Buy Small ($1m EBITDA at 4x), Keep Winning
Ryan Sullivan's fully-baked & winning concept at North Park Group: buy $1m EBITDA firms at 4x, add the real estate, finance half with SBA debt, and never sell. Voila, today they have 5 operating companies, 6 acquisitions, 25% annual returns, and an investor waitlist.
North Park Group's buy box is tightly defined: The target produces ~$1m of EBITDA, typically owned by a retiring founder in manufacturing or industrial services. Each business comes with its real estate, allowing for 25-year SBA financing. The total all-in transaction averages about $6m, including ~$1.5m for the building. Deals are structured at 50% equity and 50% debt, resulting in about $3m of investor capital and $3m of bank financing. They bring in an operating partner to run the company and hold it for the long term, targeting 25% annual returns on equity without exits.
Deal flow begins with a disciplined funnel. Opportunities arrive from Axial, Generational Equity, and buy-side brokers compensated at ~$5k/month plus a success fee. Out of ~200 conversations, ~20 advance to IOI, and 5-8 progress to signed LOIs each year. The close rate is about 25% on LOIs. Half of lost deals don't transact, and the remainder fall away on size, fit, or valuation.
A case study is Arcadia Glasshouse in Ohio, acquired in January 2025. The company produced ~$800k of EBITDA and sold for ~4x, or $3.2m, plus $1.8m for the building. Total capitalization reached $5m, with $2.8m of equity and $2.2m of blended SBA 7a and 504 debt. Since closing, Arcadia has reinvested in equipment, hired additional staff, and expanded production capacity by 15%.
Operating partners hold real equity in the GP and share management fees across all portfolio companies. Conservative 50% leverage, combined with real estate collateral, limits personal guarantee risk and allows strong cash flow coverage and steady distributions.
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