Ronald Skelton’s Post

E209: Building Bridges, Closing Deals: Mastering Rapport & Zero Down Strategies w/ Matt Bodnar Watch Here: https://lnkd.in/ghAVwtR8 About the Guest(s): Matt Bodnar, a rising star in mergers and acquisitions, has a diverse background that spans from Goldman Sachs to entrepreneurship. After purchasing his first IT service business post-college, he honed his deal-making skills, culminating in the establishment of his holding company, Eidolon Capital. Specializing in lower-middle market acquisitions, particularly in blue-collar, value-oriented, and baby boomer-owned businesses, his portfolio includes companies in sink manufacturing, pallet racking, and IT/software. His approach emphasizes value and long-term investment. Summary: In this episode, Matt Bodnar, a rising star in mergers and acquisitions, dives deep into deal-making strategies. They explore Matt's journey from Wall Street to entrepreneurship, focusing on his expertise in lower-middle market acquisitions. The conversation highlights the importance of building genuine relationships, active listening, and structuring creative deals like zero down and zero out-of-pocket transactions. Matt shares personal anecdotes, including unconventional deals and aqua hires, emphasizing the significance of understanding seller motivations for successful buyouts. Key Takeaways: *The essence of mergers and acquisitions lies not just in financial savvy, but in creating genuine connections and understanding seller motivations. *Zero down or zero out-of-pocket deals are possible with a well-developed deal pipeline and creative structuring based on sellers' needs and business assets. *Rapport building and active listening are critical skills in negotiation, often determining the success of an acquisition more than the financial offer. *There is a significant opportunity to acquire and optimize undermanaged businesses, particularly in sectors where owners are looking to retire without succession plans. *Practical involvement and willingness to operate the acquired business, at least initially, can lead to better management hires and long-term success. -------------------------------------------------- How2Exit Joins IT ExchangeNet's Channel Partner Network! Have an IT Company doing between $5M and $30M You may Sell? The IT ExchangeNet M&A Marketplace @Ronald Skelton - How2Exit Host has a proprietary database of 50,000+ global buyers seeking IT Services firms, MSPs, MSSPs, Software-as-a-Service platforms and channel partners in the Microsoft, Oracle, ServiceNow and Salesforce space. If you are interested in learning more about the process and current market valuations, complete the contact form and we’ll respond within one business day. Everything is kept confidential. https://lnkd.in/gbzzcgbU Our partnership with IT ExchangeNet focuses on deals above $5M in value. If you are looking to buy or sell a tech business below the $5M mark, we recommend Flippa.

Growing a business through acquisitions is simple but complex at the same time. It’s a paradox. How can this growth strategy be both simple and complex? The process is straightforward from this perspective: if we know what we need to add to our business, we can go out and acquire it - instead of developing it from scratch – and instantly, our business has grown. At the same time, there are several important steps required for the process that make it complex. While none of these steps are overly complicated by themselves, it is easy to miss something along the way because there are so many. Here is a great example of this: I was talking with an SMB owner who was frustrated. He knew his fastest way to grow was through acquisition, but they were having trouble. He started as a multi-family investor and had partnered with a developer so they could build their own multi-family projects. He wanted to grow through acquisitions, and they were looking to acquire contractors so their business could be more vertically integrated. They had closed two small deals, but both had to end up being unwound because they didn’t work out. When I heard more about their process, the issue became apparent to me. While there was an argument that they were targeting operations that were a little too small, their biggest issue was they didn’t have anyone qualified to operate these businesses. This meant that once the seller transitioned out of the business, there wasn’t anyone to manage that team. It wasn’t a complex issue requiring years of experience to execute. If I were on the acquisition team with them, I would have asked the question before we placed an offer. “Does the owner plan on staying on, or do we need to find a replacement?” But if you have never been through the acquisition process before, it is a detail that can be missed. This is why having someone with experience on your deal team is essential. While they may not have specialized knowledge like attorneys and accountants, they know the details of a successful acquisition. Eventually, you might glean enough experience from working with them that you become the expert, but until then, they can bring tremendous value to the process. Don’t let the simplicity of the acquisition process fool you. Each step may appear simple, but the volume and importance of each step make the process more complex than it seems.

