Many talented professionals never realise there are investors willing to back them to buy and run an established small business, even if they have never been a CEO or worked in that sector before.

In this episode of Unsung, host ⁠Will Maunder-Taylor⁠ speaks with ⁠Pascal Wittet⁠ and ⁠Sandy Farmer⁠, Co-Founders of ⁠Orca Equity Partners⁠, the UK’s first and most active fund of search funds.

They explain how Orca backs first-time CEOs across Europe, what they look for in aspiring business owners and why stable, cash-generative and often “boring” companies can offer compelling acquisition opportunities and large returns.

They also explore what happens after a deal, from building the management team and introducing better systems to professionalising the business for its next stage of growth. Pascal shares the story of Water Direct, which grew from roughly £3 million to around £10 million in EBITDA and delivered a return of more than five times invested capital in under three years.

Highlights

Why investors back first-time CEOs with no sector experience
How the search fund model works
What Orca looks for in aspiring business owners
Why stable, cash-generative and “boring” businesses can be attractive
How succession creates opportunities to acquire strong companies
What new CEOs should prioritise after taking over
Why empathy and humility matter when buying from a founder
How Water Direct delivered a return of more than 5x

For more on entrepreneurship through acquisition, small business ownership and Unsung events, ⁠subscribe to the Unsung newsletter⁠⁠.

Timestamps

01:22 Introducing Orca Equity Partners
02:16 How Sandy moved from private equity into search funds
06:32 Why backing first-time CEOs can work
10:07 Search fund returns and CEO incentives
13:42 What makes a strong acquisition target
17:40 How searchers find overlooked small businesses
21:07 Using technology and professionalising acquired companies
29:28 What Orca looks for in future CEOs
36:14 The Water Direct story
42:23 Adam Johnson’s first year as CEO
46:13 Building the right management team
51:51 Water Direct’s growth and liquidity event
58:23 What the story means for aspiring business owners
59:22 Leadership, humility and lessons from the military
1:07:23 Closing thoughts

Pascal Wittet & Sandy Farmer (Orca Equity Partners): Why Orca backs first-time CEOs to buy their own business

EUVC

Pascal Wittet & Sandy Farmer (Orca Equity Partners): Why Orca backs first-time CEOs to buy their own business