How Going Public Helps Entrepreneurs
Grow Through Acquisition

If you’re a founder looking to grow your business through acquisitions — whether a few strategic purchases or a full-blown rollup — becoming a public company could be one of the smartest moves you make.

Public company status provides a set of structural advantages that private companies simply don’t have. It amplifies your deal flow, improves your credibility, increases your capital access, and enables you to acquire more businesses — often on more favorable terms.

Let’s break down why going public can be a powerful catalyst for acquisition-driven growth — and how to know whether this approach fits your strategy.

There's a Massive Supply of Profitable Businesses for Sale

Across the U.S. and other developed markets, tens of thousands of profitable businesses are available for sale — many owned by aging founders in their 60s, 70s, or 80s. In many cases:

• Their children don’t want to take over the business
• Their grandchildren lack the capital or interest to run it
• There are far more sellers than qualified buyers

This creates a unique window of opportunity for acquisition entrepreneurs who are positioned to act — and public status is one of the strongest ways to position yourself.

Why Acquisitions Matter

Acquisitions can be one of the fastest and most efficient ways to:

• Enter new markets or geographies
• Expand capabilities or offerings
• Increase revenue and EBITDA overnight
• Consolidate a fragmented industry
• Build a platform company that scales far beyond organic growth

But executing this well requires more than just ambition. You need trust, structure, capital access, and speed — all of which are significantly enhanced by going public.

Why Going Public Gives You a Competitive Edge in Acquisitions

1. More Access to Deals

Business brokers prioritize public companies because they know you can close. Public buyers are seen as credible, transparent, and well-capitalized — which means fewer failed deals and faster timelines.

2. Increased Seller Confidence

Business owners are more willing to engage with a known, stable public company. Your financials are visible, your intentions are clear, and your reputation precedes you. That gives sellers peace of mind — especially when legacy matters.

3. Favorable Deal Structures

Public companies can offer more flexible and creative deal terms, including:

• Stock or stock warrants
• Convertible preferred shares
• Seller notes or deferred payments
• Combinations of cash and equity

This often results in better terms — and in some cases, zero dilution for the founder.

4. Better Access to Capital

Public companies have more financing options — including debt, equity, or hybrid structures. They can often secure capital faster, on better terms, and without personal guarantees or aggressive amortization schedules.

5. Stronger Leadership and Governance

Public structure attracts seasoned executives, board members, and advisors who are drawn to transparency, growth potential, and the upside of stock-based compensation.

6. Public Market Valuation Arbitrage

Private businesses are often acquired at 3x–5x EBITDA. But public companies are frequently valued at 15x–20x earnings (or more). That means:

• Buy a $1M EBITDA business for $4M privately
• It could instantly be worth $10M+ inside your public platform

This valuation uplift creates enormous shareholder value with every accretive acquisition.

What Makes Our Approach Unique?

We take acquisition-minded entrepreneurs through a proven, structured process that helps them:

• Raise capital more efficiently (without losing control)
• Attract and retain top-tier talent
• Build the infrastructure to scale through multiple acquisitions
• Execute a sustainable public-company rollup strategy

Entrepreneurs we’ve worked with have created over $8 billion in shareholder value using these strategies.

Whether you're launching a holding company or running a $10M+ business, the same principles apply — structure creates leverage, and public structure creates more.

Real-World Example: Public Company Credibility = Better Terms

A great example of how public status enhances acquisition leverage comes from Onfolio Holdings Inc. (Nasdaq: ONFO). In 2024, Onfolio acquired 70% of a profitable digital agency, Eastern Standard, which generated $4 million in revenue and $630,000 in EBITDA in the prior fiscal year.

Here’s how the deal was structured:

• Purchase Price: $1.66 million for 70% of the business
• Funding Structure:
• $410,000 in non-convertible Series A Preferred Shares
• $1,250,000 via two secured promissory notes
• No upfront cash or dilution: Onfolio paid no upfront cash and did not issue any common stock
• Additional 20% interest: Acquired through two Special Purpose Vehicles (SPVs) for $500,000 total

Why this matters: This deal would have been extremely difficult — if not impossible — for a private company to execute. The seller accepted:

• Non-convertible preferred equity (rather than common shares or upfront cash)
• Deferred payment via secured promissory notes
• No requirement for personal guarantees or seller equity in the buyer

These terms were accepted because the acquirer was a publicly listed company with transparency, financial controls, and a credible closing track record.

Private vs. Public Rollup: What’s the Difference?

Many entrepreneurs attempt rollup strategies as private companies — but quickly discover that access to deals, capital, and credibility are limiting factors. Public companies, on the other hand, operate with built-in advantages that compound with each acquisition.

A public rollup strategy isn’t just faster — it’s more capital-efficient, less dilutive, and offers more strategic options.

Why Founders Keep More Equity

In a private rollup, most entrepreneurs must raise capital from private equity firms or outside investors — giving up large stakes in the process. It’s not uncommon for founders to end up owning less than half of the company once growth funding is secured.

In a public rollup, the structure is different. Founders typically:

• Retain 70% or more of their equity post-listing
• Use non-dilutive capital (preferred shares, seller financing, SPVs)
• Issue small amounts of new equity only when needed for compliance or liquidity purposes

This model allows founders to grow to $100M+ valuations while still owning the majority of their business — something rarely achievable in a private setting.

Is This Strategy Right for You?

We work with growth-minded, experienced, and coachable entrepreneurs who are either actively acquiring profitable private companies or positioning themselves to do so. This model works best for:

• Founders with a growth mindset and operational discipline
• Businesses with $2M–$10M+ in revenue
• Fragmented industries with high acquisition supply and low buyer competition
• Entrepreneurs who want to create generational wealth while retaining control

It’s not about flipping companies or financial engineering. It’s about using public structure to accelerate strategic growth and increase long-term equity value.

Our ideal client already owns a profitable business generating at least $500,000 annually. However, we also work with earlier-stage entrepreneurs who have proven experience in acquiring, funding, and scaling profitable companies.

This is not a basic business training program—we work with entrepreneurs who are ready to amplify their efforts and accelerate their timeline toward significant growth.

What Does It Cost to Start?

✅ You’ll need $20,000 to begin the process (which you can reimburse yourself later).
✅ The remaining costs can be raised from investors in your personal and professional networks.

Final Thoughts

Going public isn’t just about raising capital or increasing valuation. For the right entrepreneur, it’s a growth multiplier — especially when acquisitions are core to your strategy.

It gives you more trust in the market, more leverage at the negotiation table, and more flexibility in how you build and scale.

If you’re serious about growing through acquisition, becoming a public company might be your most powerful competitive advantage.

Ready to Grow? Let’s Talk.

If you have the experience, skills, and ambition to execute at scale, we can help you build a much larger, more valuable business—faster than otherwise possible.

Contact us today to learn how we can help you take your company public and start acquiring businesses with a strategic advantage.