Professors Rick Ruback and Royce Yudkoff's podcast "Think Big, Buy Small" delves into the journey of entrepreneurship through the acquisition of small, enduringly profitable businesses. Geoff Duckworth's story, featured on the podcast, exemplifies this path. Inspired by Ruback and Yudkoff's "HBR Guide to Buying a Small Business," Duckworth transitioned from an employee at a larger firm to the CEO of a small business. He financed his acquisition through a small business administration loan, covering 90% of the purchase price, and used personal savings to cover the remaining 10%. Despite working full-time during his search, Duckworth successfully bought a high-quality, profitable business.
Duckworth’s journey is a testament to the potential of entrepreneurship through acquisition. Initially, he leveraged brokers and regional connections to identify potential businesses. His background in mechanical engineering and business consulting provided a strong foundation for his new role. Although his search was geographically focused and conducted alongside his full-time job, Duckworth navigated the challenges successfully. By acquiring a business for $3 million that generates $1 million annually, Duckworth achieved a 33% return on investment, demonstrating the financial viability of this approach. His story underscores the importance of strategic acquisition and the benefits of leveraging existing, profitable enterprises.
