How2Exit: Buy, Don't Build - M&A of Small Businesses E221: Michael Mufson Discusses Investment Banking and Business Exit Strategies
Jun 7, 2024
51:48
Watch Here: https://youtu.be/Fp0i_V5iyU0
About the Guest(s): Michael Mufson is a seasoned investment banker with a career spanning several decades. He started working for a U.S. Senator before transitioning to Ernst and Young in their consulting group. Holding a CPA and an MBA from George Washington University, Michael has been key in underwriting IPOs for family-held businesses and tracking private equity's evolution. Currently a partner at Mufson Howe Hunter & Company (MHH), he specializes in mergers and acquisitions and offers expert advisory services for successful business exits.
Summary: Investment banker Michael Mufson discusses the process of selling a business through investment banking. With a career starting in the '80s, he shares insights on mergers and acquisitions, the evolution of capital markets, and private equity.
Michael highlights the importance of strong financials, business valuation, and understanding saleability factors. He provides practical advice on what buyers look for and how sellers can prepare. The conversation concludes with tips on choosing the right investment banker and the benefits of early engagement for a successful exit.
Key Takeaways: *Preparation is Key: Businesses should have reviewed or audited financials and a quality of earnings report before going to market. *Customer Concentration: Having a diversified customer base protects the business's value and can attract more buyers. *Accurate Valuation: Understanding the true market value of a business is crucial; consult multiple investment bankers to get a clear picture. *Industry Cycles: Timing the market correctly and preparing for cyclical changes can significantly impact the success of a sale. *Engagement Timeline: Start conversations with investment bankers early, ideally when your EBITDA is around $1-2 million.
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Contact Michael on
Linkedin: https://www.linkedin.com/in/michael-mufson-b0269/
Website:
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How2Exit Joins IT ExchangeNet's Channel Partner Network!
-Why IT ExchangeNet?
Since 1998, IT ExchangeNet has created $5 billion in value by selling more than 225 IT businesses in 20 countries. IT ExchangeNet works exclusively with IT-enabled businesses generating between $5M and $30M who are ready to be sold, and M&A decision-makers who are ready to buy. For over 25 years IT ExchangeNet has developed industry knowledge that helps them determine whether a seller is a good fit for their buyers before making a match.
"Out of all of the brokers I've met, this team has the most experience and I believe the best ability to get IT service businesses sold at the best price" - Ron Skelton
The IT ExchangeNet M&A Marketplace we partnered with has a proprietary database of 50,000+ global buyers seeking IT Services firms, MSPs, MSSPs, Software-as-a-Service platforms, and channel partners in the Microsoft, Oracle, ServiceNow, and Salesforce space.
If you are interested in learning more about the process and current market valuations, complete the contact form and we’ll respond within one business day. Everything is kept confidential.
Are you interested in what your business may be worth? Unlock the value of your IT Services firm, visit https://www.itexchangenet.com/marketplace-how2exit and complete the contact form.
Our partnership with IT ExchangeNet focuses on deals above $5M in value. If you are looking to buy or sell a tech business below the $5M mark, we recommend Flippa.
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💰If you’d like additional ways to support this podcast, you can become a paid subscriber here: https://how2exit.substack.com/
►Visit Our Website: https://www.how2exit.com/
📧For Business Inquiries: Me@4sale2sold.com
👇🏻SUBSCRIBE HERE https://www.youtube.com/channel/UC_ONnhwaKSTPFt2nOxKoXXQ?sub_confirmation=1
𝐖𝐚𝐧𝐭 𝐭𝐨 𝐬𝐞𝐞 𝐦𝐨𝐫𝐞 𝐜𝐨𝐧𝐭𝐞𝐧𝐭 𝐥𝐢𝐤𝐞 𝐭𝐡𝐢𝐬...?
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👍 Like the video (it helps a ton!)
💬 Comment below to share your opinion!
🔗 Share the video with anyone you think might help :) ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
📱Stay Tuned On Our Social Media :
» Linkedin - https://www.linkedin.com/in/ronskelton/
» Twitter - https://twitter.com/ronaldskelton
» Facebook - https://www.facebook.com/How2Exit
» Newsletter - http://deeper.how2exit.com/
▶️Previous Episode:
#How2Exit # # 💖Thanks for watching! 💖
Become a supporter of this podcast: https://www.spreaker.com/podcast/how2exit-buy-don-t-build-m-a-of-small-businesses--4859429/support.
