub-$1M): fragile, one bad manager can destroy value.
- Too big: higher complexity, mistakes magnified, less nimble to change.
Structuring Deals
- Favors keeping sellers engaged via earnout/seller notes: aligns interests (though sometimes needs to “bench” a problematic seller).
- As an investor (Apex Fund Group):
- Typical terms: 2x liquidation preference, 10–15% preferred return (pref), step-up at exit, searcher with 60% of equity.
- Prefers deals where if the business “just chugs along,” investors still make a solid return—searcher best rewarded with growth.
- Holds long-term, but also open to exits if the team wants.
Notable Quote:
“Money is the easiest part of a deal. If the deal is good, I will have the money or know someone who does.” – [71:08]
Ling’s Wisdom for Searchers & Entrepreneurs
Getting Into the Weeds is Non-Negotiable
- “You have to sweat the details for years—there’s no skipping it.” [108:35]
- The best portfolio managers are those who’ve been operators.
On Buying Businesses:
- Don’t buy something just because you like it—objectivity matters more than passion; industry outsiders often make better decisions by seeing structure, not just substance.
Choose Your Sprint:
- There are natural “seasons” of intensity—communicate with family, recalibrate as needed.
On Impact:
- Most gratifying part of ownership is not wealth, but the ability to impact employees’ lives and build enduring cultures.
“You convert employees from being terrorists to being patriots.” – [102:08]
- Philanthropy and investing in people/communities brings satisfaction greater than the money scoreboard.
Notable Quotes & Moments
- “I always have imposter syndrome… But somehow, it keeps on working.” – Ling Tran [09:19]
- “Treat people how you want to be treated. Don’t mistake kindness for weakness.” – [20:54]
- “Kids spell love T-I-M-E: time.” – [33:57]
- “80% done is 100% awesome.” (via Dan Martell, Ling’s endorsement) – [55:20]
- “Assume you’re not the expert in the business—if you don’t have to be there, you’ve built something valuable.” – [57:13]
- “Money’s a scoreboard—what matters is what you do with it.” – [27:47]
- “If you can’t live off $3–5 million a year, think about your lifestyle choices.” – [48:31]
- “The goal is not just your own life, but your employees’. Because I’m not owned by PE, I can do things boards never would.” – [98:37]
- On ultimate cautionary tales of wealth (billionaires afraid to spend, families fractured) – [95:44]
- On diversity: “My daughter told me I was part of the problem [of not having enough women CEOs]. Now I’m working to fix that.” – [103:57]
Timestamps for Key Segments
| Topic | Timestamp | |----------------------------------------------------------|---------------| | Ling Tran background and how he found search | 04:32 | | Search criteria & acquisition targets | 06:52 | | Undercover ownership – being the “IT guy” | 10:10 | | Building trust & introducing stepwise change | 11:25 | | Leadership style & lessons | 19:06 | | The business as acquired: numbers, structure | 22:24 | | Growth trajectory and current scale | 25:16 | | Philosophy on not selling, money as “scoreboard” | 27:46 | | Family/lifestyle, booking vacations, “non-negotiables” | 31:28, 36:15 | | Early operational grind | 37:17 | | 40-hour work week culture & retention | 39:27 | | Value-based sales, not price competitors | 43:44 | | Use of seller notes, structuring deals | 65:23, 69:06 | | Building systems and extracting owners | 53:54 | | Investor perspective & criteria—Apex Fund terms | 86:45 | | On the rewards and pitfalls of wealth | 95:44 | | Impact on employees; building culture | 98:37, 102:08 | | Closing reflections, giving back, searcher advice | 108:35, 111:45| | Final contact info for Ling/Apex Fund | 112:08 |
How to Contact Ling Tran
- apexfundgroup.com (include “Acquiring Minds” in the subject line)
- Open to co-investors, self-funded searchers, and those seeking guidance.
Final Reflections
Ling’s journey is living proof that leading with humility, prioritizing people, and refusing to compromise family can yield not just financial freedom—but a legacy. This episode is a masterclass in entrepreneurship for those who want to build real businesses, deliver value, and live a life worth living.
“If you’re enjoying what you do and balancing that with family, that’s the real prize.” – Will Smith [111:45]