Deal Talk with 7MA

Why Investment Bankers Are Looking to Latin America

7 Mile Advisors — Mon, 31 Jul 2023 03:00:00 -0400

Local and global investors alike are eager to tap into demand for nearshoring from U.S. and Canadian businesses, which remains high. Investors are also starting to back companies that serve local markets.

In this episode of Deal Talk with 7MA, host Ben Bruggeworth talks with 7MA colleagues Horacio Yenaropulos and Daniel Siller, both managing directors at 7MA.

Investors are “looking for nearshoring advantages and for good businesses with good capabilities inside the region,” says Horacio. Horacio and Daniel explain why investors are so excited about Latin America, the factors affecting supply and demand, and how they expect the growth of private equity in the region to play out.

Investor interest has increased following the pandemic, and both Horacio and Daniel expect it to grow further as the region develops the language and technology skills that U.S. and Canadian companies desire.

They warn, though, that founders and owners should expect lower valuations and increased scrutiny during due diligence as investors look more closely at business fundamentals than they did over the past couple of years. Daniel also notes that governments in the region need to clarify legal and legislative issues that impede investor confidence.

Regardless, Horacio and Daniel are both confident that the future for the region is bright. “It’s a nascent region with nascent private equity,” Daniel says, “I think that over time, a lot of the larger and midsize players will start to look at the region as a great place to invest.”

💡 Featured on the Episode 💡

Name: Daniel Siller

What he does: Daniel is a Managing Director with 7 Mile Advisors based in Boston, Massachusetts. Across more than 25 years of experience in investment banking, he has closed over $35 billion in equity raises and $50 billion in M&A transactions. Daniel, who is fluent in English, Spanish, and French, previously worked at several banks including Credit Suisse, Lazard, Morgan Stanley, and Goldman Sachs.

Organization: 7 Mile Advisors

Words of wisdom: “There are many years, if not decades, of potential growth in Latin America.”

Connect: LinkedIn

Name: Horacio Yenaropulos

What he does: Based in Mendoza, Argentina, Horacio is a Managing Director with 7 Mile Advisors and leads the Latin America sector coverage team. He has 25 years of financial experience and previously worked with Globant’s corporate development group, where his responsibilities ranged from due diligence to SPA closing. He’s also held financial leadership positions with several key Latin American companies, including PricewaterhouseCoopers, Hidronor Chile, Viña San Pedro Wine Group, and Belatrix Software.

Organization: 7 Mile Advisors

Words of wisdom: “A lot of good things are going to continue happening in this market.”

Connect: LinkedIn

Name: Ben Bruggeworth

What he does: Ben is a Vice President at 7 Mile Advisors based in Atlanta, Georgia. He previously served as an associate on the M&A team at Harris Computer and spearheaded business development at Caymus Equity Partners. Ben, who has five years of financial experience, was a scholarship athlete in soccer and football at Wofford College.

Organization: 7 Mile Advisors

Connect: LinkedIn

Connect with 7 Mile Advisors

☑️ For a custom valuation assessment using 7 Mile’s five pillars of strategic value, contact Nic Anderko at nic.anderko@7mileadvisors.com

☑️ Follow us on LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Spotify, Google Podcasts, or anywhere you get your podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at kathryn@7mileadvisors.com

Deal Talk with 7MA, a podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment banking services and advice on mergers, acquisitions, and private capital transactions around the globe.

Managed Service Providers in the Modern Business Ecosystem

7 Mile Advisors — Wed, 28 Jun 2023 03:00:00 -0400

“We at 7 Mile Advisors are serving companies who are helping businesses procure and use technology in an effort to develop, capture, connect, move, store, compute, and secure data,” explains Founding Partner Tripp Davis, of his work at 7MA.

On this episode of Deal Talk with 7MA, host Ben Bruggeworth talks with 7MA colleagues Tripp Davis, a Founding Partner, and Tim Frye, a Managing Director, about the Managed Services Providers (MSPs) space and what they ultimately foresee happening in the market.

Since 2008, 7 Mile Advisors has been an investment bank solely focused on technology services as a sector-centric bank. They drill into the marketplace in specific sub sectors to map landscapes and identify key businesses that they can serve via M&A, private capital raising, and strategic growth advice.

The MSP sector is an area in which 7MA spends a lot of time. Due to the velocity and complexity of technology environments, it’s a fast-growing market. Tripp and Tim share their own experiences and what they see as this market continues to evolve and businesses continue to get more specialized help from MSPs.

Tune in to hear Tripp and Tim talk about their experiences in MSPs, the future of M&As in this sector, and their dedication to vertical growth in the market.

💡 Featured on the Episode 💡

Name: Tripp Davis

What he does: In addition to being one of the Founding Partners of 7 Mile Advisors, Tripp Davis has more than 20 years of investment banking and advisory experience.

Organization: 7 Mile Advisors

Words of wisdom: “As investment bankers, we are looking to help sellers, boards of directors, and private equity groups grow value and, ultimately, unlock that through a successful M&A transaction.”

Connect: LinkedIn

Name: Tim Frye

What he does: Tim is a Managing Director at 7 Mile Advisors with a background in tech-enabled business services. He brings a wealth of industry experience and perspective to M&A transactions.

Organization: 7 Mile Advisors

Words of wisdom: “The core driver of value in all the processes that 7 Mile runs with MSPs has been recurring revenue. We have a saying, internally, that recurring revenue is king.”

Connect: LinkedIn

Name: Ben Bruggeworth

What he does: Ben is a Vice President in Business Development at 7 Mile Advisors.

Organization: 7 Mile Advisors

Words of wisdom: “As we think about the buyer universe, we've seen a number of private equity groups across the country make investments within the MSP space.”

Connect: LinkedIn

Connect with 7 Mile Advisors

☑️ For a custom valuation assessment using 7 Mile’s five pillars of strategic value, contact Lexi Papa at lexi@7mileadvisors.com.

☑️ Follow us on LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Spotify, Google Podcasts, or anywhere you get your podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at kathryn@7mileadvisors.com.

7MA Talks Internships and Breaking Into the World of Investment Banking

7 Mile Advisors — Thu, 27 Apr 2023 11:45:00 -0400

7MA’s Sydney Scadden, Nic Anderle, and Tyler Ratterree all have one significant thing in common - they sought internships to propel their careers.

While in college, Nic had two internships - one at RSM, which gave him great hands-on accounting experience, and another at Copper Run, which ultimately swayed him to pursue an investment banking career path.

With a plethora of internship experiences under his belt - in everything from commercial banks and their loan servicing departments to working in his college’s admissions department - it took Tyler more time to discover his interest in investment banking. In fact, it wasn’t until his internship at PwC during graduate school that he found his calling in deal processes.

For many, like Sydney, the ultimate goal of an internship is to have the role transition into or lead to a full-time job, which is exactly what she achieved. Sydney was a summer intern analyst at 7MA before being hired as an employee. She went from setting up phone calls and meetings as an intern to leading the deals she had once watched unfold.

On this episode of Deal Talk with 7MA, host Steve Sypek talks with three of 7MA’s finest about their personal internship experiences, the benefits of internships in general, and how 7MA’s own internship program can help young professionals hoping to break into the world of investment banking.

💡 Featured on the Episode 💡

Name: Sydney Scadden

What she does: Once an intern at 7 Mile Advisors, Sydney is now a Vice President. Sydney offers project execution, data analysis, and business development expertise and has contributed to the success of more than 25 deals within the IT Services and Tech-enabled sectors since she joined 7MA in 2018.

Connect: LinkedIn

Name: Nic Anderle

What he does: Nic is an Internship Program Coordinator and Associate at 7 Mile Advisors with M&A and accounting experience. Before joining the team at 7MA, Nic was an Investment Banking Analyst Intern at Copper Run Capital, which is an M&A advisory firm focused on the lower-middle market.

Connect: LinkedIn

Name: Tyler Ratterree

What he does: Tyler is an Internship Program Coordinator and Associate at 7 Mile Advisors with finance, accounting, and macroeconomics experience. Prior to working at 7MA, Tyler served as a deals consultant for PwC, which focuses on capital markets and accounting advisory services.

Connect: LinkedIn

Name: Steve Sypek

What he does: Based in Nashville, Tennessee, Steve is the Senior Vice President at 7 Mile Advisors. He has 9 years of international relationship management and business development experience.

Connect: LinkedIn

Connect with 7 Mile Advisors

☑️ For a custom valuation assessment using 7 Mile’s five pillars of strategic value, contact Lexi Papa at lexi@7mileadvisors.com.

☑️ Follow us on LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Spotify, Google Podcasts, or anywhere you get your podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at kathryn@7mileadvisors.com.

2022 Year in Review and What to Expect in 2023

7 Mile Advisors — Wed, 08 Mar 2023 15:05:00 -0400

Happy New Year and thank you for joining us in our first 2023 episode of Deal Talk with 7MA.

In today’s episode, 7 Mile’s co-founders Leroy Davis, Andy Johnston, and Tripp Davis join Steve Sypek to reflect on the eventful period in the M&A world over the past couple years.

