E191: Kevin Bibelhausen's Journey in Acquiring a Textile Company and Empowering Entrepreneurs - Watch Here

About the Guest(s):

Kevin Bibelhausen is an experienced entrepreneur and acquisition specialist. With a background in healthcare and technology, Kevin spent several years working in the corporate world before pursuing his passion for buying and owning businesses. He successfully acquired a textile company called Heritage Fabrics and has since been focused on growing and modernizing the business. Kevin is also the co-founder of Fruition Capital, a fund that aims to help entrepreneurs in the search and acquisition process by providing capital and resources.

Episode Summary:

In this episode, host Ronald Skelton interviews Kevin Bibelhausen, an acquisition specialist and entrepreneur. Kevin shares his journey from the corporate world to becoming a business owner and discusses his experience in acquiring a textile company. He highlights the importance of cash flow and longevity in businesses and explains how he found the right opportunity in the textile industry. Kevin also talks about the challenges he faced during his first search and the lessons he learned from that experience. He emphasizes the value of building a team and leveraging the expertise of professionals in the acquisition process. Additionally, Kevin discusses his role in Fruition Capital and how the fund aims to support entrepreneurs in raising capital for their deals.

Key Takeaways:

• Kevin's background in healthcare and technology led him to pursue his passion for buying and owning businesses.
• He emphasizes the value of cash flow and longevity in businesses and the certainty they offer compared to startups.
• Kevin learned valuable lessons from his first unsuccessful search, including the importance of building a team and leveraging professional expertise.
• The acquisition of Heritage Fabrics allowed Kevin to bring his technology and operations background to the textile industry.
• Kevin's long-term vision for Heritage Fabrics includes expanding services, such as offering finished products and exploring new markets.
• Fruition Capital aims to help entrepreneurs in the search and acquisition process by providing capital and resources.
• The fund focuses on businesses with $1-2 million in EBITDA and prefers B2B companies that have been in operation for at least 10 years.

Notable Quotes:

• "I care about cash flow and I care about longevity. And there's certainty in these businesses that have already been around and stewarded for 10 plus years." - Kevin Bibelhausen
• "Having a team around you and leveraging the expertise of professionals is crucial in the acquisition process." - Kevin Bibelhausen
• "What I bought is 20-year supplier relationships and a name in the industry. So that when I want to build a new brand, I can leverage the infrastructure that Heritage has built." - Kevin Bibelhausen

Article:

How to Successfully Acquire a Business and Raise Capital: Insights from Kevin Bibelhausen

Key Takeaways:

• Kevin Bibelhausen, an experienced entrepreneur and founder of Fruition Capital, shares his journey of acquiring a textile business and his insights on raising capital.
• Kevin emphasizes the importance of building a strong team and leveraging the expertise of professionals in the acquisition process.
• He highlights the value of buying an established business with a track record and existing infrastructure, rather than starting from scratch.
• Kevin discusses the challenges he faced in his first search for a business and how he learned from those experiences to successfully acquire a textile company in his second search.
• He explains the long-term vision for the textile business, including expanding services and exploring new markets.
• Kevin also provides an overview of Fruition Capital and how it aims to support entrepreneurs in raising capital for their deals.

Introduction

In this thought leadership article, we delve into the insights shared by Kevin Bibelhausen, an experienced entrepreneur and founder of Fruition Capital. Kevin discusses his journey of acquiring a textile business and provides valuable insights on raising capital. Drawing from his own experiences, he highlights the importance of building a strong team, leveraging professional expertise, and focusing on acquiring established businesses with existing infrastructure. Kevin also shares his long-term vision for the textile business and explains how Fruition Capital aims to support entrepreneurs in raising capital for their deals.

Building a Strong Team and Leveraging Professional Expertise

Kevin emphasizes the importance of building a strong team when embarking on the journey of acquiring a business. He shares how he learned from his first search experience and realized the need for professionals with expertise in areas such as finance, legal, and operations. By surrounding himself with a team of experts, Kevin was able to navigate the acquisition process more effectively and ensure a successful outcome.

The Value of Acquiring Established Businesses

Kevin highlights the advantages of acquiring established businesses with a track record and existing infrastructure. He explains that these businesses offer more certainty and longevity compared to startups. By acquiring a business that has been stewarded for 10+ years, entrepreneurs can tap into a customer base, supplier relationships, and operational systems that have already been established. This provides a solid foundation for growth and reduces the risks associated with starting from scratch.

Lessons Learned from the First Search

Reflecting on his first search for a business, Kevin acknowledges the mistakes he made and the lessons he learned. He shares that he initially focused on a narrow range of businesses and relied heavily on a single broker. However, he realized the importance of diversifying his search and working with multiple brokers to explore a wider range of opportunities. Kevin also learned the value of having a team of professionals, such as attorneys and lenders, who are experienced in the acquisition process.

The Long-Term Vision for the Textile Business

Kevin discusses his long-term vision for the textile business he acquired. He plans to expand the services offered by the business, such as workroom services and fabric finishing. Additionally, he aims to explore new markets and potentially introduce finished products, such as bedding and drapery. By leveraging the existing infrastructure and supplier relationships, Kevin believes the business can successfully enter new markets and drive growth.

Introducing Fruition Capital: Supporting Entrepreneurs in Raising Capital

Kevin shares his motivation for founding Fruition Capital, a fund that aims to support entrepreneurs in raising capital for their deals. He explains that the fund was born out of the need to provide a solution for entrepreneurs who lack the financial expertise or network to raise capital on their own. Fruition Capital offers a platform for entrepreneurs to connect with capital and focuses on providing resources and support to ensure their success.

Criteria for Working with Fruition Capital

Kevin outlines the criteria for entrepreneurs looking to work with Fruition Capital. The fund focuses on businesses with an EBITDA between $1 million and $2 million, with a B2B focus. The businesses should have a minimum of 10 years of operation. While Fruition Capital primarily invests in U.S. companies, it does not invest in technology-focused businesses such as SaaS. The fund aims to write larger checks into businesses, typically between $500,000 and $800,000.

Conclusion

Kevin Bibelhausen's journey of acquiring a textile business and founding Fruition Capital provides valuable insights for entrepreneurs looking to acquire businesses and raise capital. By building a strong team, leveraging professional expertise, and focusing on acquiring established businesses, entrepreneurs can increase their chances of success. Fruition Capital offers a platform for entrepreneurs to connect with capital and provides resources and support to ensure their success. With a focus on diversification and long-term growth, entrepreneurs can navigate the acquisition process and achieve their goals.

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