10:17:23 - This week in The Hub - Main Street Weekly
10:17:23 - 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 …
How The Right Phasing Can Accelerate Mergers & Acquisitions’ Success
Those leading through a merger, acquisition, or the like do so to create more value faster. They look for revenues to double or more on the way to returning many times their initial investments. Maybe you’re driving or leading the investment. Maybe you’re leading the business itself or playing a supporting role. In any case, you need the appropriately phased timeline. (846 words) Read more here…
How to Get Mergers and Acquisitions Right
The buzz is back around mergers and acquisitions (M&As) as businesses explore consolidation within their industry ranks as a way to survive or thrive in challenging times marked by high interest rates and fears of a recession.
For instance, the recent standoff in Hollywood between writers and producers sparked talk of a rash of M&As. More broadly, a familiar theme returns: Why do many M&As fail and how can they pay off? (1821 words) Read more here…
The 11 most successful mergers and acquisitions of all time
Successful mergers and acquisitions aren’t nearly as common in the business world as failed deals. Sad, but true – many M&A deals fall through for countless reasons, from lack of synergy, to problems with management.
Today, we’re looking at some of the most successful mergers of all time, as well as some of the most valuable acquisitions to show two heads really can be better than one. (2817 words) Read more here…
Empowering Female Entrepreneurs: Tips For Success During Women’s Small Business Month
October is Women’s Small Business Month, and frankly, small businesses should be celebrated every month. Women account for over half of the new business ventures launched in the U.S.* Many are driven by a desire for flexibility, financial stability and being able to prioritize their work—how and when they want. (1221 words) Read more here…
How ChatGPT Can Help You Grow Your Small Business?
Discover how ChatGPT, an AI-powered chatbot, can revolutionize your small business
In today’s fast-paced digital landscape, small businesses need every advantage they can get to thrive and grow. One such advantage is harnessing the power of AI (Artificial Intelligence) tools like ChatGPT. ChatGPT, developed by OpenAI, is an AI-powered chatbot that can provide various benefits to small businesses. (495 words) Read more here…
Intelligent Automation- Transforming Business Process
For companies to digitally transform, increasing productivity levels is crucial. This increase is possible when companies deploy automation into their key business areas. Many leading companies successfully implement intelligent automation by integrating robotic process automation (RPA) and AI on their automation platforms.
What is Intelligent Automation? McKinsey defines intelligent automation as: (896 words) Read more here…
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In the Pods Reviews …
$3.5M of EBITDA selling and repairing gears??? | Acquisitions Anonymous - 235
Read the review here. Watch it on YouTube here.
The Hub Short Take
Bill D’Alessandro and Heather Anderson discuss a gear manufacturing company that has experienced significant growth in recent years. The company specializes in engineering and re-engineering OEM parts and equipment, providing better materials and designs to optimize reliability and longevity. With a strong reputation, solid vendors, and contracts with long-term clients, the company has seen its revenue increase from $1 million to $10 million in just five years. The business has low overhead and high-profit margins, making it an attractive opportunity for potential buyers.
The Takeaways
The gear manufacturing company has experienced exponential revenue growth, going from $1 million to $10 million in just five years.
The company specializes in engineering and re-engineering OEM parts and equipment, providing better materials and designs for increased reliability and longevity.
The business has a strong reputation, solid vendors, and contracts with long-term clients, making it a reliable and profitable venture.
The company has low overhead and high-profit margins, with project minimums of $5,000 and average revenue per client ranging from $300,000 to $3 million.
The business does not have any specific licensing requirements, but a mechanical background would benefit the buyer.
The Quotes
“The company specializes in engineering and re-engineering OEM parts and equipment, providing better materials and designs to optimize and increase the equipment’s reliability and longevity.” — Bill D’Alessandro.
“The business has low overhead and high-profit margins, with project minimums of $5,000 and average revenue per client ranging from $300,000 to $3 million.” — Heather Anderson.
The Guest
Heather Endresen is the owner of Viso Business Capital where they focus on Simplifying the Loan Process for Acquisition Entrepreneurs and Senior Loan Officer at Live Oak Bank with over 12 years of lending experience.
The host
Bill D’Alessandro is the host of Acquisitions Anonymous, a podcast that focuses on the world of business acquisitions. He has a background in entrepreneurship and has a passion for helping others navigate the process of buying and selling businesses.
