If there’s a key to success in entrepreneurship, it could be peer-to-peer networks. Alex Robbio learned this firsthand. With his brother, Federico, and father, Luis, Alex co-founded Belatrix Software, a company that provides digital solutions and IT outsourcing services from Latin America mostly to clients in the U.S. Together they bootstrapped from zero to over 700 employees, with delivery centers in and operations in five different countries - including Spain, Peru, and Colombia, as well as sales offices in Silicon Valley, New York, and Florida.  In 2019, with the help of 7MA, the trio https://www.7mileadvisors.com/transaction/belatrix-software-acquired-by-globant/ (sold the company to Globant). In January 2021, Alex realized that entrepreneurs aren’t necessarily ideal employees, so he left and has since been working closely with https://endeavor.org/ (Endeavor), which seeks to uplift handpicked entrepreneurs through investment and peer networks — a community Alex credits with helping Belatrix reach its potential. At first, Alex wasn’t interested in Endeavor’s services, but his father was. After Alex attended one of their selection events — only 2%-3% of those who start the process to work with Endeavor get selected — he was sold. “It was an incredible environment, and so I came back from that and told my brother and father, ‘we have to do it, no matter what it takes, how much effort it takes, let’s do it,’” Alex says. Now, on the other side of Endeavor, Alex is a mentor to others. He says peer-to-peer mentorship can really enter the playing field in an impactful way. “Endeavor itself maybe doesn’t have a practice or a solution, but the people within the network are resources that entrepreneurs can tap into and learn best practices and so on,” he says. On this episode of Deal Talk with 7MA, learn more about entrepreneurship and opportunities in LATAM, as well as how peer networks can benefit entrepreneurs globally. ? Featured Guest ?Name: Alex Robbio What he does: As an Endeavor Entrepreneur and Mentor, Alex mentors fellow entrepreneurs about industry best practices. Additionally, Alex is a Venture Partner at MatterScale Ventures, a fund that invests in early stage “Latin startups with a global mindset.” Organizations: https://endeavor.org/ (Endeavor) & https://www.matterscale.com/ (MatterScale) Words of wisdom: “The plan is: pay it forward. So it’s select, support, scale up, maybe exit if not growing, get successful, get profitable. Invest in your peers, help your peers, mentor them, be an inspiration, go and talk to young people, talk about your experience, inspire the next generation of entrepreneurs.” Connect: https://www.linkedin.com/in/arobbio/ (LinkedIn) ?️ Key Points ?️Top takeaways from this episode ★    Personal relationships help foster business relationships. Working remotely forces creativity … especially when it comes to fostering business relationships. Traveling for work — or having potential clients visit you — can lead to out-of-office experiences, such as visiting wineries or restaurants, that build relationships on a personal level first. Alex looks at such experiences and relationships as an advantage in the sector. ★    Peer-to-peer success lies not in the taking, but giving back as well. There’s value in taking advice from mentors and peers, that leads to being successful. But that’s only one part of the plan — the other, says Alex, is to give back by sharing your expertise and wisdom to motivate those who are just entering the business space. ★    Political and economic challenges in LATAM breed innovation. Entrepreneurs in Latin America face a number of daily challenges that impact the business environment — from inflation to unfavorable legislation. But weathering the ups and downs can make the entrepreneurs who operate and scale under these conditions almost bulletproof.   ⚡ Episode Insights...

