Masters in Small Business M&A

Today’s guest is Matt Plooster, founder and CEO of Bridgepoint, a boutique investment bank based in Omaha, Nebraska. We start the conversation with a background on private credit and its origins. From there we proceed to cover its growth, its arrival in the lower middle market, and how business owners can think about its features, risks, utility and applicability. We close out the conversation by getting into specific lower middle market transactions where private credit has been central to the outcome.  Discussion points:  The rise of private credit in the private market  How non-bank financing has evolved post-2008 crisis  Mezzanine vs. unitranche debt  Comparing private credit to traditional bank lending  Non-control transaction success with private capital  Case study demonstrating the effectiveness of buyout transactions  Long-term engagement benefits  The appeal of fewer covenants and no personal guarantees  Crucial role of pre-market quality of earnings  Private credit's future potential for market inefficiencies  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 capital partners. Masters in Small Business M&A explores the vast world of small business acquisitions, 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 enjoy the podcast, we’d love a review on Apple or Spotify. If you’d like to go deeper, head to Axial.com, where there are dozens of recorded Axial member roundtables, downloadable tools for dealmakers, quarterly lower middle market investment banking league-table rankings, 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.  Click the link below to join the podcast newsletter list. We’ll notify you when a new episode is published. And if you have an interesting guest in mind, feel free to drop us a line.   Subscribe to Masters in Small Business M&A  Resources:  Matt Plooster LinkedIn  Bridgepoint Investment Banking  Peter Lehrman LinkedIn  Axial Website  

In this episode, we interview Bob Falahee, the recently exited founder of SunPro Motorized Awnings & Screens.   Bob’s entrepreneurial origin story starts in Michigan, where he was a sales leader for a semi-truck trailer manufacturer. Bob and his family left behind the cold winters of Michigan for Florida, where he founded SunPro with $36,000 in seed capital. He went on to expand SunPro from a local retractable awning business to a wholesale manufacturing leader in the category.  The conversation reviews SunPro's founding story, its strategic growth and his daughters' pivotal involvement on the finance and retail sides of the business. We also dive into the mind of the founder on the exit process.  When did Bob start thinking about exiting?  What drove his timing and thinking?  How did he start learning about what goes into a successful exit? Bob recounts the impact of cultural fit in selecting an investment banker and walk through how he thought about strategic succession planning and M&A preparation.  Discussion points:  Bob’s first exit from a successful Michigan semi-trailer business  Family relocation to Florida and the search for a small business  Turning a partnership with a local awning business into a new company  Growing the business with dealer-centric service  Streamlining production via software and improved delivery  SunPro's strategic growth and family-driven retail expansion  The importance of five-star reviews for business growth  Preparing for an exit  Cultural and expertise alignment in investment bank selection  The structure of the sale to Hunter Douglas  Post-exit personal transformation and venturing into new businesses  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 capital partners. In every episode, we explore the vast 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 enjoy the podcast, we’d love a review on Apple or Spotify. If you’d like to go deeper, head to Axial.com, where there are dozens of recorded Axial member roundtables, downloadable tools for dealmakers, quarterly lower middle market investment banking league-table rankings, 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.  Click the link below to join the podcast newsletter list. We’ll notify you when a new episode is published.    Subscribe to Masters in Small Business M&A  Resources:  Bob Falahee LinkedIn  SunPro Manufacturing  Peter Lehrman LinkedIn  Axial Website    

In this episode, Glenn Oken, Managing Director at Mangrove Equity Partners, sits down with host Peter Lehrman to discuss the evolution of Small Business M&A, from the late ‘80s to present day.  The conversation starts with Glenn’s entry into the M&A scene, and the challenges and opportunities of closing transactions before the internet. Glenn shares his insights on the major changes in deal sourcing methods over his career, valuation drift, and the growth of sell-side M&A advisory in the lower middle market. The conversation wraps up with a deep dive into the operating partner model, how early Mangrove was in institutionalizing this model, and how significantly it has influenced the firm’s culture and way of partnering with business owners.  Additional Discussion Points: The birth of Florida Capital Partners Closing deals in the 90s Evolution of private equity investing The impact of internal operating partners The power of add-on acquisitions Integration strategies and dual branding Leveraging reputation in competitive transactions Sourcing strategies Complexities and opportunities in deals Advice for young professionals exploring private equity This podcast is produced by the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially research and connect with top-ranked M&A advisors and capital partners via a trusted online platform.  In every episode, we seek to explore the vast world of small business M&A, interviewing a mix of proven and emerging owners, operators, investors, and M&A advisors whose strategies and methods are being put to the test. If you enjoy the podcast, give us a review on Apple or Spotify. If you’d like to go deeper, head to Axial.com, where there are dozens of recorded Axial member roundtables, downloadable tools for dealmakers, quarterly lower middle market investment banking league-table rankings, 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: Glenn Oken LinkedIn Peter Lehrman LinkedIn Axial X Axial Website 

