The M&A Mastermind Podcast

The M&A Mastermind Podcast - Episode 53 - Data-driven insights focusing on PE trends

In this episode of the M&A Mastermind podcast, host Nick Olsen welcomes back Andy Jones from Private Equity Info. They discuss the evolution of M&A, focusing on data-driven insights, transaction volumes, deal sizes, and the impact of government policy on the private equity landscape. Andy shares valuable statistics and trends, including the shift towards add-on investments and the implications of longer holding periods for private equity firms. The conversation highlights the importance of understanding market dynamics and adapting strategies accordingly.
Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.
 
Some Key takeaways include:
Private Equity Info is a valuable resource for M&A research.
Contacting the right person at a firm is crucial for success.
Transaction volumes have fluctuated significantly over the years.
Government policy and Fed actions heavily influence M&A activity.
Add-on investments are becoming more prevalent than platform acquisitions.
The median holding period for investments has increased to 5.7 years.
Private equity is shifting focus towards software and healthcare industries.
Data-driven insights can guide M&A advisors in their strategies.
Understanding market trends is essential for successful deal-making.
The future of M&A will be shaped by economic conditions and capital availability.
 
About the show:
The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.
The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.
With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.
 
Chapters:
00:00 Introduction to Private Equity Info and Andy Jones
03:10 Data-Driven Insights in M&A
06:07 Transaction Volumes and Market Trends
08:56 Deal Size Shifts and Market Dynamics
11:53 Platform vs. Add-On Investments
15:05 Holding Periods and Their Implications
18:08 Industry Focus and Trends in Private Equity
21:01 Macro Impact of Government Policy on M&A
23:53 Conclusion and Future Outlook
 
Keywords: Private Equity, M&A, Transaction Volumes, Deal Size, Market Trends, Data Insights, Industry Focus, Government Policy, Holding Periods, Add-On Investments

The M&A Mastermind Podcast - Episode 52 - The Importance of People & Teams in a Transition

In this conversation, Nick Olsen and Ryan Holder discuss the importance of people in the sale of a business. They emphasize that the value of a company lies in its management team and employees. Buyers, especially private equity groups, look for companies with strong management teams that can continue to run the business successfully. The conversation highlights the need for business owners to build value through their employees and prepare their company for a sale by transitioning knowledge, relationships, and responsibilities to the management team. It also emphasizes the importance of effective communication with employees during the sale process.
Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.
 
Some Key takeaways include:
The value of a company lies in its management team and employees.
Buyers, especially private equity groups, look for companies with strong management teams.
Business owners should transfer knowledge, relationships, and responsibilities to the management team to prepare for a sale.
Effective communication with employees during the sale process is crucial.
Investing in people and building a strong management team increases the value of a business.
 
About the show:
The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.
The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.
With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.
 
Chapters:
00:00 Introduction
03:33 The Importance of People in the Sale of a Business
15:19 Building Value Through Employees
24:01 Preparing Your Company for a Sale
31:51 Effective Communication with Employees During the Sale Process
46:23 Investing in People: Increasing the Value of Your Business
 
Keywords: People, sale of a business, value, management team, employees, private equity, transition, communication

The M&A Mastermind Podcast - Episode 51 - Reps and Warranties and Why You Need to Know About It

In this episode of the M&A Mastermind Podcast, host Nick Olsen interviews Patrick Stroth, a national practice leader for M&A at Liberty Company Insurance Brokerage. They discuss the importance of reps and warranties in M&A deals and how it can benefit both buyers and sellers. Patrick explains that reps and warranties are disclosures made by the seller to the buyer about the condition and value of the company being sold. If any of these disclosures are inaccurate and result in financial loss for the buyer, the buyer can seek compensation from the seller.
Patrick also introduces TLPE, a sell-side policy offered by CFC, which provides insurance coverage for sellers in lower middle market deals. He emphasizes that this policy is a valuable tool for sell-side advisors to protect their clients and negotiate better terms with buyers. Patrick also explains the process of obtaining this insurance policy and the types of industries it covers.
Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.
 
Some Key takeaways include:
Reps and warranties are disclosures made by the seller to the buyer about the condition and value of the company being sold.
TLPE is a sell-side policy offered by CFC that provides insurance coverage for sellers in lower middle market deals.
Sell-side advisors can use TLPE as a valuable tool to protect their clients and negotiate better terms with buyers.
The process of obtaining TLPE insurance is simple and can be done in a couple of days.
TLPE insurance is available for a wide range of industries in the lower middle market.
 
About the show:
The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.
The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.
With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.
 
