Shoot the Moon with Revenue Rocket

In this episode of Shoot the Moon, Ryan Barnett and Matt Lockhart explore a common scenario: a business owner receives a call from a potential buyer—or from an M&A advisor representing one—and suddenly faces a big question: Am I actually ready to sell?Whether you're planning a structured go-to-market process or simply responding to inbound interest, readiness matters. This episode breaks down what it means to be “seller ready,” why preparation is a competitive advantage, and how to stay in control of the process—regardless of who picks up the phone first.We'll cover:Why taking a buyer call doesn't mean you're committing to a saleThe pros and cons of one-off conversations vs. full processesWhat a real M&A readiness plan looks like—and why it adds valueHow to manage buyer interest while keeping your options openThis episode is a must-listen for IT services firm owners who aren't sure if they're ready to sell—but want to be ready when the right opportunity strikes. RELATED EPISODES:Episode 92: Why You Should Take the Call from an M&A Advisor. Listen now >>Episode 177: Fielding an Inbound Call from a Suitor. Listen now >>ARE YOU READY TO SELL? QUESTIONS TO KNOW THE ANSWERS TOO. DOWNLOAD OUR EBOOK >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

1. “How do you like to qualify whether a buyer actually has the capital to close a deal?”Gut check vs. formal proofDifferences between PE-backed and strategic buyersWhat's reasonable to ask for and when in the process 2. “What are some of the best ways a buyer can demonstrate proof of funds early in a process?”Equity commitment lettersBank letters or balance sheetsFund-level detail for PE buyersIs a LOI ever enough? 3. “When you see a buyer lean heavily on an earnout or seller note, what does that tell you about their financial strength?”Earnouts as risk-transfer vs. alignment toolSign of limited capital vs. aggressive valuationHow to structure a seller note to reduce risk 4. “Have you ever had a deal fall apart because the buyer couldn't come up with the money?”Anecdotes of broken deals or red flags missedWhat should have been asked earlierLessons learned about screening buyers 5. “What questions should sellers be asking to vet a buyer's financial capacity?”Go-to questions to ask PE firms, family offices, strategicsWhat not to ask (or how not to ask it)How advisors help behind the scenes to validate 6. “If a seller gets an offer that looks strong on paper — big multiple, big earnout — what's your advice for validating it's real?”The danger of being ‘seduced by the headline multiple'Discounting for deal structure riskHow to tie offer strength to real-world execution ability 7. “Are there particular red flags you see when a buyer isn't financially credible?”Delayed diligence or ghostingLack of transparency around capital sourceToo many approvals needed — unclear decision-makersOffers contingent on future fundraising 8. “What's the advisor's role in protecting the seller from wasting time with unqualified buyers?”Quietly vetting buyers behind the scenesManaging buyer engagement based on credibilityPulling in references or past deal history 9. “What's your take on PE firms that haven't yet closed a platform in the space — does that change how we qualify them?”Platform vs. add-on credibilityOperational readiness of first-time buyersImportance of fund age and deployment schedule 10. “At what point in the process do you think it's fair for a seller to ask for hard financial evidence?”Pre-LOI vs. post-LOIHow to handle it without offendingWhen to walk if transparency isn't thereRELATED EPISODESEpisode 203: Selling Your Business to an Independent Sponsor. Listen now >>Episode 113: Deal Financing- Scenarios, Options and Implications for Both Sides. Listen now >>Episode 97: Understanding Search Funds as an IT Services Seller. Listen now >>Episode 99: IT Services Sellers: Evaluating the Size of a Buyer. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Selling your business is more than a financial transaction—it's an emotional journey. Our latest podcast explores the critical balance between emotion and logic in mergers and acquisitions, offering insights for IT services business owners. Key Takeaways:Understand the deep emotional attachment founders have to their businessesRecognize how emotions can impact deal negotiations and valuationLearn strategies to stay level-headed during the M&A processDiscover the importance of professional advisors in managing emotional challengesWhether you're considering selling or acquiring a company, emotional intelligence is your greatest asset. Our experts provide practical guidance to help you navigate the complex world of business transactions with confidence and clarity. Want to transform your M&A experience? Listen to our full podcast and gain expert insights into successful business transitions or reach out to schedule a no obligation introduction call: info@revenuerocket.com Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

In this episode of Shoot the Moon, the Revenue Rocket team—Ryan Barnett, Mike Harvath, and Matt Lockhart—unpacks a foundational concept in IT services  M&A deals: EBITDA add-backs. Whether you run a Managed Service Provider, a Microsoft or SAP channel partner firm, a cybersecurity practice, or a custom development shop, understanding what qualifies as a legitimate add-back can significantly affect your valuation in a transaction.The team covers the good, the bad, and the ridiculous—breaking down why aggressive or misguided add-backs can backfire and erode trust with a buyer. They also explore how recurring bonus plans, inflated owner salaries, and "strategic" spend are treated when it's time to negotiate your exit.This episode is a must-listen if you're:Considering a sale or recapitalization in the next 12–36 monthsWanting to improve your EBITDA story before going to marketWondering if that golf membership you expensed is helping or hurting your exit Key topics include:The golden rule: “Add it back only if it's truly gone—for good”Owner salary treatment (especially if you stay on post-sale)Bonuses, personal expenses, legal fees, and other gray zonesBuyer synergies vs. seller add-backs—don't confuse the twoReal-world examples of questionable add-backs (boats, jets, services and all) Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

In this episode of Shoot the Moon, Revenue Rocket's Mike Harvath, Matt Lockhart, and Ryan Barnett explore one of the most overlooked tension points in M&A: the financial document request.You've nailed the strategic and cultural fit — but when it comes time to share financials, things stall. Why? It often boils down to trust, financial hygiene, and timing.

