Masters in Small Business M&A

Today’s guest is Lance Fenton, a Partner at Serent Capital, a private equity fund investing in bootstrapped vertical market software businesses. In this episode, Lance breaks down Serent’s software investment thesis, how it evolved over time, and how they think about sourcing, returns, hold period, and the future prospects of these niche businesses. Lance shares how Serent approaches value creation, the importance of high gross retention, the role of pricing optimization, and how they are responding to AI’s arrival as a threat and opportunity across their portfolio. Lance shares an unusually transparent and candid look at Serent’s direct sourcing model, why they prioritize long-term relationships with founders, and what makes an investment business truly great over decades of success. Discussion Points: Serent Capital’s transition from B2B services to vertical market software Why high recurring revenue and high ROIC drive investment decisions The adoption curve of Vertical Market SaaS: from on-premise to cloud and beyond How shifting to SaaS from on-premise improves net revenue retention The role of payments in vertical software and its impact on valuations How Serent thinks about downturns and risk in underwriting deals The key attributes Serent looks for in vertical software investments Why pricing strategy is a critical lever for growth The role of AI in the evolution of software businesses Why Serent prioritizes direct sourcing over intermediated deal flow The challenges and advantages of a long-term sourcing approach How PE firms evolve and sustain long-term success Masters in Small Business M&A (sign up for podcast drops here) is produced by its host Peter Lehrman and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Resources: Lance Fenton LinkedIn Serent Capital Website Peter Lehrman LinkedIn Peter Lehrman X

Royce Yudkoff and Richard Ruback, Harvard Business School professors and co-authors of the Harvard Business Review Guide to Buying a Small Business, share their insights on the evolving landscape of Entrepreneurship Through Acquisition (EtA). They discuss the shift from funded to self-funded searches, highlighting why this model has gained traction among MBAs. The duo also explores how financing options have transformed, the impact of SBA loans, and the increasing diversity in the EtA space, revealing how small business ownership now serves as a viable alternative career path.

Do you love your home “IT and AV guy”? We didn’t think so.   In this episode, Peter Lehrman sits down with Hagan Kappler, co-founder of Daisy, an emerging national player leader in home technology installation, integration, and servicing. Daisy has acquired eight companies in roughly 12 months, and is beginning to integrate franchise opportunities into the buy-and-build M&A playbook.   The conversation is all about Hagan, her team, her authentic history of operating and transacting in related categories, and Daisy’s unique approach to combining M&A and franchising.  Hagan details how her team is drawing lessons from other home services markets, how they’re experimenting with new recurring revenue business models, and how they’re tackling other challenges that plague the residential A/V and smart home categories.  Discussion Points: The Daisy origin story and the idea of a national smart home services model The market opportunity: A $30 billion industry with no national brand Hagan’s transition from home services to smart technology Differentiating through service with the recurring "Daisy Care" model Building a brand and operational infrastructure: CRM, training, and call centers Balancing M&A and franchising strategies for scale Strategic geographic expansion and post-acquisition value-add initiatives The unfair advantage of an experienced M&A team in home services The importance of optionality in financing and operational models Franchising as a growth engine: improving owner quality of life and increasing business valuation Recurring service offerings as a key differentiator Aligning the business for 2025: Scaling recurring services and brand identity Masters in Small Business M&A (sign up for the podcast here) is produced by its host Peter Lehrman and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Resources Hagan Kappler LinkedIn Daisy Website Peter Lehrman LinkedIn Peter Lehrman X Axial Website

In this episode, Peter Lehrman sits down with Adam Breslawsky, founding partner and managing director of lower middle market investment bank Oberon Securities. Adam shares Oberon's origin story, detailing its humble beginnings, initial challenges, early clients and eventual growth into what is now a firm of 80 bankers across the U.S.  The conversation dives into the intricacies of recruiting and retaining top investment bankers, the evolving art and science of investment banking, the transformation in the buyer landscape and its implications for competitive deal dynamics, and how Oberon endeavors to be exceptional. Adam also weighs in with his advice on what business owners must focus on when preparing for an exit and how they should evaluate and hire an M&A banker. Discussion Points: The founding story of Oberon Securities and its early challenges The success-based compensation model, recruiting, and fostering banker retention Attributes that distinguish the average banker from the excellent banker The old-school approach to generating leads by building quality relationships The evolving buyer landscape and how Adam assesses buyer suitability for his clients Advice for business owners planning an exit: timing, preparation, and banker selection Putting together the right pitch to win a business owner engagement Oberon's commitment to staying focused on its core mission Masters in Small Business M&A (sign up for podcast drops here) is produced by its host Peter Lehrman and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Resources Adam Breslawsky LinkedIn Oberon Securities Website Peter Lehrman LinkedIn Peter Lehrman X Axial Website

