Private Market Insights

In this episode of Private Market Insights, Josh Levine interviews pricing expert Mark Stiving. They discuss the challenges of raising prices and the fear that comes with it. Mark explains that people are afraid to raise prices because they are uncertain about the future and worry about losing customers or facing negative feedback. However, he emphasizes that raising prices can significantly increase profitability if done intelligently. They also discuss the concept of value and how it should be the focus when determining pricing. Mark suggests using a value table to understand what value means to customers and how it can be measured in terms of incremental profit. They also touch on the importance of price segmentation and understanding different market segments. Mark concludes by discussing the impact of inflation on pricing and the importance of annual price increases. He also mentions the concept of predatory pricing and its long-term viability.

In this episode of  @privatemarketinsights , host Josh Levine celebrates the 30th episode of the podcast and discusses the trends and challenges in the Canadian small business market. He is joined by Jessica Cullen, a traditional searcher and professional triathlete, and Scott Duke, the founder and lead M&A advisor at OpnRoad, a Canada-focused sell-side advisory firm. They discuss the importance of trust in building strong relationships between the buy and sell sides, the challenges of accessing debt and capital in the Canadian market, and the use of technology in the M&A industry. They also share their perspectives on the future of the Canadian small business market, including the potential for consolidation and the need for industry-specific knowledge and regional expertise. 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: twitter.com/levinejm 🔗 Check out OpnRoad: https://opnroad.io 💬 Follow Tristan Maher on Twitter: twitter.com/thehappydealmkr 🔗 Check out Jessica's search page: https://www.regenerativecapitalgroup.com/jessicacullen 💬 Follow Tristan Maher on Twitter: twitter.com/itsjesscullen

In this episode of Private Market Insights, host Josh Levine interviews Tristan Maher, an expert in international SMB acquisitions. They discuss the topic of international M&A and the challenges and differences compared to deals in the US. Maher emphasizes the importance of being integrated into the local culture and community, as well as understanding the legal and financial landscape of the country.

In this episode of Private Market Insights, Josh Levine interviews Brad Englert, a technologist, leadership expert, consultant, and author of the book "Spheres of Influence." They discuss the importance of building professional relationships and effective communication in leadership and management. Brad emphasizes the need to understand the goals and aspirations of others, manage expectations, and genuinely care about their success. They also discuss the challenges of stepping into a leadership position in an established organization and how to handle key customer relationships during a business acquisition. Overall, the conversation highlights the importance of intentional and transparent communication in building successful business relationships. (00:00) Setting the Stage for Professional Relationship Building and Change Management (02:49) Exploring the Core of Leadership: Communication (05:01) Navigating Leadership in Acquired Businesses (11:52) Redefining Corporate Family (16:12) Building Formal Relationships and Communication Strategies (20:29) Adapting Quickly in New Organizations (25:15) Strategic Planning for New Leaders (31:32) Managing Expectations in Troubled Organizations (33:35) Facilitating Smooth Business Transitions (47:21) Celebrating Success and Concluding Thoughts 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: twitter.com/levinejm 🔗 Check out the Spheres of Influence website: https://bradenglert.com/spheres-of-influence/ 💬 Follow us on Twitter: twitter.com/englertbrad

Buying and operating a small business can be a challenging and lonely experience. People who are successful often find company in tight communities of entrepreneurs going through the same struggles. For this episode of Private Market Insights, I am talking with master community builder Karen Spencer, a founder of Searchfunder and current Managing Partner of Fetch Strategies. We talk about building and sustaining support networks for searchers and operators. (00:00) Introduction to Private Market Insights with Special Guest (01:15) Understanding the Importance of Community in Search Operations (04:34) The Evolution of the Digital Space(06:15) Advocacy for Diversity, Equity, and Inclusion in Search Community (10:52) Collaboration in Deal Searching (16:16) Transactional vs Relational Approaches in Business (21:33) Transitioning to Entrepreneurship (27:40) The Success of Search Funder (32:42) Choosing Startups Over Established Businesses (35:58) Reflections and Predictions for 2024 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out the Fetch Strategies website: https://fetchstrategies.com/ 💬 Connect with Karen on LinkedIn: https://www.linkedin.com/in/karenyspencer/