They recount coming off a historic year in 2021, where M&A activity in the technology services space and the broader market was at all time highs. They discuss some challenges that 2022 introduced that they may not have expected heading into the year. They analyze the impact of geo-political events such as Russia’s attacks on Ukraine and the Fed sparking further caution as they aggressively drove interest rates higher following a prolonged period of near zero rates.

Throughout the episode, they provide insight into how 7 Mile Advisors responded to these events and what they see on the horizon for the IT Services Industry in the M&A world.

💡 Featured on the Episode 💡

Name: Andy Johnston

What he does: Andy is a Partner and Co-founder of 7 Mile Advisors. He has advised on more than 50 business services and digital transformation transactions, including deals with Deloitte, Accenture, Valtech, and multiple private equity funds. He received his bachelor’s degree from Duke University and is a Certified CFA with the Chartered Financial Analyst Institute. Outside of work, Andy enjoys sailing, traveling, and spending time with his family.

Organization: 7 Mile Advisors

Connect: LinkedIn

Name: Leroy Davis

What he does: Leroy is a Partner and Co-founder of 7 Mile Advisors with 25 years of investment banking experience. He has managed transactions in the Technology, Consumer, Insurance, Healthcare & Infrastructure sectors. He began his career with Coopers & Lybrand and is a member of the AICPA. He received his bachelor’s degree from Hampden-Sydney College and his MBA from Wake Forest University.

Organization: 7 Mile Advisors

Connect: LinkedIn

Name: Tripp Davis

What he does: Tripp is a Partner at 7 Mile Advisors with 20 years of investment banking and advisory experience. He joined 7 Mile Advisors from Hyde Park Capital Partners, where he served as head of the Business Services, Technology and Communications group while advising companies in a variety of industries on M&A and capital raising assignments. He received his bachelor’s degree from Hampden-Sydney College and Post-graduate studies at Florida State University.

Organization: 7 Mile Advisors

Connect: LinkedIn

Name: Steve Sypek

What he does: Steve is a Senior Vice President at 7 Mile Advisors with 9 years of international relationship management and business development experience. He previously worked for Wellington Management in Boston before moving to London to help grow their Global Wealth Management business, which included several successful Private Equity raises. He received his bachelor’s degree from Boston College. He is a CFA Charterholder with his CPA license in Massachusetts. Outside of work, Steve is an avid Boston Bruins fan who enjoys spending his time playing hockey and golf.

Organization: 7 Mile Advisors

Connect: LinkedIn

Connect with 7 Mile Advisors

☑️ For a custom valuation assessment using 7 Mile’s five pillars of strategic value, contact Lexi Papa at lexi@7mileadvisors.com.

☑️ Follow us on LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Spotify, Google Podcasts, or anywhere you get your podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at kathryn@7mileadvisors.com.

Breaking Down the HIMSS Conference’s Leading Topics With Andy Johnston and Ben Garber

7 Mile Advisors — Tue, 05 Apr 2022 03:00:00 -0400

After attending the HIMSS Global Health Conference & Exhibition, Andy Johnston and Ben Garber have insight into the top industry trends as they relate to digital transformation. According to Andy and Ben, healthcare providers and digital service companies are increasingly coming together to shape a more interconnected data environment.

The focus on cybersecurity initiatives was an emerging topic of particular interest. As companies embrace digital and move their data to the cloud, the danger of cyber threats increases dramatically. While cybersecurity solutions are developing rapidly, it’s difficult to keep pace with data exposure risks. That’s why it’s vital to not only focus on your digital transformation solutions, but also on diverse security protocols to protect your information.

Individual companies aren’t the only ones focused on cybersecurity. The government is playing an increasing role in regulation to create specific standards of compliance. Through cybersecurity executive orders, the Biden administration aims to create more transparency and safety within the fast-paced digital world. So, while companies need to remain vigilant to protect themselves, a system to ensure compliance with federal regulations and statutes is important as well.

Andy and Ben further discuss changes in revenue cycle management and how it plays into the digital world, how healthcare providers are refocusing their projects on non-pandemic related issues, and how private equity groups are enhancing their shareholder value.

On this episode of Deal Talk with 7MA, Andy and Ben explore specific ways in which the healthcare industry is moving through digital transformation. From case studies to 7 Mile Advisors’ services, they break down the current trends and share how healthcare providers and technology service companies are coming together to develop better customer care.

Read the Full Show Notes on our website

💡 Featured on the Episode 💡

Name: Andy Johnston

Organization: 7 Mile Advisors

Connect: LinkedIn

Name: Ben Garber

Organization: 7 Mile Advisors

Connect: LinkedIn

Name: Ariail Barker

Organization: 7 Mile Advisors

Connect: LinkedIn

Connect with 7 Mile Advisors

☑️ For a custom valuation assessment using 7 Mile’s five pillars of strategic value, contact Ariail Barker at ariail@7mileadvisors.com.

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment banking services and advice on mergers, acquisitions, and private capital transactions around the globe.

Digital Transformation Is Changing the Marketing Game

7 Mile Advisors — Fri, 21 Jan 2022 03:00:00 -0400

Pablo Hernández became an entrepreneur at just 14 years old when he founded Ingenia Agency, the company he still runs today. As the oldest of seven boys, he had an early start to entrepreneurship through his father, who owned a successful chain of language schools in Mexico. Pablo would accompany his father to work over the summer months, where he first discovered the possibilities available through the internet.

"I was one of the few guys in Mexico who knew how to program websites. Anybody I would find: my dad's lawyer, my dad's architect, the school psychiatrist, the psychologist, I would say, You need to have a website," Pablo recalls. "I always had the vision of building amazing websites. I wanted to build the website for the Mexican Stock Exchange, for Coca-Cola, and Grupo Bimbo. All three happened."

Pablo shares insights into the international growth his company has experienced over the past few years, including expanding into a U.S. office based in Houston. Pablo also shares how the potentially controversial decision to pursue personal coaching over completing his MBA became a growth catalyst for his business.

On this episode of Deal Talk with 7MA, Horacio and Pablo discuss trends in digital transformation and what they're focused on to further their personal development, including developing a business mindset, pursuing continual growth both personally and at work, and embracing lifelong learning.

One way Pablo challenges himself is with triathlons. "Becoming an Ironman means that you become very disciplined in your life and very focused. You try to become the best version of yourself," he says. "You find the time to become hyper-productive … This kind of discipline gives you the ability to think more and to take perspective. I think that [training for] the Ironman and running a business is a great combination."

Listen on the Website.

💡 Featured on the Episode 💡

Name: Pablo Hernández

What he does: Pablo founded Ingenia Agency, a full-service agency for creative and technology projects including advertising, web development, and digital marketing, when he was just 14 years old. The company has now been in operation for over 26 years and serves clients such as Coca-Cola, Visa, Diageo, Grupo Bimbo, Kimberly-Clark, Mondelez International, The Mexican Stock Exchange, La Costeña, Nacional Monte de Piedad, Kuspit, and many more.

Organization: Ingenia Agency

Words of wisdom: “I am obsessed with bringing out the best version of myself.”

Connect: LinkedIn

Name: Horacio Yenaropulos

Organization: 7 Mile Advisors

Words of wisdom: “At the end, there is a reward. And the reward is how successful we are.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ Money is pouring into software development. While talent shortages are visible in many industries, the push to retain software developers is apparent. Pablo sees the money companies are putting into digital transformation and the emphasis on data, the metaverse, and cryptocurrency.

★ Don’t get stuck in the operations of your business. Pablo shares how a coaching program helped him realize he wasn’t delegating enough as an entrepreneur and the importance of focusing on where he can add the most value — vision and high-level execution.

★ Starting a business in Latin America is challenging. Business owners can have difficulty accessing capital, the capital they can access is very expensive, and the cost of dismissing poor-performing employees can be shockingly high to those used to doing business in the U.S.

★ Embrace remote work if it makes your team more productive. Pablo recognizes that COVID gave him the courage to move his company to remote work. While the team misses the interactions, they are more productive and less stressed as a remote team. It also gave him the opportunity to go to Houston and expand his business internationally.

⚡ Episode Insights ⚡

[8:18] Being a business owner is not for everyone: Pablo is a self-described growth junkie and lifelong learner. Some of his favorite programs and resources include: Tony Robbins’ Business Mastery, Ketih Cunningham’s 4-Day MBA, and Napoleon Hill’s “Grow Rich! With Peace of Mind”.

[12:06] Strive every day for balance: When he first started his business, Pablo explains that his life was completely out of balance. Over the years he has moved from working long hours, smoking, and not exercising to developing a healthy routine that is sustainable.

[16:33] Being an entrepreneur in Latin America is heroic: Pablo says that being an entrepreneur in Latin America is filled with challenges and is a very hectic experience, including having limited access to capital.

[20:08] Every place has its challenges: Pablo reflects that no matter where you decide to start your business, you’re going to face challenges. However, sometimes the bigger the risk, the bigger the reward.

[23:33] Trust is crucial in growing a business: After one failed attempt to bring his business from Mexico to the U.S., Pablo realized he needed to be the one to move to the U.S. and build the trust needed to find success in the region.