Chapters
00:00 Introduction and Background
09:46 The Importance of Reps and Warranties for Business Owners
19:38 The Benefits of TLPE Insurance for Buyers
25:00 Ideal Opportunities for TLPE Insurance
28:00 How to Get Started with TLPE Insurance
 
Keywords: M&A, reps and warranties, insurance, sell-side advisors, TLPE, lower middle market

The M&A Mastermind Podcast - Episode 50 - The Importance of Hiring the Right People

In this episode, Nick Olsen interviews Scott Bushkie, the founder of Cornerstone International Alliance, about what makes a good M&A advisor and the importance of hiring the right people. Scott shares his experience of starting Cornerstone and the challenges he faced in hiring the right team. He emphasizes the importance of building trust with clients and having a team with the right mindset and skillsets. Scott also discusses the benefits of using behavioral science in the hiring process and how it has helped his firm. Overall, the conversation highlights the significance of hiring the right advisors and the impact it can have on the success of an M&A practice. In this conversation, Scott Bushkie and Nick Olsen discuss the importance of hiring the right team and building a strong infrastructure in the M&A industry.
 They emphasize the need for a team of experts who can handle different aspects of the business, allowing for a better quality of life and more efficient processes. They also highlight the importance of focusing on what you do best and delegating other tasks to team members who excel in those areas. Scott shares his experience of building a successful team at Cornerstone Business Services and the impact it has had on his own role within the company. They also discuss the benefits of being part of a network like the Cornerstone International Alliance (CIA) and the value of collaboration and knowledge sharing among industry professionals.
Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.
 
Some Key takeaways include:
Hiring the right M&A advisors is crucial for the success of an M&A practice.
Building trust and rapport with clients is essential in the M&A industry.
Having a team with the right mindset, skillsets, and values is important for success.
Using behavioral science in the hiring process can improve the chances of hiring the right advisors. Hiring the right team and building a strong infrastructure is crucial in the M&A industry.
Delegating tasks to team members who excel in those areas allows for better quality of life and more efficient processes.
Focusing on what you do best and hiring experts in other areas leads to better outcomes.
Being part of a network like the Cornerstone International Alliance (CIA) provides opportunities for collaboration and knowledge sharing.
 
About the show:
The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.
The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.
With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.
 
Chapters
00:00 Introduction
03:06 Building Trust and Rapport in the M&A Industry
05:28 The Role of Mindset and Skillsets in M&A
07:46 Using Behavioral Science in the Hiring Process
15:01 Implications of Not Hiring the Right Fit
18:14 Transitioning to a Structured Hiring Process
20:04 Current Firm Structure and Roles
22:52 The Importance of Hiring the Right Team
24:47 Quality of Life and Overcommitment
29:02 Building a Strong Infrastructure
35:04 The Benefits of Collaboration
38:43 Advice for M&A Firm Owners
 
Keywords: M&A advisor, hiring, team building, trust, behavioral science, M&A, team building, infrastructure, quality of life, efficiency, delegation, expertise, Cornerstone Business Services, Cornerstone International Alliance, collaboration, knowledge sharing

The M&A Mastermind Podcast - Episode 49 - How and When to Sell a Technology Company

Michael Klumpp, a member of Cornerstone International Alliance, discusses the importance of having a strong footprint in the US for technology companies looking to sell. He emphasizes the need for timing in the technology sector and advises potential sellers to look for market activity and growth rates when considering a sale. Klumpp also shares insights on finding the best buyer, deal structures in the IT space, and the challenges of selling a company with high customer concentration. He highlights the importance of having clients and a mix of profitability and growth to attract buyers.
Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.
 
Some Key takeaways include:
Having a strong footprint in the US is crucial for technology companies looking to sell.
Timing is key in the technology sector, and sellers should consider market activity and growth rates.
Finding the best buyer involves approaching both strategic buyers and private equity companies.
Deal structures in the IT space are becoming more complex, often involving vendor notes, earn-outs, and rollover equity.
Selling a company with high customer concentration can be challenging, but finding the right buyer is possible with perseverance and a strong network.
Companies without clients and only one product face a high failure rate in the market, and it is important to focus on achieving a mix of profitability and growth.
 
About the show:
The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.
The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.
With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.
 
Chapters
01:58 Introduction
03:14 The Importance of a Strong Footprint in the US for Technology Companies
05:17 Timing and Market Activity in the Technology Sector
11:46 Finding the Best Buyer: Strategic vs. Private Equity
18:19 Complex Deal Structures in the IT Space
27: 01 Challenges of Selling a Company with High Customer Concentration
31:20 The Importance of Clients and a Mix of Profitability and Growth
 
Keywords: M&A, deal making, technology industry, M&A, sell side, buyer, deal structure, customer concentration, growth rate, profitability

The M&A Mastermind Podcast - Episode 48 - Humanity & Deal Making

In this episode, host Nick Olsen sits down with Sharon Heaton as she discusses the art of successful M&A transactions and the importance of understanding the human side of deal making. She emphasizes that M&A is not just about the numbers, but also about the emotional attachment and life transition for the seller.
Sharon highlights the need for M&A advisors to address the fear and uncertainty that sellers experience and to provide guidance and support throughout the process. She also emphasizes the importance of choosing buyers who have emotional intelligence and respect for the seller's accomplishments. Overall, the conversation explores the psychological aspects of M&A and the role of empathy in successful deal making.
Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.
 