The SMB M&A space has cyclical trends: certain industries become hot, spurring interest, increased activity, and heightened multiples. Longtime market observers can point to trends in dental office and home service M&A rollups as clear examples. Our next guest on Private Market Insights believes that law firms will be the next hot M&A industry due to shifting regulation, spurred by changes in California and Arizona. Watch this latest episode in our M&A series, as we talk with Tom Lenfestey, Founder of the Law Practice Exchange. (00:00) Introduction to Law Firm M&A and Market Trends (01:36) Discussing Regulatory Frameworks and Law Firm Acquisitions (07:06) Innovation in Legal Industry (13:53) Understanding Practice Areas in Law Firms (18:49) Ethics and Regulations in Different Markets (21:52) Understanding Your Niche and Buyer Criteria (25:40) Entrepreneurial Lawyers and Succession Planning (28:42) Innovative Business Models and Strategies (31:27) Successful Business Transaction and Transformation (40:59) Audience Question on Social Capital in Acquiring Firms 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out the Law Practice Exchange website: https://thelawpracticeexchange.com/ 💬 Connect with Tom on LinkedIn: https://www.linkedin.com/in/tomlenfestey/

Our guest for Private Market Insights is entering our space with one of the most interesting angles yet: he’s an active professional football player, most recently as a quarterback with the Cleveland Browns. Jeff Driskel believes that acquiring small businesses can be a meaningful pathway for professional athletes and can serve as a way to help them preserve and build wealth long after they retire. In this episode, we discuss the challenges of searching while playing professional sports, the promise of SMB acquisitions for athletes, and how talented people from any professional background should be thinking about maximizing their professional outcomes over a long-term horizon. 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out Jeff Driskel on LinkedIn: https://www.linkedin.com/in/jeffdriskel/ 💬 Follow Jeff on Twitter/X: https://twitter.com/jeffdriskel?lang=en (00:00) - Private Market Insights with Guest Jeff Driskel (04:03) - Athletes and Entrepreneurship (05:15) - Exploring Investment Opportunities in ETA (06:22) - Understanding Private Equity Investments (08:36) - Balancing Business, Family, and Ambition (10:49) - Transitioning a Traditional Financial Services Company (13:17) - Understanding Business Acquisition (17:29) - Transition from Athletics to Running a Small Business (21:36) - Expectations vs Reality in Small Business Ownership (22:49) - The Power of Networking and Self-Education

Even the most experienced investors and dealmakers hire legal counsel to help with their SMB acquisitions. This makes building the right legal team for your search an especially important task when it comes to due diligence. However, things don't always go well: people hire attorneys that are inexperienced with small business M&A or stymie deals with excessive redlining. To shed some light on this topic is Kevin Henderson, Founding Partner of SMB Law Group. We're going to discuss how to build and manage your legal team throughout your acquisition and his experience growing a law firm solely focused on small businesses. (00:00:00) - Introduction to Private Market Insights with Guest Kevin Henderson (00:05:36) - The Mindset of Successful Small Business Owners (00:11:42) - Understanding Legal Diligence (00:18:52) - The Role of Insurance in Small Business Transactions (00:24:45) - Discussing Standard Exchanges in the Space (00:30:13) - The Personal Nature of Transactions (00:35:20) - Entering Established Business vs Starting New (00:40:53) - Confidentiality Constraints (00:48:46) - Engaging Lawyers in LOI Negotiations (00:56:54) - Discussion on Business Brokerage Practices 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out SMB Law Group: https://www.smblaw.group/ 💬 Follow Kevin Henderson on Twitter/X: https://twitter.com/KHendersonCo

