Masters in Small Business M&A

By Peter LehrmanBusiness Education Investing How To

Masters in Small Business M&A episodes

September 22, 2022Matt Johnson, Founder, TheFeed.com - M&A In the World of Human Performance and Endurance Sport
My guest today is Matt Johnson, Founder of TheFeed.com. The Feed is THE eCommerce marketplace for endurance athletes' nutrition needs before, during, and after their workout, big race, or event.
Matt Johnson’s journey to founding The Feed started when he was President of the Tour de France Team at Slipstream Sports. He is also an avid ski racer, has won a dozen Master's World Cup races, and a few years ago was Master's SG World Champion. Matt saw how better nutrition was giving Tour de France riders a huge advantage in their training (getting more out of every workout) and in competition (performing stronger in the last 20% of the race or the last week of a 3-week stage race), and the concept of The Feed marketplace was born.
The Feed was built for athletes, by athletes, to share how the right nutrition at the right time can instantly improve your performance, get you more out of each workout, and increase your enjoyment of training and racing. But one size doesn’t fit all. The Feed builds you a personal Feed (from over 150 top nutrition brands (like SwissRX, Maurten, and Clif) that will work for you and your sport, your diet, your flavor preferences, and your training goals.
I speak with Matt about his personal journey - from selling college textbooks online in the mid-90s, to leading Tour de France teams, to founding The Feed and how it has evolved. Currently, The Feed is scaling up 60-70% every year, they are exploring different brand acquisitions, building robotics to increase speed and capacity in their Boulder, CO warehouse, and creating a successful business that eventually will be ready for a great exit strategy when the time is right.
This podcast is brought to you by Axial, (www.axial.net), a trusted online platform for business owners & their M&A advisors to use to safely and intelligently explore and execute capital raises, acquisitions, and exits with strategic buyers or professional financial sponsors. I am your host, Peter Lehrman, Founder and CEO of Axial. In every episode, we will explore the vast world of small business M&A. We will interview both the proven and emerging owners, operators, investors, and advisors whose strategies and methods have been put to the test.
If you have enjoyed this episode, check out Axial.com for more. There are recorded Axial member roundtables, downloadable tools for dealmakers, quarterly lead-table rankings, and lots of other useful information. To join Axial as an acquirer, an owner considering an exit, or as a sales-side M&A advisor, you can get started for free at Axial.com. Feel free to reach out to me directly at [email protected] with questions, suggestions, or show topic ideas.

Discussion points:
Matt’s early days - bike racing as a kid, selling college textbooks online. The Feed is a merging of Silicon Valley and sports, his dream scenario
The need for The Feed – seeing a knowledge gap before/during/after training - fueling strategies are always evolving and volatile
Reviewing the history of trends in sports nutrition
Founding story - From “box of the month” to single servings, to leveling up nutrition offerings
The Feed’s proprietary warehouse software was written by a young athlete working in the warehouse
Why robotics? It’s important to ship lightning fast, on par w/Amazon. Every innovation paid for itself in ROI in 30-60 days
The Feed’s only acquisitions will need to fit with their “human performance” model and have high brand loyalty
Any acquisition considerations must improve margin, and have a loyal following
M&A options usually come from their vendor base or from investors' suggestions
The Feed’s revenue is extremely solid and predictable, with growth at 60-70% a year. While they are not actively looking for an exit, Matt does consider making employees able to cash out and change their lives
Get ahold of Matt if you’re interested in anything The Feed - message on LinkedIn, or email [email protected]

Resources:

Matt Johnson LinkedIn
Email Matt
The Feed Website
Peter Lehrman LinkedIn
Axial Website
56 min
August 23, 2022Sang Cho - the rise, fall and comeback of an American immigrant U.S. Marine turned commercial laundry entrepreneur
In this episode, we tackle an industry that you don’t often hear about in entrepreneurial or investment circles - the commercial laundry business. Join me as I talk with Sang Cho, Chair & CEO of Cooperative Laundry - the most technologically advanced commercial laundry services company to hospitality markets (hotels and hospitals) in the United States.
Sang talks about the early days in NYC where his family owned a laundry that he grew up in and worked in as a teen, his self-admitted lack of knowledge as far as operating a massive commercial business, and the many pitfalls that befell him and the company, and the lessons learned from that experience that are contributing to the success of Cooperative Laundry today.
Sang started working in his family's dry cleaning business in 2005 and grew it from a 20-employee, $2MM company to a 600+ employee, $50MM revenue company. Sang exited that business through a private equity transaction in 2013 and has since embarked on investing in and operating Cooperative Laundry. Their custom-built, 60,000-square-foot facility is located in Kearny, New Jersey, delivering the best commercial laundry services in North America. Its fully automated workflow delivers an end-to-end level of precision that the laundry industry has never known.
This podcast is brought to you by Axial, (www.axial.net), a trusted online platform for business owners & their M&A advisors to use to safely and intelligently explore and execute capital raises, acquisitions, and exits with strategic buyers or professional financial sponsors. I am your host, Peter Lehrman, Founder and CEO of Axial. In every episode, we will explore the vast world of small business M&A. We will interview both the proven and emerging owners, operators, investors, and advisors whose strategies and methods have been put to the test.
If you have enjoyed this episode, check out Axial.com for more. There are recorded Axial member roundtables, downloadable tools for dealmakers, quarterly lead-table rankings, and lots of other useful information. To join Axial as an acquirer, an owner considering an exit, or as a sales-side M&A advisor, you can get started for free at Axial.com. Feel free to reach out to me directly at [email protected] with questions, suggestions, or show topic ideas.
Discussion points:
What is the commercial laundry business all about?
There are no national players – regional and mom/pop are the main players
A day in the life of the commercial laundry business
Shorter contracts allow for easier price adjustments
What happens if you lose a customer?
Sang’s Korean/American family background owning a laundry in NYC
Combat infantry and a philosophy degree
Buying a competitor out of bankruptcy
Structuring an investment deal within his family’s company
Lessons learned after leaving Prestige
Data-driven results and successes with Cooperative Laundry
Everyone on the team must agree that the data is important
Some of the key differences Sang works on now with Cooperative operations
Who was your mentor? How did you learn your lessons?
Surround yourself with smart entrepreneurs, join YPO
Resources:
Sang Cho LinkedIn
Cooperative Laundry Website
YPO for Entrepreneurs
Peter Lehrman LinkedIn
Axial Website
47 min
June 30, 2022 Steve Cook and the Making of an Operator-First Private Equity GP
My guest today is Steve Cook, Executive Managing Director at LFM Capital. LFM is a Nashville-based private equity firm founded by operators and engineers. Their focus is on niche manufacturing and industrial services businesses. LFM was founded in 2014 to invest in private, lower-middle-market manufacturing companies. Steve co-founded LFM Capital and brings over 29 years of operating experience, having served in a variety of senior executive and functional roles in manufacturing, supply chain, engineering, technology, and sales.
Prior to founding LFM, Steve was a Principal with TVV Capital, Chief Operating Officer of MFG.com, and prior to MFG, Steve spent 11 years as a Southeastern regional Senior Director with The Dell Corporation.
We’ll hear from Steve about how he began his career at Dell straight out of MIT and was a self-described type of brash “Iceman” character (from the movie Top Gun) when he got out of flying combat missions in the Navy, and fortunately was coached on becoming a better leader, which propelled him to his current success. Steve talks about what he loves about manufacturing, how to identify great value and potential in companies he purchases, and what he hopes manufacturing may look like in the future.
This podcast is brought to you by Axial, (www.axial.net), a trusted online platform for business owners & their M&A advisors to use to safely and intelligently explore and execute capital raises, acquisitions, and exits with strategic buyers or professional financial sponsors. I am your host, Peter Lehrman, Founder and CEO of Axial. In every episode, we will explore the vast world of small business M&A. We will interview both the proven and emerging owners, operators, investors, and advisors whose strategies and methods have been put to the test.
If you have enjoyed this episode, check out Axial.com for more. There are recorded Axial member roundtables, downloadable tools for dealmakers, quarterly lead-table rankings, and lots of other useful information. To join Axial as an acquirer, an owner considering an exit, or as a sales-side M&A advisor, you can get started for free at Axial.com. Feel free to reach out to me directly at [email protected] with questions, suggestions, or show topic ideas.