Deal Talk with 7MA

Leveraging Endeavor as an Entrepreneur in Latin America and Beyond

In the wake of COVID-19, 7 Mile Advisors’ recently appointed Managing Director of the Latin America (LATAM) sector, Horacio Yenaropulos, is seeing many companies reflect on the shortcomings the pandemic revealed. In particular, many realized they were well behind in terms of digital transformation. As companies try to catch up, the good news is that there are new projects on the horizon. Notably, a significant number of European companies are looking to partner with counterparts in Latin America. Horacio, who is based in Mendoza, Argentina, hopes to combine his previous experience in financial leadership and digital transformation with his local knowledge to build bridges between these companies.  He says it’s important to understand the different cultures in various countries within Latin America, and more broadly across the continent. For example, knowing that many Latin American companies are family-owned changes the way you do business.  Above all, Horacio sees opportunity on both sides of the world.  “The most important goal in LATAM is to be close to the companies, the investors, and the entrepreneurs. It’s being able to share with them experiences and local knowledge, and to advise and educate them on what is going on in the market, the value drivers their businesses have, and how they can monetize all the time and effort they have been putting in in the last year,” he says.  On this episode of Deal Talk with 7MA, Horacio discusses his new role, how his background can benefit business owners, and trends across IT services within Latin America. ? Featured Guest ?Name: Horacio Yenaropulos What he does: Horacio combines his experience in technology services and financial leadership to serve as a Managing Director of 7MA, leading the Latin American practice. Organization: https://www.7mileadvisors.com/ (7 Mile Advisors)  Words of wisdom: “It's important for LATAM companies to have confidence in investment bankers — like 7 Mile in this case — to help them work on the value drivers and monetize their past efforts.” Connect: https://www.linkedin.com/in/horacio-yenaropulos-40396622/?originalSubdomain=ar (LinkedIn) ?️ Key Points ?️Top takeaways from this episode ★   COVID-19 accelerated digital transformation. As companies pivoted to meet the demands of the pandemic, many realized they were falling short digitally. They also started looking into nearshore services, and many want to partner with companies in Latin America. ★   Understand the culture of companies you’re working with. A lot of Latin American companies are family-owned, and may benefit from education about the market, value drivers, and how they can monetize all their time and effort. ★   Explore the differences between LATAM countries. Chile and Uruguay are the most politically and economically stable countries in the region, but the talent pool they offer is smaller than that in Argentina, Colombia, Costa Rica and Mexico. Brazil has its own internal market and talent pool. ★   Focus on what investors are looking for. Specifically, revenue growth and gross margin.   ⚡ Episode Insights ⚡[2:56] How Horacio got here: Horacio shares his background, touching on his work with Belatrix Software and other endeavors. [7:44] As nearshore services expand, the focus comes to Latin America: As American and European companies roll out new projects, they are looking to partner with Latin American companies. [11:40] How a varied work history helps: Horacio expands on his career, and explains how his varied roles help him bring a more complete professional experience to the table. [13:24] Establish goals with an understanding of who you’re working with: Horacio breaks down his goals for his job at the firm, while offering advice on how to understand the cultures of Latin American companies. [15:09] Understand that the Latin American landscape is changing:

Post-Pandemic Opportunities for Growth in Latin America

With more than 25 years of experience advising businesses, Leroy Davis knows the sweet spot for selling a company. While many entrepreneurs have heard of the $20 million valuation rule, he shares there’s much more to it than numbers and forecasting. “We don’t put a hard line on 20 [million of revenue], we try to dig on some of these more intangible factors,” Leroy says. “And we get surprised regularly with some of the revenue multiples that we see, particularly in today’s market.” According to Leroy, entrepreneurs, particularly those in tech, must consider many financial factors when determining when to sell — and having a team of experts by their side can provide a complete picture of their options. This team is also invaluable to forecasting, one of the most important areas that potential buyers look for. Not hitting numbers is the number one reason why deals go sour, Leroy says. He also talks about how to set yourself up to attract the right buyer at the right time. On this episode of Deal Talk with 7MA, Leroy provides invaluable insights for entrepreneurs who want to sell, particularly when intellectual property assets are part of the deal. He also shares about how to prepare yourself mentally to pass the torch on to someone else. “As an owner, are you ready to hand the keys to somebody else and give up control? That’s a big deal.”   ? Featured Guest ?Name: Leroy Davis What he does: With more than 25 years of investment banking experience, Leroy has manages transactions in the technology, consumer, insurance, healthcare, and infrastructure sectors as a Partner at 7 Mile Advisors. He began his career with Coopers & Lybrand and is a member of the AICPA. Organization: https://www.7mileadvisors.com/ (7 Mile Advisors)  Words of wisdom: “The minute you enter an M&A process, it’s tantamount to being like a public company.”  Connect: https://www.linkedin.com/in/leroydavis/ (LinkedIn)   ?️ Key Points ?️Top takeaways from this episode ★    Know your options for selling. You could sell to a strategic buyer who’s already in your space or to a private equity group that can expedite and execute a growth plan. ★    Work with a team for a full financial picture. Metrics can be overwhelming — but working with an advisor can help you see where your company will land when it comes to pricing multiples. Additionally, it helps to have a deal attorney who specializes in M&A, an accounting firm to organize your finances, an asset management or wealth management group, and an investment banker. ★    Many deals go south because of companies not hitting their numbers. High-growth rate businesses should expect to maintain those growth rates to attract buyers, but there are always some factors you can’t control. After all, businesses are subject to volatility. Taking as many variables off the table as possible can help companies hit their numbers. ★    Revenue style is a consideration, but it isn’t everything. Revenue style is indicative of scale, and there is some truth to the $20 million valuation standard. However, some subjective factors come into play beyond the P&L, especially for technology companies. ★    Take advantage of momentum and timing. The moment your business is doing well could be the right time to sell. Know that deals can take about six to eight months to close, and that if you’re highly involved in your business, you may want to stay present for about three years after you sell.   ⚡ Episode Insights ⚡[02:21] Weigh internal considerations: Before you sell, you need to assess a few internal factors, such as: Is your business ready to transfer to someone else? Do you have a growth plan in place? And are you mentally prepared to give someone else control of a project that you’ve put your heart and soul into? [03:45] Know your external considerations: The market also...

