Shoot the Moon 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...

  Key points Convertible 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 cho...

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...

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 silen...

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 tha...

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 dea...

OUTLINE OF THIS EPISODE: M&A Negotiations Introduction Setting the Tone for Fairness in M&A Negotiations Balancing Interests in M&A Transactions Transparency and Trust in M&A Negotiations Deal Fatigue and Negotiation Strategies Impact of Win-Win Negotiations on Post-Transaction Relationships   RELATED EPISODES Episode 174: Buy-Side M&A: Tackling the most Challenging task of Finding a Willing Selle...

KEY HIGHLIGHTS OF THIS EPISODE: Definitions and Roles of Brokers Understanding fee structures on the buy side and why it matters retainers & fees Revenue Rocket's Model (Retained Advisor) vs. Contingent Brokers Exclusivity and Opportunistic Nature of Contingent Brokers Referral Fees and Market Dynamics Contingent vs Retainer based - expectations for success   RELATED EPISODES: Episode 125: Value o...

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 oppor...

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...

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 i...

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 adv...

EPISODE OUTLINE: Partnerships in business and their importance in growth. Valuation and buyout considerations for businesses with multiple partners The importance of documentation, shareholder agreements, operating agreements and more Valuing a business for partner buyout or sale, importance of credible outside counsel, and potential impact of a departing partner on continuity Managing partnership...

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 categorie...

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 i...

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...

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 compare...

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...

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 busine...

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 im...

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...

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 t...

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?   Questions First 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 buy...

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 day Vendor-reseller relationships, challenges, and evolution towards services-led businesses Reseller business models, margins, and M&A v...

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...