Exploring Growth through Roll-Up Strategies and Operational Scaling
The Transaction Abstract Podcast
Release Date: 11/14/2024
Common Legal Pitfalls in M&A Transactions with Guest Kim Lowe
The Transaction Abstract Podcast
In the latest episode of the Transaction Abstract podcast, host Joe Hellman, Transaction Advisory Services Practice Lead at Redpath and Company, sits down with Kim Lowe, a founding partner at Avisen Legal, to unravel the complexities of buying and selling businesses. Drawing from nearly 30 years of experience, Kim shares frontline insights from both the legal buy-side and sell-side of transactions, exploring the challenges that arise when business owners or their advisors are unprepared for the intricate process of a business sale. Joe and Kim discuss common issues that can slow down or...
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Legal Considerations in Self-Funded Search Fund Transactions with Jake Parsley
The Transaction Abstract Podcast
In this episode of The Transaction Abstract Podcast, Joe Hellman speaks with specializing in search fund transactions. They discuss the specific legal hurdles self-funded searchers face when acquiring Main Street businesses. The Self-Funded Search Landscape Self-funded search funds often involve first-time entrepreneurs acquiring businesses valued at less than $5 million. They use a combination of Small Business Association (SBA) financing, seller notes, or investor capital. Unlike traditional search funds with institutional backing, self-funded searchers work with Main Street advisors...
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Why Smart Sellers Invest in Quality of Earnings Studies, with Emma Gergen
The Transaction Abstract Podcast
In this episode of The Transaction Abstract Podcast, Joe Hellman sat down with to explore quality of earnings (QoE) studies and why they have become essential in M&A transactions. Many business owners wonder if they even need a sell-side QoE if the buyer will already conduct one. The answer, according to Gergen, is simple. She argues that you want to be armed with the same set of facts as the buyer, so that you’re comfortable with the agreed-upon valuation. Understanding Quality of Earnings vs. Traditional Audits A quality of earnings study is different from a standard audit. While an...
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Search Funds: Entrepreneurship Through Acquisition with Marshall Johnson
The Transaction Abstract Podcast
In this episode of The Transaction Abstract Podcast, Joe Hellman sat down with to explore the search fund model and how it provides opportunities for aspiring entrepreneurs and business owners looking to exit their companies. What is a Search Fund? "A search fund is when an aspiring operator wants to go find and lead a great company, and they raise money," Johnson explains. Individual searchers typically raise $500,000, while teams raise around $900,000 to fund an 18-month search for the right acquisition target. The model has strong academic backing, with Stanford University publishing...
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Transaction Insurance: A Critical Tool in M&A Deals with Ross Hamann
The Transaction Abstract Podcast
In this episode of The Transaction Abstract Podcast, Joe Hellman sat down with , to explore the crucial role insurance plays in mergers and acquisition transactions. What is Transaction Insurance? Transaction insurance encompasses several products designed to facilitate deals by addressing risks that might otherwise prevent a successful closing. Hamann explains that CAC Specialty offers a comprehensive suite of solutions that extends beyond standard coverage. As Hamann puts it, "We never want... a risk out there, be it known or unknown, cause a deal to not go through, because people... put a...
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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...
info_outlineIn this episode of The Transaction Abstract podcast, Joe Hellman of Redpath and Company welcomes Kiel Larsen of Bridgeway Partners 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 platform. Their investment in Clarity Salt exemplifies this approach. Clarity Salt started as a single distributor, Davis Wholesale Supply, and expanded into a cohesive network of salt distribution companies, demonstrating how consolidation can increase efficiency and market strength.
Building a Scalable Foundation
For Bridgeway Partners, building a scalable infrastructure was key to successful integration. Early investments in cloud-based ERP systems and additional management roles enabled Clarity Salt to operate more effectively and support future acquisitions. This structured foundation allowed Bridgeway to rapidly grow Clarity Salt's footprint across the Midwest and East Coast.
Balancing Integration with Autonomy
Bridgeway’s approach emphasizes balancing integration with the autonomy of each acquired company. Initially, Bridgeway closely supports each new addition to ensure smooth integration. Over time, they transition to a more advisory role, allowing each company to retain its unique strengths while benefiting from the resources and scale of the larger platform.
Insights for Business Owners
This episode highlights the advantages of consolidation for owners of smaller businesses in fragmented markets. By partnering with firms that bring both capital and operational expertise, owners can achieve growth that might not be feasible independently. Bridgeway’s model showcases the importance of finding the right partner who aligns with the vision for growth and sustainability.