When Are You Ready For an Exit? Knowing When It’s Time to Sell Your Business

When Zilker Technology co-founders Rob Thomas and Sean Wyrick attended 7MA’s annual conference in 2019, they noticed a shift in the conversations they were having with other businesses and with investors. They decided it was time to test the M&A market for Zilker, a digital consultancy and systems integrator with deep experience in a number of sectors. Not surprisingly, Zilker’s co-founders turned to 7 Mile Advisors, with whom they had built a relationship over several years. “It came down to trust and credibility. It's a very, very big decision to entrust the future of your company,” says Rob Thomas, CEO of Zilker. “Having a good guide in that process is really important.  On this episode of Deal Talk with 7MA, 7 Mile Advisors Senior Associate Sydney Scadden sits down with Rob and Sean to talk about https://www.7mileadvisors.com/transaction/zilker-technology-acquired-by-ey/ (selling their company to Ernst & Young) in October 2020.  Zilker entered the deal process with a clear picture of what was most important — finding a good cultural fit between their company and the buyer — and how they would guide their 300+ employees through the decision. Through it all, Zilker continued to innovate in the e-commerce sector, where the realities of COVID turned up demand for the technologies that create efficiencies and seamless experience through the whole customer journey.  Tune in to episode 31 to hear more about Zilker’s journey to acquisition and what lies ahead in the world of digital transformation.   ? Featured Guest ?Name: Rob Thomas  What he does: Rob was the CEO and Co-founder of Zilker Technology, which was founded in 2014 as a digital transformation company helping clients achieve growth from technology investments. He’s currently a Partner in EY's Technology Consulting group.  Company: https://ztech.io/ (Zilker Technology), https://www.7mileadvisors.com/transaction/zilker-technology-acquired-by-ey/ (purchased by EY) in October 2020  Words of wisdom: “What really excites me about the future is that the Zilker team has a bigger platform in EY to not only build their careers but also to drive long-term client value — which they like, which we like, and which clients like.”  Connect: https://www.linkedin.com/in/robtpersonal/ (LinkedIn)   ? Featured Guest ?Name: Sean Wyrick  What he does: Sean was CTO and Co-founder of Zilker Technologies, where he realized a lifelong dream of establishing and building a company from the ground up. He’s now a Partner within EY's Technology Consulting group.  Company: https://ztech.io/ (Zilker Technology), purchased by https://www.ey.com/en_us (EY) in October 2020  Words of wisdom: “When we started looking at companies and doing some meetings … we spent time, just the four of us [co-founders] and said — What's most important? What do we like most about Zilker and what we've accomplished? — and culture was our number one thing.”  Connect: https://www.linkedin.com/in/seanwyrick/ (LinkedIn)   ?️ Key Points ?️Top takeaways from this episode  ★    Hone your focus. Zilker’s co-founders went into acquisition talks knowing that it was most important to find a good fit for their company’s culture, a focus that guided early conversations, the ultimate decision to sell to EY, and plans for the future of the company. ★    Timing is key. Zilker played it close to the vest when it came to sharing the deal process with their team, understanding that employees’ questions could be best answered once all of the details were in place. ★    The new edge of e-commerce. 2020 opened a wide window of opportunity for consultants like Zilker as businesses of all sizes work to further optimize the end-to-end customer journey with the help of technology.   ⚡ Episode Insights ⚡[04:13] Sensing a sea change: Rob and Sean noticed a shift in the way...

