E185: Mid-market M&A Advisory Services in a Changing Economic Landscape with Steve Conwell

How2Exit: Buy, Don't Build - M&A of Small Businesses

About the Guest(s): Steve Conwell is a co-founder of Final Ascent, a mid-market M&A advisory firm specializing in exit planning and succession strategies. With a background in audit and entrepreneurship, Steve brings a wealth of experience to his role as an advisor and coach for businesses preparing for sale. He has a deep understanding of the M&A market and helps clients navigate the complexities of the process to maximize their value and achieve a successful exit.
Summary: In this episode, Ronald Skelton interviews Steve Conwell, co-founder of Final Ascent, about the current state of the M&A market and what business owners need to know when preparing to sell their companies. Steve shares insights into the macro and microeconomic factors affecting mergers and acquisitions, including the impact of inflation, interest rates, and geopolitical events. He emphasizes the importance of being proactive in exit planning and building a valuable company that will attract multiple buyers. Steve also discusses the changing behavior of buyers in the mid-market space and the need for sellers to be cautious and well-prepared throughout the process.
Key Takeaways:

• The M&A market is influenced by various macro and microeconomic factors, including inflation, interest rates, and geopolitical events. Business owners should stay informed about these factors and be prepared for potential changes in the market.
• Buyers in the mid-market space are becoming more cautious and are looking for stable businesses with a strong competitive advantage. They are focused on the quantitative and qualitative aspects of a company's performance and its potential for growth.
• Sellers should start the exit planning process early and work with experienced advisors to maximize the value of their companies. It is important to understand the buyer's perspective and present the business in the best possible light.
• Building a valuation edge and saturation-proofing the business are key strategies for attracting buyers and maximizing value. Sellers should differentiate themselves from the competition and ensure their business is well-positioned for growth.
• Sellers should be cautious when making changes to the business before selling. Buyers prefer stability and may be hesitant to acquire a company that has undergone significant changes. It is important to maintain a positive rapport with employees and listen to their feedback during the transition.

Notable Quotes:

• "Good companies in any market will sell. When you're building a company, you want to very early in the process start to sell because you're going to transition at some point and at some stage." - Steve Conwell
• "Buyers like to buy businesses that are thriving, not surviving. You want to present yourself in the best light possible so that they go, 'Yes, I want to pick you.'" - Steve Conwell

Watch it on Youtube: https://youtu.be/-D1QP_y6O2s
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Contact Steve on
Linkedin: https://www.linkedin.com/in/steveconwell/
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Since 1998, IT ExchangeNet has created $5 billion in value by selling more than 225 IT businesses in 20 countries. IT ExchangeNet works exclusively with IT-enabled businesses generating between $5M and $30M who are ready to be sold, and M&A decision-makers who are ready to buy. For over 25 years IT ExchangeNet has developed industry knowledge that helps them determine whether a seller is a good fit for their buyers before making a match.
"Out of all of the brokers I've met, this team has the most experience and I believe the best ability to get IT service businesses sold at the best price" - Ron Skelton
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