In this interview, Sean Smith (Managing Partner of Search Fund Ventures & Founder of SMB Investor Network) sits down with Jacob Hall, Founder of Kando Capital, to explore the fundamentals of investing in small businesses through self-funded search and independent sponsor deals.

Jacob shares his unique path from Fortune 500 operator to fund manager, his “buy box” criteria, and the red/yellow flags that investors should watch for when evaluating opportunities.

The conversation dives deep into:

• Why operational experience matters more than Wall Street backgrounds
• How to define and evolve your investment “buy box”
• Revenue quality, customer concentration, and key-person risk
• Creative deal structures: forgivable seller notes, earn-outs, rollover equity
• HR diligence, culture, and compensation as overlooked risks
• Aligning sellers, buyers, and investors for long-term success

This is a must-watch for anyone interested in search funds, small business acquisitions, or creative capital structuring in the lower middle market.

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Connect with the speakers:

🔗 Connect with Jacob Hall: https://www.linkedin.com/in/jacobhall01/

🌐 Kando Capital: www.KandoCapital.com

🔗 Connect with Sean Smith: https://www.linkedin.com/in/sean-smith-47ab2a70/

🌐 SMB Investor Network: https://www.smbinvestornetwork.com/