Private Market Insights

In this episode of Private Market Insights, host Josh Levine interviews Tristan Maher, an expert in international SMB acquisitions. They discuss the topic of international M&A and the challenges and differences compared to deals in the US. Maher emphasizes the importance of being integrated into the local culture and community, as well as understanding the legal and financial landscape of the country.

In this episode of Private Market Insights, Josh Levine interviews Brad Englert, a technologist, leadership expert, consultant, and author of the book "Spheres of Influence." They discuss the importance of building professional relationships and effective communication in leadership and management. Brad emphasizes the need to understand the goals and aspirations of others, manage expectations, and genuinely care about their success. They also discuss the challenges of stepping into a leadership position in an established organization and how to handle key customer relationships during a business acquisition. Overall, the conversation highlights the importance of intentional and transparent communication in building successful business relationships.

(00:00) Setting the Stage for Professional Relationship Building and Change Management

(02:49) Exploring the Core of Leadership: Communication

(05:01) Navigating Leadership in Acquired Businesses

(11:52) Redefining Corporate Family

(16:12) Building Formal Relationships and Communication Strategies

(20:29) Adapting Quickly in New Organizations

(25:15) Strategic Planning for New Leaders

(31:32) Managing Expectations in Troubled Organizations

(33:35) Facilitating Smooth Business Transitions

(47:21) Celebrating Success and Concluding Thoughts

🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/

💬 Follow us on Twitter: twitter.com/levinejm

🔗 Check out the Spheres of Influence website: https://bradenglert.com/spheres-of-influence/

💬 Follow us on Twitter: twitter.com/englertbrad

Buying and operating a small business can be a challenging and lonely experience. People who are successful often find company in tight communities of entrepreneurs going through the same struggles. For this episode of Private Market Insights, I am talking with master community builder Karen Spencer, a founder of Searchfunder and current Managing Partner of Fetch Strategies. We talk about building and sustaining support networks for searchers and operators.

(00:00) Introduction to Private Market Insights with Special Guest

(01:15) Understanding the Importance of Community in Search Operations

(04:34) The Evolution of the Digital Space(06:15) Advocacy for Diversity, Equity, and Inclusion in Search Community

(10:52) Collaboration in Deal Searching

(16:16) Transactional vs Relational Approaches in Business

(21:33) Transitioning to Entrepreneurship

(27:40) The Success of Search Funder

(32:42) Choosing Startups Over Established Businesses

(35:58) Reflections and Predictions for 2024

🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/

💬 Follow us on Twitter: https://twitter.com/levinejm

🔗 Check out the Fetch Strategies website: https://fetchstrategies.com/

💬 Connect with Karen on LinkedIn: https://www.linkedin.com/in/karenyspencer/

The SMB M&A space has cyclical trends: certain industries become hot, spurring interest, increased activity, and heightened multiples. Longtime market observers can point to trends in dental office and home service M&A rollups as clear examples. Our next guest on Private Market Insights believes that law firms will be the next hot M&A industry due to shifting regulation, spurred by changes in California and Arizona. Watch this latest episode in our M&A series, as we talk with Tom Lenfestey, Founder of the Law Practice Exchange. (00:00) Introduction to Law Firm M&A and Market Trends (01:36) Discussing Regulatory Frameworks and Law Firm Acquisitions (07:06) Innovation in Legal Industry (13:53) Understanding Practice Areas in Law Firms (18:49) Ethics and Regulations in Different Markets (21:52) Understanding Your Niche and Buyer Criteria (25:40) Entrepreneurial Lawyers and Succession Planning (28:42) Innovative Business Models and Strategies (31:27) Successful Business Transaction and Transformation (40:59) Audience Question on Social Capital in Acquiring Firms 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out the Law Practice Exchange website: https://thelawpracticeexchange.com/ 💬 Connect with Tom on LinkedIn: https://www.linkedin.com/in/tomlenfestey/

