Jason Andrews Survey

Jason Andrews, GroupSource Group Purchasing

GroupSource Group Purchasing, Current Operator, Self-Funded

Survey completed September 17, 2020.

Why did you choose your model? Would you make the same choice again?

Didn’t know about search funds at the time.

Did you search with a partner? If so, why did you choose them? How did you find them? If not, why did you choose to search solo?

No. Engaged a small, regional M&A firm to do a buy side search.

When is the right time to start speaking with investors? How did you select your search and/or acquisition investors?

Mostly self-funded with one silent partner.

Did you get an MBA before searching? If so, where and why?


Was your search geographically constrained? Where did you search?

Within 120 miles of Kansas City

How long was your search?

10 months.

How did you find the company you acquired?

Direct mail

Describe the company you acquired.

Healthcare services company

What was EBITDA and your purchase multiple at close?

$1.8M EBITDA, 5x multiple.

How many employees did the company have at acquisition?


Assuming you used a broker, how helpful were they during the transaction?

Very. Couldn’t have gotten it across the finish line without them.

What was the post-close plan with the owner? How well did it go in practice?

1 year consulting agreement. Front loaded with 80% dedicated to first 6 months.

During your first year in the company, did you make changes/improvements? If so, how difficult were they to make?

Yes. Spent 60 days observing before making shy changes. Getting buy-in was not easy but not incredibly difficult either

How has the company performed post-close? What was more difficult than you expected? What needs to improve? What is going better than expected?

We’ve had ups and downs as most small businesses do. Overall, it’s been incredibly successful and satisfying

What did you not appreciate about running a company before becoming an operator?

The quality of people that work in small businesses. And, the level of help that is out there if you’re willing to ask for it.

How do you build company culture?

Build trust, articulate my vision and values, gain buy-in through living and rewarding the behaviors that reinforced the culture

Did you implement any growth initiatives, add services or new products?

Yes. My background is in scaling sales organizations so I implemented a number of growth initiatives

What articles, books, and resources were most helpful to you in preparing to search and operate?

Buy then Build (book) and the HBR book on acquisition

What do you wish you knew prior to searching and operating?

Buying a business is like finding a life partner. It’s less about finding the right partner and more about being the right partner

What advice would you share to prospective searchers? Advice to current operators?

The rewards are greater than the risks even though it looks exactly the opposite of that through much of the search and early operating times.


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