04:24:23 - This week in The Hub - Main Street Weekly
Curated from the world of SMB (small to medium business), What you need to know about buying, growing or selling small to medium businesses. The news, the pods, the social influencers.
We do the research and bring you what’s pertinent when you want to grow, scale, buy or sell your first or your next business.
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In the News/Blogs …
Reaching global success with mergers and acquisitions
For 12 years, Robin Kovitz worked closely with clients and investors on mergers and acquisitions (M&A) of multimillion-dollar companies. But in 2014, she decided to buy her own business—Baskits Inc., the largest gift basket company in Canada.
“Given the fact that the vast majority of new business ideas fail, I felt acquiring an established business would be a safer way to become an entrepreneur,” Kovitz explains. “M&A is an underused strategy. It’s the quickest way to get into a cash-flowing business.” (1295 words) Read more…
ANALYSIS: There Was No Sign of an M&A Market Rebound in Q1 2023
Q1 2023 had a global deal volume of $559 billion, the third-lowest global quarterly M&A deal volume in the last 10 years; only Q1 2013 ($502 billion) and early-pandemic Q2 2020 ($442 billion) had lower quarterly deal volumes.
Controlling-stake mergers and acquisitions did not fare any better than M&A transactions overall. Indeed, Q1 2023’s controlling-stake M&A deal volume ($384 billion) was the lowest total for a Q1—and the second-lowest for any quarter—since 2013. (539 words) Read more…
Looking for Growth Funding? The SBA Might Be Your Best Bet
When primary care physician Ashok Mehta was looking for expansion funds, he sought patient capital through the Small Business Administration.
Editor's Note: For many entrepreneurs, the Small Business Administration--the agency charged with their betterment--is a mystery. In this series, Inc. attempts to illuminate the agency's disaster relief programs through the interactions of six business owners. Here's how Ashok Mehta of SimplyCare fared, along with the key lessons he learned. (500 words) Read more…
PE sellers use earnouts, seller's notes to close deals
As private equity deal financing gets harder, sellers are granting favorable deal terms to buyers, such as deferred or performance-based payment, in order to close transactions.
Dealmakers say these structures also help bridge a growing valuation gap created by growing economic uncertainty and a tighter debt market.
One solution has been to include one or multiple provisions known as earnouts that allow buyers to defer a portion of the purchase price and… (950 words) Read more…
The Future of Small Business Growth: On-Demand Fractional Consulting
In this guest article, Robert Burke, CEO of Sobo.ai, makes the case for on-demand fractional consulting being the future of small business growth.
Why do 50% of small businesses fail within the first five years? According to reports, the primary reason is a lack of market demand. Now, this may be the result of poor marketing, a misunderstanding of one’s audience, a lack of communication, or a variety of other factors.
The second most common reason small businesses fail is that they lack capital. With labor accounting for 70% of a small business’s expenditure, it’s little wonder why so many layoffs occur, especially during an economic downturn.
However, these statistics do not take into account one of the most powerful, yet underutilized, resources that can transform small businesses and potentially change this data in the future: fractional consulting. (1146 words) Read more…
In the Pods …
ScaleUps Podcast #74 — What It’s Like to Sell Your Business for $20m - Paul & Anita Panebianco
This week we're diving deep into another Founder success story. This time I'm with Paul and Anita from Nexacu, a company that I started working with personally back in November 2020.
Founded in 2013, Nexacu offers practical, instructor-led training for Microsoft end-users in applications like Excel, PowerPoint, PowerBI and more. If you want to learn what it took to scale Nexacau to what it is today and hear about their experience of selling their business then you need to be tuned in this week. [47:45] Listen in…
Business Exit Strategy for Getting Maximum Value with Rob Follows | Maximum Value Exit Planning
Rob has been in the driver's seat for over a thousand mergers and acquisitions, with deals worth over $100B. When he sold his business for 27x EBITDA, he thought he had struck gold, only to find out later that the buyer would have paid a whopping 300% more for it. This experience led Rob to start STS Capital, which focuses on using strategic buyers to get the highest price for their clients.
In this episode, Rob shares his expertise and knowledge, giving you the tools and strategies you need to maximize the value of your business exit. [45:51] Listen in…
How2Exit POD E114: Eric Grafstrom Helps Small Businesses with Selling Strategies and Valuation Tools
Eric is the founder at ExitGuide, an M&A platform for Main Street businesses. He is a longtime tech executive and entrepreneur who began his career at broadcast.com and worked for Yahoo in the UK and California, eventually moving back into early-stage technology companies. [55:44] Listen in…
Anthony Pompliano - Millionaire Shares Secret To Buying Businesses with Brent Beshore
Brent Beshore is the founder & CEO of Permanent Equity. In this conversation, we talk about the types of businesses that he buys, the structure of the firm, how macro environment plays into investment decisions, operating businesses, nuances behind transactions, family relationships, and balancing the success of businesses in the local environment. [1:45:53] Listen in…
How has the market for online businesses changed in 2023? David C Barnett with guest Jaryd Krause
Jaryd has been investing in online businesses and teaching others how to find, buy and renovate online businesses for years. He’s the host of the Buying Online Businesses Podcast and we first met when he came on my show in 2019!!