Getting started with a search can be intimidating - there are numerous information sources, tons of conflicting information, and limited tactical insights when it comes to planning your exact moves (apart from this podcast). Helping people learn how to search is the topic for our next episode of Private Market Insights. We interviewed Chandler Reed, an SMB owner who has a deep understanding of what it means to be a beginning searcher because he helps mentor them through his work at Pursuant Capital's Search Fund Bootcamp. We asked Chandler key tactical questions about getting started and sifting through available resources. (00:00) - Introducing Private Market Insights and Guest Chandler Reed (03:53) - The Emotional Rollercoaster of Searching (08:04) - Understanding the Bootcamp Process (13:59) - The Paradigm Shift in Searching (17:41) - An Unconventional Start in Business (22:06) - Reviving a Struggling Business (26:37) - Understanding Customer Behavior for Business Growth (32:50) - Business Opportunities and Creative Deals in 2024 (37:46) - Understanding Due Diligence in Transactions (41:38) - Conclusion and Recommendations 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out Pursuant Capital: https://www.pursuantcapital.com/ 💬 Follow Chandler Reed on Twitter/X: https://twitter.com/ChandlerReedSMB

For sellers, figuring out what your business is worth and how to go about selling it can be very challenging. The lack of transparency around this process can also confuse buyers and lead to misunderstandings at the start of the negotiation process. Fortunately, we're hosting Tom Taulli, M&A expert, author, and founder of BizEquity to help make sense of this process. Tune in to hear Tom discuss his experience with Biz Equity, a company that provides valuations for small businesses, and explains how valuations for SMBs differ from larger companies. He emphasized the importance of considering factors such as future growth potential, owner dependence, and corporate structure when valuing a small business. Tom also shared insights on the seller's mindset and the misconceptions surrounding selling a business. He advised sellers to prepare their financials and documents in advance and highlighted the significance of tax planning in the sale process. (00:00) - Introduction to Private Market Insights (02:18) - Understanding Business Valuation (06:45) - The Importance of Valuation Experts (11:19) - The Challenges of Selling a Business (15:49) - Importance of Corporate Structure (19:33) - Investing in Quality (21:38) - Understanding Good Buyers in Business Transactions (26:17) - The Impact of Economic Downturn on Small Businesses (33:27) - Audience Q&A and Future Predictions (44:19) - Closing Remarks and Call to Action 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out Tom Taulli's M&A book: https://www.amazon.com/Complete-Handbook-Ultimate-Selling-Business/dp/0761535616 💬 Follow Tom Taulli on LinkedIn: https://www.linkedin.com/in/tomtaulli/

In this podcast episode, Josh Levine interviews Lisa Forrest and Sarah Andrews from Live Oak Bank about changes to the SBA 7(a) program and what to expect in 2024. They discuss the implementation process of the changes, the impact on buyers looking to get an SBA loan, and the interpretation of the new rules by different lenders. They also highlight some of the key changes, such as the equity injection requirements, partial buy-in rules, and the removal of the personal resource test. Additionally, they share their thoughts on potential future changes to the program, including the expansion of benefits for underserved communities and the reinstatement of certain policies. The speakers advise buyers to be patient, creative, and solution-oriented in the current market, as multiples remain high while borrowing power decreases. They also emphasize the importance of understanding one's own model and thesis to find deals that align with their goals. (00:00) - Introductions (02:48) - Changes in the National Association of Government Guaranteed Lenders (05:16) - Partial Change of Ownership (09:52) - Understanding Loan Terms and Conditions (15:30) - Interest Rates and Market Dynamics (20:19) - Discussing a Partial Buy-in with Kevin from SMB Law (26:07) - Discussing Key Employee Participation and Ownership Transition (31:12) - Investor Perspectives and Transition Challenges (37:57) - Bank Policies and SOPs (49:14) - Government Shutdown and SBA Lending 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out Live Oak Bank: https://www.liveoakbank.com/ 💬 Follow Lisa Forrest on Twitter: https://twitter.com/LisaGForrest 💬 Follow Sarah Andrews on LinkedIn: https://www.linkedin.com/in/sarah-andrews-22a78364/

