M&A Masters

On this week’s episode of M&A Masters, we’re joined by special guest Heather Hubbard, Managing Partner of Valesco Industries, a lower-middle market firm based in Dallas, Texas. This past May, Heather was named D CEO’s Private Equity Investment Professional of the Year, and in a market like Texas, that’s no small achievement. 

“I think, coming in, we represent what we're oftentimes looking at in portfolio companies and potential prospects. There's a very diverse group of people working at the majority of these companies, so when we can reflect that back to them, and relate to them each in their own way, I think that it gives us an advantage,” says Heather about the unique perspective of women in M&A.

We chat about Heather’s journey from running a company to private equity, as well as: 

• What women bring to the table in M&A, specifically in private equity

• Team dynamics with women in M&A

• Why women are underrepresented in private equity

• And more

On this week’s episode of M&A Masters, we speak with Adam Cook, managing partner and Chief Investment Officer of Culper Capital Partners. Based in Norwood, New Jersey, Culper Capital Partners invests debt and equity in middle-market companies that seek true partnership solutions that go well beyond the capital deployed. Culper Capital Partners is also a newly minted private equity firm, which is indicative of the growing body of private equity out there.

“At Culper, we're investing in middle-market businesses. We focus on things that we can see and touch. We will make debt investments where we're riding along with a BDC or a traditional lending company, but we really focus in on the platform equity side where we're putting our own money to work, along with our business partners, to find bespoke opportunities where it's well beyond the capital deployed,” says Adam.

We chat about what led Adam to a career in private equity, as well as:

• Why private equity is often viewed cynically

• Incentivizing those involved in an M&A deal from a cultural and a value perspective

• Culper’s ideal profile for an investment target

• How COVID could affect M&A moving into 2021

• And more

What motivates Mark Addison, CEO of X Rocket.io? He’s seen too many entrepreneurs, especially first-timers leave money on the table when they exit. 

His firm helps optimize key valuation drivers during M&A negotiations to maximize the money owners and founders take home.

In one case, he and his team were able to reengineer a $30 million offer… into a $100 million offer. We talk about the three things they did to make it happen and the audits they perform on clients, as well as…

• The key metrics that predict higher valuations

• Acquisition trends with PE firms you should be watching

• Two insurance products you should have in place for any deal

• The biggest misconception many founders hang on to

• And more 

Mark Gartner is head of investment development at private equity firm ClearLight Partners LLC, which is dedicated to the lower middle market. 

Over his years in the industry, he’s seen a sea change in how PE firms go after potential targets, from “smiling and dialing” to using CRMs and data to guide their strategy.

He talks about other elements of his approach to potential acquisitions, including how he always has a value proposition in mind when making contact. 

Part of that strategy derives from the fact that many of the ClearLight team have actually run companies and know the reality of operating a business – they’re not investors working in a vacuum.

We talk about that, as well as…

• Why 75% of companies utilize rep and warranty insurance

• The reason they focus on lower middle market companies

• The ideal target profile they’ve identified – and how it’s evolved over time

• Where he and his partners see the greatest opportunity right now

• And more

Back in May, Sander Zagzebski maintained that COVID-19 was not a black swan. He even saw a silver lining in the pandemic in the form of opportunity for savvy players in the M&A world to make significant gains.

In this episode we talk about his original prediction and how it has manifested today.

Sander, of Greenspoon Marder LLP,  says the current economic crisis is similar to what happened in 2008/09 but also quite different in key aspects, including the cause and how the presence of trillions of dollars of dry powder means there is actually money to invest this time around.

Sander shares how he’s advising his M&A clients right now, and we also talk about…

• What he thinks will happen in Q3

• Why companies can’t “wait out” the pandemic – and what they must do now

• How to account for legal and regulatory uncertainty going forward

• A unique insurance product – perfect for the pandemic – that transfers risk

• And more

As a veteran M&A lawyer in the Bay Area, Louis Lehot has advised many public and private companies, VCs, investors, and more on forming, financing, governing, and buying and selling companies.

Formerly with DLA Piper, Louis founded his boutique law firm, L2 Counsel, to serve the unique needs of entrepreneurs and investors, specifically those young founders in the early startup phase.

 
He talks about that work as well as the changing role of data, technology, and IP in deals.

Tune in to discover…

• How rep and warranty insurance has changed the game

• Avoiding “extra” tax liabilities as a seller – and how counsel can help

• The biggest mistakes companies and founders make with IP

• What the future of M&A looks like in a post-pandemic world

• And more

On this week’s episode of M&A Masters, we speak with special guest, Laura Simms. Laura handles Business Development at Strait Capital, a fund solutions provider offering a full range of financial solutions to hedge funds, private equity, family offices, and alternative asset managers. From their Dallas headquarters, Strait delivers fund administration, middle office operations, CFO suite services, and regulatory compliance services just to name a few.

“We really view ourselves as a partner to our clients,” says Laura. “We want to feel like an extension of their team. You know that we're just a couple offices down, so we've really earned the reputation for being the trusted partner of choice for private investment advisors and managers who are seeking that quality, personalized service provided by a team of experienced professionals. Our mission has always been to protect investors and reduce risk in the global financial system.”

We chat more about Strait Capital, as well as:

• The importance of partnership

• Common challenges for clients in the middle market

• What type of clients Strait seeks and why

• M&A trends in light of COVID-19

• And more

Asset-based lending is one of the best ways for mid-sized companies to get to the next level. 

And the role of credit insurance, which has vastly improved since the days of the Great Recession, is often overlooked… yet will be vital to recovery after countries – and the companies in them – exit lockdown.

Jo Bennett-Coles, managing director of FGI Finance, a global leader in domestic and international finance for mid-sized companies, gives us the lowdown on credit insurance, including when you need it, how it works, and the many varieties of coverage available. 

This type of coverage gets a bad rap in some circles. Jo dispels the myths and offers some best practices. 

Tune in to find out…

• Why credit insurance is a powerful tool for private equity

• Services credit insurers provide that will surprise you

• How credit insurance fits in with M&A

• The biggest mistake companies make with credit insurance

• And more

Communication is vital during an M&A transaction, on both sides, externally and internally. Clarity is a PR firm that works to help companies get through the deal, from media relations to crisis management.

It can be a stressful process… and certainly not the time to “wing it.”

As Alex explains, they use a change management model called ADKAR to shepherd organizations and people through times of transition, get buy in, and make sure new policies and procedures “stick.” 

We get into detail on that, as well as…

• Strategies for integrating vastly different company cultures (and customer bases)

• COVID and post-COVID communications strategies

• What they do when deal details leak 

• How they balance confidentiality and the need to share information

• And more

Clarity is a public relations firm that offers communications strategy, positioning, marketing, content creation, and other services to companies in the fast-moving world of global business.

As Global COO, London-based Alex MacLaverty guides the growth of this ambitious agency. Part of that growth has been through recent strategic acquisitions of complementary PR agencies. 

Alex explains why they chose those specific agencies, how it will change their business, and why they had never met the team at one of the firms before the sale.

We also talk about how they handled integrating two teams when they bought the other firm so that they had a running start when the deal was signed.

In both cases, Alex and her colleagues were guided by a change management model known as ADKAR. 

In our talk, she explains the five parts of that strategy and why it’s key to follow in times of large-scale changes in an organization to ensure all the key players have the right mindset going forward.

Tune in for all the details on that, as well as…

• The biggest drivers of their strategic acquisitions

• How they prevented client attrition
   
• Why they don’t forget the people side of acquisitions – and how that impacts operations

• What they do to get buy-in at a “deep level” from new team members

• And more