EPISODE KEY POINTSCommunicating a Business Sale to EmployeesKey Stakeholders and Early CommunicationSelling In vs. Selling OutEmployee Concerns and Communication StrategiesFollow-Up Communication and Integration PlanOverall Communication Plan RELATED EPISODESEpisode 96. Post Combination Employee Consolidation: Do's, Don'ts and What to Expect. Listen now >>Episode 33. Employee Involvement: Who and When during a Buy Process. Listen now >>Episode 32. Employee Involvement during the Sale of your Business. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

In this episode of the Shoot the Moon podcast, Matt Lockhart and Ryan Barnett discuss the key questions buyers ask when considering acquiring an IT services firm. The discussion provides insights for IT services business owners preparing for a potential sale, emphasizing the importance of being prepared, transparent, and able to clearly articulate the company's value proposition and growth potential. They cover critical areas including:Strategic fit: how does this acquisition fit into the buyers service offerings? does it compliment it, fill gaps, or extend service offerings? making the buyer more valuable? market expansion?revenue modelgeographycustomer concentrationhow you have grownProfitabilityFlexibility on deal structureSynergies in Processes / Platforms: What tools are in place to deliverables? Back office, front office, CRM etc... Having financials in order: do you know your revenue, profit, margins? Tip: Having confidence in the number for the potential buyerLeadership & Retention post-transaction: What is the seller looking for?Go-to-Market Strategy: Assessing sales, marketing, and customer acquisition approaches RELATED EPISODES:Episode 186: Dealing with Customer Concentration when Selling your Business. Listen now >>Episode 170: How to Become a Platform Investment. Listen now >>Episode 148: 6 Things that could be Surprises to Sellers. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Rolling equity involves sellers retaining a portion of their equity in a new company structure, often used by private equity firms for future exits. Retaining equity, on the other hand, means sellers keep a stake in their original business, maintaining operational control and potentially sharing services with a broader consortium. Both options have risks and rewards, and the choice depends on the seller's goals, the strength of the buying firm, and the strategic fit. Tune in as we talk through both options.Here is an example of one of our clients that represented a deal with rolling equity. Learn more about Project Black Sparrow >> RELATED EPISODES:Episode 196: Breaking Down the Successful Sale of a $19M MSP. Listen now >>Episode 184: How Cultural Fit Drives Successful M&A. Listen now >>Episode 170: How to Become a Platform Investment. Listen now >>Episode 150: Overview of Rolling Equity in an M&A Transaction for a Seller. Listen now >>Episode 112: Why Culture Matters in Tech Focused M&A Feat. Chelsey Nord. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Mike Harvath, Matt Lockhart, and Ryan Barnett discuss the process of renegotiating deals after a Letter of Intent (LOI) has been signed. They explain that while an LOI is non-binding, it sets the stage for final agreements. Changes in business conditions or due diligence findings can necessitate renegotiation. Key factors include changes in profitability, lost or gained contracts, and discrepancies in EBITDA calculations.Key points in this episode:When to Renegotiate the LOIBinding and Non-Binding Terms in an LOIRole of Advisors in RenegotiationsLegal and Contractual Considerations& moreRELATED EPISODESEpisode 158: Between the LOI and Deal Close, What Should you Expect? Listen now >>Episode 105: Pre LOI and Post LOI Information Requests. Listen now >>Episode 104: Honoring the LOI: When to Consider a Re-Trade. Listen now >>  Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

The podcast discusses how tech-enabled services companies can secure premium offers during mergers and acquisitions. Key insights include: Valuation Factors:Deals are typically valued at 6-11x trailing 12-month EBITDAGrowth rates of 15-25% are crucialEBITDA margins above 15% are idealRecurring revenue above 60-70% is attractive to buyers Critical Elements for Premium Offers:1. Organic GrowthConsistent year-over-year growthDemonstrated sales and marketing capabilitiesStrong leadership team2. ProfitabilityHigh EBITDA marginsEfficient operational processesRule of 45 (growth % + profit % ≈ 45)3. Market PositioningVerticalized focusBroad geographic reachSpecialized service offerings4. Customer RelationshipsMulti-year contractsLow customer churnRepeat businessStrong customer retention metrics5. Deal StructureFlexibility in owner transitionBalanced risk allocationPotential for earn-outs or seller notesThe podcast emphasizes working with M&A advisors like Revenue Rocket to optimize these factors and prepare a company for a premium acquisition offer. RELATED EPISODES:Episode 166: Understanding Revenue Models and How They Impact Valuations. Listen now >>Episode 145: Why Sellers with Vertical Market Approaches Earn Premium Valuations. Listen now >>Recurring RevenueEpisode 19: The Rule of 45. Listen now >>Check out our podcast playlist on Organic Growth Strategy >>  Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Valuing the Worth of Your IT Services Company: Internal vs. External Valuation Considerations. In this episode we cover:Understanding the Role of Valuations in IT Services CompaniesImportance of Valuations for IT Services CompaniesInternal valuations and Corporate GovernanceDifferences Between Internal and Open Market ValuationsProviders of Valuations and Regulatory ConsiderationsBest Practices for Periodic Valuations Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

We're diving into the critical role of legal counsel in M&A transactions. Key points included the necessity of having an M&A lawyer familiar with the industry and transaction size to efficiently manage legal aspects. The conversation emphasizes the importance of early lawyer engagement, especially during the LOI stage, and the need for open, transparent negotiations to avoid deal fatigue and minimize costs. Best practices include holding regular meetings to resolve issues promptly and focusing on key terms rather than minor details. Effective collaboration between legal teams and advisors can significantly streamline the M&A process and ensure successful deal outcomes. RELATED EPISODES:Episode 195: Win/Win vs. Win/Lose Dynamics in M&A Negotiations. Listen now >>Episode 149: Legal Counsel and M&A Transactions for IT Services Firms. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

