Shoot the Moon with Revenue Rocket

EPISODE 226. This episode begins with the vocal stylings of Ashley Battel from the Revenue Rocket Outreach team. EPISODE NOTES: • Customer concentration in IT‑services M&A is it a hero or risk?  • Concentrations of 20–50%+ revenue across 1–5 anchor clients are common.  • Evaluate revenue/profit trajectory, contract history, and relationship depth to size risk.  • Strategic buyers often welcome con...

“The fastest-growing firms marry organic excellence with a disciplined, outsourced M&A engine.” — Mike I. Warm-Up: The CEO Mindset Q1. Mike, what are some of the most common reasons CEOs in IT services think about buying another company? Q2. When should a CEO not consider buying? When is it too early or misaligned with the company’s strategy? Q3. What are some signs a firm is ready to start lookin...

Time Topic / Segment Key Takeaways 0:00 Welcome & July-4th setup Why founders start thinking about “life after the sale” over holiday downtime 1:30 Sell-In vs Sell-Out 101 Minority recap = keep equity & help scale; full sale = plan your next move now 4:45 Identity shift after selling-in Accept you’re “not the final veto” and learn to lead through others 8:00 Culture makes or breaks integrations Re...

There is nothing that is without risk! In this episode we are diving into the big risks (and rewards) that come with working an M&A process. M&A always feels like a bet. Hosts Mike Harvath, Matt Lockhart & Ryan Barnett explain how top-quartile IT-services firms stack the odds: • quantify risk, then plan for success—not failure • engineer deal structures (earn-outs, equity rolls) that protect both...

EPISODE NOTES: Who’s Who in the Final Month: Understand the large cast of characters involved including M&A advisors, legal teams, tax consultants, buyers, funders, and integration leaders. Legal Complexities: Tips for selecting the right M&A-savvy lawyer and the importance of legal transparency and communication throughout the process. Communicating with Employees: The Goldilocks approach—don’t t...

Key Topics Covered: Intro to Project Neptune – A high-growth, high-margin MSP built by a husband-and-wife team. Why Sell? – The founders sought scale, not an exit. They wanted to join a larger platform. The Process – Revenue Rocket led packaging, marketing, and diligence with 180+ buyer targets and 12+ indications of interest. Deal Structure – Final deal included cash at close, equity roll, and a...

🎙️ 1. What’s the real purpose of a non-compete clause in an M&A deal? Why it’s important: Sets the stage — you’re establishing that these aren’t just “standard boilerplate,” but real tools for protecting the buyer’s investment. It also shows that you get why buyers insist on them.   🎙️ 2. How long and how broad should a typical non-compete be in IT services M&A? Why it’s important: Matt can share...

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 wh...

1. “How do you like to qualify whether a buyer actually has the capital to close a deal?” Gut check vs. formal proof Differences between PE-backed and strategic buyers What’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 letters Bank letters or balance sheets Fund-level detail for PE...

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 businesses Recognize how emotions can impact deal negotiations and valuation Lea...

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 affe...

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. 🔍 Inside the episode: Why jumping to th...

EPISODE KEY POINTS Communicating a Business Sale to Employees Key Stakeholders and Early Communication Selling In vs. Selling Out Employee Concerns and Communication Strategies Follow-Up Communication and Integration Plan Overall Communication Plan   RELATED EPISODES Episode 96. Post Combination Employee Consolidation: Do’s, Don’ts and What to Expect. Listen now >> Episode 33. Employee Involvement...

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 potenti...

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...

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 discrepancie...

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 EBITDA Growth rates of 15-25% are crucial EBITDA margins above 15% are ideal Recurring revenue above 60-70% is attractive to buyers   Critical Elements for Premium Offers: 1. Organic Growt...

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 Companies Importance of Valuations for IT Services Companies Internal valuations and Corporate Governance Differences Between Internal and Open Market Valuations Providers of Valuations and Regulatory Considerations Best Practi...

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 minim...

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&A What 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 du...

Most impactful trends forecasted to hit the tech-enabled services sector in 2025. Predictions for 2025 MSP targets continue to get multiple offers as consolidation continues Rise in custom app dev space: custom app dev, near shore, and transformation projects continue Prepare for the unexpected with new policies The need for security everywhere will continue growth in cybersecurity M&A Global M&A...

Key points M&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...

Key Points Discussed Independent 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...

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...