[24:14] COVID presented the opportunity to go fully remote: The pandemic gave Pablo the courage to take his company fully remote. While they had beautiful offices and people missed the interactions, his team is more productive working remotely.

[27:34] Attract amazing talent and scale: Pablo shared that the five pillars of strategic value from 7 Mile Advisors helped him create a business plan and vision that will attract the best talent from around the world.

[29:00] Digital transformation is here: Pablo discusses how to make intelligent decisions that allow companies to survive the next five years by harnessing technological advancements. He’s excited about merging the marketing side of sales with the power of technology.

Connect with 7 Mile Advisors

☑️ For a custom valuation assessment using 7 Mile’s five pillars of strategic value, contact Ariail Barker at ariail@7mileadvisors.com.

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Digital Transformation Driving M&A Demand - Discussion With New 7MA Partner, Tom Delbrook

7 Mile Advisors — Tue, 04 Jan 2022 03:00:00 -0400

Tom Delbrook grew up loading trucks at UPS. What was originally just a part-time job to get through college led him to discover deals and acquisitions.

“UPS was a great business to learn from. They're willing to constantly challenge you and give you jobs you're not prepared for to see if you can pull it off,” Tom says.

Tom recently joined the 7 Mile Advisors Atlanta team. Just as he experienced at UPS, he believes that people need to be willing to constantly try new things, look at new models, and consider new ways of doing things — it’s one of the many reasons he’s eager to support businesses in technological advancement.

On this episode of Deal Talk with 7MA, Tom discusses how digital transformation has moved forward since COVID started and the incredible technological advancements that have occurred in such a short period of time. He also touches on why private equity has been more interested in IT services lately and shares a few tips for choosing an advisor if you’re looking to sell.

“People that had five or six-year roadmaps of what they needed found they were accelerated into three or four quarters. And people realized there are resources out there that can do this work,” he says. “From a business perspective, [COVID] has changed how all businesses have to think about their operations and position themselves for the future.”

💡 Featured Guest 💡

Name: Thomas Delbrook

What he does: As a new partner with the 7 Mile Advisor team in Atlanta, Tom brings a wealth of knowledge to the table from his former role as SVP of M&A Strategy and Integration at Cognizant. Tom has explored a variety of roles but has always gravitated towards the deal side of business ever since his first role at UPS in college.

Organization: 7 Mile Advisors

Words of wisdom: “At any job I’ve ever done, I end up falling in love with deals.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ Digital transformation isn’t happening. It’s here. Tom shares that he saw the need for digital transformation and mobile development long before COVID impacted the ecommerce market. When COVID forced the shut down of brick and mortars, companies were pushed to build enterprise-quality apps, causing a new wave of digital transformation.

★ Private equity has a renewed interest in IT Services. Private equity firms have seen the recurring revenue potential for IT services. It is clear that tech companies with large enterprise clients will always be in demand for more projects.

★ The demand for talent can increase costs. With a limit to the availability of technical talent, for example, full-stack developers, there is a premium that companies need to pay to access top talent in the market.

★ If you’re thinking of selling, don’t sell to the first person who shows up. Tom has some advice for owners who might be considering a sale in the next year. He recommends finding an advisor who will bring you the most logical strategic buyer and encourage you to consider all options by asking the tough questions upfront.

⚡ Episode Insights ⚡

[06:00] Mobile has been gaining momentum: Tom saw the demand for ecommerce years ago when he was working with major retailers and Amazon overtook his clients as the largest apparel retailer in the U.S.

[09:18] Ecommerce has turned ROI into a revenue game: Instead of looking for hard and fast returns on projects, the focus on ecommerce has given way to more flexibility. It’s no longer just about a fast return. If the value is there, the project’s worth taking.

[11:00] Ecommerce is not a cost center: Tom explains that there has been a shift in how C-suite executives view development and product engineering work. As long as the project drives revenue it’s a justifiable expense.

[13:06] Sticky is good for businesses with large enterprise clients: According to Tom, having recurring revenue in the form of recurring projects with enterprise clients helps IT services firms attract interest from private equity groups.

[15:49] High demand for developers is causing a talent squeeze: Looking at large multinational organizations, there’s a challenge in getting enough developers and skilled talent to complete the available work.

[20:10] Hire an advisor with a broad perspective: Tom says if you’re looking to make a sale in the next year, be sure you bring on an advisor who thinks outside the box to bring you the best possible buyer.

Connect with 7 Mile Advisors

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors, aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment banking services and advice on mergers, acquisitions, and private capital transactions around the globe.

Strategy, Operations, and Emotions — Navigating M&A as a Business Owner

7 Mile Advisors — Wed, 24 Nov 2021 03:00:00 -0400

In this special episode of Deal Talk with 7MA, Partner Tripp Davis leads a discussion on navigating M&A as a business owner or operator.

For the panel discussion, which was part of 7MA’s ACCESS Conference 2021, Tripp is joined by David Lewis, Founder and CEO of DemandGen (acquired by BDO) and Partner at BDO Digital; Andy Fay, Chief Revenue Officer of Innovasource (acquired by Energizer); and George Young, Founder, CEO, and now Managing Director of Kalypso (acquired by Rockwell Automation).

This panel of sellers have all navigated successful exits — some in the midst of the COVID-19 pandemic. In this episode they’re sharing first-hand lessons from their own experience in M&A and first-hand insights from the process.

The panel touches on all aspects of the M&A deal process — finding the right partners, working with a trusted advisor, navigating the emotions, and preparing your team once an acquisition goes through.

“I didn't go into the process expecting whether we would go down the private equity route or the strategic route. I really was open to both,” David says of getting acquired. “At least I thought I was; you really do some soul searching when you have people at the table.”

He continues: “When we had 22 offers, the majority of them were private equity, and there were about five strategic offers. And what made sense was it was very clear that I wanted a platform for the business that would catapult our growth.”

When discussing the sale of his consulting firm to Rockwell Automation, George admits being a little “naive” and “narrowly focused” early in the process. He shares how working with 7MA paved the way for a different kind of exit: “I think one of the things that you (7MA) helped us do was not go exclusive. Let's keep this thing open. Let's create the market.”

Tune in to the episode to learn more about the acquisition process directly from business owners.

💡 Featured Guest 💡

Name: Tripp Davis

What he does: Tripp is a Partner with over 20 years of investment banking and advisory experience. He joined 7 Mile Advisors from Hyde Park Capital Partners, where he served as head of the Business Services, Technology, and Communications group while advising companies in a variety of industries on M&A and capital raising assignments. Previously, Tripp served as Vice President at DecisionPoint International and began his career with Livingston & Associates.

Organization: 7 Mile Advisors

Words of wisdom: “Strategic points, operational points, transactional points and emotional ones are all part of the transaction cycle.”

Connect: LinkedIn

💡 Featured Guest 💡

Name: David Lewis

What he does: For more than 20 years, David has been a pioneering innovator in digital marketing, and has overseen marketing for some of Silicon Valley’s leading technology firms. David and his team at DemandGen have been at the forefront of digital transformation. The company was acquired by BDO, one of the nation’s leading accounting and advisory firms.

Organization: DemandGen

Words of wisdom: “It has got to be all about your employees.”

Connect: LinkedIn

💡 Featured Guest 💡

Name: Andrew Fay

What he does: Andrew is the VP of Business Development at household and industrial cleaning products company Innovasource, which was acquired by Energizer. He is a dynamic, innovative, entrepreneurial strategist with a 22-year record of achievement and demonstrated success driving multimillion-dollar sales growth.

Organization: Innovasource

Words of wisdom: “One of the big things we really wanted to do was have a strategic partner.”

Connect: LinkedIn

💡 Featured Guest 💡

Name: George Young

What he does: George is the Global Managing Director at Kalypso. He has over 30 years of experience in business management and consulting, serving Fortune 500 brands across industries. Kalypso, founded in 2004, is a professional services firm that helps its clients discover, create, make, and sell new products digitally. Kalypso was acquired by Rockwell Automation in February 2020.

Organization: Kalypso

Words of wisdom: “There was no option other than to be successful. You couldn't fail twice.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ Strategic buyers vs. private equity. Andy was careful to ensure a strategic buyer wouldn’t have a negative impact on his existing customer base when he was weighing his options between the two.

★ Take care of your employees. David kept his team top of mind while working on his deal, and once he was confident in the agreement he began to bring people into the fold.

★ Keep your options open. George recognizes that during the first deal attempt his team was too narrowly focused, which limited their options and got him to commit to a partner too early in the process. He recommends considering all the possibilities, even things that might seem a bit silly at first glance.

⚡ Episode Insights ⚡

[0:56] Navigating M&A: 7MA’s Tripp Davis introduced the discussion and the panelists.

[11:40] Selling a company is like getting ready to sell your house: Andy compares preparing for a deal to how you would get ready to sell your house. He advises, “Make sure that when potential buyers come in to look and open up the books, that everything makes sense and everything is in its right place, so that the transaction can happen without an 11th hour Hey, what is this?”

[14:09] A huge change for employees: Take a brief moment to celebrate, but after that point David recommends focusing on your employees and how this change is impacting them. People react to changes differently and you need to be prepared to generate excitement throughout the organization.

