Top M&A Entrepreneurs

Jordan Evans, an accidental M&A Roll-Up entrepreneur, shares his journey of acquiring his family's language service business and turning it into a successful roll-up strategy. He discusses the importance of earning and learning while working for someone else, the value of self-teaching and optimizing for roles that provide real-world experience. Jordan emphasizes the need to be willing to do every role in a small business and the importance of understanding cash flow and financials. He also shares his experience with buying multiple businesses, the challenges and successes of the roll-up strategy, and the importance of building relationships with brokers and sellers. In this conversation, Jon Stoddard discusses his experience with acquiring and integrating multiple businesses. He shares insights on the challenges and strategies involved in the acquisition process, including finding the right deals, managing integration and personnel changes, and dealing with difficult sellers. He also emphasizes the importance of focusing on people and building trust with the acquired companies. Jon highlights the benefits of outsourcing and hiring overseas, particularly in Latin America, to reduce labor costs and improve cash flow. He also discusses the role of off-the-shelf software in streamlining operations and maximizing efficiency. Jon concludes by sharing his plans for future acquisitions and the potential for growth in the fragmented service industry.

Keywords

roll-up strategy, language service business, acquiring a business, earning and learning, self-teaching, real-world experience, cash flow, financials, buying businesses, challenges, successes, relationships with brokers and sellers, acquisitions, integration, personnel, outsourcing, cash flow, software, growth

Chapters

00:00 Introduction and Background
02:38 Transitioning from Employee to Entrepreneur
08:26 The Benefits of Buying a Business
14:44 Lessons Learned and Challenges Faced
29:45 Creating Generational Wealth
36:18 The Importance of Sales and Representation
37:14 Navigating the Acquisition Process
39:06 Building Trust and Maintaining Goodwill
40:05 Maximizing Cash Flow through Outsourcing
44:16 Expanding the Scope of Acquisitions
48:03 Challenges with Working Capital
52:46 The Benefits of Off-the-Shelf Software
56:06 Overcoming Blind Spots and Evolving as a Leader
01:02:43 The Journey of Finding the Right Deals
01:04:40 Walking Away from a Deal
01:06:01 Reassessing Capital Allocation

Ross Turner Raised $235 Million for Ecomm Acquisitions in the Women's niche

Summary

Ross Turner shares his journey from digital marketing to raising $235 Million for acquiring e-commerce companies. He started in direct response and grew a successful survivalist company before transitioning to direct response e-commerce.

Ross emphasizes the importance of copywriting and driving traffic to generate revenue. He also discusses the value of paying for courses and finding the right business partner. Ross and his partner have created a roadmap to build a billion-dollar enterprise value company.

They have secured support from investors and are expanding their business by opening new offices and exploring project financing and corporate bonds. Ross Turner shares his journey of navigating the e-commerce landscape and building a portfolio of successful companies. He emphasizes the importance of understanding the industry's language and terminology and the value of learning by doing.

Ross discusses the scalability strategy his organization employs and the key pillars for driving profit in e-commerce businesses. He also highlights the significance of women leadership in achieving growth and success. Ross shares his long-term goals and exit strategy, aiming to sell the company for a billion or more and impact the underserved SME market. He emphasizes the importance of building the right team and cultural fit and preparing for potential challenges and black swan events.

Duke Heninger's journey from CFO to acquisition entrepreneur is a tale of resilience, adaptation, and learning. Taking on a failing restoration company, Duke faced the steep challenges of an industry built on trust and relationships, grappling with cash flow issues and operational hurdles.

An unexpected large job opportunity provided a lifeline, allowing him to stabilize the business temporarily. However, the relentless challenges of sales, finances, and the impacts of COVID-19 led
Duke to a critical decision: selling the company.

This journey, filled with regret, trials, taught him invaluable lessons on due diligence, cash forecasting, and the essence of building genuine relationships.

