09:26:23 - This week in The Hub - Main Street Weekly
09:26:23 - This week in The Hub - Main Street Weekly
What you need to know about buying, growing or selling small to medium businesses. The news, the pods, the social influencers. Curated from the world of SMB (small to medium business)
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, and AI …
What Is M&A Accounting and Who Can Do It For You?
Whether a company is being sold, merged, or reconstructed, finances can quickly get complicated. Aligning financial information between different entities can generate all types of challenges, especially if the companies diverge in any aspect of their accounting.
Managing multiple accounting systems while complying with industry and regulatory standards is outside of the realm of most in-house or third-party accounting teams. At the same time, consolidating financial statements properly is essential for a smooth post-acquisition integration process. (1,215 words) Read more here…
The most important questions to ask when buying or selling a business in a downturn
Economic volatility creates a dynamic environment for merger & acquisition (M&A) activity. Some organisations become more cautious, preferring to hold onto cash reserves until the outlook is clearer. But challenging economic times also create opportunities to acquire businesses suffering low-grade stress, often at a lower price than you might otherwise expect.
Mergers can deliver many advantages, from greater market share to efficiencies of scale. Buying a distressed or even failed company may deliver value such as customer lists, infrastructure and equipment, and intellectual property. (1,286 words) Read more here…
Regulators have drafted new M&A rules, and leveraged buyout artists aren’t happy.
M&A professionals—the bankers, lawyers and private equity investors who earn their living by the buying and selling of US companies—worry that antitrust authorities are trying to fix what isn’t broken.
For more than 46 years, the merger review process under the Hart-Scott-Rodino (HSR) Act—which specifies how regulators evaluate the broader market ramifications of a pending transaction—hasn’t changed much. Then, in June, the Federal Trade Commission (FTC) and the Department of Justice (DOJ) unveiled a massive 126-page document with a preliminary set of new rules. Prepare for greater scrutiny, the regulators were more than hinting. (1,355 words) Read more here…
A Small Business Playbook for Navigating Growth
Entrepreneurship is a balancing act. A single misstep could derail an entire venture, irrespective of its size. But, instead of being overwhelmed by economic fluctuations, small business leaders need to discern patterns.
As emphasized in Roberto Vassolo and Natalia Weisz's book, Strategy as Leadership: Facing Adaptive Challenges in Organizations, contemporary firms regard leadership and strategy as intertwined concepts. After all, anticipating recurring challenges or prospects can offer small enterprises a headstart, allowing them to leapfrog less nimble competitors. (855 words) Read more here…
Here's the Secret to Growing Your Small Business, According to Execs at UPS, Airbnb, Mastercard, and Other Big Brands
Small business owners know that every day brings a deluge of decisions about technology, finances, marketing, service providers, and overall business strategy. So, where to begin? Well, you could ask leaders at large companies — because they're often seeing the macro trends that play out in micro ways for smaller entrepreneurs. That's especially true for the leaders at companies on our 50 Champions of Small Business list, where there are programs specifically designed to work with and help small businesses.
We called 10 companies on our list of 50 and asked their executives what small business owners need to know now, given today's changes in technology and industry. Here's what they said. (2,060 words) Read more here…
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In the Pods …
Navigating the Process of Buying and Selling Businesses - Paychex
The Hub Short Take
Bob House, president of BizBuySell.com, has the unique perspective of being the head of the top 2 online business listing websites, giving him a broad and accurate view of the market.
Watch it here. Read our review here.
The Takeaways:
The M&A marketplace is rebounding from the pandemic, with transaction volume almost back to pre-pandemic levels.
Rising interest rates are affecting sale prices, leading to more creative deal financing options such as seller financing.
Retiring baby boomers are not only selling their businesses but also buying new ones to stay active and pursue new opportunities.
Restaurants and service businesses are experiencing increased demand and higher multiples in the market.
The Guest(s):
Bob House is the President of BizBuySell, With over 11 years of experience in the industry, Bob has been instrumental in growing BizBuySell and its sister sites, BizQuest and LoopNet, into the largest network of business-for-sale marketplaces in the United States.
Michael Byars - Managing a holding company with 18 companies and $140 million in revenue | The Holco Builder Show, hosted by @PrivateEquityGuy
The Hub Short Take
Michael Byars has over 20 years of experience buying, growing, and selling companies and many years coaching others to do the same. He shares the key pillars he uses for success.
Watch it here. Read our Review of it here.
