How I Completed 12+ Acquisitions and Still Built a New Roll-Up

My guest today is Nick Hatchka, founder of Cub Investments, which has completed over a dozen acquisitions. Nick is now building a regional platform of generator dealers and service businesses in California alongside his operating partner, Dylan Ferguson. We discuss his journey:- to independent sponsorship,- lessons from 12+ acquisitions,- what makes a good business model,- partnering with operators,- and buying seller-dependent companies.SponsorsThis episode is brought to you by CapitalPad. A marketplace that connects acquisition entrepreneurs who need capital with investors who want exposure to small-business deals. Standardized terms, governance, and distributions included. If you’re raising for a deal - or want to back operators - check out https://capitalpad.com/ - A deal-by-deal private equity investing platformOur sponsor Spacebar Studios builds and runs your newsletter so you stay top-of-mind with founders, brokers, LPs, and talent - without adding to your workload. HoldCo Builders listeners also use their two-week free trial. Go to https://www.spacebarstudios.co/inquire and get started for free.We cover:0:00 Nick Hatchka on 12+ acquisitions and a California generator platform0:35 Background: MIT → McKinsey → 2 startups → Fortune 500 clean tech1:54 Founding Cub (2016): SBA and personal capital for the first deal2:49 Scaling: 12+ acquisitions across interior plants and landscaping, later divested4:09 New platform thesis: generators in California and why the model is capital intensive5:27 Investing focus: market and model selection over operator heroics8:16 Capital discipline: self-funded pace vs raising outside capital9:18 Sponsor CapitalPad: standardized terms, governance, and distributions for acquirers and investors12:03 Generator business explained: sell, install, maintain, and test backup power (monthly, quarterly, annual PMs)13:22 Sponsor Spacebar Studios: done-for-you newsletters with a two-week free setup20:11 Partnering with Dylan Ferguson: 20-30 interviews and complementary skills25:54 First acquisition Conti: sourced direct, LOI-to-close ~6 months, closed Jan 202428:16 Post-close playbook: replace owner-operator and rebuild systems for scale33:39 Early lessons: grew fast to replace 4–5 seller hats and would build recruiting pipeline earlier34:38 Results: revenue ~$3M → ~$6M and team 7 → ~1442:13 Second acquisition PowerGen: 5–6 months later with larger C&I footprint in Bay Area and Sacramento45:04 Capital and operating philosophy: seller note fixed ~8 years, target ≥3x DSCR, keep strong cash reserves and focus on service quality51:32 Book and wrap: The Science of Success and expanding the circle of competenceSupport our Sponsors:CapitalPad: https://capitalpad.com/SpaceBar Studios: https://www.spacebarstudios.co/inquireSubscribe on Spotify:https://open.spotify.com/show/6lr5bE3SNZF2uEE7Nb0DHh?si=cP_nAarhRmep1lvnR6uk5gSubscribe on Apple Podcasts:https://podcasts.apple.com/us/podcast/holdco-builders/id1695713724Follow Mikk/PrivatEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuyThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.