Reflections from SMBash 2025: Key Takeaways for Searchers

Just back from SMBash, I'm thrilled to share the wealth of practical advice I gathered. Over two and a half days, I had the opportunity to connect with seasoned industry professionals and fellow searchers, exchange ideas, and dive deep into what it takes to succeed in the search fund space. The event was packed with insights, practical advice, and a good dose of fun.

Here are some of my biggest takeaways from the event:

Deal sourcing: The SMB market remains highly fragmented, presenting challenges and opportunities. What stood out was the importance of personalized outreach and defining a clear niche. A strong, visible online presence is no longer optional—it's key to establishing credibility with sellers and intermediaries.

Seller engagement emerged as a crucial factor at SMBash. Many sellers are driven by non-financial motivations, such as legacy, team continuity, and community impact. Authentic conversations around these motivations can truly set you apart. Moreover, seller financing remains a linchpin in deal success, particularly in today's lending landscape.

Due diligence: One recurring theme was to get tax returns early. It's essential for accurate underwriting. Also, start conversations with lenders (particularly SBA lenders) as early as possible to validate your deal structure. And don't overlook working capital—it's often a misunderstood and underestimated risk factor.

Operational credibility: If you have an operating background, leverage it. It's a significant trust-builder with sellers who want to know their business will be in capable hands, especially post-transition.

Post-acquisition integration: There's a temptation to move fast, but the advice was straightforward—implement changes gradually and with intention. Take time to understand the culture and operations before making significant moves. Performance management: Once you're at the helm, set KPIs early. Clear metrics are vital for tracking progress and keeping your team accountable.

Broker relationships: Remember that brokers are laser-focused on deal certainty and closing. Understand their motivations, and position yourself as a credible, capable buyer who can close.

If you were also at SMBash, I'd love to hear your key takeaways. Let's continue the conversation and learn from each other.