The Takeaways:
Buying existing businesses allows entrepreneurs to leverage established systems and processes.
Learning from mentors and other entrepreneurs' mistakes can accelerate growth and success.
The key pillars of a successful business are sales, operations, and finance.
Thorough due diligence is crucial when acquiring a business to mitigate risks and ensure a successful acquisition.
The Guest(s)
Michael Byars is an expert in buying profitable businesses with little to no money down. He has purchased over a dozen companies with more than $140 million in annual revenue. With his extensive experience in buying and scaling businesses, Michael now shares his knowledge through coaching and consulting.
Dawn Bloomer Helps Service Professionals Plan and Execute Successful Exits | How2Exit - E144
The Hub Short Take
If you are looking to buy our sell professional services from chiropractic to veterinarian then Dawn has some powerful insights in this episode
Watch it here. Read our review.
The Takeaways
- Professional service practice owners often lack the necessary business training to prepare their businesses for sale.
- Building a strong brand and transferring goodwill to the brand instead of an individual is crucial for a successful exit.
- Leveraging technology can help professionals scale their businesses and improve customer service.
- The timeline for preparing a business for sale should ideally be 5 to 10 years to maximize options and value.
The Guest(s)
Dawn Bloomer is a business strategist and former veterinarian. With over 20 years of experience as a racehorse veterinarian, she understands the challenges and opportunities that come with running a professional service practice. Dawn now helps service professionals and businesses plan their exit strategies and navigate the complexities of mergers and acquisitions.
How PE Should Support Portfolio Company Acquisitions | Barak Routhenstein w/ Kison Patel
The Hub Short Take
For most of us, the Private Equity world is who we'd like to sell to at some point. Learning what they expect and their perspective can help you build something they'd want to acquire.
Watch it here. Read our detailed review here.
The Takeaways
Integration is highly valued in private equity acquisitions, and hiring integration specialists can create more value for the business.
The approach to acquisitions varies among private equity firms, with some focusing on roll-ups to strengthen their core and others looking for horizontal moves to create new verticals.
The go-to-market strategy for acquisitions depends on the strategic fit and the potential for cross-selling and synergies.
Cultural fit and alignment of values are important factors in determining the success of an acquisition.
The Guest(s)
Barak Routhenstein is the Vice President of Corporate Development at Profile Products, a provider of sustainable soil health solutions. He has extensive experience in buy-side M&A and has worked in various roles in private equity-backed businesses.
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Founding Member Shout-Out
Shout out to our new founding member, with over 30 years in M&A, this company offers a Resource Center helping you buy good businesses. Very underpriced - get it now before they finish upgrading the site and very likely up the pricing.
Catch the latest issue of Acquisition Aficionado Magazine - a proud sponsor of The Hub! click here
In the Knowledge
What is Cash Flow and Why is it Important for Small Business?
Basically, this is one of the best bellwethers for your small business. It shows the money that your small business has in the pot after paying out all the different debts and draws on your money. Cash flow gives you a good idea if you’re in a position to expand.
Why Is It So Important?
Stefanie Ricchio, a CPA/CGA, Author and Professor, further defined cash flow and some of the economic rough patches that make paying attention to it so critical. (2,275 words) Learn more here…
Social media marketing: What it is and how to build your strategy -
Looking to fine-tune your social media marketing strategy? Good! Now’s the perfect time to make it happen. In a landscape with more competition, content and networks than ever, a succinct strategy gives you the focus needed to say “no” to efforts that don’t serve your goals.
That’s why we put together a comprehensive guide to creating a social media marketing plan from scratch. Whether you’re totally new to social or want to double-check your priorities in 2024, this guide has you covered. (LONG ) Learn more here…
The Keys to Small Business Success
Susie Sturdivant got straight to the point when asked about her entrepreneurial journey during a luncheon panel for Black journalists and small business owners on Aug. 4 in Birmingham, Alabama. The panel, entitled “Making Small Business Growth Happen” sponsored by JPMorgan Chase, was one of the programs held this year at the National Association of Black Journalists’ (NABJ) annual convention, which gathers thousands of journalists and media professionals from around the U.S. for a week of networking and learning opportunities.
“It wasn’t easy,” Sturdivant said during the panel. She was candid as she shared challenges, such as establishing credit to fund her daycare center, managing payroll, hiring trusted employees and making sure her team was running the center smoothly when she took time off for personal matters. (600 words) Learn more here…
Hey, friends, we could use your help to grow The Hub - Main Street Weekly, and bring it to more people so we can continue to serve you and others. If you like something we shared this week, please share it on X (formerly known as Twitter) or LinkedIn and tag us when you do. Let’s get people talking.