🛑 Business Acquisitions: Brutal Truths They Won’t Tell You 🛑 Let's get real about business acquisitions. You know, that golden ticket everyone lusts after—buying a company and riding off into the sunset with bags of cash. Sounds dreamy, right? Like a glossy magazine cover promising you six-pack abs in two weeks. Time for a reality check. 🎯 Here's what they're too scared to tell you: - **Due Diligence is a Minefield**: They say due diligence like it’s some cursory glance over the books. No, it’s spelunking into an abyss of financials, contracts, liabilities, and skeletons in the closet. If you're not prepared, you'll be obliterated. - **Culture Clashes Await**: Two companies, two cultures. Don’t assume slapping your name on someone else's masthead means a smooth sail. Aligning values, systems, and staff is like mixing oil and water. You get chaos, not synergy. - **Egos Will Collide**: Executive teams morph into rival gangs. CEOs turn into territorial felines. Why? Because power shifts result in bruised egos and territorial pissings. Expect a zoo, not a Harvard case study. 💸 Money Doesn’t Solve Everything: Yes, acquiring a business needs capital. But pouring money into a pit doesn’t create the utopia you dream of. Investments must be strategic, not ego-driven. Otherwise, you’re throwing good money after bad. - **Integration Nightmares**: Technology systems, processes, and CRMs—oh my! You’re not just plugging in a toaster. Melding complex ecosystems is akin to open-heart surgery. One wrong move, and the whole thing flatlines. - **Legacies vs. Innovation**: Long-standing businesses have traditions. Newer ones crave innovation. Melding the two is like forcing a rock band to play chamber music. The result is usually dissonance, not harmony. 💥 But, What About the Pay-off? Yes, getting it right can turn you into a legend. But, don’t fool yourself. Success in acquisitions is rare—like catching lightning in a bottle. So, if you’re hell-bent on this path, prepare for: - **Sleepless Nights**: Think anxiety, stress and waking hours filled with second-guessing every decision you make. Because the market is merciless and timing is everything. - **Failed Deals**: Not every negotiation ends in a handshake. Some end with you flipping tables and starting from scratch. A failed acquisition can teach more than a successful one, but the tuition is steep. - **Personal Sacrifice**: Want to coast through life? Then stay out of the acquisition game. This arena demands blood, sweat, and tears. Only the resilient survive. Final Thought: Consider this your warning or your wake-up call. If you’re going to dive into the world of business acquisitions, do it with open eyes and a backpack full of grit. Because this isn’t a stroll in the park; it’s a high-stakes chess game with no room for amateurs. 🎯

The recent article on small business acquisitions has definitely altered the way I view the current market landscape, much like a sudden change in weather can catch you off guard while you're out for a stroll. One excerpt resonated with me profoundly: the article highlights that small business acquisitions are returning to pre-pandemic levels, marking a noteworthy recovery in the entrepreneurial spirit. Here are a few reflections I found particularly insightful: - Market Resilience: Just as a seasoned sailor learns to navigate through storms, business owners are learning to pivot and adapt, exploring acquisition opportunities that could propel their businesses forward. - Diverse Strategies: This uptick doesn't just mean more mergers; it indicates a broader spectrum of growth strategies being explored. Companies are realizing that sometimes partnering up is the simplest way to enhance their market reach. - Legacy and Transition: For many owners, the idea of selling their business is intertwined with preserving their legacy. Acquisitions offer not just an exit strategy, but a means to ensure their hard work continues under new leadership that respects their vision. - Collaboration Over Competition: It seems like the narrative is shifting. Rather than viewing fellow businesses as competitors, many are now seeing them as potential allies in a broader ecosystem. This shift is not just pragmatic but also enriching for the communities we serve. As we continue to witness this transformation, I’m curious to hear from others: How are you viewing the current acquisition landscape? What trends are you seeing in your industry? Let’s share insights and support one another as we navigate this evolving marketplace. https://lnkd.in/g9UGtHHC