What does M&A readiness mean as an IT Services firm? We're answering some of the questions you should be thinking about when planning the next move for your business. Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Challenges and opportunities with Carve-outs in M&AWhat is a carve-out?Why should corporations consider an M&A process of a division?Who needs to know about the carve-out within the business that's being carved out (vs. the portion that's not)What key areas do buyers need to dig into to understand the ongoing nature of the firm?How do valuation expectations change for a carve-out?How does due diligence differ in a carve-out? Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Most impactful trends forecasted to hit the tech-enabled services sector in 2025.Predictions for 2025MSP targets continue to get multiple offers as consolidation continuesRise in custom app dev space: custom app dev, near shore, and transformation projects continuePrepare for the unexpected with new policiesThe need for security everywhere will continue growth in cybersecurity M&AGlobal M&A will continueSoftware firms will seek partners to consolidate (behind closed doors)Aging tech founders who started businesses 15-25 years ago will look toward exits or exit planningAI & automation will move from magic to deployment, and a search for talent will drive M&AMultiples will increase for niche markets Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Key pointsM&A is a critical growth strategy for top quartile companies, helping them expand market share, add capabilities, and grow geographically.Corporate development functions often lack the specialized skills and resources required to effectively execute M&A, making an outsourced advisor like Revenue Rocket valuable.An M&A advisor can provide objectivity, expertise, and a Dutch uncle role to help guide both the buyer and seller through the complex M&A process.M&A advisors do not have a pre-packaged list of deals, but rather tailor their research and outreach to each client's unique needs and ideal acquisition targets.The post-merger integration phase is critical, and an M&A advisor can help ensure a smooth transition by providing an objective, expert perspective.Outsourcing corporate development to an M&A advisor is typically more cost-effective than building an internal function, with a potential 5x savings.Without an experienced M&A advisor, companies risk common pitfalls like failing to meet expected shareholder value and not dedicating enough time to the acquisition strategy.The tech services sector is expected to see continued M&A activity in 2025, presenting opportunities for both buyers and sellers.Revenue Rocket has 25 years of experience in the tech services M&A space and is well-positioned to help clients navigate this active market.Listeners are encouraged to reach out to Revenue Rocket with any questions about M&A or growth strategy. RELATED EPISODESEpisode 202: Leveraging Quality of Earnings Reports in M&A Transactions. Listen now >>Episode 190: Buying a Business is not like Buying a Car. Listen now >>Episode 84: Why Inorganic Growth is Never off the Table. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Key Points DiscussedIndependent sponsors are individuals looking to invest in or acquire their first company, often using outside financing.Independent sponsors differ from private equity funds in that they need to secure funding after finding a deal, whereas PE funds have pre-committed capital.Sellers need to carefully evaluate an independent sponsor's ability to raise the necessary funding to complete a deal.Independent sponsors may offer higher enterprise values than other buyers, but the deal closing is less certain.Independent sponsors should have a strong strategic, cultural, and financial story to present to sellers.Independent sponsors should line up multiple potential funding sources to mitigate the risk of a single source falling through.Sellers can sometimes negotiate shorter exclusivity periods in LOIs with independent sponsors.Advisors like Revenue Rocket can help sellers evaluate and qualify independent sponsors to improve the chances of a successful transaction.Independent sponsors can be a good option for sellers, but the process requires careful consideration of the risks and benefits. RELATED EPISODESEpisode 173: Why is selling a Business so Hard? Listen now >>Episode 161: Importance of Determining ROI on an M&A Investment. Listen now >>Episode 97: Understanding Search Funds as an IT Services Seller. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Mike, Ryan and Matt from Revenue Rocket discussed the importance of a quality of earnings (QOE) report for IT services firms in the context of M&A transactions, highlighting that it is a comprehensive financial analysis that can provide third-party validation and help streamline the acquisition process. They also explored the benefits of Revenue Rocket offering QOE services as an independent tool to gain market visibility and access to potential buyers and sellers.Key pointsQuality of Earnings (QOE) report is a detailed financial analysis that certifies the accuracy and quality of a company's earnings and cash flows.QOE reports are commonly used in M&A transactions, either by buyers to validate the target's financials or by sellers to prepare for a sale.QOE reports are typically paid for by the buyer or financial sponsor, but sellers may also obtain one preemptively.QOE reports are not regulated, but should be conducted by reputable providers with industry expertise, financial analysis skills, and the right tools.Transparency and preparedness are key for sellers undergoing a QOE, as it allows the provider to efficiently complete the analysis.QOE is a component of the broader financial due diligence process, which also includes reviewing the company's systems, processes, and other financial metrics.Having a credible, independent QOE report can help sellers prepare for and accelerate the sale process.For buyers, a QOE report provides confidence in the target's financials and can uncover potential issues or risks.Revenue Rocket can provide QOE services to both buyers and sellers, but must maintain independence if involved in the transaction.Offering QOE services can also be a business development opportunity for Revenue Rocket to gain visibility and potentially lead to other engagements. Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

This episode discusses the challenges and strategies for re-entering the market after a deal doesn't close. Key points include understanding why the deal failed, whether due to strategic, cultural, or financial issues. Emphasis is placed on maintaining business operations and maintaining a positive outlook. Advisors can help by revisiting previous suitors and ensuring transparency about the deal's failure. It's crucial to reset expectations, especially regarding valuation, which may change based on current financial performance. The importance of working with experienced advisors and maintaining a fresh perspective is highlighted, along with the need to manage deal fatigue and maintain business continuity. Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

 Key pointsConvertible notes provide sellers flexibility to participate in upside if the business performs well, while also offering some downside protection.Convertible notes involve a seller providing a loan to the buyer, with the option to convert the remaining balance to equity at a future trigger point.The conversion trigger is typically a date or milestone, after which the seller can choose to convert the note to equity rather than receive the remaining cash payout.Convertible notes are commonly used in IT services M&A to allow sellers to "have a second bite at the apple" if the combined business grows significantly.Thorough due diligence on the buyer's financial stability and growth plans is critical for sellers considering a convertible note.Dilution from multiple acquisitions is generally not a major concern with convertible notes, as the structure can be designed to minimize impact.Key negotiable terms for convertible notes include interest rate, payment schedule, and conversion triggers/parameters.Sellers should seek legal and M&A advisory expertise when structuring convertible notes to ensure favorable terms.The main benefits of convertible notes for sellers are reduced upfront risk and the ability to participate in future upside. Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

