In this episode of the Sunny Ray Show, host Sunny Ray talks with Trisha Gulati of MergeWorks about the growing wave of business owners ready to retire with no obvious buyer. Gulati explains that private equity tends to ignore smaller companies, leaving a gap that her firm fills by acquiring service businesses such as med spas, dental clinics, and luxury travel firms, then upgrading their systems with AI. She shares how she went from a computer science student closing acquisitions on the side, mentored by Roland Frasier, to joining two seasoned operators as a technical partner. The conversation covers why many businesses are unsellable, how AI moved from marketing and sales into operations, what it takes to install new systems, and her strategy of building an ecosystem of companies that support each other. Gulati also discusses preserving owner legacies during roll-ups, the surprising potential of the med spa space tied to medical tourism in Thailand, and upcoming fourth quarter priorities including the Grow by Buying podcast, fellowships, and AI agents for dental clinics.
Thousands of owners retire daily with no buyer. Trisha Gulati explains how AI and small-business acquisitions can fill the gap.
What is MergeWorks building and what problem are you solving?
Private equity mostly looks at businesses of $50 million and up, which leaves a huge gap among smaller companies. We buy service businesses from boomers who want an exit but haven't updated their systems in 20 to 30 years. We keep the brand and legacy, then bring in an AI operating system and automation.
How did you go from computer science student to closing deals?
I wanted hard skills, but I grew up in a business family in Thailand. Most quarters I traveled to San Diego to learn from Roland Frasier and his team, including negotiating, sourcing, trust building, and due diligence. I closed my first acquisition early in senior year, then won an award as the youngest deal closer.
What did each side bring that the other lacked in your partnership?
My partners bring decades of operating and sales experience, plus judgment on who is trustworthy and where contract risks sit. I bring the technical background to build and lead the systems, especially AI. Together we are building a machine with the goal of closing one acquisition deal a day.
Why do so many businesses never find a buyer?
Many are simply not sellable. The owner may be the entire face of the brand, too involved, or the assets lack value and trends are declining. With more boring businesses like HVAC, owners often have no kids to pass it to and never bother finding a broker, so those deals get missed completely.
What convinced you AI was operating leverage and not just another tool?
We started with AI in marketing and sales, focusing on growing revenue and leads for med spas and dental clinics. Using AI sales and marketing agents across our portfolio companies made things far more efficient and changed revenue. Once we saw that, we knew we had to bring AI into the operating layer too.
What does it take to install your systems in a newly acquired company?
For a business with many systems to change, the minimum time we have seen be effective is at least six months. We bring in engineers and developers who can work across businesses. When a deal is too much to handle, we sometimes partner with another company to bring its resources.
How are you compressing value creation to 18 months?
Beyond AI, our goal is an ecosystem where our companies leverage each other. We are looking to acquire professional services like CPA firms, since every company needs accounting. Owning one lets us serve the others internally instead of bringing in outside systems, which shortens the timeline to value creation.
What overlooked business turned out to have real potential?
Medical spas. We usually avoid high-overhead businesses, so we turned down many med spa deals at first. Then we saw medical tourism growing in Thailand and chances to partner with yoga studios and fitness centers, building a health ecosystem alongside dental. People are focused on health and longevity, so the space is growing significantly.
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