[20:03] Radical transparency: George says, “The second time we went to market, we adopted a policy with our people of being radically transparent. They knew about as much as me... Everybody knew what was happening. And so when it (the deal) got pushed, I told people. And there were a lot of people who thought it's not gonna happen.”

[22:23] The value of a coach: A coach can help answer questions along the way, including questions about expectation setting for you and your team.

[25:15] Building value in your firm: When looking to build value in his firm Andy explains that he did a number of things: “We did a lot of work to protect our technology, and to build intellectual property, so it was protected that way. We did a lot of work with licensing and exclusivity with certain brands, or retailers, and certain channels of trade, to really have some guaranteed growth.”

[35:15] When in doubt: Andy says if you end up in the situation where you have multiple offers to trust your gut. You need to think about what it means for you personally, for your executive team, for your company, your employees, and your clients at the end of the process.

[35:59] Change is inevitable: People adjust to change in different ways, and often it’s easier to start with small changes to ease your team into the transition. Begin with little operational adjustments like the phone system or data backup, then make bigger changes as time goes on. Another tip would be to start with positive changes, like introducing an improved 401k offering.

Connect with 7 Mile Advisors

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Exploring International Mergers & Acquisitions: Latin America

7 Mile Advisors — Wed, 24 Nov 2021 03:00:00 -0400

In this special episode, recorded during 7 Mile Advisors’ 2021’s ACCESS Conference, 7MA Managing Director Horacio Yenaropulos hosts a panel discussion on exploring international M&A trends, focused on Latin America.

Joining Horacio are experienced international investor Mario Masrieh, Principal at Trivest Partners, which recently invested in Argentinian FinTech company Veritran; and Daniel Lopatin, Co-founder and CFO of tech consultancy ArganoUV. Daniel’s company United Virtualities was acquired by Argano in February 2021, in a deal that was facilitated by 7MA.

Latin America has a need and market for new digital solutions. Mario says that this was one reason Trivest invested in Veritran. “When you look at the unbanked and underbanked populations ... there's a huge white space,” he says. “Both the governments and the private sector need to bring the populations into the financial institutions, to create more wealth for the population and to support commerce.”

The panel reviews the complexities and challenges that investors may encounter when moving into LATAM, including the diversity of the region, regulatory tax differences, and how to select strategic markets for your business goals. They also discuss best practices for working with the lawyers and accountants on your team.

Daniel believes that understanding the culture of a country or region can be the difference between the success and failure of an acquisition in LATAM. “At the end of the day, your monetary success is attached to your ability to get together with them, and work together for the foreseeable future,” he says. “You shouldn’t undermine the importance of cultural differences when you come into a deal.”

💡 Featured Guest 💡

Name: Horacio Yenaropulos

What he does: Based in Mendoza, Argentina, Horacio is a Managing Director with 7 Mile Advisors, and leads the Latin America sector coverage team. He has 25 years of financial experience, and previously worked with Globant’s corporate development group, where his responsibilities ranged from due diligence to SPA closing. He’s also held financial leadership positions with several key Latin American companies, including PricewaterhouseCoopers, Hidronor Chile, Viña San Pedro Wine Group, and Belatrix Software.

Organization: 7 Mile Advisors

Words of wisdom: “An M&A transaction process is normally intense and time-consuming for founders and managers.”

Connect: LinkedIn

💡 Featured Guest 💡

Name: Mario Masrieh

What he does: Mario is a Principal at Trivest Partners – a leading private equity firm focused on partnering with founder and family owned businesses. He is responsible for analyzing investment opportunities, identifying strategic acquisition targets, and monitoring existing portfolio companies in the firm’s non-control investment strategy. Prior to joining Trivest, he was a private equity Vice President at Gridiron Capital, and also previously worked as an analyst at Morgan Stanley, in the global consumer and retail team.

Organization: Trivest

Words of wisdom: “We don't re-trade our deals.”

Connect: LinkedIn

💡 Featured Guest 💡

Name: Daniel Lopatin

What he does: Daniel is the co-founder and CFO of United Virtualities, now ArganoUV, a technology consultancy that merges art and software to solve digital problems for brands. United Virtualities was one of the largest e-commerce suppliers out of Latin America when it was acquired by Argano, a deal that was facilitated by 7MA.

Organization: ArganoUV

Words of wisdom: “You need to find the right partner that will work alongside you.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ LATAM needs digital transformation. The reason the LATAM region is so appealing to investors right now is because there is a clear need for digital innovation, particularly in the Financial space. For example, there’s still a need for digital banking apps and web-based banking, as well as e-commerce.

★ There’s not a single “Latin America.” As Daniel points out, LATAM is not a homogenous region: It’s made up of 33 countries, each of which has many different languages. Understanding the history and culture of the place where you’re looking for investment opportunities will give you a much better chance of success.

★ Elevate your evaluation criteria. Given the regulatory challenges and the risks associated with operating across different countries, it’s wise to elevate your standard investment criteria when looking at possible M&As in LATAM, including around customer concentrations, growth rates, and margins.

★ Overcoming talent challenges. Before evaluating your talent, decide where your focus is going to be. Does the company have customers in the U.S.? Or is it targeting other countries within LATAM? This will affect your talent strategy, including when it comes to assessing key skills such as English proficiency.

⚡ Episode Insights ⚡

[6:30] Don’t over complicate your deals: With 33 different regulatory and tax structures in LATAM, it’s easy to create complex deals if you’re not focused on specific countries or regions.

[17:47] Language is important, but not a deal-killer: Daniel explains that while language barriers can be a challenge, they are not an insurmountable problem.

[19:08] Argentina has an undeniable talent pool: Mario notes that despite reservations from investors, Argentina has an impressive and relatively untapped talent pool that foreign businesses are only just starting to recognize.

[24:03] Don’t be swayed by the highest offer: Daniel says that although high offers might seem like the best bet, you need to stay focused and pick the offer that is right for you. That’s what he did, and it worked for him.

[26:12] Exit strategies focus on IPOs: Mario says that in LATAM, the most common strategies are VC investment followed by a strategic exit or an IPO. Unlike in the U.S., he doesn’t see many deals focused on standard private equity.

[32:57] The LATAM digital industry is growing: Daniel sees growth across the digital industry in LATAM, including in e-commerce but also other segments.

Connect with 7 Mile Advisors

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Rick Davis on the Future of Space Exploration

7 Mile Advisors — Fri, 19 Nov 2021 03:00:00 -0400

Join 7MA Partner Leroy Davis as he sits down for a fireside chat with the Assistant Director for Science and Exploration Science Directorate at NASA Headquarters, Richard (Rick) Davis. On this special episode of Deal Talk, as part of the 2021 ACCESS Conference, they discuss Richard’s background and the fascinating work his team is doing on the Mission to Mars program.

Leroy takes the opportunity to ask Rick how he first became interested in space, his involvement in the Mars Mission, and the technology behind the project. Private equity investors will be interested to hear Rick’s take on private equity, commercial involvement in space exploration, and how NASA and the government partner with private entities to advance space travel.

Rick grew up on a farm outside of Charlottesville, Virginia, in a rural town called Happy Creek. There, the lack of light pollution means “the night skies are dark as anything and you could just see star fields like you wouldn't believe," he explains. "I remember walking outside and seeing them and I was just totally drawn to that.”

Leroy and Rick discuss William Shatner's recent space flight on Jeff Bezos' Blue Origin, as well as commercial developments in space travel. As a child, Rick was an obsessive Star Trek fan, which further inspired his future in space exploration.

“As we look at going to Mars, there's actually two parts of the equation," he says. "Because when you see the Blue Origin … and the SpaceX launches, the cost of getting to space is dropping dramatically. So that increases our ability to push stuff up and to make these missions more affordable.”

💡 Featured Guest 💡

Name: Richard (Rick) Davis

What he does: As the Assistant Director for Science and Exploration, Science Directorate at NASA Headquarters, Richard Davis is an accomplished aerospace engineer with extensive experience working in space exploration. His current role entails significant integration across all mission directorates and offices involved in Mars exploration. He is fluent in three languages, including English, Spanish, and Russian, and has earned numerous accomplishments and awards. Richard is also an instrument-rated pilot with 600 hours plus of flight experience.

Organization: NASA

Words of wisdom: “I think that if we do it right, you use the federal government to allow the private sector to establish a toehold and to get the sea legs — or space legs, if you will — to actually get up there. And then they will just go a lot further than any of us would imagine.”

Connect: Twitter

🗝️ Key Points 🗝️

Top takeaways from this episode

★ The cost of getting to space is dropping dramatically. The Blue Origin and SpaceX launches are examples of what is possible when space travel becomes less expensive. It increases our ability to expedite plans for other missions and make future missions more affordable.

★ Let’s learn from Lewis and Clark. Rick believes we can learn from the Lewis and Clark expeditions. The explorers set out with a limited supply of materials and lived off them to extend their journey. This is what astronauts must do to make a Mars mission successful.

★ Space assembly is the new frontier. The International Space Station has provided the ability for humans to become skilled at assembling equipment and materials in space. Rick thinks it might be the next frontier of space exploration: businesses or international entities could launch materials from Earth and assemble or aggregate them in orbit.

