$60m Roll-Up That Started With an SBA Acquisition - Acquiring Minds Recap
Podcast: Acquiring Minds
Published: 2025-10-02
Duration: 1 hr 29 min
Summary
Onu KBA and Brian Boland discuss how they built HTL Freight into a $60 million company starting with an SBA loan, emphasizing the advantages of retaining full ownership and strategic growth through acquisitions.
What Happened
In this episode, hosts Onu KBA and Brian Boland share their entrepreneurial journey of building HTL Freight, a freight brokerage company, which they started in 2021 with an SBA loan. Their initial acquisition was modest, generating only half a million in SDE, but it allowed them to bootstrap their roll-up without external equity, thereby retaining 100% ownership early on. This approach is particularly significant as it provided them the flexibility to grow the business on their own terms and develop a strong foundation before bringing in outside investors.
The conversation highlights how starting with an SBA loan not only enabled them to dream big but also equipped them with the grit and determination to turn that dream into reality. Brian notes that raising equity later in their journey allowed them to command better terms with investors, estimating that the cost of that equity was probably a tenth of what it would have been if they had sought funding at the outset. Their story serves as an inspiring example for aspiring entrepreneurs looking to navigate the complexities of business acquisition and growth.
Key Insights
- Starting with an SBA loan allows for full ownership retention.
- Small initial acquisitions can lead to significant growth.
- Equity raised later in the journey can yield better terms.
- Entrepreneurship requires grit and a willingness to dream big.
Key Questions Answered
How did Onu KBA and Brian Boland start HTL Freight?
Onu KBA and Brian Boland's journey to start HTL Freight began with an SBA loan in 2021. They identified a small business to acquire, which generated about half a million in SDE. This initial acquisition was crucial as it allowed them to establish their platform while retaining full ownership, avoiding the dilution of equity that often comes with early outside investment. This strategic choice enabled them to bootstrap their growth effectively.
What are the advantages of starting a business with an SBA loan?
Starting a business with an SBA loan offers several advantages, including the ability to maintain full ownership and control of the company from the outset. This approach allows entrepreneurs to avoid giving away significant equity to investors when their business concept is still unproven. Additionally, it provides the flexibility to grow the business organically before involving external funding, which can lead to more favorable equity terms down the line.
How did HTL Freight grow to $60 million in revenue?
HTL Freight grew to $60 million in revenue through a series of strategic acquisitions and by establishing a strong foothold in the freight brokerage industry. Since their first acquisition, Onu and Brian have executed a total of five acquisitions, expanding their service offerings and customer base. This methodical approach to growth allowed them to leverage their initial investment and scale the business effectively.
What was the significance of retaining ownership during the initial acquisition?
Retaining ownership during the initial acquisition was significant for Onu and Brian as it allowed them to shape the business according to their vision without external pressures. By bootstrapping their roll-up, they could focus on building a solid foundation and developing their business model. This autonomy also positioned them to negotiate better terms with investors when they eventually sought equity funding, enhancing their overall valuation.
What lessons can entrepreneurs learn from Onu and Brian's journey?
Entrepreneurs can learn several valuable lessons from Onu and Brian's journey with HTL Freight. First, starting small with an SBA loan can provide the necessary capital to launch without immediate pressure from investors. Second, the importance of patience in finding the right acquisition cannot be overstated; it took them two years to identify a suitable deal. Finally, the ability to pivot and adapt, as evidenced by their shift from aspiring to work in private equity to becoming deal-makers themselves, underscores the entrepreneurial spirit required to succeed.