Betting on Yourself: The Self-Funded Transaction (with Kevin Bibelhausen of Fruition Capital)
The Transaction Abstract Podcast
Release Date: 07/23/2024
ESOPs as a Business Exit Strategy: Key Insights from Tom Walker
The Transaction Abstract Podcast
In this episode of The Transaction Abstract Podcast, Joe Hellman sat down with with over 35 years of ESOP experience, to explore Employee Stock Ownership Plans (ESOPs) as a business exit strategy. What is an ESOP? An ESOP is a qualified retirement plan similar to a 401(k), but with two key differences. First, the primary investment is company stock, and second, it is funded primarily through company contributions rather than employee contributions. As employees work at the company, they accumulate stock in their accounts, allowing them to benefit from the company's success over time. Walker...
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Market Trends and Transaction Insights with PGIM Private Capital
The Transaction Abstract Podcast
In this latest episode of The Transaction Abstract, Joe Hellman sits down with to discuss current market conditions and transaction trends. Introduction to PGIM Private Capital , part of Prudential Financial's investment management business, operates across various asset classes including public debt, real estate, and private equity. Their Minneapolis office covers five states—Minnesota, Iowa, Nebraska, and the Dakotas, providing senior debt financing, structured financing, and minority equity investments for businesses across the credit spectrum. Current Market Conditions and Deal...
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Understanding Private Equity vs. Strategic Buyers: Insights from Borgman Capital
The Transaction Abstract Podcast
In this latest episode of the , Joe Hellman explores the crucial differences between private equity and strategic buyers in mergers and acquisitions, providing valuable insights for business owners considering a sale. Joe is joined by , Managing Director at , bringing over 20 years of M&A experience. Drawing from his extensive background, Axelrod offers a unique perspective on how different buyer types approach acquisitions and what organizations should consider when evaluating their options. Understanding Strategic vs. Financial Buyers The M&A landscape features two primary types of...
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Succession Planning and Wealth Management in M&A Transactions
The Transaction Abstract Podcast
In this latest episode of the Transaction Abstract Podcast, Joe Hellman dives into the intersection of wealth management and mergers and acquisitions. Joe is joined by Craig Kleis and Bob Dietz from to explore how succession planning and wealth strategies can impact post-transaction outcomes. From pre-transaction preparation to navigating life post-sale, Kleis and Dietz offer valuable insights for business owners looking to safeguard their personal and financial future. Why Succession Planning and Wealth Management Matter goes beyond readying a business for sale—it’s about...
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Exploring Growth through Roll-Up Strategies and Operational Scaling
The Transaction Abstract Podcast
In this episode of The Transaction Abstract podcast, Joe Hellman of Redpath and Company welcomes Kiel Larsen of to discuss how strategic acquisitions and operational improvements can drive growth in fragmented industries. The conversation highlights the potential of roll-up strategies for creating value, building a sustainable operational foundation, and fostering growth. Setting the Stage: The Power of Roll-up Strategies Bridgeway Partners, a middle-market investment firm, specializes in roll-up strategies, acquiring and uniting businesses within niche markets under a single...
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Evaluating Software Companies in Mergers and Acquisitions (with Anders Olson of Hennepin Partners)
The Transaction Abstract Podcast
Anders Olson, director at , joined The Transaction Abstract podcast host, Joe Hellman of , to explore the key aspects of technology mergers and acquisitions (M&A), particularly in the software sector. As they delve into the topic, they emphasize the growing relevance of software and the specific factors that make it a highly sought-after asset in today's market. Olson explains that software has become pervasive, powering everything from our phones to toothbrushes. A quote by venture capitalist Marc Andreessen is highlighted: "Software is eating the world," illustrating software's...
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The Impact of an M&A Attorney in the Transaction Process (with Maggie Tatton, Ballard Spahr)
The Transaction Abstract Podcast
Maggie Tatton, partner in Mergers and Acquisitions practice group and leader of the firm’s Private Equity M&A practice, joined Joe Hellman, partner and host of The Transaction Abstract, to discuss the many hats an M&A attorney might wear in the deal process—and how their specialized insights can impact the transaction process and outcome. Maggie and Joe discuss: The importance of involving an M&A attorney early in the transaction process. The difference between general counsel and M&A attorneys. The multiple roles and responsibilities of an M&A attorney. ...
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Experiencing an M&A Transaction Process for the First Time (w/Spencer Gerberding)
The Transaction Abstract Podcast
Spencer Gerberding joined Joe Hellman, host of and partner at , to talk about his personal experience—and what he learned—going through an M&A transaction process with his extended family and their business. Like many individuals going through a transaction for the first time, Spencer had limited knowledge of the process and what it would demand from him—from estate planning considerations to assembling a team of advisors to navigating family dynamics over the course of 3-4 months. In Spencer’s case, there was an offer to buy on the table prior to his involvement,...
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Betting on Yourself: The Self-Funded Transaction (with Kevin Bibelhausen of Fruition Capital)
The Transaction Abstract Podcast
Kevin Bibelhausen, Principal at , joined host Joe Hellman, Partner at , on The Transaction Abstract podcast. On this episode, Kevin and Joe discuss the “self-funded” transaction, what that means, what does that process look like, and why self-funding could be a viable option for business owners—or self-funded searchers—looking to acquire other businesses. According to Bibelhausen, self-funding really means that the self-funded searcher doesn’t raise a salary. They pay for their own search, they incur all the costs of the deal, they have savings they most likely will need to live...
info_outline![2024 M&A Market Trends Through the Eyes of an M&A Attorney [with Ryan Miske of Faegre Drinker] show art](https://assets.libsyn.com/item/31776362?height=50&width=50)
2024 M&A Market Trends Through the Eyes of an M&A Attorney [with Ryan Miske of Faegre Drinker]
The Transaction Abstract Podcast
Ryan Miske, Partner at and chair of the law firm’s private equity practice, joined The Transaction Abstract to discuss the state of the 2024 M&A market. Ryan and Joe cover what has happened over the past year along with M&A characteristics and market trends in 2024, including: Buyer and seller leverage Transaction financing Process timelines (including diligence) Antitrust regulation Reps and warranties insurance Seller reps Noncompete agreements in buying and selling a business If you have questions about this podcast or the M&A transaction process,
info_outlineKevin Bibelhausen, Principal at Fruition Capital, joined host Joe Hellman, Partner at Redpath and Company, on The Transaction Abstract podcast.
On this episode, Kevin and Joe discuss the “self-funded” transaction, what that means, what does that process look like, and why self-funding could be a viable option for business owners—or self-funded searchers—looking to acquire other businesses.
According to Bibelhausen, self-funding really means that the self-funded searcher doesn’t raise a salary. They pay for their own search, they incur all the costs of the deal, they have savings they most likely will need to live off of, and they have a job to maintain. Self-funded transactions are typically done with very little equity and a higher percentage of debt. Many times, the debt is financed through an SBA loan and associated programs.
This is a “bet on yourself” transaction with the self-funded searcher taking out a personal guaranteed loan. Through the transaction, the searcher becomes the owner—a majority owner—not just the CEO. The searcher may keep upwards of 80% of the business versus a minority share in a traditional transaction.
About Fruition Capital: Fruition Capital is a firm dedicated to working with entrepreneurs to acquire stable operating businesses as their owners retire. Kevin is also the Managing Partner of Black Sail Strategies, a private investment firm focused on acquiring SMBs in the Southeastern region of the US.