The Hub - Main Street Weekly M&A - Inaugural Edition

Your go-to source for Main Street M&A industry insights, expert analysis, and the latest news.

February 07, 2023

Welcome to your Inaugural Edition of The Hub

Our team of seasoned professionals has curated the most important and interesting developments in the space so that you can stay ahead of the curve.

At The Hub, you gain access to in-depth coverage of the key players, trends, and strategies shaping the Main Street (SMB) M&A landscape. From small startups to established players, we'll keep you informed on the deals, partnerships, and acquisitions that matter most.

And it's not just about the numbers. We also delve into the human side of M&A with feature interviews and profiles of the movers and shakers driving the industry forward.

Why “Main Street” instead of SMB? SMB is so Blah and doesn’t capture who we are talking about, Our friendly ChatGPT defines Main street as:

"Main Street" businesses are typically small to medium-sized businesses that are located in the heart of a community and serve the local population. The term is often used to evoke images of small, traditional businesses that form the cornerstone of a town's economy and character. Main Street businesses can be anything from retail stores, restaurants, and bars, to professional services such as law firms or accounting practices. They are often owned and operated by local residents and provide jobs and services that are essential to the well-being of the community. By being a part of the community, Main Street businesses help to build social and economic connections, foster a sense of place, and strengthen local economies. -ChatGPT

That’s just a bit more “REAL”.

In the Pods …

Managing the multi-faceted process of mergers and acquisitions (M&A) can be a daunting task, especially for those in charge of overseeing the entire process. In this episode of the M&A Science Podcast, Andy Wijaya, Senior Director of M&A at KLA, discusses how to manage deals from strategy to closing. 33:17

Chelsea Wood, director of the Acquisition Lab. The Lab's students are routinely 90% male, and Chelsea is eager to help balance that ratio out. She believes as I do, that buying a business is an incredible path, equally so for women as for men. In this interview, they have 3 different female searchers (2 of whom you may recognize) to talk about their experiences, with Chelsea moderating. 51:46

Michael Girdley (@Girdley) and Bill D’Alessandro talk about an aircraft service center and flight training school. Why are we SO excited about hobbyists as a customer base? What is needed to succeed in this business? The business has some exciting numbers for anybody interested in a lifestyle-type business in this space. 23:59

Hans Sperling is the founder and principal of Sperling Law Corporation, discusses similarities and differences between six-figure and hundred-million-dollar deals. They also cover the importance of due diligence when signing contracts and what they should contain. 53:08

Sam Parr founded the Hustle, a media company that delivers business and tech news to millennials in an engaging and relatable way, in 2015. By 2020 Sam Parr had grown the Hustle to $15 million in revenue, attracting the attention of tech giant HubSpot. A few months later, the tech conglomerate acquired the Hustle in a lucrative eight-figure deal. 1:13:00

Check out: Acquisition Aficionado Magazine’s Latest Issue (Sponsor)

In the News …

The DOD is looking to “harness the full potential of small businesses through three objectives:  implement a unified management approach for small business programs and activities; ensure the Department’s small business activities align with national security priorities; and strengthen the Department’s engagement and support of small businesses.” (500 words)

A change in federal law opens new options for owners considering the sale of their small businesses.

“The exemption means that an owner of a small business can sell their equity shares without their M&A broker having been registered with the U.S. Securities and Exchange Commission, a requirement needed to buy and sell securities. The change will allow owners to more readily sell their entire business to a seller, instead of just the assets.” (850 words)

Axial, the online platform for American small business M&A, released its 2022 Annual Lower Middle Market Investment Banking League Tables. The first of its kind in the small business M&A and lower middle market M&A ecosystem. Reviewing nearly 10,000 deals, they ranked Sell-Side Investment banks and Advisors by some great metrics. (3300 Words)

Kate Eberle Walker, having completed nearly 100 acquisitions, shares her insights on how successfully integrate an acquisition. (1000 words)

In the BIG Guys Corner …(middle market and above)

They have identified five M&A themes to watch for in the year ahead:

  • Cash-rich companies making strategic, bold moves.

  • A continued prevalence of small to midsize deals.

  • A balance of scale and scope deals.

  • Valuations are coming under further pressure.

  • Companies reshaping portfolios through separations and divestitures.

And more - (1800 words).

In the calendar …

A twice-monthly networking meeting where acquisitions entrepreneurs come together online to build teams, share ideas and resources, and help each other succeed. The first and Third Tuesday of each month.

The official “Un-Conference” of micro-PE. Where Holding Companies Meet, Learn, Scale, and Grow.

A live gathering of SMB, Micro-PE, and ETA Owners, operators, and Investors.

In the Sosh …

Twitter @Girdly - Host of Acquisition Anonymous — “Every Bankrupt person I know has owned a boat.”

Twitter @LiveOakBank “Retirement and succession are on the minds of many aging small business owners. This impending wave of business transitions, known as the Silver Tsunami, means that there’s ample opportunity for business acquisitions.” Read more

LinkedIN Mike Finger - Likely one of the most entertaining posters on Linked in shares: “HOW TO KEEP THE BUSINESS BROKER FROM GOING ALL FUZZY ON YOUR LOLLIPOP” 

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