Acquisitions Anonymous - #1 for business buying, selling and operating

Strategies for shopping your financing, and a 15 year old MSP in Kansas - Acquisitions Anonymous 232

Sep 29, 2023
This episode discusses acquiring a Kansas-based MSP business and the importance of understanding the niche and seller motivations. It also explores the pros and cons of niche markets for MSPs, demographics and roll-up plays in the industry, and the significance of meeting employees before closing a deal.
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ADVICE

Secure Financing Early

  • Consult with a financing expert before submitting a Letter of Intent (LOI).
  • This helps determine bankability and avoid awkward renegotiations later.
INSIGHT

Banks Vary Greatly

  • Banks don't all have the same lending criteria; their appetites vary greatly.
  • This variance is influenced by internal factors, past experiences, and industry preferences.
ANECDOTE

Lender Subjectivity

  • Bill D'Alessandro encountered drastically different lender reactions during an asset-backed refinance.
  • Some were eager, while others showed strong disapproval, highlighting lender subjectivity.
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