Now a fractional CFO, Duke's experiences have equipped him to guide other entrepreneurs through their financial challenges with empathy and effectiveness. #Entrepreneurship #Resilience #BusinessGrowth #Leadership

Achieving Success in the Lower Middle Market: an Interview with CEO Sier Capital Partners, Kevin Ramsier

Summary

Kevin Ramsier, CEO of Sier Capital Partners and Rival Capital, shares his journey in the M&A industry. He discusses his background and the motivation behind starting his own business. Ramsier reflects on the importance of aligning personal values with business decisions. He shares his experience of buying and selling companies, including SWOT Environmental and Sage Integration. Ramsier also discusses the role of partnerships and relationships in finding deals and the importance of buying businesses at the right price. In this conversation, Kevin Ramsier discusses the due diligence process, deal sourcing, building relationships with sellers, and working with unmotivated sellers. He also talks about flexible deal structures, managing sellers through change, and maintaining confidentiality in deal discussions. Kevin shares insights on understanding seller goals, challenges of transitioning ownership, and handling disagreements and respect in partnerships. He explains how to select partners, evaluate potential deals, and assess financials and growth prospects. He also highlights the strategic competitive advantage in the greenhouse industry and the importance of capitalizing the business and preparing for headwinds. The conversation concludes with a discussion on partnership structure.


Takeaways

• Aligning personal values with business decisions is crucial for long-term happiness and success.
• Building relationships with family offices, private equity firms, and other professionals can lead to deal opportunities.
• Timing and pricing are key factors in successful acquisitions.
• Having a clear growth strategy and leveraging unfair advantages can drive business success. The due diligence process involves legal due diligence, insurance and risk due diligence, and quality of earnings due diligence.
• Building relationships with sellers is crucial for deal sourcing, with half of the deals being off-market and the other half coming from failed processes.
• Flexible deal structures, such as allowing sellers to roll equity and providing strategic guidance, can be attractive to sellers.
• Managing sellers through the transition involves understanding their goals, being patient, and providing support and creative solutions.
• Confidentiality is maintained through signing NDAs and emphasizing the importance of trust and respect.
• Understanding the seller's financials, growth prospects, and strategic competitive advantage are key factors in evaluating potential deals.
• The greenhouse industry offers growth opportunities, particularly in design, build, maintenance, and repair verticals.
• Properly capitalizing the business and preparing for headwinds are essential for long-term success.
• Selecting partners requires finding complementary skills and personalities that align with the company's vision and values.

Proof of Funds & Down Payment Investors for SMB Business Buyers: A Capital Raise Solution

Summary

William Fry, CEO of Mainshares and founder of Beacon Business Brokerage, discusses how Mainshares helps SMB buyers close the gap in equity funding. Mainshares provides a network of credit investors interested in owning a piece of SMBs, allowing searchers to find additional equity infusion to complete acquisitions. Mainshares assists in structuring the deal, providing standardized investment documents, and facilitating compliance. The platform also offers tools to manage the capital raise and access to investors. Fry advises entrepreneurs to start early, build relationships with investors, and create a cohesive narrative for the capital raise. He emphasizes the importance of transparency, momentum, and prioritizing anchor investors. The conversation explores various aspects of raising capital and working with a broker dealer. It also discusses compensation for referrals and the trend of all equity deals in the future.

"Mainshares is a platform for entrepreneurs and investors. Broker-dealer services provided in connection with some of the investment opportunities on the Mainshares platform are offered through Main Street Securities LLC, a registered broker-dealer, affiliate of Mainshares, and member of FINRA/SIPC. For additional information, please contact your licensed securities representative of Main Street Securities LLC or visit FINRA’s BrokerCheck."