Buying a Business with Creative Finance | Pace Morby
Read the review here. Watch on YouTube here.
The Hub Short Take
Pace Morby, Chris Moore, Carl Allen, and Abraham G. Gray discuss creative deal structures and the benefits of buying businesses instead of starting from scratch. They also talk about the upcoming event, Creative Con, where attendees can learn more about deal-making and creative financing.
The Takeaways
Buying a business allows you to avoid the challenges of starting from scratch and benefit from existing brands, clientele, and systems.
Bad financials can be a good sign as it indicates motivation and potential for a discounted purchase.
Hiring a CPA to verify financials is crucial in the due diligence process.
Creative financing allows for more flexibility and can be more tax-efficient for sellers.
Stay in your lane and focus on industries you know and understand when buying a business.
Partnering with someone experienced in a specific industry can help you navigate unfamiliar territory.
Businesses with clean financials are more likely to secure a line of credit from a bank.
Scaling a business requires building a team and delegating responsibilities.
Property management is a viable business to complement a real estate business.
Off-market deals are often the best opportunities, and various strategies can be used to find them.
The Quotes
“Buying a business is like buying a car. You can build one from scratch or buy one that’s already built.” — Pace Morby
“Warranties come with businesses, just like they do with cars.” — Pace Morby
“Buying a business creatively allows for more money and less tax for the seller.” — Pace Morby
“Stay in your lane and partner with someone if you’re unfamiliar with an industry.” — Pace Morby
“Buying businesses between $1 million and $10 million in revenue provides more growth potential.” — Pace Morby
The Guests
Chris Moore and Carl Allen are experienced business buyers and operators who have done numerous deals in various industries.
Abraham G. Gray is a friend and collaborator of Pace Morby and has expertise in deal-making and creative financing.
The Host
Pace Morby is a creative finance real estate expert who has recently found the world of SMB M&A and is applying his unique talents of getting the seller to finance deals to the world of buying small businesses and sharing that
How to buy a business: acquiring a good business at a great price! | The Founder Pocast
Read the review here. Watch on YouTube here.
The Hub Short Take
Richard Parker shares his insights on the challenges and opportunities of buying a business. He discusses the pros and cons of using the internet as a resource, the importance of identifying the right business for your skill set, and the myth of finding the perfect business. Richard also highlights the significance of building relationships and trust in the negotiation process. He shares his experiences working with Ray Dalio and the Dalio family, emphasizing the importance of authenticity and genuine connections.
The Takeaways
The internet can be both a blessing and a curse when searching for a business to buy.
Identify the type of business that aligns with your skills and strengths.
There is no such thing as a perfect business; every business has its challenges.
Building relationships and trust is crucial in the negotiation process.
Surround yourself with talented individuals who can complement your skills.
The Quotes
“The internet is the worst and the greatest blessing for people looking to buy a business.” — Richard Parker
“You want to buy a good business, not a distressed or garbage business.” — Richard Parker
“Surround yourself with more talented people; that’s the way to go.” — Richard Parker
“There is no perfect business; own a toll booth if you want perfection.” — Richard Parker
“I’m neurotically organized and I think that’s really important.” — Richard Parker
“Surrounding yourself with more talented people is really the way to go.” — Richard Parker
“If I’m the smartest guy in the room, I’m in the wrong room.” — Richard Parker
“Focus on doing it right and doing right by people, and the money and gratification just happens by default.” — Richard Parker
The Guest
Richard Parker is an accomplished entrepreneur and M&A expert. He has acquired 13 businesses on his own, sold 12 of them, and served as an advisor to thousands of individuals looking to buy a business. Richard is the author of the book “How to Buy a Good Business at a Great Price” and is known for his expertise in the field of business acquisition.
The Host
The Founder Podcast explores the journeys of some of the most successful and inspiring entrepreneurs from around the world. I’m your host, Chris Lee, a serial entrepreneur with a passion for building and growing businesses. He’s founded multiple nine-figure companies and learned a thing or two about what it takes to succeed in the world of business. Now, he wants to share those lessons with you by bringing on guests who have their own incredible stories to tell.
Bill Snow: From Sales to Mergers and Acquisitions Expert | How2Exit - E149
Read the review here. Watch on YouTube here.
