In this episode of the M&A Mastermind Podcast, host Nick Olsen interviews Patrick Stroth, a national practice leader for M&A at Liberty Company Insurance Brokerage. They discuss the importance of reps and warranties in M&A deals and how it can benefit both buyers and sellers. Patrick explains that reps and warranties are disclosures made by the seller to the buyer about the condition and value of the company being sold. If any of these disclosures are inaccurate and result in financial loss for the buyer, the buyer can seek compensation from the seller.

Patrick also introduces TLPE, a sell-side policy offered by CFC, which provides insurance coverage for sellers in lower middle market deals. He emphasizes that this policy is a valuable tool for sell-side advisors to protect their clients and negotiate better terms with buyers. Patrick also explains the process of obtaining this insurance policy and the types of industries it covers.

Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.

Some Key takeaways include:

• Reps and warranties are disclosures made by the seller to the buyer about the condition and value of the company being sold.
• TLPE is a sell-side policy offered by CFC that provides insurance coverage for sellers in lower middle market deals.
• Sell-side advisors can use TLPE as a valuable tool to protect their clients and negotiate better terms with buyers.
• The process of obtaining TLPE insurance is simple and can be done in a couple of days.
• TLPE insurance is available for a wide range of industries in the lower middle market.

About the show:

The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.

The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.

With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.

Chapters

00:00 Introduction and Background

09:46 The Importance of Reps and Warranties for Business Owners

19:38 The Benefits of TLPE Insurance for Buyers

25:00 Ideal Opportunities for TLPE Insurance

28:00 How to Get Started with TLPE Insurance

Keywords: M&A, reps and warranties, insurance, sell-side advisors, TLPE, lower middle market

In this episode, Nick Olsen interviews Scott Bushkie, the founder of Cornerstone International Alliance, about what makes a good M&A advisor and the importance of hiring the right people. Scott shares his experience of starting Cornerstone and the challenges he faced in hiring the right team. He emphasizes the importance of building trust with clients and having a team with the right mindset and skillsets. Scott also discusses the benefits of using behavioral science in the hiring process and how it has helped his firm. Overall, the conversation highlights the significance of hiring the right advisors and the impact it can have on the success of an M&A practice. In this conversation, Scott Bushkie and Nick Olsen discuss the importance of hiring the right team and building a strong infrastructure in the M&A industry.

They emphasize the need for a team of experts who can handle different aspects of the business, allowing for a better quality of life and more efficient processes. They also highlight the importance of focusing on what you do best and delegating other tasks to team members who excel in those areas. Scott shares his experience of building a successful team at Cornerstone Business Services and the impact it has had on his own role within the company. They also discuss the benefits of being part of a network like the Cornerstone International Alliance (CIA) and the value of collaboration and knowledge sharing among industry professionals.

Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.

Some Key takeaways include:

• Hiring the right M&A advisors is crucial for the success of an M&A practice.
• Building trust and rapport with clients is essential in the M&A industry.
• Having a team with the right mindset, skillsets, and values is important for success.
• Using behavioral science in the hiring process can improve the chances of hiring the right advisors. Hiring the right team and building a strong infrastructure is crucial in the M&A industry.
• Delegating tasks to team members who excel in those areas allows for better quality of life and more efficient processes.
• Focusing on what you do best and hiring experts in other areas leads to better outcomes.
• Being part of a network like the Cornerstone International Alliance (CIA) provides opportunities for collaboration and knowledge sharing.

About the show:

The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.

The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.

With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.

Chapters

00:00 Introduction

03:06 Building Trust and Rapport in the M&A Industry

05:28 The Role of Mindset and Skillsets in M&A

07:46 Using Behavioral Science in the Hiring Process

15:01 Implications of Not Hiring the Right Fit

18:14 Transitioning to a Structured Hiring Process

20:04 Current Firm Structure and Roles

22:52 The Importance of Hiring the Right Team

24:47 Quality of Life and Overcommitment

29:02 Building a Strong Infrastructure

35:04 The Benefits of Collaboration

38:43 Advice for M&A Firm Owners

Keywords: M&A advisor, hiring, team building, trust, behavioral science, M&A, team building, infrastructure, quality of life, efficiency, delegation, expertise, Cornerstone Business Services, Cornerstone International Alliance, collaboration, knowledge sharing

Michael Klumpp, a member of Cornerstone International Alliance, discusses the importance of having a strong footprint in the US for technology companies looking to sell. He emphasizes the need for timing in the technology sector and advises potential sellers to look for market activity and growth rates when considering a sale. Klumpp also shares insights on finding the best buyer, deal structures in the IT space, and the challenges of selling a company with high customer concentration. He highlights the importance of having clients and a mix of profitability and growth to attract buyers.

Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.

Some Key takeaways include:

• Having a strong footprint in the US is crucial for technology companies looking to sell.
• Timing is key in the technology sector, and sellers should consider market activity and growth rates.
• Finding the best buyer involves approaching both strategic buyers and private equity companies.
• Deal structures in the IT space are becoming more complex, often involving vendor notes, earn-outs, and rollover equity.
• Selling a company with high customer concentration can be challenging, but finding the right buyer is possible with perseverance and a strong network.
• Companies without clients and only one product face a high failure rate in the market, and it is important to focus on achieving a mix of profitability and growth.

About the show:

The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.

The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.

With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.

Chapters

01:58 Introduction

03:14 The Importance of a Strong Footprint in the US for Technology Companies

05:17 Timing and Market Activity in the Technology Sector

11:46 Finding the Best Buyer: Strategic vs. Private Equity

18:19 Complex Deal Structures in the IT Space

27: 01 Challenges of Selling a Company with High Customer Concentration

31:20 The Importance of Clients and a Mix of Profitability and Growth

Keywords: M&A, deal making, technology industry, M&A, sell side, buyer, deal structure, customer concentration, growth rate, profitability