Chapters

00:00 Introduction to MainShares and Beacon Business Brokerage
01:02 The Problem of Closing the Gap in Equity Funding
02:01 MainShares' Role in Capital Raising and Deal Closing
03:01 Structuring the Deal and Identifying Investor Preferences
04:20 Standardizing Investment Documents and Compliance
05:42 Differentiating Between Transactional and Strategic Investors
06:29 Flexibility in Working with MainShares and Other Investors
07:20 Pricing Options for Entrepreneurs on MainShares
08:13 Comparison to Other Investment Platforms
08:18 Timing and Preparing for the Capital Raise
09:34 Early Engagement and Building Relationships with Investors
10:04 Structuring the Equity Raise for Different Business Types
12:28 Preparing for Investor Exits and Liquidity Events
13:11 Considerations for Overvaluing a Business
15:18 Creating a Narrative for the Investment Structure
16:32 Proof of Funds and Pre-Qualification Letters
17:58 Creating FOMO (Fear of Missing Out) Among Investors
19:10 Timeline and Closing the Capital Raise
21:20 Crafting a Cohesive Capital Raising Narrative
23:47 Avoiding Over-Engineering the Deal and Focusing on Operations
25:46 Reaching Out to Investors and Creating Momentum
28:26 Attracting Investors for Niche Businesses
31:13 Creating Urgency and Closing the Capital Raise
34:41 Coaching Blue Collar Operators in Raising Capital
36:40 Transparency and Timelines in the Capital Raise
38:31 MainShares' Approach to Growing the Investor Network
40:51 Working with a Broker Dealer
43:04 Compensation for Referrals
44:14 Raising Capital with Debt or Equity
45:44 The Rise of All Equity Deals

I finally nailed Michael Byars down for an Interview! From Single Family Home Real Estate Portfolio to 22 Vertically Integrated Home Services Acquisitions (50+ in 20 plus years)


Summary

In this conversation, Michael Byars shares his journey as a serial entrepreneur and his experience in acquiring and managing multiple companies. He started his entrepreneurial journey with a tech company and later transitioned to the restaurant business. After selling his restaurant, he ventured into real estate and began acquiring companies in various industries, including HVAC, plumbing, and forest mulching. Byars emphasizes the importance of adding value to the companies he acquires and implementing systems and processes to drive growth. He also discusses his approach to advertising and the importance of targeting specific demographics. Additionally, Byars shares his experience in acquiring a coffee chain and the benefits of partnering with someone who has a passion for the industry. In this conversation, Michael Byars shares his experiences acquiring and managing multiple businesses. He discusses how he acquired a coffee shop by reaching out to the owners and negotiating a deal that worked for everyone. He also talks about his acquisition of a mailbox company and the success of the business model. Michael emphasizes the importance of cashflow and building a strong team of talented individuals. He shares a lesson learned from a failed acquisition of a concrete company and highlights the importance of due diligence. Overall, Michael's approach to entrepreneurship is focused on creating win-win situations and building a positive company culture.

Chapters

00:00 Introduction and Background
00:57 Starting the First Company
02:22 Growing and Selling the Tech Company
03:22 Transition to the Restaurant Business
05:03 Challenges and Lessons from the Restaurant Business
06:25 Transition to Real Estate
08:57 Expansion into Other Industries
11:59 Acquiring HVAC and Plumbing Companies
16:23 Financing and Managing Acquisitions
19:42 Managing Multiple Companies
22:35 Growth Strategies and Advertising
28:08 Acquiring a Forest Mulching Company
34:09 Diversification into a Coffee Chain
35:58 Acquiring a Coffee Shop
39:35 Partnership and Responsibilities
42:08 Due Diligence and Financial Integrity
43:30 Acquiring a Mailbox Company
44:47 Success of the Mailbox Business
48:36 The Importance of Cashflow
49:04 Ownership and Cashflow Distribution
52:22 Automating Business Processes
53:05 Lessons from a Failed Concrete Company Acquisition
57:46 Managing Multiple Companies

100% Seller-Financed $8 Million Dollar Deal to Raising a $100 Million Acquisition Fund