For sellers, figuring out what your business is worth and how to go about selling it can be very challenging. The lack of transparency around this process can also confuse buyers and lead to misunderstandings at the start of the negotiation process. Fortunately, we're hosting Tom Taulli, M&A expert, author, and founder of BizEquity to help make sense of this process. Tune in to hear Tom discuss his experience with Biz Equity, a company that provides valuations for small businesses, and explains how valuations for SMBs differ from larger companies. He emphasized the importance of considering factors such as future growth potential, owner dependence, and corporate structure when valuing a small business. Tom also shared insights on the seller's mindset and the misconceptions surrounding selling a business. He advised sellers to prepare their financials and documents in advance and highlighted the significance of tax planning in the sale process. (00:00) - Introduction to Private Market Insights (02:18) - Understanding Business Valuation (06:45) - The Importance of Valuation Experts (11:19) - The Challenges of Selling a Business (15:49) - Importance of Corporate Structure (19:33) - Investing in Quality (21:38) - Understanding Good Buyers in Business Transactions (26:17) - The Impact of Economic Downturn on Small Businesses (33:27) - Audience Q&A and Future Predictions (44:19) - Closing Remarks and Call to Action 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out Tom Taulli's M&A book: https://www.amazon.com/Complete-Handbook-Ultimate-Selling-Business/dp/0761535616 💬 Follow Tom Taulli on LinkedIn: https://www.linkedin.com/in/tomtaulli/

In this podcast episode, Josh Levine interviews Lisa Forrest and Sarah Andrews from Live Oak Bank about changes to the SBA 7(a) program and what to expect in 2024. They discuss the implementation process of the changes, the impact on buyers looking to get an SBA loan, and the interpretation of the new rules by different lenders. They also highlight some of the key changes, such as the equity injection requirements, partial buy-in rules, and the removal of the personal resource test. Additionally, they share their thoughts on potential future changes to the program, including the expansion of benefits for underserved communities and the reinstatement of certain policies. The speakers advise buyers to be patient, creative, and solution-oriented in the current market, as multiples remain high while borrowing power decreases. They also emphasize the importance of understanding one's own model and thesis to find deals that align with their goals. (00:00) - Introductions (02:48) - Changes in the National Association of Government Guaranteed Lenders (05:16) - Partial Change of Ownership (09:52) - Understanding Loan Terms and Conditions (15:30) - Interest Rates and Market Dynamics (20:19) - Discussing a Partial Buy-in with Kevin from SMB Law (26:07) - Discussing Key Employee Participation and Ownership Transition (31:12) - Investor Perspectives and Transition Challenges (37:57) - Bank Policies and SOPs (49:14) - Government Shutdown and SBA Lending 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out Live Oak Bank: https://www.liveoakbank.com/ 💬 Follow Lisa Forrest on Twitter: https://twitter.com/LisaGForrest 💬 Follow Sarah Andrews on LinkedIn: https://www.linkedin.com/in/sarah-andrews-22a78364/

In this episode of Private Market Insights, Josh Levine, the co-founder and CEO of Private Market Labs, announces a new partnership with Roman Beylin, the founder of DueDilio. DueDilio is a marketplace that helps people assemble deal teams for the small business M&A due diligence process. Through this partnership, Private Market Labs users will be able to request high-quality vetted due diligence support from DueDilio within the Private Market Labs platform. The conversation covers commonalities among successful buyers, the importance of communication in the due diligence process, the first steps buyers should take after submitting an LOI, and tips for managing a service provider team. Roman also shares advice for buyers on a budget and highlights the need for realistic expectations and a focus on quality in the due diligence process. The episode concludes with a discussion on the differences between ETA entrepreneurs and startup entrepreneurs, as well as predictions for the future of the small business M&A industry. (00:00) New Partnership Announcement: Private Market Labs and DueDilio (01:32) Closing Successful Deals: Insights from Experience (08:17) Understanding Due Diligence in Business Acquisition (15:24) Choosing the Right Attorney (18:26) Quality vs Cost: A New Perspective (22:06) Understanding Transaction Requirements and Cost Management (24:19) Common Mistakes in Business Buying (28:10) Self-Assessment of Entrepreneurial Skills (31:17) The Future of ETA and the Role of Technology (36:35) Cross-Cultural Business Ventures 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out DueDilio: https://duedilio.com 💬 Follow Roman on Twitter: https://twitter.com/romansb1

The SMB acquisitions story often feels like one of consistent success. People acquire cashflowing companies, implement some upgrades, and reap the benefits. This story is about what happens when deals go bad. Hunter Durham's business went bankrupt. He's been transparent and vulnerable online over the last month and is now here to share nuts and bolts lessons from his experience. (00:00) Private Market Insights: A Conversation with Hunter Durham (04:36) Starting a Business and Making the First Purchase (08:04) Exploring Various E-commerce Business Models (14:06) Understanding Market Volatility and Time Management in Business (21:07) Philosophy in Business Decision Making (25:05) Operational Complexity and Leadership Shifts (29:14) Challenges in Hiring and Scaling (38:36) Understanding SSMB Bankruptcy (44:01) Facing Bankruptcy and Liquidation (57:13) Final Thoughts and Last Question 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 💬 Follow Hunter Durham on Twitter: https://twitter.com/huntercdurham

