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Buying a Business Beats Starting One
What you missed on How2Exit This week
Ronald Skelton
February 11, 2025
Sponsors:
DueDilio is your go-to marketplace and advisory service for all things related to small business acquisitions.
Build Your M&A Team
and
Final Ascent, a premier boutique professional services firm specializing in mergers and acquisitions, exit strategies, and growth consulting tailored for lower middle-market firms across the U.S.
E267: Why Buying a Business Beats Starting One – Buy Your Way to Success!
About the Guest:
Sanket Bhasin is an experienced entrepreneur and the managing partner of Spring Street Capital, a New York-based software-focused search fund. He has successfully built and exited two tech businesses and is now focused on acquiring and scaling vertical software companies in the energy and healthcare sectors. His expertise in scaling businesses, combined with his strong belief in long-term ownership and AI-driven efficiencies, makes him a compelling voice in the world of software acquisitions.
Summary:
In this insightful episode, host Ronald Skelton sits down with Sanket Bhasin, the founder and managing partner of Spring Street Capital, a search fund specializing in software acquisitions. Bhasin shares his entrepreneurial journey—from growing up in Australia watching his father search for businesses to buy, to founding and successfully exiting two software startups, and ultimately choosing the search fund model to acquire and scale businesses in the vertical software space. His passion for scaling companies rather than starting them from scratch provides a fresh perspective on the search fund model, the importance of strategic investors, and how AI is shaping the future of software businesses.
For anyone interested in the mechanics of search funds, the distinction between horizontal and vertical software businesses, or the future of AI’s role in software development, this episode offers a wealth of knowledge from an entrepreneur who’s been on both sides—founding and acquiring.
Key Takeaways:
Entrepreneurial Roots & Early Exposure – Bhasin grew up in Australia, spending Sundays with his father searching for businesses to buy, which sparked his lifelong interest in entrepreneurship.
Successful Startup Experience – He founded and exited two software companies, Smart Therapist and Communicate This, gaining firsthand experience in solving niche industry problems with technology.
Why Search Funds? – Bhasin chose the search fund model because it offered a structured pathway to acquire and scale a business while benefiting from investor mentorship and long-term strategic partnerships.
Search Fund vs. Traditional Acquisition – Unlike solo acquirers using SBA loans, search funds allow for investor-backed mentoring, longer search times, and a built-in support system for new CEOs.
The Appeal of Vertical Software – Bhasin focuses on acquiring mission-critical software companies in the energy and healthcare sectors, as these specialized businesses have strong customer relationships and high retention rates.
Long-Term Hold Strategy – Spring Street Capital isn’t built for quick flips; Bhasin emphasizes holding acquired businesses for the long haul, ensuring sustainable growth and strategic improvements.
AI’s Impact on Software Businesses – While AI is making coding more efficient, Bhasin believes that human ingenuity and decision-making remain irreplaceable, especially when it comes to designing software and setting strategy.
Excitement for the Future – Bhasin sees the ongoing digital transformation as a massive opportunity, where businesses leveraging AI and software-driven efficiencies will thrive.
Article:
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