Zilker Technology Rides the Wave of E-commerce Demand

2020 was quite a year. Despite unprecedented setbacks and volatility, business moved and deals took place. On this episode of Deal Talk with 7MA, the firm’s Founding Partners Andy Johnston, Tripp Davis, and Leroy Davis review major transactions from the past year and discuss market opportunities that arose over 2020. Despite the various challenges over the year, 7MA closed 14 deals since April and the firm increased its staff by 25%. “We're obviously very pleased and excited for our clients who are able to navigate really successful and strategic transactions,” Andy says, “and our ability to keep bringing on really exciting clients now who’re exploring the market, and certainly 2020 you know, revealed who was ready to get deals done.” It wasn’t easy to make investments given the peculiar circumstances, but those who took the risk were rewarded. At the start of the year, the partners could not have anticipated what the world and the market would look like by December. “[COVID-19] allowed us to kind of take a step back and think through what we were going to do as a firm,” Tripp recognizes. While the pandemic halted a range of business plans and operations, it fueled an urgent need for more digitization. “We felt like most of our clients were still well-positioned in helping industries transform digitally. And because of that, we thought we have a story to tell. And so instead of instead of bunkering down, we chose to attack,” Tripp notes.    Tune into the episode to learn more about the highlights from 2021 and the trends the Partners will be paying attention to in 2021.   ? Featured Guest ?Name: https://www.7mileadvisors.com/team/andy-johnston/ (Andy Johnston)  What he does: A Partner at 7MA, Andy has had a vast career in investment banking and advisory services.  Company: https://www.7mileadvisors.com/ (7 Mile Advisors) Words of wisdom: “I think we've got a great capability to bringfairly strategic deals to market and really bring our experience from the digital transformation space, and apply that to both healthcare and insurance, which are two huge sectors by their own right, but are really being upended on an accelerated pace by digital transformation.” Connect: https://www.linkedin.com/in/akjohnston/ (LinkedIn)   ? Featured Guest ?Name: https://www.7mileadvisors.com/team/tripp-davis/ (Tripp Davis) What he does: A Partner at 7MA, Tripp has more than 20 years of experience advising companies in a variety of industries on M&A and capital raising. Company: https://www.7mileadvisors.com/ (7 Mile Advisors) Words of wisdom: “So our clients compete on a global basis, we've always believed that we needed to bring the world to the table, and not just those buyers that were regional, or at the top of everyone's list.” Connect: https://www.linkedin.com/in/trippdavis/ (LinkedIn)   ? Featured Guest ?Name: https://www.7mileadvisors.com/team/leroy-davis/ (Leroy Davis) What he does: A Partner at 7MA, Leroy has managed transactions in the Technology, Consumer, Insurance, Healthcare, and Infrastructure sectors.  Company: https://www.7mileadvisors.com/ (7 Mile Advisors) Words of wisdom: “The other thing — and I say this with some humility — is that we would have kept doing what we do anyway because that’s all we know how to do. I'm just glad it worked in almost every case, and I'm sure we could get back and look at a couple deals or situations that got stalled out. But I think in almost every case, it wound up working in our favor, and hopefully it sets the stage for even further growth and opportunity.” Connect: https://www.linkedin.com/in/leroydavis/ (LinkedIn) ?️ Key Points ?️Top takeaways from this episode  ★    The pandemic added uncertainty, but it did not pause M&A indefinitely. When social distancing was first implemented as a way to slow the spread of COVID-19, a lot of impending deals hit pause. Ultimately all...

