Masters in Small Business M&A

In this episode, host Peter Lehrman sits down with Brad Smith, Co-Founder and Managing Director of specialist healthcare investment bank Vertess Advisors. Brad shares his journey from employee to CEO of a durable medical equipment provider to co-founding Vertess. We discuss the challenges entrepreneurs face in the complex industry of healthcare mergers and acquisitions. Smith highlights the importance of home care, the potential opportunities in fragmented markets, and the necessity for managing directors to have a background in operations, entrepreneurship, or clinical work to add value. The impacts of COVID on the healthcare landscape and the importance of cultural fit and terms in business deals are also explored. Vertess is a healthcare-focused Mergers + Acquisitions (M+A) advisory firm that helps owners increase their company’s financial value and negotiate the best price when they decide to sell their own company or grow through acquisition. Their expertise spans the healthcare vertical, ranging from behavioral health and intellectual/developmental disabilities to DME, pharmacies, home care/hospice, urgent care, life sciences, and other specialized services and products. This podcast is produced by 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 M&A advisors and professional acquirers. 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, drop us a review on Apple or Spotify. If you’d like to go deeper, head to Axial.com, where we make available dozens of recorded Axial member roundtables, downloadable tools for dealmakers, quarterly league-table rankings, and other useful information for buyers and builders. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Discussion points: Brad’s intro and background, transition from employee to CEO Importance of empowering employees and making their own decisions Benefits of inorganic growth strategies through acquisitions The transition from employee to entrepreneur in healthcare Private equity's changing landscape over the past two decades Brad’s unconventional business exit and how it came about Importance of home care and long-term sustainable approach Potential opportunities in fragmented markets for healthcare Streamlining businesses and promoting innovation through private equity Prioritizing cultural fit and terms over price in deals Uncovering new opportunities with a fresh M&A perspective Brad’s take on search funds Brad’s grandfather’s business acumen and work ethic as his inspiration

In this episode, Peter Lehrman sits down with Walker Deibel, a serial acquisition entrepreneur, successful small business M&A advisor and author of the canonical work Buy Then Build, How Acquisition Entrepreneurs Outsmart the Startup Game. Walker is also the founder of Acquisition Lab, an acquisition entrepreneur incubator. He has acquired seven companies over ten years and co-founded several startups. His bestselling book, Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game, was recognized by Forbes as “one of the top 7 books all entrepreneurs must read,” and is currently being used in many universities. Walker discusses his journey into the world of acquisition entrepreneurship and the creation of the Acquisition Lab. You’ll hear his experiences in acquiring and building businesses, and how he has developed tools and resources for aspiring entrepreneurs seeking success in small business M&A. The Acquisition Lab supports potential business buyers by providing a common language, tools, and analysis, as well as case studies and peer group support. This podcast is produced by the team at Axial (www.axial.com). Axial is a trusted online M&A platform that makes it easy for small business owners and their M&A advisors to confidentially research and connect with vetted acquirers and capital partners. I am your host, Peter Lehrman, Founder and CEO of Axial. In every episode, I 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, pls consider 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. Discussion points: The genesis of the idea for "Buy, Then Build" Walker’s grandfather warned against certain business practices Conducting interviews to create foundational frameworks Creation of the Acquisition Lab and its curriculum Building a common language, tools, and analysis for potential business buyers World-class winners in the business of M&A Coaching around record-keeping and accounting in small businesses The importance of having a broker in the small business M&A process Valuation gaps and understanding private capital markets The future of acquisition entrepreneurship and the impact of network externalities on the M&A space Contact us with your podcast topic ideas! Resources:   Book: Buy, Then Build Acquisition Lab Veritas Prep Code Smith Quiet Light Brokerage Peter Lehrman LinkedIn Axial Website

