10:24:23 - 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)

Gia Cilento

and

Ronald Skelton

Oct 24, 2023

∙ Paid

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 …

Draft Merger Guidelines Risk Reducing Innovation

The draft Merger Guidelines seek to reduce mergers and acquisitions, especially those that remove potential entrants. However, precluding acquisitions in those settings ignores what incentivizes startups and investors to take initial risks, as well as the advantages that large incumbents have to parlay acquisitions into further innovation and an array of widely commercialized consumer products. The overall effect may dampen innovation, write Ginger Zhe Jin, Mario Leccese, and Liad Wagman. (3616 words) Read more here..

Panel of Experts: Mergers and acquisitions

During Business First’s Table of Experts discussion on mergers and acquisitions, four Buffalo executives discussed the importance of having the right advisors to guide your company through a merger or acquisition. Panelists were Andrea Feine, Jonathan R. Jasinski, Thomas R. Anderson and Russell D'Alba. Here is a report from the discussion which was held on Sept. 20, 2023. (2206 words) Read more here..

Cyber Threats On Small Businesses Grow: How To Protect Your Company

In an age where technology is deeply integrated into our daily lives, the risk of cyberattacks on businesses, especially small ones, is heightened. Cybercriminals are continually evolving their tactics to exploit vulnerabilities and gain unauthorized access to sensitive information. Cybersecurity month serves as a reminder for both individuals and businesses to remain vigilant, exercising caution in the face of the growing multitude of cyber threats, especially when it comes to safeguarding a business and finances. (604 words) Read more here..

AI for Everyone: UiPath’s Autopilot Levels the Playing Field in Business Automation

AI, particularly generative AI, is poised to play a crucial role in future business strategies, potentially introducing new product or service offerings, enabling data monetization, and allowing for increased personalization in offerings. Enterprise automation software company UiPath wants to lead this transformative wave with its new Autopilot feature, aiming to integrate AI capabilities into everyday operations, reshaping industries and bridging the gap between technology and actionable business outcomes.

The road to robotic process automation

In today’s dynamic business landscape, automation is no longer a dream; it's a reality. Together with the fusion of robotic process automation (RPA) and attended automation, artificial intelligence (AI) is empowering businesses with innovation and driving changes across various functions, from IT governance to customer experience (CX) (585 words) Read more here..

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In the Pods Reviews …

Max Valuation Through Business Exit Strategy With Jessica Fialkovich — The Marketing Plan Formula

Watch the show here. Read the review here.

The Hub Short Take:

Jessica Falkovich emphasizes the importance of having an exit strategy for your business from day one. She explains that most business owners wait too long to think about their exit strategy, which can lead to missed opportunities and increased risk.

Falkovich outlines the four main exit options for business owners: closing down the business, selling to a third party (strategic buyer, private equity, or individual buyer), transitioning the business to family or friends, or selling to key employees. She also discusses the value drivers in a business sale, including risk removal and qualitative earnings. Having a clear exit strategy and a well-defined marketing plan can significantly increase the value of a business in a transaction.

The Takeaways:

Start thinking about your exit strategy from day one of starting your business.
The four main exit options are closing down the business, selling to a third party, transitioning to family or friends, or selling to key employees.
Value drivers in a business sale include risk removal and qualitative earnings.
Having a clear exit strategy and a well-defined marketing plan can increase the value of a business in a transaction.

The Quotes:

“You should have options for your exit strategy because the plan doesn’t always work.”
“Buyers want to remove the risk of customers and employees leaving after the owner exits.”
“Marketing and lead generation can increase the value of a business in a sale.”
“Having a good exit strategy and a well-defined marketing plan can significantly increase the value of a business in a transaction.”

The Guest:

Jessica Falkovich is the founder of the Exit Factor and one of America’s leading experts in selling businesses. She is also the founder of one of the fastest-growing and largest business brokerages in the country.

The Host:

Russell (★ The Chief Marchitect ★) Lundstrom as he calls himself on LinkedIn is the Pioneer of the Marketing Plan Formula where he built a simple 5 step formula that helps 7 & 8 figure founders create marketing that actually works for their business.

Secrets of the $500M Goliath of the Home Service Industry — Home Service Expert

Watch it here. Read it here.

The Hub Short Take:

Frank DeMarco, CEO of Service Champions Plumbing and Heating, shares his journey in the home service industry, starting from his early days working in his family’s business. He discusses his experience working with industry leaders like Dave Gyer and Leland Smith, and the lessons he learned from them. Frank also talks about the challenges and successes of integrating multiple businesses and the importance of having a strong infrastructure in place. He emphasizes the need for data-driven decision-making and the importance of focusing on key performance indicators (KPIs) to drive growth and profitability.

