Intrapreneur turned entrepreneur. Follow my journey from knife sales to tech sales to small business ownership, with lessons on acquisitions, sales, diligence, and doing hard things.
What My First Accepted LOI Taught Me: June Update
Still Searching. Still Showing Up.The question I get most often is: “Have you bought a business yet?” The short answer is no. The longer answer is that over the last several months, I’ve moved from learning about acquisitions to actively pursuing them. I've reviewed dozens of opportunities, submitted five LOIs, and recently had my first LOI accepted. After several weeks of diligence, the owner and I ultimately agreed not to move forward with the transaction. While this deal didn't close, what I can say is that the experience has taught me more in a few weeks than months of reading, podcasts (shout out to Acquiring Minds!), and conversations ever could. What surprised me most is how different diligence feels from sourcing and how important it is to keep the pipeline moving. Sourcing is about creating opportunities through persistence, networking, and showing up consistently. Diligence is about making decisions; identifying what matters most, communicating effectively, separating signal from noise, and determining which risks are acceptable as the new owner. A reminder to myself: it's not about finding a deal, it's about finding the right deal - a "HECK YEAH" opportunity, as my friend Lindsay likes to say. A few lessons that have stood out:1. Focus on the few things that truly matterEvery business has thousands of data points. The challenge isn’t finding information (well sometimes it is) - it’s determining which information actually drives the decision. One example: what initially appeared to be a highly diversified customer base was actually much more concentrated than it seemed. Dozens of customer locations ultimately rolled up to a single parent organization with centralized purchasing power. That realization materially changed how I viewed the risk profile of the business. What looked like diversification on paper behaved much more like customer concentration in practice. 2. Ask for everything upfront, but prioritize the ones that matter (point number 1).The faster you identify gaps in financials, contracts, operations, or reporting, the faster you can build conviction—or walk away. I’ve learned that diligence is as much about identifying what isn’t there as it is reviewing what is. 3. Leverage technologyOne of the biggest advantages available to buyers today is the ability to quickly analyze large amounts of information. Financial statements, customer data, contracts, and operational documents can now be reviewed and organized far more efficiently than ever before. Technology doesn’t replace judgment, but it certainly accelerates learning and findings. One unexpected lesson has been how powerful AI can be in diligence. I've built workflows that help me review financials, contracts, and operational data far faster than I could manually. Technology doesn't replace judgment, but it allows me to spend more time thinking and less time organizing information. 4. Show UpOne theme has remained consistent throughout this journey: opportunities tend to come from showing up. Over the past several months I’ve:
------ My favorite part of this process continues to be the conversations. Occasionally an owner will say something like: “I never answer this phone, but I’ve enjoyed this conversation. Let’s see where it goes.” Those moments remind me why I enjoy this search so much. Every business has a story, and every owner has spent years and sometimes decades - building something meaningful. My goal is to preserve what makes that business special and continue that legacy. ----- A Small AskWhile I'm still open to a variety of industries, I've become increasingly interested in electrical services and specialized electrical businesses, particularly generator dealers and service providers. These businesses align well with my background in sales leadership, building repeatable sales processes, and helping organizations grow. If someone comes to mind, even if they're only beginning to think about succession or a future transition, I'd appreciate an introduction. Thank YouSearch can feel like a solo endeavor day-to-day, but it certainly isn’t done alone. I’m incredibly grateful for my wife, mentors, advisors, fellow searchers, investors, friends, and former colleagues who continue to answer questions, challenge my thinking, and encourage me along the way. Thank you for following along - Rock the week. Carlos Castro Foundation & Fig Ventures 2 Timothy 1:7 “For the Spirit God gave us does not make us timid, but gives us power, love and self-discipline.” Lets Stay Connected 🌐 FoundationandFigVentures.com Disclaimer: The information in this newsletter is for informational purposes only and should not be considered legal or financial advice. Business buyers are encouraged to consult with their legal counsel and accountant to ensure the proper structuring of their transactions and to fully understand the tax implications of seller financing. Thanks for reading! Feel free to reply directly to this email with any questions or thoughts. |
Foundation & Fig Ventures
Intrapreneur turned entrepreneur. Follow my journey from knife sales to tech sales to small business ownership, with lessons on acquisitions, sales, diligence, and doing hard things.
From a decade in Tech Sales to Full Time Search: November Update As of October 1st, I’m officially full-time searching for a small business to buy in the DC area. Since starting part-time in April, I’ve met with dozens of owners, brokers, investors, and friends - and to everyone reading this: thank you! You’re receiving this because we’ve connected over the past several months. My goal with this note is simply to share an update on my journey and express some appreciation. Thank you for...