★ Commercial players are driving costs down. Rick believes that the United States is a leading example of the opportunity that arises when commercial players bid on space projects and help drive costs down. While NASA was originally criticized for doing this, allowing commercial interests to get involved has already paid dividends.

⚡ Episode Insights ⚡

[10:48] Challenges of getting to Mars: SpaceX and Blue Origin are driving down the cost of getting to space, but we still need to figure out how to live off resources we can find up there for longer missions — starting with finding a way to create propellant for a return trip back to Earth.

[13:02] Finding water on Mars: About 14 years ago ice sheets were discovered on Mars. Today, the goal is to send a new radar to Mars to gather more precise data on their location and learn more about the opportunities they might present.

[16:45] Preparing for a three-year mission: Rick says a mission to Mars is about three years. Astronauts spend six to eight months traveling. Then they'll live in the Martian system for roughly 500 days. Time in space can either be in orbit, on the surface, or some combination of both. The return trip is also six to eight months. A key component of these missions will be having a comfortable and well-prepared mothership to live on.

[26:59] Private space travel is coming: Rick predicts that as private space exploration companies continue to grow, we'll see the launch of hotels and support staff in space. Personnel might stay for long periods of time, run experiments, and/or a wide range of activities we can't even imagine today.

[29:05] Nuclear propulsion will be used in space: Using nuclear propulsion technology in space has two main benefits – avoiding the inherent dangers present on Earth and reducing the travel time to Mars by up to a year.

[36:42] Is there other life out there?: On the topic of aliens, Rick says, “I've never seen any evidence there's intelligent life out there or visiting this planet. But anyone who's been thinking about space, and they look at this cosmos, realizes there is essentially almost an infinite number of stars. And we can actually see planets around these stars.” He thinks the probability of intelligent life is high.

Connect with 7 Mile Advisors

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors, aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based in Charlotte, NC, that provides investment banking services and advice on mergers, acquisitions, and private capital transactions around the globe.

Technology & Business Services M&A in 2021: Is the M&A Market Still Hot?

7 Mile Advisors — Thu, 11 Nov 2021 03:00:00 -0400

How has the IT Services sector fared in M&A activity over the last 18 months?

On this episode of Deal Talk with 7MA — part of a series recorded during the ACCESS 2021 Conference Hosted by 7 Mile Advisors — Partner John Cooper provides an update on the M&A landscape. He walks us through how 7MA sees the M&A landscape including general market trends, commentary from the firm, target markets, and Q&A from the audience. View the accompanying presentation here.

7MA has closed 29 deals since October of 2020 with another 10 deals under LOI. Alongside positive deal stats, they are also hiring aggressively in response to the strong market.

Over the last number of years, key international players have made aggressive M&A moves around the Technology sector. Those in the private equity market are also looking to make strategic moves to deploy capital in the Tech sector, as it's viewed as an attractive and growing space.

In regards to market trends, the IT sector (including software, digital technology, global SI’s, management consultancies, and digital marketing) has been trading at all-time highs.

Enterprise software is reporting double-digit revenue multiples and digital technology companies are trading at multiple historically found by software companies. These technology gains have since cooled off a bit as people’s perspectives have changed causing a bit of back and forth volatility, but overall strong gains for the sector as a whole.

While private equity investors may approach deals with more caution and heightened standards, they’re not avoiding IT. We’re seeing some companies in the Enterprise Software and Digital Tech Services categories trading at all-time highs. Deal activity with IT companies have accelerated — comprising 22% of all deals done in 2021.

The support and interest in the IT sector reflect the role tech is playing in the workplace including businesses trying to be more creative in terms of remote employees, a push to stay connected with the brand’s consumer journey, optimizing marketing channels, and the need to utilize CRM data to remain competitive in the marketplace.

North America as a whole has seen strong M&A activity. The expectation is that we will see a very strong Q4 to close out a strong year of M&A activity in terms of deal count and deal value. Deal values have been on a downward trend since 2018, this trend was reflected in 2019 and 2020, however, 2021 shows a strong rebound. Megadeals and SPAC activity have helped drive the 2021 rebound by driving additional M&A funding through these channels.

As we close out 2021, John explains that he doesn’t predict an immediate slowdown in the market. There is a continued need for data, IT, SaaS, and technology services that will continue to power M&A. There is already some pent-up demand that will carry into 2022 from deals that are ready to go to market and he predicts that the current momentum will continue.

John also responded to questions from attendees, including:

How do you think about the impact of sustained inflation on margin pricing? (28:44)
Are we, or why are we seeing a significant increase in employee wages? (31:23)
How do you calculate time horizons to evaluations received? (32:17
What are your top three criteria for investing in LATAM (Latin America) (34:56)

💡 Featured Guest 💡

Name: John Cooper

What he does: John is a Partner at 7 Mile Advisors with more than 15 years of financial experience. He joined the firm from NewMarket Corporation where he worked in the corporate finance team and BB&T Capital Markets as an equity research analyst.

Organization: 7 Mile Advisors

Words of wisdom: “We're expecting a really strong Q4 to round out what will be a very strong year of M&A activity both from a deal count perspective, as well as a deal value [perspective].”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ 2021 has been a busy year for M&A. 2021 is ending on a strong note for M&A after limited deal activity over the last three years. Investors and private equity groups have been eager to spend after a hesitant 2020. IT has comprised 22% of all deals so far this year — a rise from an average of about 16% in previous years.

★ Revenue multiples for IT services have increased. Buzzwords like “digital transformation” started picking up around 2015, which has pushed M&A activity in the IT Services sector on an upward trajectory. IT services firms have also diversified revenue streams and focused more on recurring revenue, which has driven up the value.

★ Driving up valuation in a crowded market. For sellers looking to take advantage of the active M&A climate, positioning a business as one that can drive assets at scale is something that will appeal to buyers along with strong revenue growth.

⚡ Episode Insights ⚡

[4:28] Recent deal environment: 7MA has closed 29 deals since October 2020 and has another 10 under LOI. “We've been hiring aggressively too [and] it's been a great market,” John says of the current deal climate.

[5:02] Acquisition activity: John notes some recent acquisitions like digital engineering company Real Sourcing’s acquisition of Centare, a digital business and technology consultancy.

[8:32] A bumper year: 2021 is ending on a strong note for M&A after limited deal activity over the last three years. Investors and private equity groups have been eager to spend after a hesitant 2020. IT has comprised 22% of all deals so far this year — a rise from around 16%, John notes.

[11:31] Revenue multiples: While EBITDA can fluctuate depending on the data publicly available, multiples offer a more consistent metric. The data show revenue multiples are up and it’s driven by creative revenue streams, including recurring revenue.

[14:54] SaaS limitations: SaaS deals are still getting done, but companies often require custom developed solutions to sustainably solve business problems.

[17:36] Target markets and multiples: John highlights historical trends with gross margins, noting that pure service companies are typically around 35% from a gross margin perspective.

[20:32] What to shop for: John discusses why growth is so attractive in M&A. “That is gold star number one, like what to shop for — we want revenue growth,” he says.

[23:28] Outlook for the next 12 months: M&A activity will continue at an accelerated pace and John expects a lot of deals to be announced between Thanksgiving and the beginning of 2022.

[24:58] Thinking about valuation: John outlines how potential sellers can think about positioning their company for acquisition in a competitive market.

Connect with 7 Mile Advisors

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Leveraging Endeavor as an Entrepreneur in Latin America and Beyond

7 Mile Advisors — Wed, 25 Aug 2021 03:00:00 -0400

If there’s a key to success in entrepreneurship, it could be peer-to-peer networks. Alex Robbio learned this firsthand.

With his brother, Federico, and father, Luis, Alex co-founded Belatrix Software, a company that provides digital solutions and IT outsourcing services from Latin America mostly to clients in the U.S.

Together they bootstrapped from zero to over 700 employees, with delivery centers in and operations in five different countries - including Spain, Peru, and Colombia, as well as sales offices in Silicon Valley, New York, and Florida.

In 2019, with the help of 7MA, the trio sold the company to Globant. In January 2021, Alex realized that entrepreneurs aren’t necessarily ideal employees, so he left and has since been working closely with Endeavor, which seeks to uplift handpicked entrepreneurs through investment and peer networks — a community Alex credits with helping Belatrix reach its potential.

At first, Alex wasn’t interested in Endeavor’s services, but his father was. After Alex attended one of their selection events — only 2%-3% of those who start the process to work with Endeavor get selected — he was sold.

“It was an incredible environment, and so I came back from that and told my brother and father, ‘we have to do it, no matter what it takes, how much effort it takes, let’s do it,’” Alex says.

Now, on the other side of Endeavor, Alex is a mentor to others. He says peer-to-peer mentorship can really enter the playing field in an impactful way.

“Endeavor itself maybe doesn’t have a practice or a solution, but the people within the network are resources that entrepreneurs can tap into and learn best practices and so on,” he says.

On this episode of Deal Talk with 7MA, learn more about entrepreneurship and opportunities in LATAM, as well as how peer networks can benefit entrepreneurs globally.