Today’s guest is Clint Fiore, a small business operator turned M&A broker and the President of Bison Business, a Texas-based business brokerage transacting in both Main Street deals and the lower middle market.  Clint lays out his four different archetypes of business brokers, what makes them tick, and how private equity investors and SMB acquirers can best modify their approaches to successfully close deals with any of them. Discussion points: Why Clint decided to starting his own business brokerage The 80/20 rule of brokers LOI language tweaks that will resonate with owners and business brokers Building relationships to get an angle on a broker’s deals How to handle real estate brokers moonlighting as M&A brokers The future of M&A brokerage Ensuring trust, reliability, and cost-effectiveness in deals This podcast is produced by the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially research and connect with top-ranked M&A advisors and capital partners via a trusted online platform. I am your host, Peter Lehrman, founder and CEO of Axial. In every episode, we explore the vast world of small business M&A, interviewing a mix of proven and emerging owners, operators, investors, and M&A advisors whose strategies and methods are being put to the test. If you enjoy the podcast, give us a review on Apple or Spotify. If you’d like to go deeper, head to Axial.com, where there are dozens of recorded Axial member roundtables, downloadable tools for dealmakers, quarterly lower middle market investment banking league-table rankings, 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:  Clint Fiore LinkedIn Clint Fiore X Peter Lehrman LinkedIn Peter Lehrman X Axial Website

In this episode, Mike Botkin, founder and CEO of OneOutdoor Holdings sits down with Peter Lehrman. The conversation starts with the OneOutdoor Holdings origin story (hint: Mike was in bed at the time). Mike goes into how and where he sourced his first deal, how he structured the deal, and OneOutdoor’s strategic shift from residential to commercial landscaping businesses.  From there, Mike reveals how he kept his acquisitions on track with a simple “main thing” due diligence playbook, focusing on contracts, talent, equipment, and high quality candid conversations with sellers. The episode concludes with a deep dive on leadership talent and, more specifically, the intangible and nuanced considerations that are associated with retaining every owner post-closing. Discussion points: Trade business career progression and property management Impulsive purchase of landscaping business Thoughts on an employee quitting for self-employment Differences and value in commercial landscaping Seller profiling in business acquisition Building strong relationships in business Relationship and expansion in the landscaping market Next steps and expansion plans The pursuit beyond money This podcast is produced by the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially research and connect with top-ranked M&A advisors and capital partners via a trusted online platform. I am your host, Peter Lehrman, founder and CEO of Axial. In every episode, we explore the vast world of small business M&A, interviewing both the proven and the emerging owners, operators, investors, and advisors whose strategies and methods are being put to the test. If you enjoy the podcast, let us know by giving us a review on Apple or Spotify. If you’d like to go deeper, head to Axial.com, where there are dozens of recorded Axial member roundtables, downloadable tools for dealmakers, quarterly league-table rankings, and lots of 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 Botkin LinkedIn  Peter Lehrman LinkedIn  Axial Website  

Today Peter Lehrman speaks with Emily Holdman, the Managing Director at Permanent Equity, about the intricacies of due diligence. The conversation delves into the importance of creating a powerful diligence team when preparing to sell a business, highlighting the roles of an M&A attorney and an M&A advisor. Emily also discusses the concept of internal diligence and the importance of forging strong relationships in buyer-seller dynamics. She emphasizes the significance of trust-building and ethical behavior for successful deals. The discussion also touches upon the importance of understanding the source of funding and anticipating changes in financial projections during the diligence period. Permanent Equity invests in private companies deliberately built for long-term success. The company commits for the long haul with 30-year funds, no intention of selling, and rarely uses debt. Discussion points: The recent exhaustive document on due diligence by Permanent Equity Roles and strategies for creating a powerful diligence team Importance of an M&A attorney and advisor in the process Internal diligence in business selling Trust-building and ethical behavior in deal success Understanding funding sources and anticipating financial changes Assembling a business selling team Advantages of hiring a professional M&A advisor and attorney The process of assembling a diligence team for business selling Building trust in buyer-seller relationships and understanding the source of funding Ethical behavior during the diligence process Strategic art of business sale preparation Contact us with your podcast topic ideas! We hope you enjoy the episode, which is produced by the team at Axial (www.axial.com). Axial is an online deal sourcing platform that makes it easy for business owners to confidentially research and connect with top-ranked M&A advisors and capital partners. I am your host, Peter Lehrman, founder and CEO of Axial. In every episode, we aim to explore the vast world of small business M&A, interviewing both the proven and the emerging owners, operators, investors, and advisors whose strategies and methods for building successful private companies are being put to the test. If you enjoy the podcast, give us a review on Apple or Spotify. If you’d like to go deeper, head to Axial.com, where there are dozens of recorded Axial member roundtables, downloadable tools for dealmakers, M&A advisor rankings, and lots of other useful information for owners exploring exits and acquisitions. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Resources:  Emily Holdman LinkedIn  Permanent Equity  Peter Lehrman LinkedIn  Axial Website  

