What I Learned Last Week 4.5.2024
Curating the best M&A, SMB, and EtA-related content since 2020.
Hello Friends!
In this week’s issue of What I Learned Last Week:
📰 Articles
🧵 Best of X (Twitter)
🤔 Other - Capital Raising, EtA Bubble
🗓️ Events
⚒️ Tools & Resources
💡 How I Can Help
This issue of The Business Inquirer is sponsored by:
Maximize Value, Minimize Costs: M&A Legal Solutions Tailored to Your Budget
At Sterrett Law, we offer Manhattan and Boston experience at Vermont prices (And yes, we're based in Vermont). Specializing in deals under $10 million, we're your go-to partner for navigating the complexities of mergers and acquisitions without the hefty price tag.
Ready to make your next move? Schedule your free consultation today!
📰 Articles
Building a proprietary search funnel as a self-funded searcher
Starting a self-funded search for a business to acquire involves strategic planning and resourcefulness. Define your niche based on your interests and expertise, and leverage both digital tools and in-person networking to identify opportunities. Building relationships with industry professionals and content marketing are vital steps. Persistence and a systematic approach to communication and outreach can compensate for limited resources, positioning you for success.
Key insights include:
Identifying and focusing on a specific niche.
Utilizing a simple yet effective tech stack for communication and monitoring.
The importance of personal and digital networking.
Respectful and direct outreach to potential sellers.
The emerging role of content marketing in establishing industry authority.
Leveraging relationships for referrals and optimizing the search process.
Persistence and adaptability as key attributes for success.
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7 mistakes I've seen business buyers make (and two common mistakes owners make)
The article highlights common missteps business buyers often make, such as underestimating the need for a smooth transition, misaligning incentives, and not fully appreciating the business's value beyond its price. It also touches on seller-specific mistakes, including not seeking specialized legal and tax advice. The piece serves as a guide to navigate the complexities of buying and selling businesses, aiming to help parties avoid these pitfalls for more successful transactions.
Key insights include:
Underestimating the importance of transition planning
Misaligning incentives between buyers and sellers
Overlooking the business's intrinsic value beyond price
Failure to recognize the business's growth limitations
Mistakes in appointing a new CEO too hastily
Neglecting customer engagement pre-acquisition
The risk of overpaying for the business
Sellers not choosing specialized legal and tax advice
🧵 Best of X (Twitter)
Advisor, attorney, and lender are usually top of mind…
A good review of a restoration franchise…
This feels like the next failed Amazon aggregator story. Will be interesting to follow this journey…
On shielding assets prior to applying for the SBA loan…
My post on the difference between basic financial verification and a QofE…
🤔 Other
Capital Raising
I talk to a lot of clients who are looking to raise capital for their acquisitions. Sometimes they’re seeking debt, others are seeking equity (investors). The process seems very cumbersome and time-consuming.
It shouldn’t be.
I recently partnered with DealFlowXchange which is trying to change this.
Here’s their pitch…
Introducing Deal Flow Xchange - a sophisticated social community where deal representatives and capital providers strategically collaborate on equity and debt deals, maintaining a balance of transparency and anonymity. Direct lenders and investors gain streamlined access to a curated selection of pre-qualified opportunities, fostering targeted and efficient engagements. Deal Flow Xchange is redefining capital connections with its professional approach and advanced functionalities. Position yourself at the forefront of this evolution in financial facilitation.
You can use discount code DUEDILIO for 20% off your lifetime use of their platform.
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EtA Bubble
There's been chatter lately around the possibility of a bubble in the EtA sector. Tough to say but the emergence of meme Instagram accounts is certainly worth noting.
Here’s some fun Google Trends search data…
🗓️ Events
West Coast Capital Summit (Apr 9-11) - Huntington Beach, CA
SMBash 2024 (Apr 18-20) - Salt Lake City, UT
INSEAD ETA Conference (May 11) - Fontainebleau Campus, France
M&A Launchpad Conference (May 11) - Houston, TX
IBBA 2024 Annual Conference (May 11-12) - Louisville, KY
Capital Camp (May 21-24) - Columbia, MO
Midwest Deal Summit (May 29-30) - Chicago, IL
Southeast EtA Conference (Sept 6-7) - Washington D.C.
Self-Funded Search Conference (Sept 30-Oct 1) - Dallas, TX
Main Street Summit (Oct 9-10) - Columbia, MO
Annual M&A Institute (Oct 10-11) - Dallas, TX
McGuireWoods Independent Sponsor (Oct 15-16) - Dallas, TX
Texas & The South M&A and Business Symposium (Oct 16-18) - Dallas, TX
National Summit for Middle Market Funds (Oct 27-29) - Palm Beach, FL
🎵 Listening: “The Power“ by Duke Dumont, Zak Abel
How did you like this issue of the newsletter?
⚒️Tools & Resources
I want to share some tools & resources that I have found helpful. Please note that some of these are paid sponsors of the newsletter.
PrivSource - PrivSource helps you source deals and connect with transaction partners without ever paying a success fee.
X5 Deals - Proprietary deal sourcing for a great price. They do the outreach and send you relevant, actionable deals directly into your inbox.
Rejigg - Platform that connects searchers/investors directly with owners of off-market small businesses ($1M - $10M of revenue) considering exits. All deals are sourced by the Rejigg team. Their team adds 7 to 10 new deals each week.
Kumo - 100,000+ deals sourced from thousands of brokers and marketplaces. Plus, AI-powered listings, robust data & analytics, and more. This one is table-stakes for searchers.
Sterrett Law - Manhattan and Boston experience at Vermont prices. Specializing in deals under $10 million, we're your go-to legal partner for navigating the complexities of mergers and acquisitions without the hefty price tag.
Search Fund Coalition - community for the Entrepreneurship Through Acquisition ecosystem. Monthly events and meetups for acquisition entrepreneurs.
Deal Sourcing Guide - a comprehensive list of business marketplaces, brokers, deal origination firms, and more.
💡 How I Can Help
Whenever you’re ready, here are a few ways for us to work together…
Schedule 1:1 consulting on deal sourcing, due diligence, M&A ecosystem, newsletters, entrepreneurship, or anything else you’d like to discuss
Promote your brand to business buyers, investors, SMB owners, and other M&A participants by sponsoring this newsletter
Assemble your M&A deal team with DueDilio
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