In this episode, we're talking about keeping the spark alive in an M&A deal and strategies for avoiding burnout.Key points discussed in this episode:Deal fatigue is common in M&A transactions due to the numerous decisions and interdependencies involved.Advisors can help buyers and sellers avoid deal fatigue by setting expectations, managing timelines, and providing guidance.Patience is crucial, especially for buyers, as the M&A process can take up to a year to complete.Regular status updates and clear communication among all stakeholders help maintain motivation and engagement.Sellers may feel overwhelmed by the due diligence process, but should focus on responding effectively and keeping the business running.Unscrupulous buyers may attempt to "retrade" the deal at the last minute, which sellers can defend against with the help of advisors.Funding sources and approvals should be secured early in the process to avoid delays and frustration.Buyers who are too slow in decision-making risk losing opportunities to other interested parties.Maintaining a positive attitude and leaning on a strong support network can help both buyers and sellers navigate the M&A process.RELATED EPISODES:Episode 195: Win/Win vs. Win/Lose Dynamics in M&A Negotiations. Listen now >>Episode 173: Why is Selling a Business so Hard? Listen now >>Episode 127: The Critical Pillars to M&A Success. Listen now >>   Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Mike Harvath, Matt Lockhart, and Ryan Barnett discuss the importance of taking breaks for business leaders. They emphasize that stepping away from daily operations can provide new perspectives, enhance creativity, and improve decision-making. Mike shares his personal experience of recharging during a holiday, which led to better problem-solving and leadership. Matt highlights the benefits of silent retreats for mental and spiritual refreshment. They agree that hobbies and different environments can foster creative thinking and better strategic decisions. Ryan concludes that time away allows leaders to trust their teams, enhances leadership, and contributes to overall well-being and effective business management. Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Here are a few questions we dive into to help frame up this discussion.What role does a sense of urgency play in driving growth within IT services firms, and how can leaders cultivate this urgency without creating chaos?How do you differentiate between a healthy sense of urgency and the detrimental effects of being in a rush when executing strategic initiatives?What are some common pitfalls that IT service firms encounter when they confuse urgency with haste in their growth strategies?Can you share an example where moving too quickly hindered the success of a business transformation, and what could have been done differently?How do you ensure that the urgency to implement change doesn't compromise long-term strategic goals and quality execution?What key indicators help you determine when the urgency around a decision is justified versus when the team needs to slow down and think more critically?In your experience, what leadership qualities are most important when navigating the balance between urgency and careful, strategic growth?What advice would you give to IT services firms looking to maintain a sense of urgency while avoiding burnout and poor decision-making? RELATED EPISODES:Episode 122: Don't Make the $100k Sales Person Mistake. Listen now >>Episode 162: Aligning Leadership in M&A for a Better Deal Outcome. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Mike Harvath, Matt Lockhart, and Ryan Barnett discuss the successful M&A process for Project Black Sparrow, a $19M managed service provider. Revenue Rocket assisted Black Sparrow on both the buy-side and sell-side, helping them identify and close strategic acquisitions. The sell-side process involved evaluating over 500 companies, narrowing down to 25 potential buyers, and ultimately closing a deal in less than six months. The transaction highlighted the importance of strategic and cultural fit, leading to a smooth due diligence and a successful partnership.Helping them grow through a Revenue Rocket Buy-Side ProgramHelping them grow with deal facilitation/valuation expertiseConverting to a Revenue Rocket Sell-Side ProgramValuation on the businessPackaging and marketingDeal flow (150 screening calls leading to NDAs, 20 IoIs, select LOIs)Due diligence supportRole of the buyer – and how the winning LOI was landed (more about the vision than the specifics)Keeping owners focused on the business while we ran the processExceeding expectations for value, timingExciting future ahead. RELATED EPISODES:Episode 80: Seller's Perspective: Due Diligence. Listen now >>Episode 88: Sellers: Timeline Expectations for an M&A Deal. Listen now >>Episode 119: Breaking Down a Successful Sale of a $13M MSP. Listen now >>Episode 139: Breaking Down the Successful Sale of Project Deacon. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

OUTLINE OF THIS EPISODE:M&A Negotiations IntroductionSetting the Tone for Fairness in M&A NegotiationsBalancing Interests in M&A TransactionsTransparency and Trust in M&A NegotiationsDeal Fatigue and Negotiation StrategiesImpact of Win-Win Negotiations on Post-Transaction Relationships RELATED EPISODESEpisode 174: Buy-Side M&A: Tackling the most Challenging task of Finding a Willing Seller. Listen now >>Episode 143: Perfect in M&A Doesn't Exist: Learn Where you can Flex. Listen now >>Episode 100: Looking back at 100 Episodes and Narrowing in on Working Capital. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

KEY HIGHLIGHTS OF THIS EPISODE:Definitions and Roles of BrokersUnderstanding fee structures on the buy side and why it mattersretainers & feesRevenue Rocket's Model (Retained Advisor) vs. Contingent BrokersExclusivity and Opportunistic Nature of Contingent BrokersReferral Fees and Market DynamicsContingent vs Retainer based - expectations for success RELATED EPISODES:Episode 125: Value of an Industry Specific M&A Advisor. Listen now >>Episode 92: Why You Should Take the Call from an M&A Advisor. Listen now >>Episode 91: M&A Fees: What to Expect Before, During, and After Close. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Reselling today is not the same as reselling was yesterday. Reselling today is not the same as reselling was yesterday. Mike Harvath and Ryan Barnett dive into reselling in the tech-enabled services industry. They note the impact of cloud-based services on reselling margins and the importance of building a robust services business to complement reselling. They also discuss the challenges and opportunities for private equity firms in valuing reselling businesses, emphasizing the need for advisory firms like Revenue Rocket to navigate the complex landscape.Episode Outline:Reselling's Evolution and Its Impact on M&AThe Renaissance of Value-Added ResellingChallenges and Opportunities in Specialty ResellingThe Role of Private Equity in ResellingThe Future of Reselling and Its Impact on CustomersRelated Episodes:Episode 178: The Pros and Cons of IT Reselling in M&A Transactions. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