Summary

Renan Cortez, known as the unicorn guy, shares his journey of buying an $8 million Restore Pro Franchise business with 100% seller financing and his subsequent launch of Syndicate Venture Group. He discusses the importance of building relationships with sellers, using a virtual assistant to find off-market deals, and evaluating financing options. Renan emphasizes the benefits of seller financing and explains how he calculates the net profit for the seller. He also shares his strategy of targeting larger acquisitions in the capital improvements and restoration niche. Renan highlights the importance of networking, raising capital, and staying focused on niche markets for higher multiples. Renan Cortez shares his experiences and insights in building a successful investment fund. He emphasizes the importance of networking and being in the right room to meet influential people. Through his connections, he was able to meet Joe Williams of Keller Williams and Harry Doblinski, a prominent figure in private equity. Renan also discusses the process of building a legal team and the importance of having reputable professionals. He explains his fund structure and offering, focusing on simplicity and realistic return expectations. Renan highlights the challenge of growing too fast and the need for a strong team to support the growth. He also emphasizes the importance of checking ego and surrounding oneself with the right people. Renan's wife is a significant source of support in his journey. He encourages listeners to reach out to him for networking opportunities.

Takeaways

Building relationships with sellers is crucial in acquiring businesses.
Using a virtual assistant can help find off-market deals and save time.
Seller financing can be a viable option for acquiring businesses.
Calculating the net profit for the seller and presenting the benefits of seller financing can help secure deals.
Focusing on niche markets and targeting larger acquisitions can lead to higher multiples. Networking and being in the right room can lead to valuable connections and opportunities.
Building a reputable legal team is crucial for an investment fund.
Simplicity and realistic return expectations are important in fund structure and offering.
Growing too fast can be a challenge and requires careful planning and a strong team.
Checking ego and surrounding oneself with the right people is essential for success.
Having a supportive spouse can make a significant difference in one's journey.
Reach out and network with others to expand opportunities.

Boring Business: Big Success Building a HVAC Empire with John Akhoian

Summary

John Akhoian, the founder of Rooter Hero Plumbing, shares his journey of starting and growing his plumbing and HVAC company through acquisitions and rapid expansion. He discusses the strategy behind acquiring other companies, the importance of targeting specific demographics, and the challenges of managing multiple locations. John also highlights the equity packages offered to employees and the goal of creating 100 millionaires within the company. Overall, Rooter Hero Plumbing focuses on providing excellent customer service and creating a positive work environment for its employees.

Takeaways

Rooter Hero Plumbing has experienced rapid growth through acquisitions and strategic expansion.
The company focuses on targeting specific demographics and providing excellent customer service.
Rooter Hero Plumbing offers equity packages to employees and aims to create 100 millionaires within the company.
The founder emphasizes the importance of mentorship and networking for personal and professional growth.

Chapters

00:00 Introduction and Background
01:09 Starting Rooter Hero Plumbing
02:05 Expansion and Acquisition Strategy
03:12 Acquiring Specialty Contracting Group
04:22 Acquiring Can Do Plumbing
05:19 Acquiring HVAC Companies
06:38 Number of Locations and Average Revenue
07:04 Target Demographics for Expansion
08:20 Equity Packages and Future Plans
12:26 Number of Trucks and Employees for Revenue Generation
19:11 Pricing Strategy and Unit Level Economics
20:17 Acquisition Process and Funding
26:44 Challenges and Mentorship
31:11 Employee Turnover and Hiring Criteria
35:29 Compensation for Technicians
36:13 Goal of Creating Millionaires

Summary

In this conversation, Sharon Heaton, an M&A advisor, discusses various aspects of selling a business. She emphasizes the importance of building a transferable company and transitioning from an owner-dependent to a management-driven company. Sharon also explains the factors that affect the valuation of a business, including EBITDA and company characteristics. She provides insights into valuations in government contracting and the challenges of earnouts. Additionally, Sharon discusses the contentious issue of networking capital and the tax considerations involved in converting ordinary income to capital gains. In this conversation, Jon Stoddard and Sharon Heaton discuss the topic of seller financing and its implications for capital gains tax. They explore the concept of the installment sale doctrine and how it allows for the payment of taxes over time. They also highlight the importance of having an interest rate on seller financing to differentiate between ordinary income and capital gains. Overall, the conversation provides valuable insights into the tax considerations involved in seller financing.

