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When Kelly Rapp arrived at Fuqua, he already understood something many aspiring entrepreneurs do not encounter until much later in their careers: the responsibility that comes with owning and operating a small business. Growing up in a family of small business owners in Iowa, Kelly saw firsthand what it meant to lead people, serve customers, and build something that supported families and communities over time.
That perspective eventually guided him toward entrepreneurship through acquisition, a path that allows leaders to step directly into operating established businesses. Today, Kelly is President of East Bay Refrigeration, a commercial refrigeration services company serving restaurants, grocery stores, and commercial facilities across the San Francisco Bay Area. In conversation with Duke Innovation & Entrepreneurship, he reflects on choosing this path, navigating the search process, and what it means to step into leadership where the impact is immediate and deeply human.
Why did you choose the entrepreneurship through acquisition path?
I grew up in a family of small business owners, and that upbringing really shaped my character, my interest in leadership, and my entrepreneurial spirit. After spending several years in corporate environments, it became increasingly clear that my long-term goal was to follow a similar path by leading or owning a business.
I wanted a greater sense of ownership over my work, more opportunities to lead people, and something that would be more fulfilling for my family. Entrepreneurship through acquisition offered a path where I could be truly accountable for outcomes and build something that mattered, not just to me, but to the people who work in the business and rely on it.
How did you first learn about entrepreneurship through acquisition?
While I was familiar with buying and selling small businesses from my family experience, I didn’t realize until my time at Duke that there was an entire ecosystem of investors, operators, and alumni supporting recent business school graduates who wanted to pursue small business ownership.
I assumed you either had to start by buying a very small business or build significant personal wealth before acquiring something larger. The resources provided by Duke I&E helped me see that there’s more than one “right” way to pursue this path. The community opened up avenues like the Southeast ETA Conference and the Duke alumni network that helped me evaluate the best approach for my background and goals. Learning about this path in my first few weeks of my MBA sparked an interest that grew over several years and eventually led me to pursue a search.
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What excited you most about the business you ultimately acquired?
The business checked many of my search boxes: a resilient business model, consistent profitability, strong growth, and a high-quality customer base. It was also run by an owner-operator, which mattered to me.
What really drew me in was that the business had been successful with very limited infrastructure. There was no website, no marketing, and much of the operation was still paper and pencil. I didn’t just see a track record of success, I saw a clear opportunity to bring my professional experience into the business and help shape its next chapter in a positive way.
What was the most surprising part of the search process?
Search was full of personal and professional growth. One of the biggest shifts was moving from supporting decision makers, as a consultant and banker, to being the decision maker at the table. I had helped executives navigate M&A transactions for years, so it was a mental shift to be the one making the calls, even on a much smaller scale.
I was also surprised by how many people were willing to help, especially during a self-funded search. I met an incredible number of people who were generous with their time, advice, and connections, all with the goal of helping me reach a successful outcome.
How did your role and mindset change once you moved from searching to running the business?
I had far more experience analyzing deals, building models, and creating strategy decks than I did running a commercial refrigeration company. Post-close, I had to be willing to put myself in uncomfortable situations to learn the business, establish credibility, and earn the trust of employees.
That meant ride-alongs with technicians, visiting job sites, meeting vendors and customers, and understanding what we actually do day to day. While polished presentations are sometimes in my comfort zone, I quickly found myself making decisions about cranes, condensers, and equipment on rooftops. Taking over an active owner-operated business required me to jump in feet first.
What have been your biggest challenges in operating an acquired company?
Owner-operated small businesses are complex. There’s a constant need to juggle dozens of priorities at once, and you don’t always know which ones matter most in the moment. While managing daily operations, you’re also balancing relationships with investors, lenders, legal partners, and thinking about long-term strategy.
The learning curve for a new industry, a new role, and a new level of responsibility is steep. What’s helped is building more structure, accountability, and organization, and placing trust in key employees. As the team has taken on more ownership, it’s improved both the operation and the culture of the business.
What excites you most as you continue to grow the company?
We have an incredible team that has really bought into a new vision for the business. Our technicians have been open to evolving how we communicate, train, use technology, and build customer relationships.
Change can be hard, especially in small businesses where people take pride in how things have always been done. But I’m excited about continuing to create better tools, strengthen our culture, and give the team opportunities to grow alongside the company.
How did your Duke experience prepare you for this journey, and why are you committed to the Duke community?
My time at Fuqua and the broader Duke alumni network was instrumental in shaping my preparation for search and ownership. The Duke community helped me see just how many successful small businesses are owned by operators nearing retirement with no clear succession plan.
These businesses are the backbone of local economies. They support employees, families, and customers who rely on them every day. Many aren’t suited for private equity or strategic buyers, but they need the right next leader. I believe Duke students and alumni are uniquely equipped to step into those roles, and I’m proud to support the community as more people explore this path.
What advice would you give to Duke students or alumni considering this path?
Entrepreneurship through acquisition is an incredible path for someone who wants to be fully invested and truly own the outcome of their work. It offers long-term benefits, including more control over your life and career, though it takes time to get there.
I’d encourage anyone interested to talk with other searchers and operators. Learn about different strategies, what it’s really like to run a small business, and how this path can evolve over time. If you have the right spark, those conversations will only draw you further in.