The Hashslinger

[The Hashslinger @TheHashslinger]

@InsideUSC Yeah. It’s like “you don’t say, Colin.”

It is obvious Riley does not care and is just cashing a (huge) paycheck.

Thanks, Coach Bohm and Coach Alt. Where ever you are.

[The Hashslinger @TheHashslinger]

100% truth. Every always wants to hit 3, but until 2 is done, good luck.

[SMB Attorney @SMB_Attorney]

“We’re going to buy businesses and implement AI.”

Guys, with the exception of maybe a handful of people or firms, I’m not sure many people have a better front-row seat to the small and lower-middle-market acquisition ecosystem than we do.

We take 200+ calls every month from prospective buyers, searchers, independent sponsors, family offices and private equity funds.

And that doesn’t include the orders of magnitude more conversations we see through communities, group chats, conferences and the hundreds of transactions that move through our firm.

Based on our own deal volume and what we see in the market, we believe we’re among the most active law firms serving the lower-middle-market M&A ecosystem in the country.

And I can tell you:

“We’re going to buy businesses and implement AI” is EVERYONE’S thesis right now.

Greg’s piece is thought-provoking, and I think his broader point is right: everyone buying or operating a business should be thinking seriously about how AI can be layered into the company to improve productivity, reduce costs and expand margins.

That is absolutely where things are going.

And damn it, it’s a GOOD thesis.

I say “good,” not “great,” because there is a huge assumption buried inside it:

That you actually get to the part where you can focus on growth and AI implementation.

The acquisition lifecycle usually looks something like:

1. Acquire
2. Stabilize
3. Grow
4. Exit

AI implementation is largely part of Step 3... Growth.

But before you get to Step 3, you have to survive Step 2.

And Step 2 is where things get real.

> You inherit employees you didn’t hire.
> Customers you didn’t acquire.
> Vendors you didn’t negotiate with.
> Processes you didn’t design.
> Technology you didn’t choose.
> Financial statements you didn’t prepare.
> A culture you didn’t create.

And often years of institutional knowledge sitting inside the head of a seller who just got wired a life-changing amount of money and is mentally halfway to the beach.

Meanwhile, the debt payment is due every month.

A lot of acquirers get stuck somewhere between Stabilize and Grow for years.

> They fix people problems.
> They replace customers.
> They rebuild accounting.
> They improve working capital.
> They learn the industry.

They deal with equipment breaking, key employees quitting, sellers behaving strangely, unexpected capex and a thousand other things that never appeared in the CIM.

They put out near CONSTANT fires.

They service the debt.

They hold on for dear life.

They may still create seven figures of wealth...

But they never really reach the clean, optimized growth phase they imagined when they built the model.

That’s why I think assuming you can simply acquire a business and quickly increase EBITDA margins by the magnitude Greg is describing will be wishful thinking in most cases.

Not because he’s wrong about the opportunity.

He isn’t.

AI can absolutely improve margins.

It can reduce administrative labor, improve sales processes, accelerate quoting, enhance customer service, automate workflows and create enormous operating leverage.

Everyone should be thinking about how to use it.

But growth requires stability, management bandwidth, good systems, clean data and capital.

AI is a tool.

It is not a substitute for competent operations.

You still have to buy the right company.

At the right price.

With the right capital structure.

You still have to retain the right people.

Protect the customer base.

Understand working capital.

Manage cash.

Navigate the transition.

And actually operate the thing.

So if you’re considering acquiring a lower-middle-market business, do your homework, hire good advisors and go in with your eyes wide open.

Greg is right that AI creates a massive opportunity for business owners and acquirers.

But the hard part is still getting the business into a position where you can actually capture it.

This is hard as FUCK.

And AI didn’t make that part any easier.

[The Hashslinger @TheHashslinger]

@fxspawn Kyle Pitts. The Unicorn.

[The Hashslinger @TheHashslinger]

Terry Fontenot always fell in love with guys and over drafted them. I would love to be in a fantasy league with Terry and Billy Knight.

[. @marssvivan]

I never liked moving up for Ruke (he was a projected as a 3rd Rounder in the 24' Draft). To be picked top 35 you need to be a stud from the jump. Maason Smith is a bigger body but seemingly underwhelmed for Jags (started 7 games in 2 yrs). Hopefully better fit here.

[The Hashslinger @TheHashslinger]

“Are we going to have fun or what?”

Mike Bohm at Riley’s introductory press conference.

[The Hashslinger @TheHashslinger]

Lincoln Riley is stealing money.

[The Hashslinger @TheHashslinger]

Players play like they are coached.

SC always seems to be committing stupid personal fouls. Did anyone see Lincoln Riley tearing this kid a new one on the sidelines?

[John Frascella (Football) @NFLFrascella]

Never seen anything like this in my career

Are they celebrating sending somebody off in a cart?

Vicious hit celebration??

[Dave Portnoy @stoolpresidente]

But Texas fans still want the death penalty for horns down 😂

[The Hashslinger @TheHashslinger]

God bless @BrooksAustinBA .

[Brooks Austin @BrooksAustinBA]

I return to the greatest college football town in the country tomorrow.

Blessed @GeorgiaFootball

[The Hashslinger @TheHashslinger]

This is impressive.

[SleeperBraves @SleeperBraves]

NL East Titles Since 1995:

Atlanta Braves: 19
Philadelphia Phillies: 7
Washington Nationals: 4
New York Mets: 2
Miami Marlins: 0

The Braves own the NL East

[The Hashslinger @TheHashslinger]

@MarkZinno Truth

[The Hashslinger @TheHashslinger]

@SullyCNBC Falcons

[The Hashslinger @TheHashslinger]

@GAFollowers My @JomboyMedia impression.
"Ok. No. That mf'er right there. I will f you up." If we can't beat the Panthers, let's beat the fans!

[The Hashslinger @TheHashslinger]

@uscpsycho How do you do it every year? Your pain tolerance has to be off the charts

[The Hashslinger @TheHashslinger]

@slmandel Two reporter blow offs. Sark is a jerk.

[The Hashslinger @TheHashslinger]

Like all great comebacks it takes 2 to tango. What an absolute choke job by Ohio State.

[The Hashslinger @TheHashslinger]

Going to be some PAC after dark in the SEC tonight.

[The Hashslinger @TheHashslinger]

There is going to have to be a rule you can’t hit the QB’s throwing arm if he is passing.

[The Hashslinger @TheHashslinger]

World’s greatest Mets fan.

[The Hashslinger @TheHashslinger]

@RosserJobs Getting paid for your work.

[The Hashslinger @TheHashslinger]

@randomrecruiter 100%