Hindsight 2020 - 7 Mile's Partners Reflect On A Milestone Year

On this episode of Deal Talk with 7MA, Managing Director Ben Lunka joins us to provide an update on the M&A market over the course of this exceptional year. This episode is part of a series recorded during the ACCESS 2020 Event. In this episode, Ben discusses how the M&A market has navigated COVID-19, general market trends and themes we saw over the course of the year, particular segments of the market that the 7 Mile team focuses on, and where we see the market trending from an M&A activity evaluation and volume standpoint. COVID has had a tremendous impact on the economy, and there is always a resulting impact on the M&A market. During the initial fall in March and April, companies had to scramble to calibrate their strategies in an effort to mitigate the effects of COVID. However, now that those strategies are beginning to play out, we’re seeing a move towards areas where they see predictable growth and predictable market opportunity with cloud infrastructure, e-commerce, and remote software development. While private equity investors may approach deals with more caution and heightened standards, they’re not avoiding the Information Technology space—a vertical on which the 7 Mile team focuses. We’re seeing some companies in the Enterprise Software and Digital Tech Services categories trading at all-time highs. 2020 has seen a 24% year-over-year decline in deal count and a more drastic 40% decline by deal value. Because of the market risk factors attributable to COVID, companies were less likely to bet the farm on megadeals in Q2 and Q3, leading to these significant declines. However, we’re already starting to see those numbers rebound heading into 2021. Despite the damage caused by COVID-19, 70% of businesses reported that they would either increase investments or maintain current spending. Valuations are expected to maintain during this year. While 2020 will close as a down year for M&A, 2021 may likely provide an excellent rebound. Ben also responded to questions from attendees, including:  Multiples are very high at the moment, yet you have said that deals are still being done for quality companies. Do you see moving forward that multiples will fall? What do you see M&A activity doing with regards to multiple levels? (29:17) Are multiples also including software and services? (31:08) Can you elaborate specifically on B2B fast multiples for 2020? It’s hard to know if enterprise software covers both SAS and non-SAS. (32:48)  What kind of appetite is there for smaller enterprise software startups with ARR less than 1 million? (34:36) Connect with us: Our website: http://www.7mileadvisors.com (www.7mileadvisors.com). Follow us on https://twitter.com/7MileAdvisors (Twitter) & https://www.linkedin.com/company/7-mile-advisors/ (LinkedIn). Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com. Subscribe to Deal Talk with 7MA on https://podcasts.apple.com/us/podcast/deal-talk-with-7ma/id1451111500 (Apple Podcasts), http://www.stitcher.com/s?fid=364022&refid=stpr (Stitcher), https://tunein.com/podcasts/Business--Economics-Podcasts/Deal-Talk-with-7MA-p1189426/ (TuneIn), https://open.spotify.com/show/4EtrkYEk3LnGUGKkc4SWde (Spotify), or https://www.google.com/podcasts?feed=aHR0cHM6Ly9mZWVkcy5ibHVicnJ5LmNvbS9mZWVkcy9kZWFsdGFsa3dpdGg3bWEueG1s (Google Podcasts). Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

Investment Banking and the M&A Space in 2020

Jeff Vogel, Partner at Court Square Capital Partners; Jared Ruger, Partner at Bertram Capital; and Iveshu Bhatia, Managing Director of Private Equity at Audax Group, can all agree on one important piece of advice: your partner matters more than the cost of capital, so be honest with them. “Things that allow you to communicate well will fundamentally come from having command of your business and being honest about where you're good, where you're bad and what you need help with,” Iveshu says. “There's a partner for everyone that's out there. … As long as you communicate clearly and honestly, you will be able to find the right partner for you.” When making a deal in the M&A space, you have to remember you'll be working very closely with this team for several years, so make sure you get along with them both socially and professionally. Jared suggests speaking with several of their references, particularly executives who have partnered with them in the past, to see how they dealt with issues such as dips in the market in the past. If they have a similar approach to problem solving and share a similar business outlook, you’re more likely to find success. “Small differences in the cost of capital or valuation, I think, are meaningfully outweighed by finding the right partner that shares your vision and strategy,” Jared says. In this episode of Deal Talk with 7MA, Jeff, Jared and Iveshu discuss tactics for finding the right partner, the importance of having command of your business and the changes — and some things that have stayed consistent — in the M&A space during the pandemic. “The greater command you have and the greater visibility and transparency you have in your business, the better position you're going to be in to not only run that business, but if you go to market and you want to find the right partner for you, you can answer all the questions that they're likely going to have,” Jeff says. ? Featured Guest ?Name: Jeff Vogel  What he does: As a Partner at middle market private equity firm Court Square Capital Partners, Jeff focuses on technology investing, particularly in software and tech services. Company: https://www.courtsquare.com (Court Square Capital Partners) Words of wisdom: “What's very important for any investor that's coming into a business is that they’re backing a management team that has commanded their business. They don't have the perfect ability to predict what is going to happen, but they can demonstrate that in previous disruptions … this is how they were able to weather the storm.” Connect: https://www.linkedin.com/in/jeff-vogel-b7a370161/ (LinkedIn)   ? Featured Guest ?Name: Jared Ruger What he does: As a Partner at private equity firm Bertram Capital, Jared leads the firm’s business services effort, which is largely a tech-enabled services vertical. Company: https://www.bertramcapital.com (Bertram Capital)  Words of wisdom: “We're all trying to find the components of a business that are yet to be fully harnessed, that we feel like we have a history and track record of successfully executing on, and by nature of that, can underwrite and see growth and opportunity there.”  Connect: https://www.linkedin.com/in/jared-ruger-7764831/ (LinkedIn)   ? Featured Guest ?Name: Iveshu Bhatia What he does: As the Managing Director of Private Equity at capital market company Audax, Iveshu leads the firm’s technology practice. Company: https://www.audaxgroup.com (Audax Group) Words of wisdom: “What's more valuable is not the cost of capital, but the partnership that you have and the quality of the capital that you have.”  Connect: https://www.linkedin.com/in/iveshu-bhatia-33a16a22/ (LinkedIn)  ?️ Key Points ?️Top takeaways from this episode ★    Accept the changes — or lack thereof — that the pandemic has brought. While there are fewer new names coming into the market, existing names continue to fundraise at...