This episode of Private Market Insights is a special one - our Chief Product Officer, Titus Capilnean will join the podcast to talk about the release of the Private Market Labs platform, how it fits into our mission, and people can experience it for themselves. (00:00) - Introduction to Private Market Labs (06:26) - Venturing into Business Ownership (10:57) - Understanding Credit Analysis and Underwriting for SBA Loans (16:33) - Personalized Decision Making and Building a Business (20:59) - The Evolution of Machine Learning and its Impact on Startups (24:57) - Analyzing and Tracking Business Deals (28:39) - Using Search and Edit Features (32:37) - Shifting Business Strategies (37:13) - Diversification and Growth in Search Models (40:44) - Closing Remarks 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 💬 Follow Titus on Twitter: https://twitter.com/titus_k

We know the adage that "time kills deals". However, there are many additional (and more specific) things that kill small business M&A deals besides time. Join us as we discuss the top reasons deals die prematurely with two longtime industry experts, Jared Johnson, SBA lender at First Internet Bank, and Jarryd Osborne, Advisor at ReVera Capital. They'll be sharing some of their experiences over their time in the SMB world, including firsthand experience of why deals don't make it. (00:01) - Introduction to Private Market Insights (04:24) - The Importance of Taking Control in Negotiations (10:39) - Discussing Financials in Brokerage Deals (17:49) - The Importance of a Middleman in Transactions (25:50) - Discussing Deal Valuations (31:27) - Mitigating Valuation Gaps (33:00) - Choosing the Right Lender (40:02) - The Importance of Relationship in Business Transactions (44:49) - Green Flags in Deal Making (54:32) - Closing Remarks and Acknowledgements 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out the First Internet Bank website: http://www.firstib.com/ 💬 Follow Jared Johnson on LinkedIn: https://www.linkedin.com/in/jaredwjohnson/ 🔗 Check out the ReVera Capital website: https://www.reveracapital.com/ 💬 Follow Jarryd Osborne on LinkedIn: https://www.linkedin.com/in/jarryd-osborne-69a0b3a/

We spoke with the Brydon Group's Steve Ressler for this episode of Private Market Insights, our series providing support for search funds, business brokers, business owners, and anyone else engaging in the small business M&A space. We spoke about the pros and cons of using brokered search versus proprietary search, delving into topics such as competition deal sourcing, as well as the costs and outcomes of targeting businesses not on the market.

The state of the economy, specifically interest rates, has a pronounced effect on SBA lending and dealmaking in the small to medium-sized business (SMB) space. As rates increase, businesses become less willing to take on additional debt, and bank lending to SMBs tightens. In contrast, low rates make borrowing more attractive and can encourage M&A activity as buyers have greater access to capital. The current climate of low rates has been a tailwind for the SMB space, but as the Federal Reserve continues to hike rates, that is already changing.  One particularly important reference point for the small business M&A space is the FED rate, particularly when it comes to leveraged deals. 

For our next Twitter Spaces, we will talk about the impact of interest rate hikes, inflation, and how experts are seeing deals get done in the current economic environment. This event took place right after the next FED decision on November 2, so we has recent rate increase facts to discuss with our guest.   Welcome to another episode of Private Market Insights, our Twitter Spaces series where we discuss important topics related to the small business M&A industry. We’re covering a particularly hot topic today: FED rate hikes and the impact of monetary policy on SBA Loans.  

We are excited to host Jared W. Johnson, Vice President at First Internet Bank, where they specialize in nationwide lending solutions for small businesses. Jared is a business acquisition specialist that provides customized solutions to clients nationwide, so he is best positioned to understand the impact of a rising rates environment on lending solutions, and the overall SMB acquisition process. He regularly deals with business acquisition financing between $350,000 and $10,000,000 and was recently named SBA BDO of the year by Coleman Publishing.

We’re thrilled to present our latest Private Market Insights Spaces, where we’re going to talk about the critical months following a business acquisition with Justin Vogt, an SMB Twitter regular, and someone who recently acquired a business and has gone through this phase.

