Exited But Tired: Reflections on 5 Years in a Hard Business | Matt Bauer & Chris Hartman Interview

Finding Opportunities

Matt Bauer and Chris Hartman embarked on a journey to find a business that resonated with them both personally and professionally. They discovered the American Scale Company, a business that immediately captured their interest due to its unique market position and the personal connection they felt with the previous owners, who were also veterans 1. Matt described the business as a service provider, installer, and distributor of industrial weighing equipment, capable of serving a wide range of industries from food and beverage to manufacturing 1. Chris shared that their search was not without challenges, as they had to educate brokers about their self-funded search strategy, which was less common at the time 2.

   

Deal Structuring

Structuring the deal for acquiring the American Scale Company was a complex process that required strategic negotiation and financial planning. Matt and Chris leveraged a 75% SBA loan to finance the acquisition, with the remaining equity coming from their own investments 3. Despite the challenges posed by the broker's rigid process, they managed to close the deal within 90 days, a testament to their determination and quick decision-making 4. Chris emphasized the importance of trusting their instincts and not being swayed by doubts from others, even when faced with rudimentary accounting practices in the business 4.

   

Self-Funded Search

The self-funded search strategy employed by Matt and Chris was a testament to their entrepreneurial spirit and willingness to take risks. They each invested $100,000 to cover search expenses and lived off their savings while seeking a suitable business 5. Matt's background in private equity advisory and his family's entrepreneurial history fueled his desire to pursue this path, driven by the potential for greater financial reward through risk-taking 6. Chris noted that the investor landscape was less mature at the time, requiring more personal connections and groundwork to secure funding 5.