In this episode of Private Market Insights, Josh Levine, the co-founder and CEO of Private Market Labs, announces a new partnership with Roman Beylin, the founder of DueDilio. DueDilio is a marketplace that helps people assemble deal teams for the small business M&A due diligence process. Through this partnership, Private Market Labs users will be able to request high-quality vetted due diligence support from DueDilio within the Private Market Labs platform. The conversation covers commonalities among successful buyers, the importance of communication in the due diligence process, the first steps buyers should take after submitting an LOI, and tips for managing a service provider team. Roman also shares advice for buyers on a budget and highlights the need for realistic expectations and a focus on quality in the due diligence process. The episode concludes with a discussion on the differences between ETA entrepreneurs and startup entrepreneurs, as well as predictions for the future of the small business M&A industry. (00:00) New Partnership Announcement: Private Market Labs and DueDilio (01:32) Closing Successful Deals: Insights from Experience (08:17) Understanding Due Diligence in Business Acquisition (15:24) Choosing the Right Attorney (18:26) Quality vs Cost: A New Perspective (22:06) Understanding Transaction Requirements and Cost Management (24:19) Common Mistakes in Business Buying (28:10) Self-Assessment of Entrepreneurial Skills (31:17) The Future of ETA and the Role of Technology (36:35) Cross-Cultural Business Ventures 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out DueDilio: https://duedilio.com 💬 Follow Roman on Twitter: https://twitter.com/romansb1

SMB Acquisitions can be an attractive pathway to professional success for people with private equity, management/operations, and industry-specific backgrounds. Corporate Development, internal teams within corporations search for and execute on M&A objectives, takes a specific eye and point of view. Our guest for Private Market Insights 19 is Bakari Akil, who used his corporate development skills in his acquisition journey to great success. He joins us to talk about his process and how people can translate prior skills into assets for their search. (00:00) - Democratizing Small Business Acquisition: A Conversation with Bakari (04:40) - Pivoting Business Acquisition Strategies (10:51) - The Importance of Authenticity in Business Negotiations (18:18) - Approach to Buying Roll-ups and Hold Codes (25:42) - Success of the Black Searchers Network (30:50) - The Process of Acquiring a Company (34:05) - The Importance of Taking Action (38:16) - Investor Confidence and Deal Flow (41:17) - Conference Experiences and LOI Discussions (48:38) - World Tour and Entrepreneurship 🔗 Check out the Private Market Labs website 💬 Follow Josh on Twitter 🔗 Check out Graves Hall Capital 💬 Follow Bakari Akhil on Linkedin

The SMB acquisitions story often feels like one of consistent success. People acquire cashflowing companies, implement some upgrades, and reap the benefits. This story is about what happens when deals go bad. Hunter Durham's business went bankrupt. He's been transparent and vulnerable online over the last month and is now here to share nuts and bolts lessons from his experience. (00:00) Private Market Insights: A Conversation with Hunter Durham (04:36) Starting a Business and Making the First Purchase (08:04) Exploring Various E-commerce Business Models (14:06) Understanding Market Volatility and Time Management in Business (21:07) Philosophy in Business Decision Making (25:05) Operational Complexity and Leadership Shifts (29:14) Challenges in Hiring and Scaling (38:36) Understanding SSMB Bankruptcy (44:01) Facing Bankruptcy and Liquidation (57:13) Final Thoughts and Last Question 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 💬 Follow Hunter Durham on Twitter: https://twitter.com/huntercdurham

This episode of Private Market Insights is a special one - our Chief Product Officer, Titus Capilnean will join the podcast to talk about the release of the Private Market Labs platform, how it fits into our mission, and people can experience it for themselves. (00:00) - Introduction to Private Market Labs (06:26) - Venturing into Business Ownership (10:57) - Understanding Credit Analysis and Underwriting for SBA Loans (16:33) - Personalized Decision Making and Building a Business (20:59) - The Evolution of Machine Learning and its Impact on Startups (24:57) - Analyzing and Tracking Business Deals (28:39) - Using Search and Edit Features (32:37) - Shifting Business Strategies (37:13) - Diversification and Growth in Search Models (40:44) - Closing Remarks 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 💬 Follow Titus on Twitter: https://twitter.com/titus_k

