M&A Legals, Growth Via Acquisitions: A DEEPER Dive: The Role of Search Funds in Business Acquisition
This Week On How2Exit, Chatting With an M&A Attorney, and Reviewing a great interview about growth via M&A - DEEPER - The Role of Search Funds in Business Acquisition
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This week on How2Exit:
E120: M&A Advisor Mathew Saur's Journey from Thiel College to Co-Founding Woolery & Co. in NYC Watch here:
Mathew Saur is the co-founder and partner of Woolery and Co, a strategic legal advisory based in New York City. He grew up outside of Baltimore and was a football player in high school and college. He attended Thiel College in Western Pennsylvania and initially wanted to go to law school to become a sports agent. His dad's college friend was a successful NFL agent and around this time, big time agents like Drew Rosenhaus and Jerry McGuire became popular. After he got injured his sophomore year, he decided to double down on going to law school.
Mathew had a conversation with their father's friend who advised them to go into the 'team side' or the 'league side' of business in order to make more money. He decided to go to law school at Notre Dame to focus on corporate law, specifically transactional work such as mergers and acquisitions. Mathew was able to gain experience in transactional work through a connection to the top law firm, Cravath, Swaine and Moore in New York City. The speaker now has an advisory practice that specializes in helping family- and founder-led businesses of all sizes with catalytic, transformational and strategic events, as well as some dispute work.
Ronald Skelton and Mathew Saur discussed the different roles that can exist in the world of business consulting. They discussed how they each got into the field and their respective career paths. Skelton initially wanted to do intellectual property law but dropped out after he got a divorce and could not afford to continue. Saur began his career in a large firm doing litigation but decided it was not for him. Saur started his own firm and focuses on the 'premium piece' of consulting- where there is a personal connection and understanding of the business. Skelton found that many of his law school friends did not practice law after graduation, which drove his decision to pursue business consulting instead.
Ronald and Mathew also talk about Mathew’s other businesses, his acquisition entrepreneur side, the type of deals he’s looking for and the people he enjoys working with most. (55:28) Listen Here
Check out the new AI Ask This Episode Anything tool and our written article about what we learned here:
For an Awesome source of information and great articles on buying, growing, and selling a business, check out: Acquisition Aficionado Magazine’s Latest Issue (Sponsor)
Throw Back Tuesday
In this section, we cover podcasts that came out before the newsletter that I’d hate for you to have missed.
Marty Fahncke is an experienced businessman and e-mergers and acquisitions advisor. He has helped businesses scale to over a billion in revenue and executed more than $400 million in mergers and acquisitions. He has experience on both the buy side and sell side, and is currently acquiring businesses in a variety of verticals, such as e-commerce, consumer goods, health and wellness, agencies, and software as a service. Marty shared his experiences with Ronald Skelton on the How to Exit podcast, emphasizing that buying and selling a business can be frustrating, stressful, and time consuming, but it can also be rewarding, fun, and lucrative. Ronald hopes to learn from Marty's lessons and experiences, so that he can be better prepared for any obstacles that may come his way.
Marty Fahncke got his start in mergers and acquisitions by accident when a company offered him and his business partners a large amount of money in exchange for their grassroots business. Later, while working for a large company, he found himself competing with another company that was out-marketing and out-promoting his team. In order to stay competitive, Marty discussed the situation with his CEO and suggested that they consider an acquisition of the competing company. This experience sparked Marty's interest in mergers and acquisitions and he went on to become an expert in the field.
During a conversation with his boss, he had an epiphany that there was another way to grow a business than just through sales and marketing, and that was through acquisitions. He then reached out to a group of cooperators and competitors, and within four months, they had acquired the company. This was the beginning of his career in mergers and acquisitions, where he went on to do just under 300 million dollars in acquisitions in total and built that enterprise value to 600 million dollars. He learned that you don't need a huge war chest of cash to acquire businesses and grow your current business.
Marty Fahncke discusses the idea that mergers and acquisitions are not just for large Wall Street companies, but can be used by any business to increase their net worth and operations. For example, if a company has excess manufacturing capacity, they can acquire another business that sells similar widgets to fill that capacity, making their core business more efficient. Marty also suggests that business owners should keep an open mind and consider the possibility of buying out their competition rather than just trying to outsmart them. Ultimately, mergers and acquisitions can be a great way for any business to expand their portfolio and increase their success. Watch here: (54:46)
Check out our article about this episode, complete with an AI-backed Ask the episode anything tool:
10 Concepts We Can Learn About M&A and Growth Via Acquisition From How2Exit's Interview With Marty Fahncke
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This week’s “DEEPER” Dive: The Role of Search Funds in Business Acquisition
Unpacking the Process and Potential of Search Funds:
In the world of business acquisition, there are various pathways that prospective buyers can take. One strategy, often overlooked yet incredibly potent, is the utilization of search funds. Despite their relative obscurity, search funds play a crucial role in the landscape of business acquisition, offering an alternative avenue for those seeking to acquire and manage an established company.
Let’s dive in.
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Disclaimer: This newsletter is provided for informational & educational purposes only, and should not be relied upon as legal, business, investment, or tax advice. We are not attorneys, tax, or financial advisors and not qualified to give any such advice.