Shoot the Moon with Revenue Rocket

In this episode of Shoot the Moon, we're talking about ownership within firms. The Revenue Rocket team dives into different types of equity that can apply at every level within a company and the benefits and alignment that come from equity both during and after a business combination. Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Rev...

Benefits of Rolling Equity    a. Allows seller to retain some ownership and control of the company post-sale    b. Opportunity to potentially receive additional compensation from the buyer Potential Risks of Rolling Equity    a. Risk of reduced sale proceeds if the company does not reach performance milestones    b. Potentially complex tax implications for seller   Summary of this episode: Exchang...

Here's what we cover in this episode of Shoot the Moon: Where does legal counsel gets involved: NDA, LOI, Purchase agreement Roll of an accountant, M&A advisor, client and legal counsel?  When do you bring legal counsel?  Importance of an M&A lawyer and M&A in IT services specifically: what does a generalist typically miss? What are common legal items in tech-services businesses that may not be co...

Here are the 6 (& a bonus!) we talk through: The Length of the Deal Negotiations - M&A deals can take weeks, months, and even years to close The Complexity of the Process - Due diligence, legal paperwork, lien releases need to be completed. Quality of Earnings detail: 1-2 months of an intensive audit A debt free transaction and having adequate working capital Legal implication of an asset purchase...

Episode Summary: What is an intern program and why is it important for IT service leaders to consider one Benefits of having an intern program, such as increased productivity, improved customer satisfaction, and potentially positive brand reputation Steps for establishing an effective internship program, such as identifying goals and objectives, recruiting interns, developing job descriptions, set...

Here's what we cover in this episode of Shoot the Moon: M&A is hard and the most unnatural act in business; expect challenges and some loneliness in the process. Answer questions on your readiness for a sale: personnel motivation, financial readiness, history of success Avoid common mistakes of over valuing the business, ruling out suitors before discussions, being unwilling to negotiate, not havi...

Summary of this Shoot the Moon Podcast episode: Picking a vertical market brings a level of differentiation that brings value Customers are easier to acquire and keep which increases revenue and profit will increasing the level and value of intellectual property.  If buyers are in alignment with vertical markets, they are willing to pay up; not only do you get a premium from enhanced EBITDA, you g...

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 trying to find the absolute perfect deal (M&A), we know that 99.9% of the time it is not the reality. Being able to be flexible and adaptable in changing environments is crucial for success in business. Revenue Rocket has seen it all in our 23 year, and we'd love to talk with you about your organic and inorganic growth goals. Reach out for a no-obligation introduction call: info@revenuer...

Win your vertical market! Below are some points discussed in this episode: Challenges of being a generalist - how do you stand out? Picking a vertical market brings extreme clarity to your strategy Sales and marketing click into place by focusing on 1 market It’s critical to commit. Uptime changed their name to Uptime Legal to dedicate themselves to 1 market. Understanding Revenue Rocket's proven...

We. Deal. With. Add Backs. Every. Single. Day. Tune into this episode to understand all things add-backs! What are they, why do they matter, and how to manage them during a process. Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket. 

Informing your team of your decision to sell your firm Layers of communication and timeline: Who starts with knowing and who comes into the loop before the rest of the company How do you position it Types of deal structures & how they effect your employees how you announce to the company Listen to Shoot the Moon on  Apple Podcasts  or  Spotify . Buy , sell , or grow your tech-enable...

Project Deacon was an opportunity to acquire a growing, profitable cloud-hosting firm focused on the dental practice market with over 80% recurring revenue. They provide Cloud Desktop as a Service (DaaS), Managed Services, and IT Professional services - essentially a one stop technology shop of all the needs of growing dental services organizations. Revenue Rocket represented the firm as their sel...

It's hard to make a big choice in monetizing your life's work. It is important to understand the concept of not running your business like its for sale... but... listen was we dive into keeping a steady hand on the tiller when selling your business, Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket. 

Understanding Structure as part of an M&A Transaction We're diving into a lot of different structures and what they mean: Theres a big correlation between higher enterprise value and the structures you can have Earn outs need to focus on your company's growth goals with defined targets You have to earn out your earn out! Earn outs can lead to higher enterprise values Timing of payments should alig...

As a business owner considering an exit: Make sure you can delegate the responsibilities to people running your company. Bring the right people into your team and consider compensating them for what the exit looks like to make sure they are bought into the sell At home: financially, friends & family, and important to replace a large chunk of your life that you will miss post-exit Who will be your...

Goodwill on your balance sheet is a filler of the true valuation of the business. Goodwill is the value a company gets from its brand, customer base and reputation associated with its intellectual property. We've been getting a lot of questions and talks of Goodwill with our clients and during transactions lately and hope this episode gives you some insight into why it matters during a merger or a...

When picking a technology partner... All relationships require investment and care in order to have them be fruitful and successful and no technology partner vendor is an exception. There are so many win-win scenarios when it comes to working with an OEM. In the tech-enabled services market, service providers need to partner with leading providers of cloud, software, and hardware solutions to meet...

We’ve talked a bit about what to expect for fees when evaluating M&A vendors – you can check out previous podcasts and blogs on the topic on our website at RevenueRocket.com. Today we want to dig into a provision you’ll find in nearly all M&A related contracts – a tail for a transaction after an agreement comes to an end. But Before we jump into the specifics of tail related provisions, there are...

What happens during an economic downturn: Buying cycles elongate Customers cut discretionary spend Multiple levels of approvals happen at targets, slowing down the process More competitors start searching for the same deals   What you can do: Specialize in what you’re best at – talk about what it means to specialize Pick an industry and work on addressing critical pains where they Make things easy...

The time between getting a financial request and sending the information can be critical. 1.  It shows that you're organized and prepared. When a company is considering acquiring another business, one of the first things they're going to want to see is that business's financials. Having your financials in order shows that you're organized and that you know what's going on with your money. This can...

Considering a sale is a very personal decision for a business owner. You've spent your life and energy building a business and now you've decided to consider a merger or acquisition. We get it - we've helped hundreds of firms sell and we're sharing what we've learned and what it takes to start a process.   1. What is the current market value of your firm? You'll need to know how much your firm is...

Will I hit my revenue and profit goals with organic growth alone? M&A is the fastest path to growth   What is my strategy in acquiring another firm? Will this expand revenue, add new services, bring new people, or add a geography?  How will this impact channel relationships?   What are the potential benefits of an acquisition for my company’s growth and success?   Do I have the right team in place...

Keep a steady hand on the tiller. We're talking about the importance of making decisions as an IT Services leader - yes you read that right! We often see struggles and delays in decision making in business which can get in the way of growing and prospering. Listen as we unpack decision making and how to keep your business moving forward. Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy,...

Origination: research, outreach & marketing – we’ve got a team of dedicated researchers finding your list, dedicated outreach team contacted buyers & sellers and supporting it with marketing Deal Flow & Negotiation: Moving a deal forward, creating an LOI and negotiating a purchase agreement – all the things that happen to move a deal through the pipeline).  Financial Analysis: Valuations, Cash flo...