In this episode, Peter Lehrman sits down with Sam Rosati, founder of Pursuant Capital and the original sponsor of Perimeter Solutions Group (PSG), to explore his approach to scaling a single commercial fencing business in the Tampa, FL region and scaling growth across the sunbelt stages through five acquisitions and meaningful organic growth. Sam gets into the unique dynamics of the commercial fencing industry, the importance of aligning with strong operational teams, and Sam’s orientation to back management teams rather than retiring owners. Sam also reflects on his experience partnering with Chris Kliefoth, his co-founder and operating partner, and the role of thoughtful deal sourcing in shaping PSG’s success. The conversation dives into add-on acquisitions, the challenges of scaling a service-based business, and the value of getting face-to-face with sellers ASAP in the deal-sourcing funnel.  The conversation finishes up with Sam talking about his search for a new lower middle market acquisition in 2025 and how he is thinking about this next big chapter.  Discussion Points: Sam Rosati’s background and his transition from big law to small business M&A The inception of Perimeter Solutions Group (PSG) and the decision to focus on commercial fencing Key advantages of commercial fencing, including its project lifecycle and customer relationships Sourcing the deal in Tampa, and how it came into focus Building a successful partnership between an operating partner and a dealmaker The importance of a strong team in scaling operations and managing growth Strategic acquisitions to expand geographic reach and service capabilities Maintaining a balance between growth and operational excellence The impact of a recapitalization on PSG’s future growth plans Evolving strategies for deal sourcing, including inbound, outbound, and relationship-building The potential for younger management teams to drive success in blue-collar services The future of independent sponsors and the opportunities for young operators in the lower middle market The significance of long-term partnerships with family offices and flexible capital providers Masters in Small Business M&A (sign up for podcast drops here) is produced by its host Peter Lehrman and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Resources Sam Rosati LinkedIn Sam Rosati X Chris Kliefoth LinkedIn Peter Lehrman LinkedIn Peter Lehrman X Pursuant Capital Website Perimeter Solutions Group Website Axial Website

In this episode, Peter Lehrman sits down with Michael Arrieta, founder of Garden City, to discuss his unique journey from a successful career in tech with companies like DocuSign to founding a people-first holding company focused on service-based businesses. Michael shares insights into his decision to leave tech, the principles guiding Garden City, and the impact of a values-driven approach to business acquisition and management. The conversation also examines Garden City's investment thesis, focusing on B2B nationwide services, and how Michael's team is bringing mission-aligned shareholders into the fold. This episode is packed with actionable insights for anyone interested in small business acquisitions and the human side of M&A. Discussion Points: Michael Arrieta’s transition from tech to small business acquisitions. The inspiration behind founding Garden City and its core mission. Garden City’s focus on service-based businesses with B2B nationwide services. The importance of mission-aligned shareholders and building trust-based relationships. Challenges faced in the lower middle market and the importance of simplicity in business models. The development of the 3F program (Faith, Family, and Finances) for enriching employees' lives. The role of community and shareholder engagement in Garden City’s success. Insights into the process of deal flow management and strategic acquisition. Lessons learned from five years of running Garden City, including the importance of focus and team structure. Masters in Small Business M&A (sign up for podcast drops here) is produced by its host, Peter Lehrman, and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors, strategic acquirers, and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Resources:  Michael Arrieta LinkedIn Michael Arrieta X Peter Lehrman LinkedIn Peter Lehrman X Garden City Website Axial Website

Today’s conversation is with Ryan Sullivan, Managing Director and Co-Founder at North Park Group (https://northparkgroup.com/), a Chicago-based private investment firm focused on acquiring and operating US-based manufacturing and distribution businesses for the very long-term.  Ryan was a multi-chapter manufacturing operator and CEO and North Park Group reflects this operator DNA.  He shares his experience and investment perspectives on the resilience and adaptability of US-based manufacturing, how he and his team get comfortable taking an extremely long-term view of U.S. manufacturing, his unconventional approach to personal guarantees and leverage, LP liquidity, and the importance of taking care of every employee.  The key topics we cover in this 60-minute conversation include:  Manufacturing in America in 2040 — A 15+ Year View  What Separates Winners and Losers in the U.S. Manufacturing Space  The North Park Model: De-Risking Transactions and Taking the Conservative Approach  The Labor Spectrum and Why Every Employee Counts   The Emotional Impact of M&A: Why an Anti-Climatic Transition is the Best Transition  Providing LP Liquidity with Indefinite Hold Periods  Masters in Small Business M&A (sign up for podcast drops here) is produced by its host Peter Lehrman and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test.  If you’d like to go deeper, head to Axial.com, where we make available Axial’s member directories, downloadable tools for dealmakers, the Axial lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com.  Subscribe to Masters in Small Business M&A  Resources:  Peter Lehrman on LinkedIn  Follow Peter Lehrman on X  Ryan Sullivan LinkedIn  North Park Group  Axial Website   