In the BIG Guys Corner … (middle market and above)
Cisco to acquire cybersecurity company Splunk in $28B deal
Cisco's acquisition of Splunk expected to close in third quarter of 2024
"Our combined capabilities will drive the next generation of AI-enabled security and observability," Cisco CEO Chuck Robbins said in a statement. "From threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient." Read more here…
Microsoft-Activision restructured $69B deal pleases British regulators
Deal will give Microsoft control of video games like Call of Duty and Candy Crush
"The sale of Activision’s cloud gaming rights to Ubisoft substantially addresses previous concerns and opens the door to the deal being cleared" the CMA said in communication shared on X, formally Twitter. Read more here…
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In the Sosh … who to follow this week
Jerome Myers
An award-winning engineer turned business strategist, Jerome uses his rich experience and innate understanding of human emotions to ensure that your journey from the corporate world to entrepreneurship is a fulfilling one.
Connect with him on LinkedIn, X (Twitter), or his jeromemyers.co.
Nicolas Boucher
I teach Finance Teams how to use ChatGPT - Keynote speaker on AI for Finance & FP&A. I share my professional knowledge with my network to initiate discussions on important topics and learn from the best finance and non finance professionals.
Connect with him on LinkedIn, or X (Twitter)
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...
Next SMB Event - Sept 28, '23 - Austin, TX
This will be an afternoon/evening mixer for SMB owners, investors, and operators. We'll be in the Hill Country of Texas with - Catered food - Live music - Pool - Fire pit - Fly in, build your network, make some IRL friends
Contact @JoshuaMSchultz on twitter for details
The Self-Funded Search Conference - Sep 30 - Oct 1, 2023 - Dallas, TX
The Self-Funded Search Conference is the first and only conference dedicated exclusively to the self-funded search model of entrepreneurship through acquisition (“ETA”) – exclusively for self-funded searchers. This annual conference is hosted by the Self-Funded Search Association (“SFSA”), a not-for-profit organization (NFPO) for individuals who are seeking to purchase a company through the self-funded path to entrepreneurship through acquisition. Check it out...
Rice's Entrepreneurship through Acquisition Conference - Saturday, October 14 - Houston, TX
The State of Search in the U.S. Conference focuses on search fund entrepreneurs, bringing them together with investors, students, and faculty. By Rice Entrepreneurship Association. Check it out...
10th ANNUAL ENTREPRENEURSHIP THROUGH ACQUISITION CONFERENCE - Wednesday, November 1, 2023 - Chicago, IL
The Booth-Kellogg ETA Conference is an annual event that brings together search fund entrepreneurs, investors, MBA students, faculty, and other participants in the ETA ecosystem to meet one another and share insights into this rapidly-growing area. The 10th Annual Booth-Kellogg ETA Conference at the Marriott Magnificent Mile | 540 Michigan Ave, Chicago, IL. Check it out...
Main Street Summit - November 8-9 - Columbia, MO
A festival for SMB owners, operators, and investors.
An immersive two-day experience for small to medium-sized businesses with ~10-500 employees. Choose your own adventure amongst a diverse set of presentations, interviews, debates, workshops, and conversations.
Every business has a birthplace and it’s never too far from Main Street. Check it out...
Capital Camp - May 21-23, 2024 - Columbia, MO
Capital Camp is an upcoming event scheduled for May 21-23, 2024, in Columbia, Missouri. The event is described as a gathering for "curious, kind, and thoughtful investors, capital providers, entrepreneurs, and executives" who are pushing boundaries and breaking new ground. The event spans three days and three nights, offering serious investing conversations in a relaxed setting—think shorts and sandals rather than suits and ties. Attendees can expect interactive programming, a variety of outdoor activities, and an endless supply of food, drink, and entertainment. The event has received high praise from past attendees, with many describing it as the most valuable and best investing conference they've ever attended.
Women’s Small Businesses Show Remarkable Growth Despite Stiff Challenges
October 3rd symposium at the Sonesta Hotel in White Plains will help local woman entrepreneurs overcome their toughest obstacles. The event kicks off National Women’s Small Business Month.
Speakers from SCORE, Mastercard, Community Capital New York, Women’s Enterprise Development Center, successful local entrepreneurs, and more will share lessons learned. Read more here…
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