The Hub Short Take
Bill Snow shares his insights into the world of mergers and acquisitions (M&A) and provides valuable advice for those interested in this field. He emphasizes the importance of understanding the financial aspects of M&A, including reading balance sheets, income statements, and cash flow statements. Bill also highlights the significance of being able to analyze and interpret financial data accurately. He discusses the cyclical nature of businesses and the importance of considering working capital and cash reserves when evaluating a company for acquisition. Bill concludes by emphasizing the microeconomic nature of M&A and the need for business owners to focus on what makes their company valuable, rather than solely relying on the state of the overall economy.
The Takeaways
Understanding financial statements and being proficient in math and accounting are essential skills for success in mergers and acquisitions.
The cash flow statement is a crucial tool for evaluating a company's financial health and understanding the nature of its profits and expenses.
Businesses often have cyclical patterns, and it is important to consider these cycles when evaluating a company for acquisition.
Working capital and cash reserves play a significant role in determining the value of a company and should be carefully analyzed during the M&A process.
The microeconomic factors of a company, such as its growth, profitability, and management team, have a more significant impact on its value than the overall state of the economy.
The Quotes
"If you're a young person, get hired by a venture-funded business and work your way up there." - Bill Snow
"It's impossible to time the market. And it doesn't really matter what's going down with the economy." - Bill Snow
"Focus on your company. If you want to sell a company, if you want to exit at some point, focus on what makes your company valuable." - Bill Snow
The Guest:
Bill Snow is an author and mid-market investment banker with over 20 years of experience in mergers and acquisitions. He is the author of "Mergers and Acquisitions for Dummies" and has worked on various transactions in the middle market space. Bill Snow is currently with Focus Investment Banking, a firm that specializes in middle market investment banking.
The Host
Ronald Skelton is a seasoned entrepreneur acquiring business that can be 100% remote managed and hosts How2Exit where he learns about buying, growing and selling companies by interviewing the worlds leading experts on the topics, then shares that on the podcast.
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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
Top 4 Strategies To Grow Your Small Business
Launching a small business is undoubtedly a formidable task, but the real test lies in its ability to thrive and innovate in the ever-changing digital landscape over the long term. As time progresses, customer expectations become more demanding, necessitating continuous adaptation.
The market witnesses the entry of disruptive competitors, further intensifying the competitive landscape, while economic conditions unpredictably fluctuate, adding another layer of complexity. (xx words) Learn more here…
How Outsourcing Can Help Small Businesses: A Strategic Approach to Growth
In today’s competitive business landscape, small businesses often face resource constraints, limited budgets, and the need to wear multiple hats. To thrive and expand, they must find innovative ways to optimize their operations while keeping costs in check. Outsourcing is a strategic approach that offers a lifeline to small businesses, enabling them to access specialized skills and resources without the burden of hiring and managing full-time staff. In this article, we will delve into how outsourcing can benefit small businesses in various aspects. (xx words) Learn more here…
SEO companies for small business growth – how to find the right agency
Working with a small business SEO company gives you the chance to get your business noticed online and grow your business. SEO agencies can be expensive though, so how do you make sure you’re choosing the right one for your business and your budget? (xx 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)
Exxon secures lead in top US oilfield with $60 billion buy of shale rival Pioneer
Exxon Mobil (XOM.N) agreed to buy U.S. rival Pioneer Natural Resources (PXD.N) in an all-stock deal valued at $59.5 billion that would make it the biggest producer in the largest U.S. oilfield and secure a decade of low-cost production.
The deal, valued at $253 a share, combines the largest U.S. oil company with one of the most successful names to emerge from the shale revolution that turned the U.S. into the world's largest oil producer in little more than a decade. (1027 words) Read more here…
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In the Sosh … who to follow this week
Marcus Parade
“Let's ignite our future: Spreading Insights, Supporting Success, Giving Wings to our Aspirations.”
Connect with him on LinkedIn, website marcus-parade.com, or blog at lnkd.in/eiQi5gin (Blog)
Eric Partaker
The CEO Coach | CEO of the Year '19 | McKinsey, Skype | Join my newsletter for free weekly tips (Link below).
Connect with him on LinkedIn, or website and newsletter at ericpartaker.com.
In the calendar …
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...
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. Check it out…
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