💡 Featured Guest 💡

Name: Alex Robbio

What he does: As an Endeavor Entrepreneur and Mentor, Alex mentors fellow entrepreneurs about industry best practices. Additionally, Alex is a Venture Partner at MatterScale Ventures, a fund that invests in early stage “Latin startups with a global mindset.”

Organizations: Endeavor & MatterScale

Words of wisdom: “The plan is: pay it forward. So it’s select, support, scale up, maybe exit if not growing, get successful, get profitable. Invest in your peers, help your peers, mentor them, be an inspiration, go and talk to young people, talk about your experience, inspire the next generation of entrepreneurs.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ Personal relationships help foster business relationships. Working remotely forces creativity … especially when it comes to fostering business relationships. Traveling for work — or having potential clients visit you — can lead to out-of-office experiences, such as visiting wineries or restaurants, that build relationships on a personal level first. Alex looks at such experiences and relationships as an advantage in the sector.

★ Peer-to-peer success lies not in the taking, but giving back as well. There’s value in taking advice from mentors and peers, that leads to being successful. But that’s only one part of the plan — the other, says Alex, is to give back by sharing your expertise and wisdom to motivate those who are just entering the business space.

★ Political and economic challenges in LATAM breed innovation. Entrepreneurs in Latin America face a number of daily challenges that impact the business environment — from inflation to unfavorable legislation. But weathering the ups and downs can make the entrepreneurs who operate and scale under these conditions almost bulletproof.

⚡ Episode Insights ⚡

[4:40] Launching an IT services company: Alex studied psychology but always worked in the Software space and became a developer. Because of his connections in the IT sector, he knew there was untapped potential in Latin America.

[6:41] Growing a remote Latin American IT company: Alex describes how Belatrix convinced American clients to visit offices in Argentina, wowing them first with the location and then the IT services and team.

[8:51] Exploring Endeavor: Alex explains how he became involved with the entrepreneurship organization, as well as its origins and processes.

[14:30] VC fund: Alex describes the company’s unique VC fund, Endeavor Catalyst.

[16:28] Mentorship can have a big impact: From Paragon to Globant, Alex shares examples of success from Endeavor’s mentorship. He says that Globant now has a market cap of over $10 billion and 14,000 employees.

[20:26] The peer-to-peer networking solution: Through organizations like Endeavor, entrepreneurs obtain access to a large network of peers to help work through obstacles, find solutions, and more. Alex says once Belatrix joined, answers to questions with real-life examples were readily available through the peer network.

[22:25] Challenges in LATAM: Alex explores some of the difficulties entrepreneurs in Latin America are facing, such as inflation and the government passing legislation over weekends. But the challenges might make Latin American entrepreneurs even stronger, says Alex.

[25:31] Opportunity in Latin America: Alex explains why he thinks there is a fear of missing out in the Latin American market. Traditional banks have been very profitable in Argentina, he says, so it was only a matter of time until more of the financial ecosystem took its chances and found opportunities.

[27:44] Don’t forget the importance of values: Alex highlights the importance of finding employees whose values align with the organization. On the Endeavor selection panel, its entrepreneurs are vetting other entrepreneurs, and that panel wants to keep the sector financially and ethically clean and filled with members who reflect similar values.

Connect with 7 Mile Advisors

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Post-Pandemic Opportunities for Growth in Latin America

7 Mile Advisors — Fri, 02 Jul 2021 08:15:00 -0400

In the wake of COVID-19, 7 Mile Advisors’ recently appointed Managing Director of the Latin America (LATAM) sector, Horacio Yenaropulos, is seeing many companies reflect on the shortcomings the pandemic revealed. In particular, many realized they were well behind in terms of digital transformation.

As companies try to catch up, the good news is that there are new projects on the horizon. Notably, a significant number of European companies are looking to partner with counterparts in Latin America.

Horacio, who is based in Mendoza, Argentina, hopes to combine his previous experience in financial leadership and digital transformation with his local knowledge to build bridges between these companies.

He says it’s important to understand the different cultures in various countries within Latin America, and more broadly across the continent. For example, knowing that many Latin American companies are family-owned changes the way you do business.

Above all, Horacio sees opportunity on both sides of the world.

“The most important goal in LATAM is to be close to the companies, the investors, and the entrepreneurs. It’s being able to share with them experiences and local knowledge, and to advise and educate them on what is going on in the market, the value drivers their businesses have, and how they can monetize all the time and effort they have been putting in in the last year,” he says.

On this episode of Deal Talk with 7MA, Horacio discusses his new role, how his background can benefit business owners, and trends across IT services within Latin America.

💡 Featured Guest 💡

Name: Horacio Yenaropulos

What he does: Horacio combines his experience in technology services and financial leadership to serve as a Managing Director of 7MA, leading the Latin American practice.

Organization: 7 Mile Advisors

Words of wisdom: “It's important for LATAM companies to have confidence in investment bankers — like 7 Mile in this case — to help them work on the value drivers and monetize their past efforts.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ COVID-19 accelerated digital transformation. As companies pivoted to meet the demands of the pandemic, many realized they were falling short digitally. They also started looking into nearshore services, and many want to partner with companies in Latin America.

★ Understand the culture of companies you’re working with. A lot of Latin American companies are family-owned, and may benefit from education about the market, value drivers, and how they can monetize all their time and effort.

★ Explore the differences between LATAM countries. Chile and Uruguay are the most politically and economically stable countries in the region, but the talent pool they offer is smaller than that in Argentina, Colombia, Costa Rica and Mexico. Brazil has its own internal market and talent pool.

★ Focus on what investors are looking for. Specifically, revenue growth and gross margin.

⚡ Episode Insights ⚡

[2:56] How Horacio got here: Horacio shares his background, touching on his work with Belatrix Software and other endeavors.

[7:44] As nearshore services expand, the focus comes to Latin America: As American and European companies roll out new projects, they are looking to partner with Latin American companies.

[11:40] How a varied work history helps: Horacio expands on his career, and explains how his varied roles help him bring a more complete professional experience to the table.

[13:24] Establish goals with an understanding of who you’re working with: Horacio breaks down his goals for his job at the firm, while offering advice on how to understand the cultures of Latin American companies.

[15:09] Understand that the Latin American landscape is changing: Horacio touches on various Latin American countries and discusses their talent pool size, economic stability and other important factors.

[17:25] Ask yourself if you need a financial advisor: Before signing off, Horacio shares some advice for companies, including assessing whether you need a financial advisor.

Connect with 7 Mile Advisors

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

When Are You Ready For an Exit? Knowing When It’s Time to Sell Your Business

7 Mile Advisors — Mon, 29 Mar 2021 08:20:00 -0400

With more than 25 years of experience advising businesses, Leroy Davis knows the sweet spot for selling a company. While many entrepreneurs have heard of the $20 million valuation rule, he shares there’s much more to it than numbers and forecasting.

“We don’t put a hard line on 20 [million of revenue], we try to dig on some of these more intangible factors,” Leroy says. “And we get surprised regularly with some of the revenue multiples that we see, particularly in today’s market.”

According to Leroy, entrepreneurs, particularly those in tech, must consider many financial factors when determining when to sell — and having a team of experts by their side can provide a complete picture of their options. This team is also invaluable to forecasting, one of the most important areas that potential buyers look for. Not hitting numbers is the number one reason why deals go sour, Leroy says. He also talks about how to set yourself up to attract the right buyer at the right time.

On this episode of Deal Talk with 7MA, Leroy provides invaluable insights for entrepreneurs who want to sell, particularly when intellectual property assets are part of the deal. He also shares about how to prepare yourself mentally to pass the torch on to someone else.

“As an owner, are you ready to hand the keys to somebody else and give up control? That’s a big deal.”

💡 Featured Guest 💡

Name: Leroy Davis

What he does: With more than 25 years of investment banking experience, Leroy has manages transactions in the technology, consumer, insurance, healthcare, and infrastructure sectors as a Partner at 7 Mile Advisors. He began his career with Coopers & Lybrand and is a member of the AICPA.

Organization: 7 Mile Advisors

Words of wisdom: “The minute you enter an M&A process, it’s tantamount to being like a public company.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ Know your options for selling. You could sell to a strategic buyer who’s already in your space or to a private equity group that can expedite and execute a growth plan.

★ Work with a team for a full financial picture. Metrics can be overwhelming — but working with an advisor can help you see where your company will land when it comes to pricing multiples. Additionally, it helps to have a deal attorney who specializes in M&A, an accounting firm to organize your finances, an asset management or wealth management group, and an investment banker.

★ Many deals go south because of companies not hitting their numbers. High-growth rate businesses should expect to maintain those growth rates to attract buyers, but there are always some factors you can’t control. After all, businesses are subject to volatility. Taking as many variables off the table as possible can help companies hit their numbers.

★ Revenue style is a consideration, but it isn’t everything. Revenue style is indicative of scale, and there is some truth to the $20 million valuation standard. However, some subjective factors come into play beyond the P&L, especially for technology companies.

★ Take advantage of momentum and timing. The moment your business is doing well could be the right time to sell. Know that deals can take about six to eight months to close, and that if you’re highly involved in your business, you may want to stay present for about three years after you sell.