In today’s episode, Peter Lehrman sits down with Chris Gallagher, CEO of Gallagher Fluid Seals, a family-owned distributor and manufacturer of fluid sealing products. Chris worked in the family business on the factory floor in his teens and returned to the business after a significant chapter in strategy consulting. In January 2017, the company executed the next phase of its succession plan, with Chris’ uncle retiring and Chris becoming Gallagher’s next CEO.     In a wide-ranging and highly authentic conversation, Chris discusses:  The stop and start acquisition history of Gallagher and why that’s changing Lessons learned from the first acquisition Chris led How Chris navigates family-owned shareholder dynamics  Techniques for winning deals and building relationships in M&A Re-investing in Gallagher versus distributing dividends Strategies for effectively sourcing and integrating acquisitions The impact of outside board members on Chris’ development as a CEO We hope you enjoy the episode, which is produced by the team at Axial (www.axial.com). Axial is an online deal sourcing platform that makes it easy for business owners to confidentially research and connect with top-ranked M&A advisors and capital partners. I am your host, Peter Lehrman, founder and CEO of Axial. In every episode, we aim to explore the vast world of small business M&A, interviewing both the proven and the emerging owners, operators, investors, and advisors whose strategies and methods for building successful private companies are being put to the test. If you enjoy the podcast, give us a review on Apple or Spotify. If you’d like to go deeper, head to Axial.com, where there are dozens of recorded Axial member roundtables, downloadable tools for dealmakers, M&A advisor rankings, and lots of other useful information for owners exploring exits and acquisitions. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Resources: Chris Gallagher LinkedIn Gallagher Fluid Seals Peter Lehrman LinkedIn Axial Website  

Today, we’re publishing Peter Lehrman’s conversation with Max Artz, a search fund expert and Partner at Peterson Search Partners, a professional investment firm focused on backing the top search fund talent.  Max shares insights on the world of small business mergers and acquisitions including strategies for securing the best deals, the importance of understanding an owner's willingness to sell, and how traditional bidding techniques have evolved. He also highlights the crucial role of trust and chemistry in successful acquisitions. The conversation delves into the current state of searcher outreach and how Peterson Search Partners supports the searchers they back by removing growth hurdles. Additionally, Artz discusses changes in the search / EtA market and offers advice for those considering taking over a small business. This podcast is produced by Axial (www.axial.com). Axial is an online platform that makes it easy for small business owners to confidentially research and connect with top-ranked small business M&A advisors and capital partners. I am your host, Peter Lehrman, Founder and CEO of Axial. In every episode, we explore the vast world of small business M&A, interviewing both the proven and the emerging owners, operators, investors, and advisors whose strategies and methods are being put to the test. If you’re enjoying the podcast, spread the word and give us a review on Apple or Spotify. If you’d like to go deeper, head to Axial.com, where there are dozens of recorded Axial member roundtables, downloadable tools for dealmakers, quarterly league-table rankings, 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. Discussion points: Max Artz background and previous careers Search fund investing and state of searcher outreach Traditional bidding techniques in small business M&A Understanding an owner's willingness to sell for success How Peterson Partners supports searchers and sources talent Trust and chemistry in successful business acquisitions Changes in the search market and sourcing talent beyond business schools Impact of pricing on a deal Advice for those interested in taking over a small business Importance of taking a break in the relentless search process Emphasizing trust, relationship building, and search beyond the top MBA schools Resources: Max Artz Peterson Partners Peter Lehrman LinkedIn Axial Website