How to Determine if a Partner is Right for You

Scott Kaplan, Director of Corporate Development at S4 Capital, and Blake Clifton, Head of Corporate Development at Cognizant, are both overseeing M&A at people-based organizations, which requires a commitment to effective communication and culture. “How do we maintain cultural alignment as we expand into new geographies and new capabilities with new entrepreneurs?” Scott recalls, explaining the question he posed to his team when, through a merger, they became the operative arm of digital marketing firm S4. “The way we've tried to structure this, outside of the initial getting to know the founders, understanding ambitions and goals and making sure that alignment is there, is trying to put a framework around how to manage different growth across different practices of our company.” Blake has been put in the same position, and he argues that people are what make the culture. So, when determining if a deal is a good fit, he says it’s crucial to think about, within current archetypes, who additional leaders will be interacting with. “Cognizant doesn't buy companies to grow them at the same rate that they were growing at. We buy them to grow much faster,” Blake says. “The people that are going to enable that, our client partners or sales teams, are interacting with each of those acquisition archetypes differently, and those are things that we have to take into consideration for each deal.” In this episode of Deal Talk with 7MA, Scott and Blake discuss effective transitional strategies, how to know when a deal is right for both parties and how maintaining an open line of communication is crucial in M&A. ? Featured Guest ?Name: Scott Kaplan What he does: As the Director of Corporate Development at S4 Capital, a digital marketing services firm providing data, media and creative services, Scott oversees the company’s research, diligence and eventual integration of its mergers across its global practice. Company: https://www.s4capital.com (S4 Capital) Words of wisdom: “Look for teams that are leaders of a space, who are people that other people want to work with. Those are the exact types of companies, and I think reputation, that we would hope to find in a lot of our mergers.” Connect: https://www.linkedin.com/in/scott-kaplan-25212436/ (LinkedIn)   ? Featured Guest ?Name: Blake Clifton What he does: As the head of Corporate Development at Cognizant, a publicly traded global systems integrator focused on outsourced IT and digital transformation, Blake helps the company grow in its strategic battlefields and has led the organization’s seven acquisitions in those sectors. Company: https://www.cognizant.com (Cognizant) Words of wisdom: “That's what you're starting to look for, when the acquired company starts to leverage the platform and do things that they couldn't do on their own and go beyond the scope of what the initial content was in the acquisition.” Connect: https://www.linkedin.com/in/blake-clifton-42b265/ (LinkedIn) ?️ Key Points ?️Top takeaways from this episode ★    If your cultures don’t mesh, it’s not a good deal. Cultural alignment is crucial, and so is effective communication between both parties to ensure that this is a deal that will work once it goes into effect. ★    When they leverage your platform, you know something’s working. When the leaders of acquired companies begin taking on roles outside of the company that they were acquired for and expand past what they were able to accomplish pre-deal, that’s a success. ★    Ease transition tension by setting them up for success. Some employees won’t see this deal coming, so build a whole team in charge of answering questions related to IT, contact information and other things that could get lost in translation. ★    Put it all out in the open. Late-stage deal jitters might happen, and if they do, open up a healthy conversation. Ask them what their...