This month's episode of Private Market Insights will feature Whitney Shepherd, an ex-chemist who is in the middle of her journey to acquire a small business. She'll share her search process so far and we'll speak about her advocacy to increase the number of women in our space. Whitney is an exceptionally insightful person and has lent her voice to women in search through her online presence. This is going to be a great one, so don't miss it! (00:00) - Promoting Gender Equality in Small Business Acquisition (03:14) - Lack of Diversity in Conferences (06:31) - Overcoming Intimidation in Male-Dominated Industries (14:15) - Overcoming Fear and Embracing Growth (18:45) - Discussing the Search Experience (23:12) - The Importance of Broker Relationships (28:14) - Private Equity vs Individual Buyers (30:22) - The Importance of Personal Interaction in Business Deals (34:05) - The Power of Women in Business (38:34) - Wrapping Up the Discussion 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out the Homegrown Holdings website: https://www.homegrown.holdings/ 💬 Follow Whitney Shepherd on Twitter: https://twitter.com/Whitney_Sheph

We know the adage that "time kills deals". However, there are many additional (and more specific) things that kill small business M&A deals besides time. Join us as we discuss the top reasons deals die prematurely with two longtime industry experts, Jared Johnson, SBA lender at First Internet Bank, and Jarryd Osborne, Advisor at ReVera Capital. They'll be sharing some of their experiences over their time in the SMB world, including firsthand experience of why deals don't make it. (00:01) - Introduction to Private Market Insights (04:24) - The Importance of Taking Control in Negotiations (10:39) - Discussing Financials in Brokerage Deals (17:49) - The Importance of a Middleman in Transactions (25:50) - Discussing Deal Valuations (31:27) - Mitigating Valuation Gaps (33:00) - Choosing the Right Lender (40:02) - The Importance of Relationship in Business Transactions (44:49) - Green Flags in Deal Making (54:32) - Closing Remarks and Acknowledgements 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out the First Internet Bank website: http://www.firstib.com/ 💬 Follow Jared Johnson on LinkedIn: https://www.linkedin.com/in/jaredwjohnson/ 🔗 Check out the ReVera Capital website: https://www.reveracapital.com/ 💬 Follow Jarryd Osborne on LinkedIn: https://www.linkedin.com/in/jarryd-osborne-69a0b3a/

In this episode of Private Market Insights, we will explore the topic of Search Fund Investors from a variety of angles - how to find investors, how to manage relationships with them, and how to start investing in search funds yourself. Our guest is prolific investor Saumil Jariwala, Founder of Feta Fund. Saumil has been investing in search funds since 2016, when he was a member of Trilogy Search Partners. He started Feta Fund with a goal of investing in 1000 search funds. (00:00) - Introductions (01:33) - Investing in Search Funds (04:19) - Transitioning from a 5 Million to a 10 Million Business (10:53) - The Evolution of the Traditional Search Fund Model (15:31) - Finding Intrinsic Qualities for Success (21:16) - Identifying the Right People to Invest In (29:15) - Considering Long-term Holding Strategies (34:06) - Salary and Bonus during Search Stage (39:38) - Investing Internationally and European Search Funds (50:02) - Closing Remarks 🔗 Check out the Private Market Labs website 💬 Follow us on Twitter 🔗 Check out the Feta Fund website 💬 Follow our guest on Twitter

New changes to the SBA 7a program take effect soon and we'll be talking with industry leader Heather Endresen, Owner of Viso Business Capital to break down what this means for SMB acquisitions. Make sure to come with questions - Heather is one of the best in the business and this is a great opportunity to learn about the future of our industry! 🔗 Check out the Private Market Labs website: https://privatemarketlabs.com/ 💬 Follow us on Twitter: https://twitter.com/levinejm 🔗 Check out the Viso Business Capital website: https://www.visocap.net/ 💬 Follow our guest on Twitter: https://twitter.com/EndresenHeather

We spoke with the Brydon Group's Steve Ressler for this episode of Private Market Insights, our series providing support for search funds, business brokers, business owners, and anyone else engaging in the small business M&A space. We spoke about the pros and cons of using brokered search versus proprietary search, delving into topics such as competition deal sourcing, as well as the costs and outcomes of targeting businesses not on the market.