Is Your Next M&A Deal a Goldmine or a Landmine? "Good afternoon, Bridget & Doug, I’ve got this fantastic acquisition opportunity, but how do I make sure it’s a game-changer—not a costly mistake?" It’s a question that keeps even the most seasoned executives up at night. Mergers and acquisitions (M&A) aren’t just business transactions; they’re strategic bets on the future. To make sure you’re not stepping into a landmine, here are three critical strategies: Master the Value Assessment Before You Dive In Imagine you’re buying a car. Would you skip the test drive or ignore the vehicle history report? Of course not. In fact start the process with a bizval valuation. The same goes for M&A. Value assessment is your test drive—understanding what you’re really getting. Advisors dig beyond the surface, evaluating not just financials, but also brand equity, customer loyalty, and market positioning. Each hidden insight could be worth millions. Don’t just buy a business; buy into its future potential. Integrate with Precision—Starting from Day One Think of your M&A integration like coaching a new sports team. You wouldn’t just throw players on the field without a game plan. Integration should be a strategic priority from the outset, not an afterthought. Advisors help ensure that systems, cultures, and operations blend smoothly, avoiding chaos and ensuring you hit the ground running. The goal? A team (and business) that’s greater than the sum of its parts. Unlock Synergies—Don’t Just Identify Them It’s easy to spot potential synergies on paper, but real value is unlocked when those synergies are realised in practice. Think of it like an orchestra—having talented musicians is one thing, but without a conductor, it’s just noise. Advisors act as that conductor, turning potential savings and efficiencies into operational harmony. Whether it’s merging customer bases, streamlining supply chains, or reducing overheads, the true value lies in execution. Final Thought M&A success isn’t about luck; it’s about meticulous strategy, expert guidance, and flawless execution. Are you ready to ensure your next deal is a goldmine and not a landmine? Let’s talk about how you can avoid leaving money on the table. "With years of experience on both sides of the table, we’ve seen what works and what doesn’t. Let’s turn your next deal into a strategic victory. Comment below or message me to discuss how we can make your M&A process as smooth and profitable as possible." #BusinessGrowth #MergersAndAcquisitions #M&Astrategy #BusinessCoaching #StrategicPlanning #SMEChallenges #UnlockingValue

🔥 Best three acquisition strategies? 🔥 In the last 20 years, over 1000 people have asked me how to grow their business. They’re all paralyzed by limiting beliefs. What they are and how to break them today: Before we get into the How, let’s first unpack why people think they can’t grow their business through acquisitions. Here are the biggest reasons I’ve found: Fear of Complexity It’s hard to believe if you think acquisitions are too complex. You need some idea of how to identify targets, how to finance the deal, and how to integrate the new business. Stuck? Join communities, read books, and connect with experts. Fear of complexity = lack of action. Overestimating Costs The only thing you need to start an acquisition? 1. A profitable target 2. A smart financing plan Forget the massive capital requirements, complicated negotiations, and high-risk fears. Until you understand the basics, that’s just procrastination. Perfectionism Paralysis The #1 thing I see holding business owners back? Perfectionism. They need the perfect target, perfect timing, perfect terms, and perfect integration. No wonder they never get anywhere. Get going, then get good. Done > perfect. Perceived Risk It’s crazy how many people think acquisitions are too risky. You can mitigate risks through thorough due diligence, smart deal structures, and post-acquisition strategies. You don’t need to avoid risks. You need to manage them. Picking the Wrong Targets Warren Buffett said: “It’s better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Why make the journey any harder? Pick businesses that align with your strengths and growth strategy. The journey is hard enough as it is. How to prove you can grow your business through acquisitions: We’ve gone over the reasons people think they can’t grow through acquisitions. Now, how do you actually prove you can do it? Let’s get into it (Hint: it doesn’t come from shouting affirmations in front of your mirror): Find the Right Targets I wouldn’t be where I am if I didn’t know how to find good targets. I look for businesses that fit my strategy, are profitable, and have growth potential. I help Owners/entrepreneurs grow through smart acquisitions and I love every second of it. Move Fast and Integrate The best acquirers move FAST. They close deals. Get the business running. Integrate. Relentlessly. Overthinkers wait for the perfect deal, keep analyzing, and never close. Result? They don’t grow. Don’t be an overthinker. Leverage Expertise Expertise separates the great acquirers from the mediocre ones. I have experts for everything - due diligence, financing, integration - you name it, I have an expert for it & advanced technologies. I don’t believe in luck. I believe in expertise. 🍀 Repost this to help others level up... Contact Me #acquisitions #business #linkedin