About the Guest(s): Michael Mufson is a seasoned investment banker with a career spanning several decades. He started working for a U.S. Senator before transitioning to Ernst and Young in their consulting group. Holding a CPA and an MBA from George Washington University, Michael has been key in underwriting IPOs for family-held businesses and tracking private equity's evolution. Currently a partner at Mufson Howe Hunter & Company (MHH), he specializes in mergers and acquisitions and offers expert advisory services for successful business exits.
Summary: Investment banker Michael Mufson discusses the process of selling a business through investment banking. With a career starting in the '80s, he shares insights on mergers and acquisitions, the evolution of capital markets, and private equity.
Michael highlights the importance of strong financials, business valuation, and understanding saleability factors. He provides practical advice on what buyers look for and how sellers can prepare. The conversation concludes with tips on choosing the right investment banker and the benefits of early engagement for a successful exit.
Key Takeaways: *Preparation is Key: Businesses should have reviewed or audited financials and a quality of earnings report before going to market. *Customer Concentration: Having a diversified customer base protects the business's value and can attract more buyers. *Accurate Valuation: Understanding the true market value of a business is crucial; consult multiple investment bankers to get a clear picture. *Industry Cycles: Timing the market correctly and preparing for cyclical changes can significantly impact the success of a sale. *Engagement Timeline: Start conversations with investment bankers early, ideally when your EBITDA is around $1-2 million.
--------------------------------------------------
Contact Michael on
Linkedin: https://www.linkedin.com/in/michael-mufson-b0269/
Website:
--------------------------------------------------
How2Exit Joins IT ExchangeNet's Channel Partner Network!
-Why IT ExchangeNet?
Since 1998, IT ExchangeNet has created $5 billion in value by selling more than 225 IT businesses in 20 countries. IT ExchangeNet works exclusively with IT-enabled businesses generating between $5M and $30M who are ready to be sold, and M&A decision-makers who are ready to buy. For over 25 years IT ExchangeNet has developed industry knowledge that helps them determine whether a seller is a good fit for their buyers before making a match.
"Out of all of the brokers I've met, this team has the most experience and I believe the best ability to get IT service businesses sold at the best price" - Ron Skelton
The IT ExchangeNet M&A Marketplace we partnered with has a proprietary database of 50,000+ global buyers seeking IT Services firms, MSPs, MSSPs, Software-as-a-Service platforms, and channel partners in the Microsoft, Oracle, ServiceNow, and Salesforce space.
If you are interested in learning more about the process and current market valuations, complete the contact form and we’ll respond within one business day. Everything is kept confidential.
Are you interested in what your business may be worth? Unlock the value of your IT Services firm, visit https://www.itexchangenet.com/marketplace-how2exit and complete the contact form.
Our partnership with IT ExchangeNet focuses on deals above $5M in value. If you are looking to buy or sell a tech business below the $5M mark, we recommend Flippa.
--------------------------------------------------
💰If you’d like additional ways to support this podcast, you can become a paid subscriber here: https://how2exit.substack.com/
►Visit Our Website: https://www.how2exit.com/
📧For Business Inquiries: Me@4sale2sold.com
👇🏻SUBSCRIBE HERE https://www.youtube.com/channel/UC_ONnhwaKSTPFt2nOxKoXXQ?sub_confirmation=1
𝐖𝐚𝐧𝐭 𝐭𝐨 𝐬𝐞𝐞 𝐦𝐨𝐫𝐞 𝐜𝐨𝐧𝐭𝐞𝐧𝐭 𝐥𝐢𝐤𝐞 𝐭𝐡𝐢𝐬...?
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
👍 Like the video (it helps a ton!)
💬 Comment below to share your opinion!
🔗 Share the video with anyone you think might help :) ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
📱Stay Tuned On Our Social Media :
» Linkedin - https://www.linkedin.com/in/ronskelton/
» Twitter - https://twitter.com/ronaldskelton
» Facebook - https://www.facebook.com/How2Exit
» Newsletter - http://deeper.how2exit.com/
▶️Previous Episode:
#How2Exit # # 💖Thanks for watching! 💖
Become a supporter of this podcast: https://www.spreaker.com/podcast/how2exit-buy-don-t-build-m-a-of-small-businesses--4859429/support.