Discussion points:
Steve Cook’s background and leadership at Dell Computers
Steve’s lessons learned from other Dell leaders and exec coaching, and why his career at Dell ended
The state of manufacturing in the global economy these days
The granite/gravestone story
What Steve looks for in leaders today - authenticity, ethics, values, coachability
What are you excited about in manufacturing today?
Competing with lead times and quality, not price
1 hr 1 min
June 06, 2022 Silicon Valley Tools & Technology arrives in the Lower Middle Market - a Conversation with Vinay Bachireddy
Joining me for this episode is Vinay Bachireddy, Managing Partner at Weave Growth Partners. Weave is pioneering a technology-led approach to operational transformation of lower middle-market businesses.
Weave is a private investment firm based in Silicon Valley. As experienced investors, entrepreneurs and operators, they partner with management teams to create long-term value and bring technology expertise to their portfolio companies. They bring a technology-enabled playbook of analytics and automation commonly used in high-growth Silicon Valley startups to potential portfolio companies.
Join us for a discussion on how Weave approaches companies, their sensitivity to maintaining company culture, and the steps they take to acquire investment portfolio companies and implement new tech. From discussing tech as early as the pre-offer stage to working through digitization, analytics, and finally automation, Weave’s style and approach may be heralding the “new generation” that will help change the perception of private equity investors.
This podcast is brought to you by Axial, (www.axial.net), a trusted online platform for business owners & their M&A advisors to use to safely and intelligently explore and execute capital raises, acquisitions, and exits with strategic buyers or professional financial sponsors. I am your host, Peter Lehrman, Founder and CEO of Axial. In every episode, we will explore the vast world of small business M&A. We will interview both the proven and emerging owners, operators, investors, and advisors whose strategies and methods have been put to the test.
If you have enjoyed this episode, check out Axial.com for more. There are recorded Axial member roundtables, downloadable tools for dealmakers, quarterly lead-table rankings, and lots of other useful information. To join Axial as an acquirer, an owner considering an exit, or as a sales-side M&A advisor, you can get started for free at Axial.com. Feel free to reach out to me directly at [email protected] with questions, suggestions, or show topic ideas.
Discussion points:
What Weave Growth Partners is all about
How many businesses are you working with right now?
Weave’s approach to technology is different for each prospect
What departments do you look at changing first?
How does Weave institute Silicon Valley-level tech?
Tech is discussed from day one (pre-offer) and scaled within 6-12 months
The progression of each company’s digital journey is in three steps:
Digitization
Analytics
Autom
44 min
May 23, 2022 From Plumber to Home Services M&A Master -- A Conversation with John Wilson
My guest today is John Wilson, the third-generation leader of The Wilson Companies - a privately-owned investment firm that invests in local family-owned businesses. Wilson acquires home services businesses in the Lower Middle Market, headquartered in the Midwest. With six current portfolio companies, they are continually seeking new opportunities between $500,000 and $2 million in owner's earnings. The Wilson Companies creates partnerships and takes an equity stake in Home Service, Digital, Multi-family & Commercial Real Estate businesses.
John talks with me about his early takeover of the family business at 23, some of the details around the company’s later acquisitions, the family dynamics of being a third-generation leader, not to mention the middle child of seven siblings who are not part of the business, and his preference for the acquisition, building, and entrepreneurial aspects of building his regional empire.
This podcast is brought to you by Axial, (www.axial.net), a trusted online platform for business owners & their M&A advisors to use to safely and intelligently explore and execute capital raises, acquisitions, and exits with strategic buyers or professional financial sponsors. I am your host, Peter Lehrman, Founder and CEO of Axial. In every episode, we will explore the vast world of small business M&A. We will interview both the proven and emerging owners, operators, investors, and advisors whose strategies and methods have been put to the test.
If you have enjoyed this episode, check out Axial.com for more. There are recorded Axial member roundtables, downloadable tools for dealmakers, quarterly lead-table rankings, and lots of other useful information. To join Axial as an acquirer, an owner considering an exit, or as a sell-side M&A advisor, you can get started for free at Axial.com. Feel free to reach out to me directly at [email protected] with questions, suggestions, or show topic ideas.
Discussion points:
John’s early years and family plumbing business
How did you come to buy the business from your dad?
John’s night school gave him knowledge to apply the next day at work
At 23 John took over the operations, hiring and firing
The many complications of the purchase - tax laws, family and siblings
Now the second-largest home services company in their region
The changes in John’s role after the purchase
First acquisition completed 14 months after purchase
Identifying distressed businesses to purchase
What are the ‘good vs bad’ businesses
46 min

About Masters in Small Business M&A

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Welcome to the “Masters in Small Business Mergers and Acquisitions podcast.” I am your host, Peter Lehrman, and I’m the Founder and CEO of Axial (www.axial.net), a trusted online platform for business…