August 08, 2024

The M&A Mastermind Podcast - Episode 46 - Planning for Long-Term Value Creation

45 minutes

In this enlightening episode of the M&A Mastermind podcast, host Nick Olsen engages with Mike Mensch, CEO and founding partner of Agency Brokerage Consultants, to delve into the crucial topic of value creation in M&A.

Mike emphasizes the significance of a value creation mindset, advocating for business owners to consistently focus on enhancing their company's worth. The discussion covers the key motivators driving business owners and the common challenges they encounter while striving for growth.

Listeners will gain insights into the four pillars of value creation—strategy, systems, culture, and finances. Mike provides practical solutions to typical issues faced by professional services firms and shares expert advice on scaling an M&A practice. The episode wraps up with a compelling conversation on the advantages of investing in employees to drive long-term success.

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:

Always think about increasing the value of your business and have a long-term mindset.

Identify the main motivators for your business and understand why they are important.

The four pillars of value creation are strategy, systems, culture, and finances.

Common challenges in growing a business include owner dependence, lack of growth, bad business model, and poor sales management.

Invest in your employees and create a training program to develop their skills and knowledge.

Building a strong culture is essential for business growth.

Consider transitioning from a 1099 contractor model to an employee model to create more value in your firm.

Invest in systems, processes, and technology to scale your business.

Develop a continuity plan to de-risk owner dependence.

Partner with experts to provide solutions for common issues in your industry.

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:

00:00Introduction and Background

02:59The Value Creation Mindset

07:40Challenges in Business Growth

11:39The Four Pillars of Value Creation

19:19Building a Strong Culture

21:24Managing Finances for Growth

27:38Common Issues in Professional Services Firms

32:31Scaling Up an M&A Practice

35:38Investing in Employees for Long-Term Success

38:47Transitioning to an Employee Model

Keywords: Mergers and Acquisitions, M&A, Investment banking, Corporate finance, Sell-side, Valuation, Due diligence, How to sell my business, M&A market trends, M&A advisors, value creation mindset, business growth, strategy, systems, culture, finances, professional services, scaling up, investing in employees

...more