My guest today is David Eshaghian, Founder of Panther Equity Group. Panther Equity pursues investments in lower middle market businesses generally providing mission-critical services, products, and solutions. David’s responsibilities at Panther include deal sourcing and qualification, transaction execution, firm strategy, portfolio management, and investor relations. Before Panther Equity Group, David was the CEO of a Managed IT Services Provider (MSP), formerly known as The Tech Info Group (‘TTIG’) which he acquired in 2017 through a self-funded search fund vehicle. In 2020, David merged TTIG with a California-based ISP / CLEC to create a comprehensive Technology Service Provider – ‘InfoNetworks’. Previously, David was an M&A banker at Guggenheim advising both public and private companies on strategic transactions. David is a California native and graduated magna cum laude from the University of Southern California’s Marshall School of Business. In this episode, we walk through David’s origin story chapter by chapter, starting with his self-funded search fund. We cover deal sourcing and how he sourced TTIG, how outsourcing customer service functions to Serbia saved 70% in labor costs, the exit story for TTIG, and how he is orienting the development of his investment firm Panther Equity Group. This podcast is produced by 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 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 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. Discussion points: ●  David’s background and war stories as a CEO ●  Biggest changes as CEO - standardizing SLAs with customers ●  Leveraging remote talent in Serbia for most customer service issues ●  Hiring executive-level talent to build an organization beyond David ●  2020 - the exit timeline, Covid, and going remote ●  How TTIG merged with a key vendor came ●  The decision to found Panther Equity Group ●  2022’s interest rate increases and their impact on deal structure ●   David’s thoughts and plans for Panther Equity Group Resources: David Eshaghian LinkedInPanther Equity GroupPeter Lehrman LinkedInAxial Website

My guest today is Nathan Chandrasekaran, Co-Founder and Partner at Columbia River Partners (CRP). We start by discussing the impetus that pushed Nathan to leave behind a comfortable and prestigious career path in NYC at middle market private equity firm TZP Group.  From there, we hear all about the entrepreneurial risks, opportunities and considerations associated with building an independent private equity sponsor.  You’ll hear about the point at which Nathan decided to start his own firm, advice for others considering this type of career move, and hear Nathan’s very detailed answers to some questions around the processes his team has established for deal sourcing, raising LP capital, and generally defining priorities at CRP. Discussion points include: ●  Nathan’s background and decision to leave ●  Nathan’s thoughts on how to go out on your own ●  Developing investment themes and criteria at CRP ●  Deal-by-deal structure vs. fund model considerations ●  Prioritizing new deals vs add-ons in 2023 ●  Raising LP capital and the terms that matter - economics, governance, reference ●  Previous and current approaches to winning deals ●  Seller financing, avoiding long difficult earnouts, creating a larger incentive pool ●  Talent and building the team at CRP CRP now has multiple companies under its umbrella including Sagetech Avionics, Tinifiber, and Business Solution Partners. The firm focuses on industries like Hardware Components/Manufacturing, Hardware/Software Distribution, Industrial Technology, and IT Services - all in North America. CRP is passionate about people and introducing technology to traditional business models. This podcast is produced by 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 M&A advisors and vetted 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 proven and 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 get started using Axial for free at Axial.com.   Resources: Nathan Chandrasekaran LinkedIn Columbia River Partners  Peter Lehrman LinkedIn Axial Website

My guest today is Linda Rose, of RoseBiz, Inc. A tax accountant by training, Linda left the accounting world behind early in her career and became a repeat entrepreneur with multiple exits in the world of IT Services. After her last exit, Linda wrote the book “Get Acquired for Millions,” in which she laid out many of her lessons learned from her three exits.   The book accidentally spawned Linda’s third major career chapter as a specialized M&A Advisor advising IT Services entrepreneurs. It was in this context that I got to know Linda given her use of the Axial platform on her sell-side M&A assignments.  In this episode, you’ll hear about Linda’s early days in accounting, her strategies, tools, and protocols around preparing a company for sale, her surprising views on “women-owned” businesses, and an in-depth discussion on how Linda screens sellers and buyers to find exactly the right fit for all parties. Discussion points: Linda’s background and journey to her current success Transitioning her IT Services to a 97% recurring revenue model The ERP CRM firm and three-year contracts, different margins, and multiples Hiring an M&A advisor to help find buyers Linda’s selling protocols and strategies Becoming an advisor was not planned A value assessment tool for companies Linda’s book continues to provide value for readers The 6 Types of IT channel partners What drives appeal and value in each category Revenue vs. other value drivers, multiple channels Getting financials in order for Linda’s boutique clientele Screening potential clients starts with a phone conversation Considering buyers - a combination of factors determines the right fit The weekly barrage of interested buyer inquiries “Women-owned businesses” and the exit challenges they create Timelines on deals - calendar year start, March to market, finish before holidays This podcast is produced by 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 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, please consider giving us a thumbs up on Apple or Spotify. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. There you will also find dozens of recorded Axial member roundtables, downloadable tools for dealmakers, quarterly lower middle market league-table rankings, and lots of other checklists and useful information. Click the link below to join the podcast newsletter list, where we’ll notify you each time a new episode gets published. Subscribe to the Masters in Small Business M&A Podcast  Resources: Linda Rose on Axial Rosebiz, Inc. Book: Get Acquired for Millions Linda Rose LinkedIn Peter Lehrman LinkedIn Axial Website