This episode of Shoot the Moon covers Buyer & Seller perspectives in the last week(s) leading up to close.RELATED EPISODES:Episode 83: The 11th Hour. Listen now >>Episode 154: What Will be Your Take Home Portion of the Deal? Listen now >>Episode 158: Between the LOI & Deal Close, What should you Expect? Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Utilizing Marketplaces for M&A Deals. Third party marketplaces have really emerged in the past few years. These are services that a buyer or seller subscribes to to find deal related information and oftentimes try to match your company as best as possible through AI or manual matching. Matt Lockhart and Ryan Barnett discuss the evolving landscape of third-party marketplaces for M&A transactions in the tech-enabled services sector. They highlight the increasing interest in these marketplaces, driven by the growing recognition of the value in tech services firms. They note that while marketplaces like Axial, PE Marketplace, and GRV Source can broaden the pool of potential buyers and sellers, they also present challenges such as the generalized nature of listings and the need for specialized understanding and marketplaces are a useful tool but should be part of a broader outreach strategy.1. The use of third-party marketplaces like BizBuySell, DealStream, Axial, and PE Marketplace for finding and selling businesses.2. Marketplaces can be a useful tool to increase the top of the sales funnel, but require careful curation and alignment between buyers and sellers.3. Buyers using marketplaces may not always have deep industry expertise, leading to potential misalignment.4. Sellers should proceed with caution when using marketplaces alone, as significant work is still required to properly prepare a business for sale.5. Advisors can play a critical role in helping both buyers and sellers navigate the complexities of the M&A process.6. Competition for deals can increase when using marketplaces, as the goal is to get in front of as many potential buyers as possible.7. Buyers should view marketplaces as one tool in their inorganic growth strategy, not the sole source for finding acquisition targets.8. Proper cultural, strategic, and financial fit are essential for successful transactions, regardless of the sourcing method.9. The group discussed the recent podcast episode on "Buying a Company is Not Like Buying a Car" and the importance of this mindset.  Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Mike, Ryan, and Matt from Revenue Rocket discussed  the importance of understanding the strategic, cultural and financial fit when evaluating potential buyers in tech-services M&A transactions, emphasizing the need for a comprehensive approach beyond just financial capability. They highlighted the complexities of M&A transactions, the emotional aspects for founders, and the role of a competent advisor in navigating the process and ensuring a win-win scenario for both buyers and sellers. Key points    1. Buyers often approach acquiring a company like buying a car, but sellers see it as a complex partnership that requires strategic, cultural, and financial alignment.    2. Sellers, often founders, have built their business with blood, sweat, and tears, and are protective of their team and customers when considering a sale.    3. Buyers need to approach the process with an open mind, seek to understand the seller's perspective, and demonstrate how they can create value together, not just offer a price.    4. Advisors play a critical role in facilitating the right buyer-seller fit, rather than just facilitating a transaction.    5. Sellers are looking for buyers who are a good cultural and strategic fit, not just the highest bidder.    6. Buyers making offers without proper diligence or understanding the seller's motivations can be a turnoff for sellers.    7. The introduction and early interactions between buyers and sellers set the tone for the entire process.    8. Buying a company is a complex, relationship-building process, not a simple transaction like buying a car.    9. Sellers have leverage in the current market and can be selective in choosing the right buyer.    10. Advisors can help both buyers and sellers navigate the process and find the best fit.Immediate turn offs for sellers from buyers:Coming off too strong of how to run a business vs trying to understand the seller's business model - sellers need to know that the buyer is low risk for their employees, customers, and have an open mind about how to do things as a combined entity. This challenges the success of post-merger integrationA buyer's attitude about their successful pastBe careful what documents you put in front of a seller too earlyBlowing the introduction call - this meeting sets the tone for the entire process between both parties! Take it seriouslyOur job is to help buyers & sellers find the best cultural fit, strategic fit, and financial fit to make a win-win-win scenario for all parties. This has been our speciality for IT Services firms for 25 years. Reach out to schedule a no obligation introduction call. Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

EPISODE OUTLINE:Partnerships in business and their importance in growth.Valuation and buyout considerations for businesses with multiple partnersThe importance of documentation, shareholder agreements, operating agreements and moreValuing a business for partner buyout or sale, importance of credible outside counsel, and potential impact of a departing partner on continuityManaging partnerships, exit strategies, and value creation in business RELATED EPISODES:Episode 168: Adjustments to EBITDA and Valuation based on Owner Comp. Listen now >>Episode 162: Aligning Leadership in M&A for a Better Deal Outcome. Listen now >>Episode 144: Navigating Exit Strategies: What are your Options? Listen now >>Episode 136: CEO and Leadership Transitions When Selling your IT services Firm. Listen now >>  Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

We talk alot about Multiples of Revenue & EBITDA when it comes to an M&A deal. In this episode we are unpacking how we use them, why they are important, and how buyers & sellers can align when it comes to deal multiples.What is a multiple?Why are multiples used in M&A deals?How is a multiple calculated? Does it include items like cash harvest or employee agreements?Based on different categories, different sub-industries in tech-enabled services will warrant different multiple ranges. What are some of those categories and ranges?   For example: Staffing companies, resellers, custom app dev, CSPs, MSPs, cybersecurity, generative AIHow do other items, like size, geography, vertical market concentration in clients, impact a multiple? How do non-financial factors like culture impact a multiple?How do Revenue and EBITDA multiples interact? We've seen firms with high profit margins result in deals that are 2-3X revenue.If someone hears a multiple, it feels like they hear either the highest number if they are trying to sell or the lowest if they are trying to buy. How do you explain the nuances to a buyer or seller?If multiples are more of a gut check on the proper ranges of a deal, how often are M&A enterprise values tied directly to a multiple of EBITDA?How important is it to get the proper deal comparisons if multiples become a method of comparing two firms?If a deal is based on a multiple of EBITDA, how do buyers and sellers agree what is in or out of adjusted EBTIDA?What are examples of firms that traded well outside of an industry norm for a multiple? EPISODE SUMMARY:Multiples, such as a multiple of EBITDA, are commonly used in M&A deals as a simple way to gauge the value of a company. However, they are not the sole determinant of a company's valuation.Adjustments to EBITDA, known as "add backs", can be made to account for one-time expenses or other factors that will not continue post-transaction. The agreed-upon adjusted EBITDA is a critical factor in determining the multiple.Many factors beyond just the EBITDA multiple impact the final enterprise value in a deal, including strategic fit, cultural fit, and buyer synergies. The multiple is more of a planning tool than a definitive valuation.Higher profitability tends to correlate with higher multiples, while lower profitability may not support a revenue multiple above 1x. Finding truly comparable companies can be challenging.Deals sometimes trade outside of typical multiple ranges due to strong strategic fit or other unique factors, highlighting that multiples are not the only consideration in valuation.RELATED EPISODES:Episode 141: Add-Backs 101. Listen now >>  Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Questions we dive into in this episode all about building relationships with a banking partner for M&A deals:What role do banking partners play in M&A deals within the IT services sector?What key criteria should companies consider when evaluating potential banking partners for M&A transactions?How do you assess the experience and expertise of a banking partner in the IT services industry?How important is the relationship between the buyer and the banking partner and what signs indicate a trustworthy and reliable banking partner?How can a company evaluate the financial strength and stability of a banking partner?How can buyers effectively evaluate the interest rates offered by different banking partners? What factors should be considered when comparing interest rates from various banks?What strategies can buyers employ to negotiate better interest rates with their banking partners? Are there specific terms or conditions that buyers should focus on to secure favorable rates?How do interest rates impact the overall cost of financing an M&A deal?How should companies assess the track record and success rate of a banking partner in previous M&A deals?How significant is a banking partner's reputation in the IT services industry and what methods can be used to verify and evaluate a bank's reputation?What role does the banking partner play in the due diligence process during an M&A deal?What will you need to provide to secure a loan?How do banking partners assist in identifying and mitigating risks associated with M&A transactions?How can buyers evaluate and compare the fee structures of different banking partners?Are there any hidden costs or fees that buyers should be aware of when working with a banking partner? Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Let's first understand customer concentration. Customer concentration is essentially where is revenue concentrated in your firm? Is it held by a few clients, a lot of clients? If you are in the bucket of having revenue very concentrated by a few good clients, or your acquiring a firm structured this way, this podcast episode is for you.Why is customer concentration such a significant concern in M&A transactions?What customer-related metrics are buyers looking for in an M&A transaction?What red-flags will buyers be looking for concerning customer concentration?What's normal for large customers in the IT services world? How does this vary by category between MSPs, application developers, or software channel partners?If you are a seller and have high levels of customer concentration, what should you expect in terms of purchase price adjustments?Can you explain how earn-out provisions and contingent payments work with customer concentration?What types of representations and warranties should will a buyer seek from the seller regarding customer relationships?How can holdbacks or seller financing help mitigate risks?What are the critical components of a successful customer transition plan post-acquisition?How can representations and warranties insurance help in managing customer concentration risks?Can you share any real-world examples where customer concentration was a significant issue in an M&A transaction and how it was successfully managed? RELATED EPISODES:Episode 152: Understanding Reps & Warranties for Buyers and Sellers. Listen now >>Episode 90: Selling-In v Selling-Out. Listen now >>Episode 73: Levers & Currency: M&A Deal Structures. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