Tune in and as we’ll be discussing how the world of online businesses is changing in 2023 and what to watch out for if you’re considering one of these businesses. [58:58] Listen in…
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In the Knowledge
6 tips for writing great M&A investment teasers
In sales, it’s the pitch over Zoom or in person. In venture capital, there’s the product demo and 10-slide pitch deck. In the world of M&A, it’s the “investment teaser”. If you’re exploring an exit for your business, this must-have document will be an essential driver of the top of your M&A conversation funnel. It must be accurate, interesting, and error-free. (670 words) Learn more…
M&A Activity Map - Bookmark this helpful tool
View the Morrissey Goodale M&A Index for the latest deals in the AE industry. Find it here…
Score.org - Merger and Acquisition 101: What Small Business Owners Need to Know
Any entrepreneur understands the difficulty of starting a business from scratch. The countless hours and sleepless nights one must endure to come up with an effective business plan are often compared to birthing a child.
However, it is also necessary to accept the fact that keeping the business alive is just as difficult, if not more. In most cases, crucial decisions should be made in order for the enterprise to move forward, including company buyouts or sales. This is where mergers and acquisitions (M&A) come in. (940 words) Learn more…
In the BIG Guys Corner … (middle market and above)
Proper Due Diligence to focus on financial crimes
In March we saw the second largest bank failure in US history with the collapse of Silicon Valley Bank, the 11th hour acquisition of SVB’s UK arm by HSBC, and a merger between Switzerland’s two largest banks, Credit Suisse and USB.
Given the speed at which they had to act, they would not have had the time to undertake sufficient due diligence to gain a full understanding of their acquisition’s risk profile and potential exposure. (1570 words) Read more…
What do benefits look like after a merger or acquisition? Ascensus CHRO recaps her experience
Onboarding any new hire and making them feel comfortable at an organization is challenging. Onboarding 1,600 new employees at once? It's a daunting task.
In 2022, financial services company Ascensus acquired Newport, a California-based retirement services provider. The merger pushed the headcount at Ascensus from roughly 4,000 to nearly 6,000 — and welcoming those new workers in, helping them feel at home and extending supportive benefits required quick communications and thoughtful strategies from the HR team. (1110 words) Read more…
In the Sosh … who to follow this week
Eric Pacifici is a founding partner of SMB Law Group
Connect with Eric on LinkedIn
Della Kirkman, CPA
From 4🌟 server at Cracker Barrel to financial freedom. Developing an SMB education/media co to help women create wealth through Acquisition Entrepreneurship
Connect with Della on LinkedIn
In the calendar …
The Exit Meetup by Flippa, In a City Near You Soon
The Exit Meetup is a local meet-up for like-minded business owners.
Meet others, and talk about growth and the opportunity to buy or sell. Plus, hear from a successful acquisition entrepreneur. This is an informative and entertaining meetup aiming to connect owners and investors in a fun environment. Check it out
SMB Acquisitions Entrepreneurs Bi-Monthly Networking
A twice-monthly networking meeting where acquisitions entrepreneurs come together online to build teams, share ideas and resources, and help each other succeed. The first and Third Tuesday of each month. Check it out
SMBash 2023 - April 27-30th 2023 - Austin, TX
A live gathering of SMB, Micro-PE, and ETA Owners, operators, and Investors. Check it out
SFSA - Networking Happy Hour - May 4, 2023 - Dallas, TX
SFSA is hosting a self-funded searcher meetup on May 4th, 2023. The event will be held at Chelsea Corner (4830 McKinney Avenue, Dallas, TX 75204) at 5:30 p.m. CT and last until 8:30 p.m. CT. The event is sponsored by Search Investment Group, Lummis Consulting Services, Symphony Risk Solutions, and First Bank of the Lake. Check it out
Veterinary Investors and M&A Conference - May 10 - Parsippany, NJ
SAX AND KPMG present the first conference of its kind – focusing on investors, private equity funds, M&A advisors, lenders, legal professionals, consultants, and others who support the growth and innovation in the veterinary services industry. As it is our first conference year, there is no cost to attend this event. Breakfast, lunch, and networking opportunities will be available. Check it out
2023 Hold Co Conference - Sept 18-20 - Cleveland Ohio
The official “Un-Conference” of micro-PE. Where Holding Companies Meet, Learn, Scale, and Grow. Check it out
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