The first 100 days after an acquisition are extremely important to achieving the deal thesis a buyer set out with. It’s a time of expectation setting and of relationship building. Every buyer should go into this time with a plan concerning each functional area of the business – HR, finance, sales, operations etc.

We invited Justin to share his story of acquiring AVUITY and what were some of the learnings, both do-s and don’ts, from the first 100 days after closing on the deal.

About our guest: Justin lives in Austin, Texas where he manages investment activities for Evermore Industries as well as serves on the Board of Directors at AVUITY. Evermore Industries is his holding company that partners with business owners to help them establish a plan for the next generation of their business. AVUITY uses hardware (sensors) and software to measure and help improve real estate utilization (mostly office space today). The business is based in Cincinnati, Ohio and was acquired by Evermore Industries in the spring of 2022.

Before starting Evermore, Justin was an investor with Bain Capital Credit. Justin is a graduate of the University of Notre Dame and the Stanford Graduate School of Business.

We’re excited to present our latest Private Market Insights Spaces, where we’re going to talk about a new way to buy and own a small business, with the help of its employees. Join us for a conversation with Eduardo Cabral, Corporate Development Manager at Obran Cooperative, to talk about the co-op model for acquiring a small business. This series is designed to share details about the technical elements of SMB acquisition and operation. The co-op model for acquisitions is one that has not historically gotten as much attention as the investor and debt-funded search methods popularized by the dominant literature in our industry. However, for many entrepreneurs, we believe the co-op model represents an opportunity from a financial and mission perspective, and we expect to see more employee-driven acquisitions going forward. At Private Market Labs, our goal is to unlock the potential of the small business M&A world. We’re thrilled to partner with Eduardo and Obran, and are excited to have them in the Spaces.

A little more about our guest: Obran is a worker-owned cooperative conglomerate corporation. They exist to grow profitable, useful, and impactful businesses that serve their members, customers, and communities. Their business consists of sector strategies designed to leverage our unique cooperative advantage. As a Corporate Development Manager for Obran, Eduardo builds relationships with partner organizations to further the cooperative’s business and organizational goals. Eduardo developed business development skills at a Harvard Innovation Lab incubated/MassChallenge accelerated startup, as a capital markets analyst at Credit Suisse, and as an associate at Bengal Capital, a $40mm+ AUM cannabis-focused fund. Passionate about reducing wealth and income inequality, he also was an operator for campaigns such as Bernie Sanders for President 2016. Eduardo earned a bachelor’s degree in government from Harvard University. In his free time, Eduardo enjoys volunteering with local tenants’ unions, gaming, and ceramics.

Welcome to the sixth installment of our Private Market Insight series, where we curate technical advice from experts across the industry to serve buyers engaged in the Small Business acquisition process. Today, we're talking with Diana Oprescu Stoica, who is a Senior Manager at PwC, focusing on tax. She has seen hundreds of M&A transactions during her career and is here to share her knowledge about tax issues that might come up in M&A transactions.

Diana is based in San Francisco and has been doing tax for about 11 years now. She started her career in Romania and transferred to the US a few years ago, so her experience is a mix of European and US tax law in her current role. Throughout her career, she has been focused on international M&A tax, advising private equity funds and corporate clients on the tax aspects related to a deal. She engages in the deal process is throughout the entire life cycle, doing the tax due diligence, structuring the transaction, and also providing input on the legal documentation. 

Tune in to the latest episode and learn more about asset vs stock purchases, things to look out for in due diligence and why the way you structure the deal might put the buyer or the seller at an advantage, from a tax liability perspective

In the small business M&A space and in entrepreneurship through acquisition groups, buying a manufacturing business is often not the first topic people talk about. Some even advise against looking in that space due to the specialized nature of equipment, processes etc. 

It’s time to bring in an expert to dispel some of the myths. We have invited David Jones, from 4Ward Manufacturing Solutions, who’s been in the space for over 12 years. Together with Josh Levine, our host and CEO of Private Market Labs, they will talk about the challenges and opportunities of acquiring, owning and operating a manufacturing company. 

At 4Ward, they help companies increase the speed of implementing these programs while reducing associated costs and risks for all parties involved. Tune in and find out more from David by listening to this episode. 

They will be talking about evaluating a manufacturing investment, due diligence requirements and what to look out for, what to do after the acquisition to operate successfully.