Ready to Merge? Signs That Your Company Cultures Align

Glenn Youngkin didn’t plan on becoming the Co-CEO of one of the world's largest private capital firms. He was shooting for the moon — and wherever else NASA would be sending astronauts by the time he graduated. “I went to college with this ridiculous ambition to be in the space program,” Glenn says. “And I guess no one really told me that when you're 6’6” and weigh 220 pounds, they're not going to let you into a rocket ship.” He studied engineering at Rice University in Houston to be closer to NASA, but it was his additional focus on managerial studies that led him down a different path. After receiving his Master of Business Administration from Harvard Business School, Glenn landed in the world of private equity, alternative asset management and financial services, and the vast majority of his experience — 25 years — was at The Carlyle Group. In this episode of Deal Talk with 7MA, Glenn discusses what he learned at The Carlyle Group, which includes how to adapt to the increasingly technology-driven world, the importance of ESG components in every business plan and the key components of every good business that attract investors. “If an investor is looking at a management team and evaluating their company, it just is a lot more fun when it's a good business,” he says. “And it's a lot more challenging if the business is either running into headwinds, or candidly just isn't that great a business model. … just do everything you can to build robust business models.” ? Featured Guest ?Name: Glenn Youngkin What he does: As the Co-Founder and Chairman of the Virginia Ready Initiative, Glenn works with his wife with the goal of helping Virginians experiencing employment disruption due to COVID-19. Through the initiative, the pair rewards those who pursue training for in-demand jobs. Organization: https://vaready.org (Virginia Ready Initiative) Words of wisdom: “You’ve got to go where the opportunities are, first and foremost.” Connect: https://www.linkedin.com/in/glenn-youngkin/ (LinkedIn)   ?️ Key Points ?️Top takeaways from this episode ★    Tech dominates, so get onboard. One of the biggest evolutions in private capital over the last 10 years, Glenn argues, is the rising number of private equity firms investing in predominantly technology-driven industries such as software or healthcare. And if you’re looking to enter the business field in general right now, he adds that you better have tech skills. ★    Quality leadership makes a good company. Glenn believes there are four key components to a good business — sustainability, preparation, leadership and culture — but if you don’t have skilled, effective management, the other three won’t matter. ★    No business plan is complete without a strong Environmental, Social, and Corporate Governance (ESG) component. Every single investment Carlyle makes has a meaningful ESG component, Glenn says, so he suggests companies take a hard look at their non-financial factors when preparing to be evaluated by potential investors. ★    During a pandemic in particular, you have to adapt or you’ll fail. Glenn recognizes that many companies might have been preparing for the next recession before COVID-19 even came into existence, but responding to it and its lasting effects isn’t the same as responding to a traditional recession. Take a look at what’s changed (such as more virtual meetings) and get used to it.   ⚡ Episode Insights ⚡[5:36] Getting started in the business world: Glenn planned on going into engineering, not finance, but his first job out of college led him down a different path. [10:59] As technology improves, private equity firms evolve: Over the last 10 years, technology has been the underlying distinguishing characteristic of a business. Glenn says that’s why private equity firms are investing in predominantly technology-driven industries such as software and...

The Key Components of an Attractive, Successful Company

Your resource for invaluable insight into investment banking and the M&A space. Through honest conversations with industry thought leaders, business pioneers, and innovators, we pull back the curtain and give you the inside scoop on trends in our targeted industries and provide you with the tools to better position your company in today's market. 7MA provides specialized investment banking and advisory services to Business Services and Technology firms, and select industries including Infrastructure and Energy Services, Healthcare and Life Sciences, Consumer, and Financial technology. As a close-knit team with a long history together and a laser focus on our target markets, we help our clients sell their companies, raise private capital, grow through acquisitions, and evaluate new markets. With a senior-level advisor managing every deal team, our clients get deep industry expertise every step of the way. [The views and opinions expressed on this show do not necessarily represent 7 Mile Advisors as a whole. Securities offered through 7M Securities, LLC - member FINRA / SIPC.]

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Deal Talk with 7MA

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