Driven by the “Buy then Build” movement and backed by elite MBA programs at schools like Harvard and Stanford, these first-time buyers are smart, highly motivated, and—most importantly—propped up by significant leverage.
For you, the seller, this wave is a double-edged sword. More buyers mean more competition for your business, but many are first-timers who rely on bank debt and seller financing to get the deal done. If you are asked to finance 20% or 30% of your own exit through a seller note, you are essentially betting your retirement on a novice operator’s ability to run your company.
In our latest episode of Built to Sell Radio, we go Inside the Mind of an Acquirer to look at the anatomy of a deal gone wrong. John Warrillow talks with Jed Morris, a former tech executive who—despite an MBA and a career at Microsoft—lost his business and his family home on his first acquisition.
But this isn’t just a story of failure; it’s one of redemption. Jed used those hard-won lessons to rebuild, and today he is a highly successful acquirer as the Managing Partner of Sunset Coast Capital. He’s joining us to pull back the curtain on the “Paper CEO” phenomenon.
What You’ll Discover:
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The “Confidence vs. Competence” Gap: Why elite corporate credentials often fail when they meet the “grease and gears” of a small business.
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The MBA vs. The Real World: Why academic deal structures can collapse when faced with “messy” local operations and culture.
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Vetting the Searcher: Tactical questions to ask a first-time buyer to ensure they have the grit to lead your team.
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Protecting Your Exit: How to structure seller notes so you aren’t the one paying for a novice buyer’s education.
The takeaway for any owner today? Don’t just fall in love with the headline price. You need to vet your buyer’s “operating engine” as much as they vet your financials.
Quote of the Week
A business is the direct reflection of the owner: whatever the owner is good at, the business is good at—and whatever they’re bad at, the business suffers from.
Deals
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Kadex Aero Supply Ltd., a Canadian company that distributes aircraft parts and provides repair and overhaul services to aviation customers, has agreed to sell to Chorus Aviation Inc. for approximately $50 million. Founded in 1994 and generating about $60 million in revenue in 2025, Kadex operates out of Peterborough, Ontario and Calgary, Alberta, supplying parts through partnerships with more than 70 aircraft manufacturers and serving as a one-stop shop for airlines and aviation operators. The deal includes $43 million in cash at closing, with the remainder payable over two years based on performance targets. Based on its 2025 revenue, the transaction values Kadex at roughly 0.8x revenue.