The Takeaways:

Frank’s background in the home service industry spans over 30 years, starting from his early days working in his family’s business.
He learned valuable lessons from industry leaders like Dave Gyer and Leland Smith, who emphasized the importance of continuous learning and an open mindset.
Integrating multiple businesses requires careful planning and a focus on building a strong infrastructure.
Data-driven decision-making and a focus on key performance indicators (KPIs) are crucial for driving growth and profitability in the home service industry.

The Quotes:

“This business is so simple, it’s just not easy.” — Dave Gyer
“It’s not about me. I want somebody to be able to go in the back and grab a cup of coffee and see the guy in the dock and say, ‘How’s it going?’” — Frank DeMarco

The guest:

Frank DeMarco is an expert in home service operations management and the CEO of Service Champions Plumbing and Heating. With over 30 years of experience in the industry, Frank brings a wealth of knowledge and expertise to his role. He has a BS in Business Administration and has held various leadership positions in the home services industry.

The Host:

Tommy Mello is the owner and operator of A1 Garage Door Service, the host of the Home Service Expert podcast, and owner, partner, or investor in 14 other businesses ranging from Christmas lights to real estate to mobile apps. In 2010, Tommy became the sole owner and operator of a single Phoenix-based garage door service business, which came with $50,000 in debt. Today, A1Garage generates north of $200 million dollars in annual revenue, with over 700 employees in 19 states.

Tommy is a regular contributor to Inc., Entrepreneur, and other business publications on the topic of entrepreneurship and small business as well as a sought after podcast, radio and television guest. When not in the office or working on the businesses, you’ll find him on a plane headed to exotic destinations or chasing the little white ball around one of Arizona’s many golf courses.

A pet treats ingredient supplier with $2.5M of EBITDA | Acquisitions Anonymous E237

Watch it here. Read the review here.

The Hub Short Take:

In this episode, Michael, Heather, and Bill discuss a pet ingredient provider seeking sale. The company is a value-added distributor of refined and custom-blended food binding agents, supplying small batches or proprietary premixes to pet food and treat contract manufacturers. They explore the company’s position in the value chain, the potential for growth in the pet industry, and the challenges of financing a business in the “no man’s land” range. The conversation highlights the importance of understanding the market dynamics and the value proposition of the business when considering an acquisition.

The Takeaways:

Pet industry is booming, presenting a strong market opportunity for businesses in the sector.
Understanding the value chain and the role of intermediaries is crucial in evaluating a business’s potential.
Concentration in a specific geographic region can be a strength or a weakness, depending on the market dynamics.
Financing can be challenging for businesses in the “no man’s land” range, requiring creative solutions such as private equity involvement.
The expertise and proprietary blends of the company can be a competitive advantage in the market.

The Quotes:

“The pet market is exploding right now, and private equity is tripping over themselves to get pet exposure.” — Michael
“The concentration in a specific geographic region can be a moat for the business, but it also poses the risk of new competitors entering the market.” — Bill
“Understanding the value proposition and the market dynamics is crucial when considering an acquisition in the pet industry.” — Heather

The hosts:

Bill D’Alessandro is Founder/ CEO Elements Brands which acquires and scales consumer products (CPG) brands with a focus on direct-to-consumer channels.

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.

Michael Girdley is the founder of a hold-co, serial acquisitions entrepreneur and power player in online content about buying, growing and selling small Main Street businesses.

How to Widen Your Search to Buy a Business | Jesse Sunquist Interview — Acquiring Minds:

Watch it here. Read the review here.

The Hub Short Take:

Jesse Sunquist shares his journey of searching for a business to buy and the challenges he faced along the way. After a year of searching, he found a franchise pest control company called Mosquito Joe that met his criteria. He discusses the benefits of buying a franchise resale and the potential for growth within the network. Jesse also highlights the importance of the owner network in a franchise and the support he received from Mosquito Joe. He shares his experience of integrating a second territory into his business and the advantages of having multiple territories. Jesse also talks about the challenges of managing blue-collar workers and handling customer disputes. Despite the challenges, he is happy with his decision to become a business owner and enjoys the flexibility it provides.

The Takeaways:

Entrepreneurship through acquisition offers flexibility and income potential.
Lowering search criteria can open up more deal opportunities.
Franchise resales can provide a head start and potential for growth within the network.
The owner network in a franchise can be a valuable resource for support and knowledge sharing.
Integrating multiple territories can lead to operational improvements and increased revenue.
Managing blue-collar workers can be challenging, but setting clear expectations and boundaries is important.
Handling customer disputes requires effective communication and problem-solving skills.

The Quotes:

“I think the most challenging part was because it was in Pennsylvania and not New Jersey, that’s a separate licensing district.” — Jesse Sunquist
“The franchise owner network is such a freaking cheat code.” — Jesse Sunquist
“Mosquito Joe has demonstrated themselves to be a really good franchisor.” — Jesse Sunquist

The Guest(s):

Jesse Sunquist is the owner and operator of Mosquito Joe, a franchise pest control company. He left his corporate job to pursue entrepreneurship through acquisition and found success in buying a business that aligned with his goals of flexibility and income potential.

