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

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.HighlightsWhy investors back first-time CEOs with no sector experienceHow the search fund model worksWhat Orca looks for in aspiring business ownersWhy stable, cash-generative and “boring” businesses can be attractiveHow succession creates opportunities to acquire strong companiesWhat new CEOs should prioritise after taking overWhy empathy and humility matter when buying from a founderHow Water Direct delivered a return of more than 5xFor 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