What I Learned Last Week 8.23.2024
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 - Purchased a Scam Business
🗓️ Events
⚒️ Tools & Resources
💡 How I Can Help
This issue of The Business Inquirer is sponsored by:
Close Your Deal Quickly and Efficiently: M&A Legal Solutions Integrating Automation and Project Management
At Sterrett Law, we’ve developed a streamlined process using cutting-edge automation and project management techniques to maximize speed and efficiency. Using templates and a client-centered collaborative process we’ll keep your deal on track and on time.
Ready to make your next move? Schedule your free consultation today!
📰 Articles
I summarize, so you capitalize.
FE International Market Reports
The business brokerage has released its industry reports for the summer of 2024. The reports highlight important developments in various industries such as agencies, AI, ecommerce, EdTech, and more.
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How to Successfully Manage Your First Quality of Earnings (QofE) Engagement
This DueDilio article offers guidance for first-time business buyers on managing a Quality of Earnings (QoE) engagement. It explains the purpose and importance of a QoE report, which assesses a company's financial health to inform acquisition decisions. The article covers how to prepare for the engagement, define its scope, assemble a team, and manage the process effectively, emphasizing communication and addressing common challenges.
Key insights include:
Importance of QoE for accurate valuation and risk mitigation.
Steps to select a provider and budget for the report.
Focus on critical financial areas and integration into overall due diligence.
🧵 Best of X (Twitter)
I scroll, so you don’t have to.
Yes, this is a sales pitch but there are also some good tips for deal sourcing…
Feels like a good setup to see more startups come up for sale…
Navigating the complexities of real estate and business acquisitions can lead to creative and profitable deal structures…
Scaling a seasonal business brings unexpected challenges and valuable lessons that can drive growth and efficiency…
Preparing for the SBA underwriting process requires thorough documentation and planning to ensure a smooth path to securing financing…
🤔 Other
Husband bought a business that turned out to be a scam. What to do?
The Reddit post describes a situation where someone’s husband bought a business that turned out to be involved in fraudulent activities. The previous owner had been voiding customer invoices after receiving payments, leading to multiple lawsuits against the new owner. The husband is considering suing the previous owner but faces challenges due to the business's damaged reputation.
Key insights:
Immediate legal advice is crucial; consult a specialized lawyer.
Since it was an asset purchase, liability may be limited.
Rebuilding the business's reputation is essential, possibly by addressing customer grievances.
Investigate options for voiding the sale due to fraud.
This is a good cautionary tale. Without knowing all the specifics, it does seem like conducting thorough due diligence would have uncovered at least some of these issues.
🗓️ Events
Southeast EtA Conference (Sept 6-7) - Washington D.C.
Independent Sponsor Forum (Sept 12) - Chicago, IL
Self-Funded Search Conference (Sept 14-15) - Dallas, TX
Main Street Summit (Oct 9-10) - Columbia, MO
Annual M&A Institute (Oct 10-11) - Dallas, TX
Rice EtA Conference (Oct 13-14) - Houston, 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
Booth-Kellogg EtA Conference (Nov 4) - Chicago, IL
HoldCo Conference (Mar 31-Apr 3 2025) - Sundance, UT
🎵 Listening: “Les Gout“ by Rampa, Chuala, Keinemusik 🎵
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 or affiliates 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 ($200k - $3M EBITDA) considering exits. All deals are sourced by the Rejigg team. Their team adds 15 to 20 new deals each week.
Kumo - 100,000+ deals sourced from thousands of brokers and marketplaces. Plus, AI-powered listings, robust data & analytics, and more.
DealFlowXchange - The premier private capital funding community for raising and deploying capital. Use discount code DUEDILIO for 20% off your lifetime membership.
Sterrett Law - At Sterrett Law, we offer Manhattan and Boston experience at Vermont prices. 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
BizNexus - Marketplace + off-market origination in one platform. The marketplace averages about 10k active listings & pre-CIM opportunities, and the off-market origination focuses on data & multi-channel.
Secret - Say goodbye to overspending on SaaS. With Secret, you get access to up to $1,000,000+ in savings on the best software to run your search, operate, and scale your business.
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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