What I Learned Last Week 9.22.2023
Curating the best M&A, SMB, and EtA-related content since 2020.
Hello Friends!
I will be on vacation travelling through Japan for the first half of October. Luckily, two readers reached out to me and offered to guest edit the newsletter during this time.
This newsletter was written with the help of Corey and Riley, two searchers looking for digitally native businesses <$2M in total transaction value. If you’re interested in networking, please reach out to corey@skyviewadvisory.com and riley@skyviewadvisory.com.
In this week’s issue of What I Learned Last Week:
📰 Articles
🧵 Best of X (Twitter)
🗓️ Events
⚒️ Tools & Resources
💡 How I Can Help
This issue of The Business Inquirer is sponsored by Smash.vc
Buying a business with the SBA?
Would having a capital partner help?
At Smash.vc, they do two things:
Buy minority stakes in existing small businesses.
Partner with entrepreneurs trying to acquire new ones.
If you're actively looking to buy a cash-flowing business using an SBA loan, hit them up if you'd like a partner.
They contribute capital, give advice, or help with growth when asked... but stay out of the way the rest of the time.
Silent partners there to help when necessary, nothing more.
If interested👉 go say hi.
📰 Articles
Analyzing the Franchise Disclosure Document
A.J. Wasserstein and Graham P. Weihmiller give a full overview and breakdown of the franchise disclosure document (FDD), a key document for anyone considering acquiring or developing a franchise brand
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Autopsy of a Dead Deal
Sometimes deals fall apart for no apparent reason. Every deal has a life of its own so it’s important to see the deal through the seller’s eyes and anticipate key pain points that can kill a deal.
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Working Capital Peg
A key component to many deals, and one that many sellers (and first time buyers) don’t understand from the get-go. This guide can help both sides get out in front of these conversations before too much time and money is sunk into a deal.
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10 Surprising Facts About the Franchise Industry
Franchises are a popular route for ETA entrepreneurs but few have an understanding of the full landscape. Here are some interesting factoids that put a bit of perspective on the industry.
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Antitrust Lawsuit Against PE Roll-Up (WSJ)
The FTC has filed a lawsuit against private equity firm Welsh Carson and its created entity USAP. The suit alleges that they unlawfully acquired most large anesthesiology practices in Texas and engaged in price-setting and market allocation. This resulted in increased costs for anesthesia services, benefiting the executives at the expense of Texas patients and businesses.
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Women in Search 2023
The Women’s Search Network released the latest insights and observations from their study.
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US PE Middle Market Report
PitchBook released their 2Q 2023 middle market PE report.
Middle-market PE continues to shine in a down market. The share of middle-market buyouts is at a new high, and fundraising is tracking ahead of 2019’s record high. And middle-market PE fund returns have exceeded megafund returns for three straight quarters.
The one cylinder that’s not firing is exits—which slumped to their weakest quarter since 2010 outside of the pandemic-related lockdown—according to our latest US PE Middle Market Report.
🧵 Best of X (Twitter)
A few highlights from the HoldCo Conference…
“Ask Me Anything” from a serial internet acquirer…
Focus on the business foundation early on…
Great opportunity for an aspiring analyst…
Reminder that you don’t have to reinvent the wheel…
If you’re looking to buy into a franchise, these should be top of mind…
🗓️ Events
Austin SMB Meetup (Sept 28) - Austin, TX
The Self-Funded Search Conference (Sept 30 - Oct 1) - Dallas, TX
Booth Kellogg EtA Conference (Nov 1) - Chicago, IL
Main Street Summit (Nov 8-9) - Columbia, MS
Capital Camp (May 21-24) - Columbia, MO
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. 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 ($500k - $10m revenue) considering exits. All deals are sourced by the Rejigg team. Their team adds 7-10 new deals each week
Acquisition Lab - The Premier Accelerator for Buying a Business created by Walker Deibel, Author of Buy Then Build: How Acquisition Entrepreneurs Outsmart the Start-up Game. They combine world-class education, a vetted community, extensive group coaching, and resources to provide the first do-it-with-you buy-side advisory service.
Smash.vc - Whether you're looking to sell minority stakes in your business to take some chips off the table, looking for a partner to acquire an asset, or needing capital to complete an SBA deal, we'd love to chat with you.
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.
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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