In the dynamic world of business acquisitions, it takes a keen eye and a steadfast spirit to identify and seize the right opportunity. This is the story of Doc Barseghian, an acquisition entrepreneur who navigated the complex terrain of business deals to successfully purchase a $799k electrical contracting business. With a blend of strategic foresight and practical wisdom, Doc’s journey sheds light on the intricacies of acquiring a small business and transforming it into a thriving venture. Let’s dive into how he closed this deal and the insights he gleaned along the way. Learn more: https://bit.ly/4cfuBCu

FUNDING YOUR ACQUISITIONS This one is for those experienced in roll ups or owners of established cashflowing businesses looking for that golden goose exit. Whether it’s a $1M or $100MM acquisition I can help with putting together the right capital stack for identified acquisition targets that you have locked in and future targets. It’s ideal to have all the right financial positioning in place to make it a slam dunk to get financing for your acquisitions, but in reality most of the time when you start looking more closely or when you get to actually applying for funding you get hit with a bunch of hurdles and roadblocks you didn’t think you’d have. Now you’re in a tight spot with a deal you want/need to close on but funding is not there… Wouldn’t it be nice to know the hurdles upfront so you can prepare for them or understand your alternative options and work arounds? Most of the time you get the bait and switch and since you’ve been vested for so long you don’t want to switch now and just throwing up hopes and prayers… It doesn’t have to be this way… I can’t guarantee funding as in my experience 9/10 times theres some major item that comes up that was presented ahead of time because they think it won’t matter or they can get one by… But I can guarantee you hard truths and realistic preparations requiring time and attention that WILL give you the highest probabilities of success. I won’t sugar coat anything for you, I will tell you straight what it takes to get it done and I will be beside you in helping you to get it done, I won’t just point and tell you what needs to be done but I will help do the work with you. From business plans, projections, and certain reports that may be requested for. I will help you with the right packaging and communication needed to get you across the finish line. The only question is, are you a dreamer or a doer? If you’re ready to take hard truths and step up to the challenges and will do whatever it takes to get your acquisitions done, then I’m the right guy for you. Those of you looking to do 100% financing, yes there is a way to do it and yes via SBA. (ask me later about this) This one is for those who have equity or an existing business to bring to the table. SIDE NOTE: If you are focused on rolling up or acquiring HVAC businesses small or large scale acquisitions, I’ve got a perfect co-GP or funding source that can come take it over and pay you for bringing the deal to the table. Send me a message here on LinkedIn #HVAC #acqusitions #rollups #exitstrategy #doingthehardthings

Are you considering selling your business? Add-on deals are one of the most popular types of acquisitions for mid-sized companies. Read our latest blog to learn why an add-on deal might be the right option for you. https://lnkd.in/gwejvfxp

Ready to scale your small business? Discover how strategic acquisitions can unlock new growth opportunities and accelerate your expansion. Dive in: https://lnkd.in/eDYPhaim #BusinessGrowth #SmallBusiness #Acquisitions #GrowthStrategy #Entrepreneurship #ScalingUp