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

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

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

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

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

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

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

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