The Host:

Acquiring Minds Acquiring Minds is a podcast about buying businesses. Acquiring an existing business is an awesome opportunity for many entrepreneurs, and host Will Smith talks to the people who do it. New episodes 2x per week.

Della Kirkman, CPA interviews They Got Acquired Founder, Alexis Grant, Shares Insights on Building and Selling Online Businesses

Watch it here. Read it here.

The Hub Short Take:

Alexis Grant, founder of They Got Acquired, shares her journey from journalism to entrepreneurship and her experience with selling her own businesses. She discusses the challenges and lessons she learned along the way and how she is now leveraging those lessons to help other founders navigate the world of acquisitions. Alexis also talks about the database she is building to track and analyze acquisitions and the monetization plans for her media brand.

The Takeaways:

Alexis recognized that starting her own business allowed her to have autonomy and make decisions on her own terms.
She transitioned from journalism to entrepreneurship by taking on freelance clients and eventually starting her own content marketing agency.
Alexis's agency was acquired by a media brand called The Penny Hoarder, where she worked in-house and helped grow the content for the brand.
She sold her own content site, The Write Life, through an asset sale and realized the importance of building equity in her own assets.
Alexis started They Got Acquired to fill the gap in coverage of smaller acquisitions and to provide resources and information for founders looking to sell their businesses.
The database she is building will allow users to access information on past acquisitions, including deal size, revenue, and industry, to help inform their own buying or selling decisions.

The Quotes:

"Creating a business was a way for me to earn money on my own terms." - Alexis Grant
"I realized after a while that I could move a lot faster on my own, and I enjoyed that." - Alexis Grant
"I wanted to start another niche media brand and identified acquisitions as a space that needed more coverage." - Alexis Grant
"There's a big opportunity to cover smaller deals and bootstrapped companies that often get overlooked." - Alexis Grant
"My goal is to build a business that I enjoy running and brings in enough money for my family." - Alexis Grant

The Guest: Alexis Grant is the founder of They Got Acquired, a media brand that focuses on covering acquisitions in the six, seven, and low eight-figure range. She is a former journalist and has built several successful media companies throughout her career.

The Guest Host:

Della Kirkman, CPA In less than 10 years, she went from a single mom serving tables at Cracker Barrel, to buying her first business, growing it, and selling it to achieve a level of wealth and independence she had only dreamed about.

Della is the publisher of the Shift-N-Gears.com bi-weekly newsletter, designed to help people buy, grow, and sell small businesses. The free newsletter is part of a larger, developing educational platform encouraging women to pursue their dreams of entrepreneurship through acquisition, buying a profitable business that can support their lifestyle, rather than the hard, risky path of the startup.

Ride along here- https://www.shift-n-gears.com/newsletter

Download her free due diligence tool here- https://www.shift-n-gears.com/the-art...

Connect on LinkedIn: https://www.linkedin.com/in/dellakirkmancpa/

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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

Are influencer partnerships the inevitable future of business?

Influencing has become big business for creators, and companies are noticing. Traditionally, brands collaborate with influencers on one-off sponsored product placements. But increasingly, they're integrating these creators into their core marketing strategies and teams. In some cases, they're even training their own staff to become in-house influencers.

Many well-established brands have achieved success with influencer marketing campaigns, like Dunkin's collaboration with TikTok sensation Charli D'Amelio, and MAC's partnership with Sabrina Bahsoon. And according to Influencer Marketing Hub, the influencer marketing industry is expected to grow to approximately $21.1bn (£17.4bn) in 2023, with TikTok being the most popular influencer marketing channel. (xx words) Learn more here…

In the BIG Guys Corner … (middle market and above)

Chevron buys Hess for $53 billion, 2nd megadeal in the oil patch this month as energy prices soar

Chevron is buying Hess Corp. for $53 billion and it’s not even the biggest acquisition in the energy sector this month as major producers seize the initiative while oil prices surge.

Crude prices rose sharply in early 2022 with Russia’s invasion of Ukraine and are hovering around $90 per barrel after ticking another 9% higher this year. That has made big drillers cash rich and they are looking for places to invest. (747 words) Read more here…

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In the Sosh … who to follow this week

Neil Patel

Growing companies through innovative digital strategies. I am a New York Times bestselling author. The Wall Street Journal calls me a top influencer on the web, Forbes says I am one of the top 10 marketers, and Entrepreneur Magazine says I created one of the 100 most brilliant companies.

Connect with him on LinkedIn or

Chenell Basilio

I reverse engineer how top creators get to 50k+ email subscribers. You get the roadmap to replicate their growth and save 25+ hours of research each week.

Conect with her on X or her website, here.

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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