Some Key takeaways include:
M&A is not just about the numbers, but also about the emotional attachment and life transition for the seller.
M&A advisors need to address the fear and uncertainty that sellers experience and provide guidance and support throughout the process.
Choosing buyers with emotional intelligence and respect for the seller's accomplishments is crucial.
Understanding the human side of deal making and practicing empathy can lead to successful M&A transactions.
 
 
About the show:
The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.
The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.
With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.
 
Chapters
00:00 Introduction
01:34 The Art of Successful M&A Transactions
06:11 Addressing Fear and Uncertainty in M&A
08:46 Choosing Buyers with Emotional Intelligence
14:34 Understanding the Human Side of Deal Making
17:53 Exploring Different Deal Structures
20:42 Addressing the Emotional Side of Selling a Business
26:53 The Importance of Transparency in M&A Transactions
31:06 Key Takeaways and Conclusion
 
Keywords: M&A, deal making, art, finance, emotional attachment, life transition, fear, uncertainty, guidance, support, emotional intelligence, empathy, transparency, emotional readiness, due diligence

The M&A Mastermind Podcast - Episode 47 - Increasing Fragmentation in the Middle Market

In this episode of the M&A Mastermind Podcast, host Nick Olsen sits down with Andrew Perlmutter, founder of PE Marketplace, discusses the platform he created to facilitate transactions in the lower middle market. The platform aims to connect buyers and sellers in the 1 to 50 million enterprise value range. Perlmutter explains that the increased emergence of private buyers in the M&A space is driven by factors such as population demographics and the growth of family offices and independent sponsors. PE Marketplace helps M&A advisors by pre-vetting buyers and providing a standardized teaser process, making it easier to find quality potential buyers. The platform also plans to incorporate AI to improve the matching process and offer additional services to users.
Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.
 
 Some Key takeaways include:
PE Marketplace is a platform that connects buyers and sellers in the 1 to 50 million enterprise value range in the lower middle market.
The increased emergence of private buyers in the M&A space is driven by factors such as population demographics and the growth of family offices and independent sponsors.
PE Marketplace helps M&A advisors by pre-vetting buyers and providing a standardized teaser process, making it easier to find quality potential buyers.
The platform plans to incorporate AI to improve the matching process and offer additional services to users.
 
About the show:
The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.
The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.
With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.
 
Chapters:
00:00 Introduction and Background of PE Marketplace
04:06 The Trend of Private Buyers in the M&A Space
09:36 The Value of Time and Efficiency in the M&A Process
13:25 The Role of Technology, AI, and Standardization in M&A
25:05 How to Connect with PE Marketplace and Test the Platform
28:15 The Elevator Pitch for Using PE Marketplace
31:07 Closing Remarks and Call to Action
 
Keywords: M&A, lower middle market, private equity, PE Marketplace, platform, buyers, sellers, private buyers, search funds, family offices, independent sponsors, strategic buyers, technology, AI, efficiency

The M&A Mastermind Podcast - Episode 46 - Planning for Long-Term Value Creation

In this enlightening episode of the M&A Mastermind podcast, host Nick Olsen engages with Mike Mensch, CEO and founding partner of Agency Brokerage Consultants, to delve into the crucial topic of value creation in M&A.
Mike emphasizes the significance of a value creation mindset, advocating for business owners to consistently focus on enhancing their company's worth. The discussion covers the key motivators driving business owners and the common challenges they encounter while striving for growth.
Listeners will gain insights into the four pillars of value creation—strategy, systems, culture, and finances. Mike provides practical solutions to typical issues faced by professional services firms and shares expert advice on scaling an M&A practice. The episode wraps up with a compelling conversation on the advantages of investing in employees to drive long-term success.
Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.
 
Some Key takeaways include:
Always think about increasing the value of your business and have a long-term mindset.
Identify the main motivators for your business and understand why they are important.
The four pillars of value creation are strategy, systems, culture, and finances.
Common challenges in growing a business include owner dependence, lack of growth, bad business model, and poor sales management.
Invest in your employees and create a training program to develop their skills and knowledge.
Building a strong culture is essential for business growth.
Consider transitioning from a 1099 contractor model to an employee model to create more value in your firm.
Invest in systems, processes, and technology to scale your business.
Develop a continuity plan to de-risk owner dependence.
Partner with experts to provide solutions for common issues in your industry.
 
About the show:
The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.
The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.
With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.
 