Takeaways

Building a transferable company is crucial when considering selling a business.
Transitioning from an owner-dependent to a management-driven company increases the value of the business.
Factors such as EBITDA and company characteristics impact the valuation of a business.
Understanding valuations in government contracting requires industry-specific knowledge.
Earnouts can be challenging to structure and should be fair and clear.
Networking capital is essential for the functioning of a business and should be neither an increase nor decrease to the purchase price.
Converting ordinary income to capital gains can result in significant tax savings. Seller financing can be a strategy to manage capital gains tax by spreading the tax liability over a period of time.
The installment sale doctrine allows for the payment of taxes on seller financing as it is received, rather than upfront.
Having an interest rate on seller financing helps differentiate between ordinary income and capital gains.
It is important to consider the potential risks and benefits of paying taxes over time, as tax rates may fluctuate.

Chapters

00:00 Introduction and Background to Sharon
01:13 Deciding to Sell and Understanding the Value of the Company
04:44 Factors Affecting Valuation: EBITDA and Company Characteristics
07:06 Importance of Building a Transferable Company
08:49 Transitioning from Owner-Dependent to Management-Driven Company
10:12 Scoring Characteristics of a Business for Valuation
12:56 Negotiating the Purchase Price and Value of the Company
14:55 Determining Market Comps and Valuation in Government Contracting
17:35 Factors Driving Valuations in Government Contracting
20:22 Stock Sales vs. Asset Sales in Government Contracting
22:12 Considerations for Strategic Buyers in Government Contracting
24:56 Earnouts and Challenges in Structuring Deals
27:47 Valuation Examples and Importance of Recurring Revenue
35:06 Contentious Issues in M&A: Networking Capital
40:45 Tax Considerations: Converting Ordinary Income to Capital Gains
42:29 Seller Financing and Capital Gains Tax
43:26 The Installment Sale Doctrine
43:54 Paying Taxes Over Time
44:13 Interest Rates on Seller Financing

Summary

In this conversation, Jon Lowrance shares his journey of acquiring companies. He discusses his background in entrepreneurship and the decision to sell his grading and excavating business. Jon emphasizes the importance of taking action and not being afraid to make mistakes. He also highlights the conflict between traditional education and the skills needed for entrepreneurship. Jon shares the painful experience of selling his business and the lessons he learned from it. He then talks about finding the right business partner and the process of acquiring his first company, a retaining wall business. Finally, he discusses the importance of building connections and trust and evaluating the financials before making a deal. In this conversation, Jon Lowrance shares his experience and strategies for acquiring companies with growth potential. He discusses the process of negotiating the purchase, including valuing the business based on EBITDA and owner financing. Jon also talks about the importance of cleaning up the books and improving profitability after taking over the business. He highlights the need to increase prices and manage cash flow to pay down debt. Jon explains how he grew the business by adding crews and improving marketing. He emphasizes the importance of hiring a general manager and shares his approach to interviewing and assessing candidates. Finally, Jon discusses his plans for future acquisitions and financing. In this conversation, Jon Lowrance discusses the importance of learning through experience when it comes to running and buying businesses. He emphasizes that while academic knowledge is valuable, actually owning a business is the most important aspect for an entrepreneur. The conversation also touches on the difference between serial acquirers and one-time buyers, as well as the role of the owner operator in a business.




Chapters
00:00 Introduction and Background
00:37 Starting the Acquisition Journey
01:59 Selling the Grading and Excavating Business
05:44 The Importance of Taking Action
08:34 The Conflict Between Education and Entrepreneurship
11:22 The Painful Experience of Selling the Business
17:33 Finding the Right Business Partner
19:50 Acquiring the First Company: Retai