⚡ Episode Insights ⚡

[02:21] Weigh internal considerations: Before you sell, you need to assess a few internal factors, such as: Is your business ready to transfer to someone else? Do you have a growth plan in place? And are you mentally prepared to give someone else control of a project that you’ve put your heart and soul into?

[03:45] Know your external considerations: The market also plays a major role in whether it’s the right time to sell. You need to weigh if the market will line up with your financial expectations.

[07:47] Research your stats: Know your company stats. For example: Revenue growth rates and gross profit are among the most important on the P&L statement to show where your company will land on pricing multiples.

[08:37] Put rigor around forecasting: According to Leroy, entrepreneurs should be aware that starting the M&A process is similar to sharing stats as a public company. Potential buyers will pay close attention to make sure you are hitting your numbers.

[11:00] $20 million is the magic number: Across the board, $20 million seems to be the magic valuation number to sell. Leroy shares some reasons why that number generally holds true but adds that there are exceptions, especially in the tech sector.

[21:38] Build a team you trust: There are many professionals you’ll need on your team for a successful M&A. What’s important is hiring trustworthy people who are familiar with your particular industry and who will go to bat for you in negotiations.

Connect with 7 Mile Advisors

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Zilker Technology Rides the Wave of E-commerce Demand

7 Mile Advisors — Tue, 16 Mar 2021 13:30:00 -0400

When Zilker Technology co-founders Rob Thomas and Sean Wyrick attended 7MA’s annual conference in 2019, they noticed a shift in the conversations they were having with other businesses and with investors. They decided it was time to test the M&A market for Zilker, a digital consultancy and systems integrator with deep experience in a number of sectors.

Not surprisingly, Zilker’s co-founders turned to 7 Mile Advisors, with whom they had built a relationship over several years. “It came down to trust and credibility. It's a very, very big decision to entrust the future of your company,” says Rob Thomas, CEO of Zilker. “Having a good guide in that process is really important.

On this episode of Deal Talk with 7MA, 7 Mile Advisors Senior Associate Sydney Scadden sits down with Rob and Sean to talk about selling their company to Ernst & Young in October 2020.

Zilker entered the deal process with a clear picture of what was most important — finding a good cultural fit between their company and the buyer — and how they would guide their 300+ employees through the decision.

Through it all, Zilker continued to innovate in the e-commerce sector, where the realities of COVID turned up demand for the technologies that create efficiencies and seamless experience through the whole customer journey.

Tune in to episode 31 to hear more about Zilker’s journey to acquisition and what lies ahead in the world of digital transformation.

💡 Featured Guest 💡

Name: Rob Thomas

What he does: Rob was the CEO and Co-founder of Zilker Technology, which was founded in 2014 as a digital transformation company helping clients achieve growth from technology investments. He’s currently a Partner in EY's Technology Consulting group.

Company: Zilker Technology, purchased by EY in October 2020

Words of wisdom: “What really excites me about the future is that the Zilker team has a bigger platform in EY to not only build their careers but also to drive long-term client value — which they like, which we like, and which clients like.”

Connect: LinkedIn

💡 Featured Guest 💡

Name: Sean Wyrick

What he does: Sean was CTO and Co-founder of Zilker Technologies, where he realized a lifelong dream of establishing and building a company from the ground up. He’s now a Partner within EY's Technology Consulting group.

Company: Zilker Technology, purchased by EY in October 2020

Words of wisdom: “When we started looking at companies and doing some meetings … we spent time, just the four of us [co-founders] and said — What's most important? What do we like most about Zilker and what we've accomplished? — and culture was our number one thing.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ Hone your focus. Zilker’s co-founders went into acquisition talks knowing that it was most important to find a good fit for their company’s culture, a focus that guided early conversations, the ultimate decision to sell to EY, and plans for the future of the company.

★ Timing is key. Zilker played it close to the vest when it came to sharing the deal process with their team, understanding that employees’ questions could be best answered once all of the details were in place.

★ The new edge of e-commerce. 2020 opened a wide window of opportunity for consultants like Zilker as businesses of all sizes work to further optimize the end-to-end customer journey with the help of technology.

⚡ Episode Insights ⚡

[04:13] Sensing a sea change: Rob and Sean noticed a shift in the way investors were talking about their company and decided it was time to test the market.

[06:24] Start the conversation early: Rob and the team at Zilker began growing a relationship with 7MA when they were only about 18 months into their venture, building trust and credibility for several years before they entered the market.

[08:37] Identify what’s most important: Zilker’s four co-founders focused on finding a good fit for their company’s culture and for the development of their employees

[10:52] Keep your inner circle small: When Zilker was ready to test the market, they kept the initial conversation to the company’s four co-founders. They chose to announce the deal only after it was done, to allow themselves time to think through how best to guide their 360 employees through the transition.

[15:16] Finding the right match: Rob and Sean discuss what excited them about working with an ambitious strategic buyer like EY.

[19:37] E-commerce and the COVID effect: The closures of brick-and-mortar stores in early 2020 revealed opportunities for technology consultants like Zilker to help clients optimize their customer journeys in the ecommerce space.

[26:33] Skills in demand: Shifts in the need for customer solutions has created a hot market for technical skills and employees with experience in tech platforms.

[27:25] Looking to the future: The demand for flawless customer experience will continue, and Zilker is ready to meet the challenge thanks to the expanded platform and opportunities that EY provides.

Connect with 7 Mile Advisors

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Hindsight 2020 - 7 Mile's Partners Reflect On A Milestone Year

7 Mile Advisors — Tue, 12 Jan 2021 08:15:00 -0400

2020 was quite a year. Despite unprecedented setbacks and volatility, business moved and deals took place.

On this episode of Deal Talk with 7MA, the firm’s Founding Partners Andy Johnston, Tripp Davis, and Leroy Davis review major transactions from the past year and discuss market opportunities that arose over 2020.

Despite the various challenges over the year, 7MA closed 14 deals since April and the firm increased its staff by 25%. “We're obviously very pleased and excited for our clients who are able to navigate really successful and strategic transactions,” Andy says, “and our ability to keep bringing on really exciting clients now who’re exploring the market, and certainly 2020 you know, revealed who was ready to get deals done.” It wasn’t easy to make investments given the peculiar circumstances, but those who took the risk were rewarded.

At the start of the year, the partners could not have anticipated what the world and the market would look like by December. “[COVID-19] allowed us to kind of take a step back and think through what we were going to do as a firm,” Tripp recognizes.

While the pandemic halted a range of business plans and operations, it fueled an urgent need for more digitization. “We felt like most of our clients were still well-positioned in helping industries transform digitally. And because of that, we thought we have a story to tell. And so instead of instead of bunkering down, we chose to attack,” Tripp notes.

Tune into the episode to learn more about the highlights from 2021 and the trends the Partners will be paying attention to in 2021.

💡 Featured Guest 💡

Name: Andy Johnston

What he does: A Partner at 7MA, Andy has had a vast career in investment banking and advisory services.

Company: 7 Mile Advisors

Words of wisdom: “I think we've got a great capability to bringfairly strategic deals to market and really bring our experience from the digital transformation space, and apply that to both healthcare and insurance, which are two huge sectors by their own right, but are really being upended on an accelerated pace by digital transformation.”

Connect: LinkedIn

💡 Featured Guest 💡

Name: Tripp Davis

What he does: A Partner at 7MA, Tripp has more than 20 years of experience advising companies in a variety of industries on M&A and capital raising.

Company: 7 Mile Advisors

Words of wisdom: “So our clients compete on a global basis, we've always believed that we needed to bring the world to the table, and not just those buyers that were regional, or at the top of everyone's list.”

Connect: LinkedIn

💡 Featured Guest 💡

Name: Leroy Davis

What he does: A Partner at 7MA, Leroy has managed transactions in the Technology, Consumer, Insurance, Healthcare, and Infrastructure sectors.

Company: 7 Mile Advisors

Words of wisdom: “The other thing — and I say this with some humility — is that we would have kept doing what we do anyway because that’s all we know how to do. I'm just glad it worked in almost every case, and I'm sure we could get back and look at a couple deals or situations that got stalled out. But I think in almost every case, it wound up working in our favor, and hopefully it sets the stage for even further growth and opportunity.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ The pandemic added uncertainty, but it did not pause M&A indefinitely. When social distancing was first implemented as a way to slow the spread of COVID-19, a lot of impending deals hit pause. Ultimately all the deals 7MA had been working on pre-pandemic went through — helped, in part, by the need for digital innovation.

★ M&A is truly global. Increasingly, deals are taking place with buyers and sellers from different countries, including emerging economies. Over the last few years, 7MA has worked with people in a range of non-traditional transaction centers, including Latin America and Eastern Europe.

★ Verticals with traction. 7Ma has been able to leverage its experience in digital transformation and bring strategic deals to the healthcare and insurance sectors, which both have great need for digital innovation.

⚡ Episode Insights ⚡

[01:57] Creating a plan of action: With COVID catching everyone off guard, the partners at 7MA used the time to refocus and recognize opportunities for their clients.

