Firing The Man Are Investors Still Buying Businesses Post Pandemic with M&A Expert Ismael Wrixen from FE International
Ismael is the Executive Chairman of FE International, the market leader in the sale of SaaS, E-commerce, and Content businesses. Over the past decade, Wrixen has overseen 1000+ successful acquisitions totaling more than half a billion dollars in value. Wrixen was also a (NACVA) 2018 40 Under 40 Award winner. Wrixen’s previous background was in large-cap M&A investment banking, where he executed several high-profile public deals, namely in the technology sector.
Founded in 2010, FE International is known for its extensive network of pre-qualified international investors. With headquarters in New York and regional offices in Miami, San Francisco, and London, FE is an international company serving clients worldwide. It was named one of The Americas’ Fastest Growing Companies in 2021 and 2020 by The Financial Times and is also a two-time U.S. Inc. 5000 company.
[00:01 - 11:35] Opening Segment
- Welcoming Ismael back to the show
- 2022 Midyear report from FE International
- Are people still buying businesses?
[11:36 - 18:54] The Current State of the Market
- Deals are taking longer to close due to the amount of due diligence required and the limited availability of capital
- Mitigating the effects of COVID on the market
- Businesses are being valued using four different models, which take into account past events and trends
- Want some Amazon refunds? Check out GETIDA
- Promo code: FTM400
[18:55 - 26:03] The Best Businesses to Market Are Resilient
- Buyers are more focused on customer acquisition costs and diversifying their sales channels than ever before
- Businesses that have successfully made a pivot into diversifying their sales channels and using profitable advertising are more likely to attract buyers and receive higher multiples
- The Education funds: risk vs. reward
[26:04 - 39:06] Aggregators Facing Earnout Issues
- Aggregators are becoming less relevant as private equity and institutional capital step back in
- Aggregators often buy businesses quickly and without doing due diligence, which can lead to earnout issues
- Brands are focusing on the long-term trend of moving towards pop platforms or Shopify-based businesses
[38:24 - 44:19] Closing Segment
- Who is a good fit for FE International to help out?
- The Fire Round
- Final words
Quotes:
"You don't wanna be buying a business where the economy can take a bit of a pause or a downturn and suddenly you're buying a business at X and you have to sell it to Y.” - Ismael Wrixen
"I think the market is still very strong. I think that's the thing we try to get across and not just us saying that you know we're putting data behind that in terms of how much buyer demand there is out there." - Ismael Wrixen
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Resources Mentioned
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