Mastering M&A: Scott Weavil's Tips for Selling Your Business

Sierrapacificpartners.com

About the Guest(s):

Scott Weavil is the founder of Sierra Pacific Partners, a specialized investment bank focusing on lower middle market sell-side mergers and acquisitions. With a background as a Wall Street M&A attorney working on multi-billion dollar public company transactions, Scott leverages his vast experience to offer expert advisory services. His firm assists companies in selling their businesses with a tailored approach comparable to real estate agents but in the complex world of business acquisitions.

Episode Summary:

In this riveting episode of The Chris Voss Show, host Chris Voss and guest Scott Weavil engage in a comprehensive discussion about the intricacies of mergers and acquisitions (M&A) in the lower middle market. The episode starts with an overview of Scott's career transition from a lawyer on Wall Street to the founder of Sierra Pacific Partners, an investment bank offering specialized services in sell-side M&A transactions. Scott shares insights into how Sierra Pacific Partners operates like real estate agents but focuses on selling businesses instead of properties, providing expert advice tailored to unique business challenges.

As the conversation evolves, Scott discusses the importance of preparing a business for sale, highlighting key elements like stable revenue, diverse customer bases, and high-quality financials. He emphasizes the necessity of planning your business with an exit strategy in mind and delineates the different services Sierra Pacific provides, including auction processes and capital raising. Moreover, Scott shares anecdotes and lessons learned from handling both smaller, less structured companies and major Wall Street level transactions, offering listeners a window into the multi-faceted world of business sales and strategy.

Key Takeaways:

Building a business with an exit in mind involves strategies like growing revenue, maintaining stable finances, and reducing owner dependency.

For a successful M&A, having high-quality financials comparable to public company standards is crucial.

Timing and thorough preparation are essential for a successful transaction, including the creation of marketing materials and data rooms.

Emotional preparedness for an exit is a crucial element in convincing buyers of a seller's commitment to a transaction.

Partnering with the right M&A advisor can make a significant difference, emphasizing the importance of experience and industry expertise.

Notable Quotes:

"The more prep you can do before it comes to me to actually try to drive through transaction, the better."

"If you're the owner with your hair on fire, with everything coming through you, no buyer's interested in that."

"One of the big things that I work with with sellers is that generally speaking, one sided deals just don't get done."

"For our clients it can be an emotional process. And one of the things, particularly for those non-professional clients…they're definitely gonna probe if you're actually serious about doing a transaction."

"The difference in M&A is assuring buyers that you're serious and have a vision for life after closing."