Apr 9, 2026 · 38 min · 12 segments
Guest: David Hori, Principal at Topline Operators Most acquisitions don’t fail because the numbers were wrong; they fail because the execution was. In this episode, we sit down with David Hori, a…
David HoriGuestConnect With Purpose HostHostAnd do you think that's because when people take over companies, it wasn't their dream, it wasn't their purpose, and that's why they can't necessarily make it work? Or was it because they weren't necessarily cut from the same cloth as the person who scaled that business originally?
Sure.
So when somebody takes over a business, so for example, they inherit a business, why do you think these often fail? Is that because it just wasn't their passion, it wasn't their purpose? Or do you think that they just don't understand it at all? What do you think the issues, where the issues lie there with people inheriting these things?
One of them though, and again, I see this happening a lot because people focus on the financial opportunity of this $14 trillion trading hands.
And there's this kind of prevalent message and a lot of marketing aimed at people that are maybe working W-2 jobs saying, this is your ticket out of a cubicle job, buy a business and instantly, you know, You go from being, you know, a cog to the owner.
To somebody that feels like they're stuck and not getting where they want to on the timeline they want to.
But if you don't have the skill sets to support it or it's not in a vertical that you have expertise in or you don't have line of sight on how you add value post acquisition, that's that's where I think a lot, a lot struggle.
And, you know, again, there's just tremendous inexperience engaging in M&A right now.
And then I think many people, you see this in their personal lives maybe, but then it's also how they run their business.
that then when the J curve hits post-acquisition, they're like, oh, we don't have enough working capital or, you know, we're running it so, you know, I was talking to a business owner literally last week.
So like 10% of your revenue is going to this line item? Like, how do you make any money when, you know, you're lucky if you get 13% margin? Like, how do you make any money? And he's like, yeah, it's pretty hard.
And do you think that's because when people take over companies, it wasn't their dream, it wasn't their purpose, and that's why they can't necessarily make it work? Or was it because they weren't necessarily cut from the same cloth as the person who scaled that business originally?
Sure.
So when somebody takes over a business, so for example, they inherit a business, why do you think these often fail? Is that because it just wasn't their passion, it wasn't their purpose? Or do you think that they just don't understand it at all? What do you think the issues, where the issues lie there with people inheriting these things?
One of them though, and again, I see this happening a lot because people focus on the financial opportunity of this $14 trillion trading hands.
And there's this kind of prevalent message and a lot of marketing aimed at people that are maybe working W-2 jobs saying, this is your ticket out of a cubicle job, buy a business and instantly, you know, You go from being, you know, a cog to the owner.
To somebody that feels like they're stuck and not getting where they want to on the timeline they want to.
But if you don't have the skill sets to support it or it's not in a vertical that you have expertise in or you don't have line of sight on how you add value post acquisition, that's that's where I think a lot, a lot struggle.
And, you know, again, there's just tremendous inexperience engaging in M&A right now.
And then I think many people, you see this in their personal lives maybe, but then it's also how they run their business.
that then when the J curve hits post-acquisition, they're like, oh, we don't have enough working capital or, you know, we're running it so, you know, I was talking to a business owner literally last week.
So like 10% of your revenue is going to this line item? Like, how do you make any money when, you know, you're lucky if you get 13% margin? Like, how do you make any money? And he's like, yeah, it's pretty hard.
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