"Turpentine Finance" with Sasha Orloff | Startup Finance, Leadership, CFO Strategy cover image

"Turpentine Finance" with Sasha Orloff | Startup Finance, Leadership, CFO Strategy

E27: Architecting a Global Marketplace for M&A with Flippa CEO Blake Hutchison

Oct 10, 2024
Blake Hutchison, CEO of Flippa, shares his diverse journey through leadership roles at Xero, Lonely Planet, and Good44. He discusses Flippa's unique position as an 'investment bank for the 99%', facilitating online business transactions. The conversation reveals the significance of financial literacy for small businesses and offers insights on buyer motivations. They explore emerging market trends, including hot investment sectors and the rise of digital asset sales, emphasizing the future potential for online business flipping.
51:54

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Quick takeaways

  • The intense competition among buyers in subscale markets necessitates that smaller entrepreneurs enhance their deal-making skills to remain competitive.
  • Financial literacy and maintaining organized financial records are essential for business owners to successfully prepare their businesses for sale.

Deep dives

The Growing Competition from Institutional Buyers

The competition among buyers in subscale markets has intensified significantly due to institutional buyers moving into lower-priced segments. These institutional players are adept at navigating acquisitions, making it difficult for smaller entrepreneurs and side hustlers to compete effectively. The scenario is often compared to a first-time homebuyer facing off against an experienced investor, highlighting the stark differences in resources and knowledge. This shift emphasizes the need for smaller buyers to develop their deal-making skills to thrive in an increasingly competitive landscape.

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