Closing on a business is only the beginning. Success depends on how you manage the first years of ownership, the capital you bring to the table, and the partners you choose. In this episode of Before You Buy or Sell a Business, Jared Johnson talks with Jacob Hall, Founder and Managing Partner of Kando Capital, about the realities of Entrepreneurship Through Acquisition (ETA). Jacob shares how his career as an engineer and operator shaped his approach to investing in self funded searchers and independent sponsors. He explains why search is a double edged sword, what makes alignment between investors and operators essential, and how his firm structures equity to support both short term liquidity and long term ownership. The conversation covers SBA rule changes, the risk of ignoring the J curve, and why working capital is often underestimated in the first year of ownership. Jacob also discusses quarterly reporting, portfolio diversification, and why he now teaches ETA at the University of Texas to prepare the next generation of operators. Main Takeaways: • ETA is a promising path but requires commitment, maturity, and resilience • Investor and operator alignment sets expectations and avoids future conflict • The J curve is common in the first year and must be planned for • Working capital is critical for payroll, vendor terms, and unexpected expenses • Equity partners provide strategy, networks, and growth support beyond funding • Mentorship and transparency build a stronger ETA community Episode Highlights: [02:10] Jacob’s career path from engineering and corporate operations to small business COO [09:45] Discovering ETA in 2020 and shifting from searching to investing [14:22] Building Kando Capital and raising from accredited investors and family offices [20:35] Structuring equity, hold periods, and aligning with entrepreneurs [29:10] Independent sponsor compared to self funded search and what sets them apart [36:50] SBA rule changes and how they impact investors and operators [47:28] Alignment as the foundation for long term operator and investor success [55:40] Common post close mistakes including the J curve and underfunded working capital [01:07:05] What Jacob looks for in operators before writing a check [01:15:20] Why mentorship shaped Jacob’s career and why he now teaches ETA at UT Austin [01:21:44] Motivation and why Jacob enjoys supporting entrepreneurs and building small business value