Physicians and high-income professionals are increasingly looking for ways to diversify their income and accelerate financial freedom. One emerging strategy that deserves serious attention is small business acquisition.
In a webinar hosted by George Ozoude, MD, CEO of Time Health Capital, and Adebayo Fasanya, MD, CEO of Dr. Breathe Easy Capital, guest expert Ben Suttles, Managing Partner at Disrupt Equity, shared his experience and insights into why acquiring established, cash-flowing businesses can be a powerful complement—or even an alternative—to traditional real estate investing.
With over 15 years of experience and more than $800 million in real estate assets under management, Ben has now expanded his focus to the mergers and acquisitions (M&A) space through his firm Equity Launchpad. Here’s what he shared.
Why Small Business Acquisition?
Ben explained that his pivot into business acquisition stemmed from the opportunities presented during the COVID-19 pandemic, when real estate activity slowed and the “silver tsunami” of retiring baby boomers created a flood of profitable businesses hitting the market.
These are businesses with strong cash flows and no clear succession plan, as the next generation often has no interest in running them. For investors, this creates an opportunity to acquire established, recession-resistant businesses at attractive valuations.
The Types of Businesses Ben Targets
Ben’s strategy focuses on boring, blue-collar, recession-resistant industries that provide essential services, including:
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HVAC (Heating & Air Conditioning)
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Plumbing and Electrical Services
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Water Treatment Facilities
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Manufacturing (e.g., steel, chrome, hard metals)
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Healthcare-related services
These are industries with high barriers to entry, consistent demand, and limited risk of disruption by technology or e-commerce.
The Sweet Spot: Deal Size & Structure
Ben and his team primarily target businesses with:
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Enterprise Value of $5M–$25M
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EBITDA of $1M–$5M
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Profit Multiples (Valuation): 4x–8x EBITDA
This range is too large for individual buyers but too small for big private equity firms, creating what Ben calls a “middle-market blue ocean” of opportunity.
Key strategies they use when structuring deals include:
✅ Seller Financing: The seller carries a portion of the purchase price as a loan.
✅ Earnouts: The seller gets additional payments if performance targets are met post-sale.
✅ Retaining the Seller/GM: The current owner stays on for 1–5 years to ensure a smooth transition.
✅ Asset Sales (Preferred): Offers better financing options and less liability than stock sales.
Why This Strategy Appeals to Passive Investors
According to Ben, small business acquisition offers several advantages over traditional real estate:
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Higher Cash Flow: Typical returns start at 15%–20% cash-on-cash—much higher than the 6%–8% often seen in multifamily real estate.
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Diversification: Reduces dependence on market cycles affecting a single asset class.
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Creative Deal Structuring: Far more flexibility in how deals are financed and terms negotiated.
For those who want passive exposure rather than actively running businesses, investing with firms like Ben’s allows access to these cash-flowing opportunities without day-to-day management.
Key Lessons & Takeaways
Throughout the session, Ben shared several practical takeaways for investors:
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Target Businesses with $1M+ EBITDA to ensure enough scale for management and profitability.
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Focus on recession-resistant industries that offer essential services.
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Build relationships with CPAs, attorneys, brokers, and financial advisors to source off-market deals.
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Always retain the current owner or a strong manager for smooth operations and risk mitigation.
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Stress-test deals for interest rate sensitivity, especially with variable rate debt like SBA loans.
Final Thoughts
Ben Suttles’ expertise demonstrates how small business acquisition can unlock higher returns, greater cash flow, and long-term stability—particularly when executed through disciplined criteria and thoughtful deal structures.
For physicians and professionals looking to move beyond Wall Street and real estate alone, understanding business acquisition strategies is a valuable tool for creating true financial autonomy.
Want to connect with our community for more educational opportunities?
📺 Watch the full webinar here, hosted by George Ozoude, MD and Adebayo Fasanya, MD, featuring guest expert Ben Suttles. You’ll hear firsthand how his team structures deals, evaluates opportunities, and creates recession-resistant cash flow through small business ownership.