Inside the Mind of an Acquirer with Kevin McArdle

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In his role as an acquirer, Kevin McArdle has purchased 45 businesses including three from former Built to Sell Radio guests. In the latest instalment of Built to Sell Radio’s Inside the Mind of an Acquirer series, you’ll learn how to:

• Distinguish between a holding company and a private equity group (PEG).
• Prepare your business for a seamless acquisition.
• Prevent deterring potential acquirers.
• Ask questions to create momentum in your conversions with potential acquirers.
• Outsmart crafty techniques employed by PEGs seeking to get your business for a discount.
• Demystify the valuation metrics commonly utilized by PEGs.

 

Check out our article on 3 Vs. 9 Times Earnings.

Check out our full M&A Glossary

Show Notes & Links

Former Built to Sell Radio Guests Who’s Business was Acquired by Kevin

Laura Roeder Episode

Arvid Kahl and Danielle Simpson

Tyler Tringas

Press Release For Big Band Software

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Today’s episode is brought to you by Scribe Media.

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Definitions

 

Letter of Intent (LOI): A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal. Commonly used in major business transactions, LOIs are similar in content to term sheets. One major difference between the two, though, is that LOIs are presented in letter formats, while term sheets are listicle in nature.

Source: https://bit.ly/3ppDnr3

Earn-out: Earnout or earn-out refers to a pricing structure in mergers and acquisitions where the sellers must “earn” part of the purchase price based on the performance of the business following the acquisition.

Source: https://en.wikipedia.org/wiki/Earnout

Due-Diligence: Due diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration. In the financial world, due diligence requires an examination of financial records before entering into a proposed transaction with another party.

Source: https://bit.ly/3yYDfo5

Re-Trading: Re-trading is the practice of renegotiating the deal price of a company after the initial price and terms have been agreed to. This occurs when the buyer performs due diligence during negotiations and potential risks are uncovered during the process.

 

About Our Guest

Kevin McArdle

After a stint teaching high school math, I landed in my first tech job at a booming global software company. My 15-year journey to VP was a masterclass in scaling a successful tech business and led me to start and run multiple companies of my own. At Big Band, we’re taking those Fortune 100 principles to small companies on their next leg of growth. Being an entrepreneur can be hard and lonely. But I know how the right guidance and support can feel energizing. When we band together, we give more people the chance to build something lasting and elevate their lives.

 

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