How large of a company can you buy?Let's assume you've found a company that's a great strategic and cultural fit.Can you speak to different acquisition types? For example, tuck-in, platform, or merger?What key metrics should you consider in the evaluation of the firm? (Revenue, EBITDA addition, growth rates, Return on investment)What's the general guidance of how large a firm should be compared to revenue? (.5 to 2X revenue)What type of debt ratios should you consider?How do future earnings / cash flow considerations play in the size of a deal?If it's a larger firm, how do you approach integration of the firm differently?Is there a quick formula that helps determine the rate of return for a firm or how many years are needed to receive a returnShould you buy the biggest firm you can? (Discuss a small deal is as much work as a large deal)If you are buying a firm that's bigger than you, how do you approach integration differently?How does working with a funding partner, like a strategic PE firm, change the size of deal you should consider? Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

How does culture influence successful M&A deals? In this episode, we are talking about the importance of cultural fit when organizations come together in a merger or acquisition. We have special guest, Chelsey Nord, Revenue Rocket's Director of Strategy joining us on this podcast to share her expertise and experiences.Questions Chelsey dives into:How do we define culture?How does organizational culture influence the success of M&A deals?What evidence do we have that culture impacts performance?How do most firms plan for culture fit as they look to buy or sell in today's environment?What is RRCG's perspective around culture fit in M&A? What's the goal?What is RRCG's Approach to Culture Fit in M&A?What are greenlights or positive signs early in the M&A process that culture fit will be favorable?When in the M&A process should culture be addressed? Are there certain milestones?RELATED EPISODES:Episode 112: Why Culture Matters in Tech Focused M&A Feat. Chelsey NordEpisode 111: Culture and IT Services Companies feat. Chelsey Nord Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

What is a process and if you are considering one what should you think about when hiring a firm to help you do it? How do you vet firms?OUTLINE OF THIS EPISODE:Introduction to selling your business with a process.What is a process and what is a deal facilitation?What types of processes are there?Structured process – soliciting a limited but significant, number of buyers to evaluate the business and put forth an offerBecoming a platform by selling in, typically with a PE firmMinority investment: selling a portion of equity while retaining full ownershipManagement buy-out or an employee stock ownership planRecapitalization: restructuring capital but owners retain ownership and continue to manage the businessSpin-off/Divestiture – carving out part of the businessDeal facilitation – you've identified a potential buyer and need want to get a deal doneIf we compare having a structured process where you are put in front of a number of buyers to deal facilitation, where one buyer is already identified, what are the merits of running the process?Let's start with the enterprise value of a deal – how does that change between a process and a facilitation?What about timing for a transaction? Which one will run faster? Are there parts of the process that will run the same (e.g. DD, legal drafting)How does competition between buyers impact the process?If you're doing just deal facilitation, will a buyer really know the maximum potential of their firm?How easy is it to convert from a deal facilitation to a full process?Why would someone not want to run a full process? RELATED EPISODES: Episode 179: How to Evaluate Multiple Offers for your Tech Services Business. Listen now >>Episode 165: What is Deal Facilitation? Listen now >>Episode 125: Value of an Industry Specific M&A Advisor. Listen now >>Episode 110: Identifying the Ideal Suitor. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