Today’s conversation is with Tom Barber, Co-Founder and Managing Partner at SBJ Capital (https://www.sbjcap.com), a California-based private equity firm investing into the consumer and business services verticals.  In this episode, Tom dives into how he and his team continue to build SBJ Capital, paying special attention to some of the firm’s most unconventional beliefs and organizational design decisions. Tom is remarkably and refreshingly an “open book” about how he and SBJ have gone about building and differentiating their firm. In this 50-minute conversation, we cover the following topics:  What it Took to “Win” in the 2000s vs. What it Takes Today The Evolution of Teams & Talent in Private Equity How to Avoid Unintended Consequences with the Operating Partner Model SBJ Capital’s “Sourcing Partner” Program  Investing in the “Boring” Supply Chain That Power Consumer Brands And then we go into two case studies and some advice for young professionals The Perfect Purée: A Case Study in Substantial Growth via GTM and Sales Channels  Troy Lee Designs: Tripling EBITDA in a Hyper-Niche Consumer Market How the Perfect Private Equity Resume is Changing for Young Professionals Masters in Small Business M&A (sign up for podcast drops here) is produced by its host Peter Lehrman and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Subscribe to Masters in Small Business M&A   Resources: Peter Lehrman on LinkedIn Follow Peter Lehrman on X Tom Barber LinkedIn SBJ Capital Axial Website

Today’s guest is Marshall Lockton. Marshall spent 15 years in sales, sales strategy and sales training roles within his family’s storied private insurance brokerage business (Lockton) before leaving to acquire his first business. In October 2023, he acquired Knight Agency, a specialized consultancy that helps organizations unlock performance by uniquely connecting a company’s purpose, story, values, people and products.  Marshall’s journey as an acquirer is just beginning, but his prior career building sales and sales training programs inside one of the most successful private insurance brokerage companies gives him a mid-career operator’s advantage over many newly minted MBAs pursuing EtA.  Marshall discusses his experiences in the family business, the personal considerations he had to weigh by joining the business, the value of establishing purpose before investing, and the lessons learned at Lockton around culture, autonomy, and nailing sales incentives. The conversation concludes with Marshall getting into the details of the Knight Agency acquisition, highlighting the strategic importance of long-term vision, building relationships, and shared focus on people and purpose-driven work. Discussion Points: Marshall’s decision to join the family-owned insurance brokerage Family business dynamics, honest feedback, growth, and community Establishing your personal core and opus ~ identity, values, principles, and vision Marshall's purpose-driven approach in starting Meraki Investments How Private Equity misses the opportunity to unlock purpose after the acquisition Impact of connecting culture, purpose and employees to create business success Masters in Small Business M&A (sign up for podcast drops here) is produced by the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially discover, research and connect with top-ranked M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com.   Resources: Marshall Lockton LinkedIn (marshall@knightagency.com) Knight Agency Website Peter Lehrman LinkedIn Axial Website

Today’s guest is Rafael "Rafa" Quinn, co-founder and President of Alternative Holdings, a diversified holding company with subsidiaries in food services, retail, industrial sales, and business process outsourcing.  Rafa’s origin story has already been covered in other podcasts, so we instead begin in 2011 with his first deal, an industrial sales distribution company in Panama. Rafa shares how that first deal helped shape his long-term philosophy on evaluating companies, including the two recent water business acquisitions. We then proceed to cover topics such as the horizontal Holdco model, advantages of vertical integration, and playing to your strengths as an investor. We close out the conversation with Rafa emphasizing how his strong partnership with his business partner has been critical in both overcoming obstacles and sustaining his ongoing passion and dedication to a career as an investor.   Discussion points: Rafael’s first deal and establishing HQ in Panama  Adapting to market changes in energy sources Inventory consignment vs distribution model Horizontal holding companies vs. vertical integration Warren Buffett’s approach to post-acquisition incentive alignment  The practical application of zero-cost budgeting Adding value without being needed in the day-to-day Rafael’s philosophy on long-term growth strategies and investment  Intangible qualities of good business brokers Benefits of finding the right business partner Masters in Small Business M&A (Subscribe to Masters in Small Business M&A)  is produced by the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially discover, research and connect with top-ranked M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Subscribe to Masters in Small Business M&A Resources: Rafael Quinn LinkedIn Peter Lehrman LinkedIn Axial Website