SaaS Buyers' Club Understanding financial due diligence in acquisitions with Mitch Petracca
In this SaaS Buyers' Club Episode 35, your host, Software as a Service (SaaS) mergers and acquisitions (M&A) lawyer Omeed Tabiei from Optimist Legal interviews Mitch Petracca, President of the Petracca Group, which is a cutting edge financial due diligence advisory firm.
Mitch, who is also the founder of the innovative new venture FundScout, shares his journey from CPA to M&A specialist, focusing on lower middle market businesses valued between $1 million to $100 million.
Learn about the core components of transaction advisory, including valuations, financial due diligence, quality of earnings, and capital stack structuring.
Dive into the industries Mitch primarily engages with—healthcare, SaaS, blue-collar trades, and construction—and discover the nuances of working capital and quality of earnings.
Mitch breaks down complex concepts into digestible insights, covering everything from net working capital adjustments to the multifaceted negotiation strategies essential for successful business transactions.
Moreover, Mitch introduces FundScout, a groundbreaking platform designed to streamline and democratize the capital-raising process, making it easier for entrepreneurs and independent sponsors to secure term sheets from a pool of over 209,000 lenders and investors.
If you're venturing into the M&A space or simply curious about the mechanics behind buying and selling businesses, this episode is packed with invaluable tips, strategies, and real-world examples that you won't want to miss.
Stay tuned till the end for exclusive advice on building relationships within the M&A ecosystem and optimizing your approach to buying and selling businesses.
Don't forget to like, comment, and subscribe for more insightful episodes! #Mergers #Acquisitions #M&AStrategy #Entrepreneurship #FunScout #FinancialDueDiligence
00:00 Introduction to SaaS Buyers Club
00:31 Mitch Petracca's Career Journey
01:21 Focus Areas of Petracca Group
01:56 Industries Served by Petracca Group
02:47 Challenges in Lower Middle Market Transactions
04:59 Understanding Net working Capital
09:44 Quality of Earnings and Financial Due Diligence
18:43 Negotiation Strategies in M&A
24:59 Buyer Protection Strategies
26:21 EBITDA vs. ARR in Valuation
29:12 Determining the Multiplier
34:28 Introducing Fund Scout
35:31 How Fund Scout Works
40:45 Exclusive Service and Fees
43:40 Final Thoughts and Farewell
Follow the Guest: Mitch Petracca
► https://www.linkedin.com/in/mitchpetracca
Follow the Host: Omeed Tabiei
► https://www.linkedin.com/in/Omeed-Tabiei
► https://www.facebook.com/omeedt
►https://www.instagram.com/saasbizlawyer
How to reach Optimist Legal about your SaaS M&A transaction to explore working with us
► https://www.optimistlegal.com
►Omeed@OptimistLegal.com
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About Optimist Legal:
Optimist Legal is a SaaS corporate and business focused law firm with extensive experience in M&A. When you work with Optimist Legal for your next SaaS M&A transaction, you can rest assured that you're working with diligent experts that are going to get you the best deal possible.