In this Shoot the Moon podcast episode, we have special guest and marketing guru Mark Coronna. This conversation centered around the importance of marketing for tech-enabled services companies, with a focus on prioritizing marketing, creating a unique value proposition, and investing in growth strategies. Mark and Ryan discuss the benefits of fractional marketing executives, including providing immediate expertise and improving marketing and sales alignment. They also highlighted the challenges of aligning business strategy with marketing strategy, selecting and implementing the right technologies, and bridging the gap between strategy and execution. Overall, the conversation emphasizes the critical role of marketing in driving long-term growth and valuation for midsize businesses.good marketing = profitable growth = good valuation!If you can listen to this episode and change your thinking a little bit, that is the goal! MEET MARK CORONNA & AUTHENTIC BRANDAuthentic® is a community of Fractional CMOs who help growing businesses Overcome Random Acts of Marketing® and confidently take the next right step to build revenue. Mark Coronna is Authentic's Chief Development Officer, and his driving goal is to work with businesses to create profitable growth through "full-stack" marketing programs which start with a differentiated strategy and market position and end with excellent go-to-market execution and strong financial results. You can reach Mark at mark.coronna@authenticbrand.com Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Break up fees or Transaction Termination fees: A fee put in place by a buyer or a seller that if the deal does not transact as outline, there could be a fee owed to one party or the other. This is a mechanism to help buyers and sellers move along a deal and if the deal doesn't get done, is a safeguard for the parties. It's typically paid by a buyer for making the decision to terminate a letter of intent (LOI) prior to close. These are usually introduced for very specific reasons like something looming or previous interactions between a buyer and a seller. These are not typically common in an IT Services deal, because of the privately held nature of this industry but we have been seeing them more lately.  We don't believe this will become a standard operating procedure but does happen on a case by case basis.Why does this happen? Well, the cost of diligence and doing the work is high as you begin to move from LOI to close, and this helps to keep both parties at the table, and if the buyer decides to terminate, then the seller has some compensation for the effort, and dollars spent on the deal up to that point. Sometimes a deal will fail because the seller found a better deal with a different buyer.When would you not pay a breakup fee? There are some things that would warrant a transaction being terminated. If a buyer cannot secure financing, a major client terminates their contract between LOI and close, or key personnel decide to not come along for the ride. These scenarios should be outlined in the agreement or a separate agreement.Introduction to Breakup Fees: Can you explain what breakup fees are and why they are used in M&A deals?Historical Context: How have breakup fees evolved over time in the tech-services sector?Calculation and Standards: How are breakup fees typically calculated in tech-services M&A deals? Are there industry standards or benchmarks?Purpose and Benefits: What are the main purposes of including a breakup fee in an M&A agreement?Types of Breakup Fees: Are there different types of breakup fees? If so, what are they and how do they differ?Buyer and Seller Perspectives: From the buyer's perspective, what are the advantages and potential risks of breakup fees? How about from the seller's perspective?Negotiation Tactics: How do negotiation tactics differ when discussing breakup fees? What are some common points of contention?Case Studies: Can you provide examples of successful tech-services M&A deals where breakup fees played a critical role?Legal Framework: What legal considerations should companies be aware of when including breakup fees in their M&A agreements?Financial Impact: How do breakup fees impact the overall financial health of the companies involved, both in the short and long term?Impact of Market Conditions: How do varying market conditions, such as economic downturns or booms, affect the negotiation and implementation of breakup fees?Common Pitfalls: What are some common pitfalls to avoid when structuring breakup fees? Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Mike Harvath and Matt Lockhart from the Revenue Rocket team recently attended a large MSP Conference in Chicago where Mike had the opportunity to speak on "10 Questions to Consider before Selling your Tech-Services Firm." In this episode, Mike, Matt, and Ryan are unpacking one of these questions, Selling-In vs Selling-Out and some takeaways from this recent conference.A few areas we touch on in this episode:Unpacking and advice for those owners saying "I'm not willing to sell but I'm willing to buy"Understanding your options for Selling-InWorking with a capital partnerPick Selling-in OR Selling-Out, not bothDiving into no deal is the same and deal structures are uniqueQuick Takeaways from the Channel Partner MSP Growth Show in May 2024 Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

If you're a tech services CEO going through a process of selling your business and get to a point where multiple firms are looking to acquire you, you need to evaluate your options.  What should someone be looking for? QuestionsFirst off: how does someone get multiple offers?What's an exclusivity clause in an LOI?How should a seller approach negotiations when they have multiple interested buyers?We talk about deals getting done when there's a strategic, cultural, and financial fit. How do you evaluate the strategic fit?Can you discuss the importance of cultural fit between the buying and selling companies? How should this influence the evaluation of offers?What are the key financial metrics that sellers should focus on when comparing different offers? How do these metrics impact the decision-making process?Beyond enterprise value price, what other terms in an M&A offer should sellers pay close attention to?How do you evaluate transition terms for owners?Should the due diligence process be a factor in deciding which buyer to move with?What are common pitfalls or mistakes that sellers make during the M&A evaluation process and how can they be avoided?Could you share insights on the role of legal, accounting, financial advisors, and MYA advisors in the M&A process? How critical is their expertise in evaluating offers? Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

This conversation highlights the importance of reselling in the tech-enabled services industry and the need for strong relationships between resellers and vendor partners.Some highlights of this episode:Reselling in the IT industry, from its origins to present dayVendor-reseller relationships, challenges, and evolution towards services-led businessesReseller business models, margins, and M&A valuationsReseller businesses, valuation, and margin optimizationReselling and services in the tech industry Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

What information should a potential seller give out?How should a person taking a call evaluate the buyer and their seriousness and intentions?How should a seller interpret the strategic fit? What questions should a potential seller as and when should they ask them?What should a seller do between the first reach out and the next call? (Set up how RR sets up a screening call)What should a seller expect in a process? E.g. screening call, NDA, intro meeting, financials, LOI, DD, closeHow should a seller determine what their firm is worth?When should a seller start negotiating?How should a seller deal with multiple buyers?How should a seller work with their team?What role does an M&A advisor play for a seller?RELATED EPISODES:Episode 156: Understanding Caps and Baskets in M&A Transactions. Listen now >>Episode 141: Add-Backs 101. Listen now >>Episode 92: Why You Should Take the Call from an M&A Advisor. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