Today Peter Lehrman sits down with Dzmitry Miranovich and Dr Bill Wagner, co-founders of Associated Veterinary Partners (AVP), a holding company rollup acquiring and partnering with American veterinary clinics.  Dr. Wagner Dzmitry share their approach, structures and key decisions rolling up independently owned and operated American veterinary clinics. They delve into the financial structure, partnership incentives and incentive design, the operational investments that enable a more repeatable programmatic M&A and the pros and cons of certain key post-closing integration decisions.  They also discuss the complexities of practice management software, the recruitment processes of veterinary professionals and its keyman risk, and the growing role of software in veterinary clinics. They highlight the importance of understanding the key players in a business, their culture, and the dynamics of the practice. Lastly, they explore emerging markets, services, and approaches to pet care. Associated Veterinary Partners began when ex-Carlyle Group investment professional Dzmitry Miranovich and entrepreneur and practicing veterinarian Dr. Bill Wagner connected on the shared idea that veterinary clinic owner-operators need a new and better capital partner and exit partner than what was presented by the status quo.   This podcast is produced by Peter Lehrman and the team at Axial (www.axial.com). Axial is an online platform that makes it easy for small business owners to confidentially research and connect with top-ranked pre-vetted M&A advisors and potential acquirers. I am your host, Peter Lehrman, Founder and CEO of Axial. In every episode, we interview professionals that work at the intersection of small business operations and small business M&A, interviewing both proven and emerging owners, operators, investors, and advisors whose strategies and methods are being put to the test. If you enjoy the podcast, please spread the word by giving us a review on Apple or Spotify.  It helps us grow the reach of the podcast. If you’d like to go deeper, we invite you to visit Axial.com, where there are dozens of recorded Axial member roundtables, downloadable tools for dealmakers, quarterly league-table rankings, and lots of other useful information. If you’re a business owner exploring an exit or a professional acquirer or M&A advisor, you can create a free profile and start using Axial for free at Axial.com. Discussion points: What it means to build “veterinarian-centric” roll-up Transitioning the administrative burden that veterinary owner operators bear Diving into the specifics of AVP’s partnership and incentive structures Eductating veterinarians on key financial decisions as part of the M&A process AVP's model for shared financial success Practice management software decisions and complexities across vet clinics Recruitment and transition of veterinary professionals Exploring emerging services and pet care approaches High-growth areas in veterinary services Avoiding low-margin categories like pharmacy and inventory sales Discussing the potential of boarding, geriatric care, and end-of-life care Resources: Dzmitry Miranovich LinkedIn Dr. Bill Wagner LinkedIn Associated Veterinary Partners Peter Lehrman LinkedIn Axial Website

Today Peter Lehrman welcomes Accordion’s CEO and founder Nick Leopard onto the podcast. Nick started Accordion after prior chapters in investment banking and private equity / mezzanine lending. Accordion has become a leading financial consulting firm focused exclusively on serving the office of the private equity-backed CFO. Their clients, which include investment leaders Bain, Apollo, Hellman & Friedman, Golden Gate, Thoma Bravo, and many others, speaks for itself.   Nick and Peter dive deep into the finance function and what the best acquirers and operators do beyond the nuts and bolts of accounting and financial statements to get real strategic leverage and value from the office of the CFO.  Specifically, they talk about: How the up-market PE leaders professionalize the portfolio company finance function What business owners can unlock if you hire a great CFO earlier than one typically does Exploring the concept of ‘Exit Readiness' and why it’s so valuable for owners to prioritize it Accordion’s own M&A story and why they turned to acquisitions alongside organic growth What Nick has learned watching the best PE firms transform the CFO function Some potentially easy wins operators can achieve with simple technology and process discipline This podcast is produced by the team at Axial (www.axial.com). Axial is an online deal-sourcing platform that makes it easy for small business owners to confidentially explore transactions and connect with top-ranked M&A advisors and capital partners. I am your host, Peter Lehrman, Founder and CEO of Axial. In every episode, we explore the vast world of small business M&A, interviewing both the proven and the emerging owners, operators, investors, and advisors whose strategies and methods are being put to the test. If you enjoy the podcast, give us a review on Apple or Spotify. If you’d like to go deeper, head to Axial.com, where there are dozens of recorded Axial member roundtables, downloadable tools for dealmakers, quarterly league-table rankings, and lots of 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:   Nick Leopard LinkedIn Peter Lehrman LinkedIn Axial Home Page Axial for Business Owners Accordion Home Page