Chapters:
00:00Introduction and Background
02:59The Value Creation Mindset
07:40Challenges in Business Growth
11:39The Four Pillars of Value Creation
19:19Building a Strong Culture
21:24Managing Finances for Growth
27:38Common Issues in Professional Services Firms
32:31Scaling Up an M&A Practice
35:38Investing in Employees for Long-Term Success
38:47Transitioning to an Employee Model
 
Keywords: Mergers and Acquisitions, M&A, Investment banking, Corporate finance, Sell-side, Valuation, Due diligence, How to sell my business, M&A market trends, M&A advisors, value creation mindset, business growth, strategy, systems, culture, finances, professional services, scaling up, investing in employees

The M&A Mastermind Podcast - Episode 45 - Thesis Approach to Personal Relationships

In this episode of the M&A Mastermind Podcast, host Nick Olsen sits down with Stu Noel, the Director of Business Development at Compass Group. Together, they explore the pivotal role of relationship-building in the M&A industry. Stu shares Compass Group's thesis-driven strategy for identifying promising investment opportunities and stresses the importance of collaboration, transparency, and open communication in forging successful partnerships. Listeners will gain valuable insights into aligning seller's goals with post-close plans and the critical role intermediaries play in the deal-making process. Tune in to learn about the nuances of trust and rapport that can make or break M&A deals.
Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.
 
 Some Key takeaways include:
Building strong relationships is crucial in the M&A industry.
Compass Group uses a thesis-driven approach to identify investment opportunities.
Collaboration, transparency, and open communication are key to successful partnerships.
Understanding the seller's desires and aligning them with post-close plans is essential.
Trust and rapport with intermediaries play a significant role in the deal-making process.
 
About the show:
The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.
The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.
With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.
 
Chapters:
00:00 Introduction and Background
02:09 About Compass Group
07:52 Thesis-Driven Approach and Investment Theses
11:13 Building Relationships with Intermediaries
23:01 Developing Personal Relationships
29:27 Identifying Trusted Intermediaries
35:43 Conclusion and Call to Action
 
 
Keywords: Mergers and Acquisitions, M&A, Investment banking, Corporate finance, Sell-side, Valuation, Due diligence, How to sell my business, M&A market trends, M&A advisors, relationships, collaboration, transparency, thesis-driven approach, investment opportunities, intermediaries, trust

The M&A Mastermind Podcast - Episode 44 - Scaling Up for a Successful Business Exit

In this episode of The M&A Mastermind Podcast, host Nick Olsen sits down with Patrick Burke, a certified Petra coach, to explore the intricacies of the M&A space and the essential steps for business owners preparing for a successful exit. Patrick brings a wealth of knowledge with his background in psychology, law, finance, investment banking, and even owning restaurants.
Patrick dives into how Petra coaches help business owners reduce owner dependency and establish a solid foundation for scaling their businesses. He underscores the importance of preparing for a sale, managing the associated fears, and maintaining ongoing discussions and planning for a seamless transition.
Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.
 
 Some Key takeaways include:
Reducing owner dependency is crucial for preparing a business for sale.
Running a business as if you're going to sell it helps create a strong foundation and more options for the future.
Integration is a critical phase in M&A deals and having a strong operational framework in place can help ensure success.
Coaching and support are important for business owners during the emotional process of selling a business.
Ongoing discussions and planning are necessary to prepare for a successful exit. Petra coaches work with businesses with revenue ranging from 5 million to 100 million and emphasize the importance of having an executive team in place.
Accountability is crucial for business owners to stay on track and achieve their goals.
The two-coach model used by Petra ensures that coaching is not reliant on one person and provides additional support to keep the process on track.
 
About the show:
The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.
The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.
With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.
 
Chapters:
00:00 Introduction and Background
06:19 Patrick's Work with Petra and Owning Restaurants
08:03 Preparing for a Successful Exit
10:09 Reducing Owner Dependency
18:32 The Importance of Integration in M&A Deals
20:37 Supporting Business Owners Through the Emotional Process of Selling
21:07 Integrating Petra's System into the Culture of the Business
23:07 Working with Business Owners: Typical Clients and Getting Started
24:30 Differentiating Petra from EOS: Focus on Executive Teams
25:27 Reducing Owner Dependency and Increasing Enterprise Value
31:45 Identifying Opportunities for Business Improvement
34:05 Tactics to Increase Enterprise Value
36:07 The Role of Mentors and Coaches
45:35 The Two-Coach Model and Resources for Business Improvement
 
Keywords: Mergers and Acquisitions, M&A, Investment banking, Corporate finance, Sell-side, Valuation, Due diligence, How to sell my business, M&A market trends, M&A advisors, Petra, scaling up, owner dependency, integration, financials, business coaching, executive team, accountability, organizational health, owner dependency, enterprise value, two-coach model