In this week's episode of "Shoot the Moon," hosts Mike Harvath, Ryan Barnett, and Matt Lockhart delve into a significant and exciting acquisition opportunity—Project Maya. The episode centers around the opportunity to acquire a specialized Philippine-based outsourcing firm renowned for its application support across various enterprise applications like ServiceNow, SAP, and Microsoft, among others. The firm, codenamed Project Maya, stands out with its $11 million revenue run rate and robust EBITDA profit margins, backed by a strong team of over 300 members delivering exceptional service, which has enabled it to secure notable global multinationals as clients.The crew dives into not only the highlights of Project Maya's efficient operational model and its strategic market positioning but also explores the broader implications and opportunities of outsourcing in the Philippines—a premier destination known for its excellent English proficiency, cultural affinity with the West, and exceptional customer service standards. The discussion transitions into strategic insights on how companies can leverage such opportunities to enhance global service delivery and optimize cost efficiencies.To learn more about Project Maya, click here. Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Is it worth trying to time the market for a sale or not?Some of the questions we talk through:Can you explain the concept of "timing the market" in the context of selling an IT services business?What key indicators suggest it's an excellent time to sell an IT services company?How do macroeconomic factors influence the decision to sell an IT services business?What historical trends have you seen in the IT services M&A market that might inform timing decisions?What role does the competitive landscape play in the timing of a sale?Can you discuss the risks and rewards of trying to time the market for a sale?How should a company prepare for a sale to capitalize on favorable market timing?Could you talk about a time when a company successfully timed the market for their sale, and what lessons can be learned from that?What advice would you give to business owners who are uncertain about the right time to sell their IT services business? Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

How do you source sellers on your own, and why is it so hard? Here are some of the questions we are digging into in this episode:What is buy-side M&AWhy should companies be considering buying other firms?What goes into buying a company?What's hard about sourcing when your doing the deal yourself?How do you create the list?How do you reach out to buyers?How do you determine value?How do you craft a LOI?What do you need to do in Due Diligence?How do you deal with disagreements if there are no advisors?How do you get through legal log jams?Why should you use an advisor?RELATED EPISODES:Episode 164: Elements of a Great Introduction Call. Listen now >>Episode 163: Strategies to Manage High Seller Expectations. Listen now >>Episode 155: A Short vs a Long LOI. Listen now >>Episode 129: Questions to Ask Before you Consider an M&A Initiative. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Segment 1: The Hard Truth About Selling a BusinessDiscussion on the complexity of the selling processFinancial and legal hurdles that need to be overcomeThe emotional attachment to the business and its impact on the saleSegment 2: The Emotional Ties That BindDeep dive into why selling a business is such an emotional timeIdentity and self-worth tied to the businessThe feeling of letting employees and customers downThe fear of the unknown post-saleExpert Interview: A Psychological PerspectiveCan you hit the number you want with a buyer you can work with?Segment 3: Preparing for the Sale ProcessPractical steps to detach emotionally from the businessShifting perspective from owner to sellerFocusing on future opportunitiesGetting your business in order: financial audits, valuations, and moreAssembling the right team: brokers, accountants, lawyersSegment 4: Strategies for a Smoother SaleStrategies for setting realistic expectationsTips on maintaining business performance during the saleNegotiation tactics and how to handle offersGetting through Due Dilligence and a potential QoE Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

Understanding an M&A Lawyer vs a generalist lawyerWhy IT Services deals are differentWhat to watch out for if your pick a generalist lawyerRELATED EPISODESEPISODE 149 Legal Counsel and M&A Transactions for IT Services Firms. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

This is a must listen for buyers and sellers!What's the difference between 3X and 9X in a deal?SizeGross and EBITDA Profit marginsGrowth rates and forecastTechnology specialization & Vertical specializationType of revenue: contracted, recurringClient types and concentrationDeal terms: equity, selling-inStrategic buyer: the right buyer can help drive the right multiple.Competition in a dealMarket/Economic conditionsRELATED EPISODES:Episode 169: What are the Differences Between a Valuation and a Deal? Listen now >>Episode 166: Understanding Revenue Models and how they Impact EBITDA? Listen now >>Episode 163: Strategies to Manage High Seller Expectations. Listen now >> Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

De-risk your biggest investment (your company) by becoming a platform company. Essentially a platform company (like an App integrator or Managed Service Provider or Digital Transformation Firm) is a top quartile, well-run company that takes capital from a private equity firm or other investor. When a private equity firm is investing, a platform company might be the first to receive investment which in turn will help them accelerate their organic growth and take advantage of acquisitions for further growth.Some questions we're diving into in this podcast episode: What is a platform companyWhat does an equity partner look for in a seller?What are some things a seller should have to be a good platform candidate?What are the next steps for growth after becoming a platform company?Why does the platform company need to have excellent leadership?What is a thesis? Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

In the context of mergers and acquisitions (M&A), the terms "valuation" and "deal getting done" refer to distinct stages and aspects of the transaction process. Here's a breakdown of the differences:### Valuation1. **Definition**: Valuation is the process of determining the present value of the target company. It involves assessing the company's financial performance, growth potential, market position, and any synergies that the merger or acquisition would bring. Various methodologies can be used, including discounted cash flow (DCF) analysis, comparable company analysis (CCA), and precedent transactions analysis.2. **Purpose**: The purpose of valuation is to arrive at an approximate value for the company that is being considered for acquisition or merger. This helps the acquirer to make an informed bid or offer price.3. **Process**: Valuation involves a thorough analysis of financial statements, market conditions, industry trends, and other factors that could affect the value of the company. Financial models are often built to simulate different scenarios and their impact on the company's value.4. **Outcome**: The outcome of the valuation process is a range of values that represent the estimated worth of the company. This range is used as a basis for negotiation in the deal. ### Deal Getting Done1. **Definition**: The "deal getting done" refers to the completion of the M&A transaction, which encompasses negotiations, due diligence, finalizing the terms of the deal, obtaining necessary approvals, and closing the transaction.2. **Purpose**: This stage is focused on finalizing the agreement between the buyer and seller, addressing any legal or regulatory issues, and ensuring that all terms of the deal are satisfactory to both parties.3. **Process**: After initial agreement on the valuation and terms, the process involves detailed due diligence (legal, financial, operational), negotiation of final terms, drafting and signing of agreements, obtaining regulatory approvals if necessary, and eventually closing the deal with the transfer of payment and ownership.4. **Outcome**: The outcome is the successful acquisition or merger of the target company by the acquirer, resulting in the transfer of ownership, integration of operations, and realization of synergies that were identified during the valuation process.In summary, valuation is about estimating the worth of a company, serving as a critical step in determining how much should be paid in an M&A transaction. "Deal getting done," on the other hand, encompasses the entire process of negotiating, finalizing, and executing the transaction based on the valuation and other considerations. Listen to Shoot the Moon on Apple Podcasts or Spotify.Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.