[03:39] Pandemic conditions accelerated trends in the digital sphere: 7MA recognized early on that the pandemic was highlighting pre-existing themes, such as digital transformations, cloud migration, e-commerce, and industrial automation.

[04:27] Focus on the fundamentals: Although the pandemic created a lot of changes and uncertainty in the business environment, 7MA stayed true to their expertise, which proved to be helpful in an environment that required a shift towards digital transformation.

[10:33] A transaction roller coaster: The Kalypso acquisition is an example of a deal that almost didn’t go through due to market turmoil.

[13:34] Ecommerce is hot: The sale of Zilker Technology to Ernst & Young is one example of the flurry of ecommerce activity that took place last year and is likely to continue into 2021.

[14:03] The changing geography of transaction centers: Over the past five to seven years, a recurring theme has emerged, in which many transaction centers are based in Latin America or Eastern Europe, which only seems to be gaining more steam.

[15:50] Delivering a comparative advantage: Insurance and healthcare are two verticals where 7MA can leverage the services provided to Business Services and Technology firms.

[17:29] Think globally: Deals have become even more multinational; the firm has seen more buyers and sellers from different countries, including Spain and Brazil.

[21:47] Some 2020 practices might endure: While COVID requires social distancing and coming up with creative ways to bring people together, some of the virtual practices could be useful post-COVID.

Connect with 7 Mile Advisors

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

Investment Banking and the M&A Space in 2020

7 Mile Advisors — Tue, 22 Dec 2020 12:16:00 -0400

On this episode of Deal Talk with 7MA, Managing Director Ben Lunka joins us to provide an update on the M&A market over the course of this exceptional year. This episode is part of a series recorded during the ACCESS 2020 Event.

In this episode, Ben discusses how the M&A market has navigated COVID-19, general market trends and themes we saw over the course of the year, particular segments of the market that the 7 Mile team focuses on, and where we see the market trending from an M&A activity evaluation and volume standpoint.

COVID has had a tremendous impact on the economy, and there is always a resulting impact on the M&A market. During the initial fall in March and April, companies had to scramble to calibrate their strategies in an effort to mitigate the effects of COVID. However, now that those strategies are beginning to play out, we’re seeing a move towards areas where they see predictable growth and predictable market opportunity with cloud infrastructure, e-commerce, and remote software development.

While private equity investors may approach deals with more caution and heightened standards, they’re not avoiding the Information Technology space—a vertical on which the 7 Mile team focuses. We’re seeing some companies in the Enterprise Software and Digital Tech Services categories trading at all-time highs.

2020 has seen a 24% year-over-year decline in deal count and a more drastic 40% decline by deal value. Because of the market risk factors attributable to COVID, companies were less likely to bet the farm on megadeals in Q2 and Q3, leading to these significant declines. However, we’re already starting to see those numbers rebound heading into 2021.

Despite the damage caused by COVID-19, 70% of businesses reported that they would either increase investments or maintain current spending. Valuations are expected to maintain during this year. While 2020 will close as a down year for M&A, 2021 may likely provide an excellent rebound.

Ben also responded to questions from attendees, including:

Multiples are very high at the moment, yet you have said that deals are still being done for quality companies. Do you see moving forward that multiples will fall? What do you see M&A activity doing with regards to multiple levels? (29:17)
Are multiples also including software and services? (31:08)
Can you elaborate specifically on B2B fast multiples for 2020? It’s hard to know if enterprise software covers both SAS and non-SAS. (32:48)
What kind of appetite is there for smaller enterprise software startups with ARR less than 1 million? (34:36)

Connect with us:

Our website: www.7mileadvisors.com.

Follow us on Twitter & LinkedIn.

Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

How to Determine if a Partner is Right for You

7 Mile Advisors — Tue, 22 Dec 2020 12:10:00 -0400

Jeff Vogel, Partner at Court Square Capital Partners; Jared Ruger, Partner at Bertram Capital; and Iveshu Bhatia, Managing Director of Private Equity at Audax Group, can all agree on one important piece of advice: your partner matters more than the cost of capital, so be honest with them.

“Things that allow you to communicate well will fundamentally come from having command of your business and being honest about where you're good, where you're bad and what you need help with,” Iveshu says. “There's a partner for everyone that's out there. … As long as you communicate clearly and honestly, you will be able to find the right partner for you.”

When making a deal in the M&A space, you have to remember you'll be working very closely with this team for several years, so make sure you get along with them both socially and professionally. Jared suggests speaking with several of their references, particularly executives who have partnered with them in the past, to see how they dealt with issues such as dips in the market in the past. If they have a similar approach to problem solving and share a similar business outlook, you’re more likely to find success.

“Small differences in the cost of capital or valuation, I think, are meaningfully outweighed by finding the right partner that shares your vision and strategy,” Jared says.

In this episode of Deal Talk with 7MA, Jeff, Jared and Iveshu discuss tactics for finding the right partner, the importance of having command of your business and the changes — and some things that have stayed consistent — in the M&A space during the pandemic.

“The greater command you have and the greater visibility and transparency you have in your business, the better position you're going to be in to not only run that business, but if you go to market and you want to find the right partner for you, you can answer all the questions that they're likely going to have,” Jeff says.

💡 Featured Guest 💡

Name: Jeff Vogel

What he does: As a Partner at middle market private equity firm Court Square Capital Partners, Jeff focuses on technology investing, particularly in software and tech services.

Company: Court Square Capital Partners

Words of wisdom: “What's very important for any investor that's coming into a business is that they’re backing a management team that has commanded their business. They don't have the perfect ability to predict what is going to happen, but they can demonstrate that in previous disruptions … this is how they were able to weather the storm.”

Connect: LinkedIn

💡 Featured Guest 💡

Name: Jared Ruger

What he does: As a Partner at private equity firm Bertram Capital, Jared leads the firm’s business services effort, which is largely a tech-enabled services vertical.

Company: Bertram Capital

Words of wisdom: “We're all trying to find the components of a business that are yet to be fully harnessed, that we feel like we have a history and track record of successfully executing on, and by nature of that, can underwrite and see growth and opportunity there.”

Connect: LinkedIn

💡 Featured Guest 💡

Name: Iveshu Bhatia

What he does: As the Managing Director of Private Equity at capital market company Audax, Iveshu leads the firm’s technology practice.

Company: Audax Group

Words of wisdom: “What's more valuable is not the cost of capital, but the partnership that you have and the quality of the capital that you have.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ Accept the changes — or lack thereof — that the pandemic has brought. While there are fewer new names coming into the market, existing names continue to fundraise at nearly the same pace as pre-pandemic, and even though the market did dip in the spring, deal making and investing has gone relatively unscathed.

★ Your partner matters more than the cost of capital. If you don’t share a vision and strategy with your partner, it’s not going to work out, so when determining if a new partnership is going to work, ask them the hard questions and talk to past executives they've partnered with to understand how they react to various potential scenarios (such as the market dropping).

★ Maintain command of your business. If you have command of your financials, your business drivers and your operating metrics — and you can demonstrate to people that you manage based on operational data — you will be successful.

★ Be honest. There's a partner for everyone, and as long as you communicate clearly and honestly, you will be able to find the right partner for you.

⚡ Episode Insights ⚡

[04:55] Be careful who you partner with: The men discuss small differences in the cost of capital or valuation, which Jared argues are meaningfully outweighed by finding the right partner that shares your vision and business strategy.

[08:26] Everyone’s reality is unique to their environment: Every company is being affected differently by the COVID-19 pandemic, and more specifically, now some are being viewed as pandemic-proof while others are not.

[16:09] A roller coaster reaction: There was a very dramatic reduction in deal flow in the first couple months of the pandemic reaching the U.S., but by now, Jared sees a meaningful increase in exciting, high-quality deal flow. And Iveshu thinks overall, deal making and investing has been relatively unscathed.

[23:34] PPP’s effect is minimal: Jeff’s portfolio companies weren't available to apply for PPP loans, and Jared said he’s yet to see a buyer willing to assume a PPP loan.

[28:44] Some things never change: Deals are still relationship-oriented in a pandemic environment, so while there are fewer new names coming into the market, existing names continue to fundraise at nearly the same pace because they’ve already developed successful relationships.

[31:02] Looking ahead is important, but hard to do: No company was able to predict this pandemic, but what’s important to investors is that they were able to weather the storm.

[36:13] Everyone’s seeking something different: Every deal is going to be different because no two companies are the same, but one thing that won’t change is the importance of finding a team that you can get along with for years to come.

[45:09] How great transactions happen: Great management teams have insight, visibility and transparency as to what's happening in their business and why it's positive or negative.

Connect with 7 Mile Advisors

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

Ready to Merge? Signs That Your Company Cultures Align

7 Mile Advisors — Tue, 22 Dec 2020 12:06:00 -0400

Scott Kaplan, Director of Corporate Development at S4 Capital, and Blake Clifton, Head of Corporate Development at Cognizant, are both overseeing M&A at people-based organizations, which requires a commitment to effective communication and culture.

“How do we maintain cultural alignment as we expand into new geographies and new capabilities with new entrepreneurs?” Scott recalls, explaining the question he posed to his team when, through a merger, they became the operative arm of digital marketing firm S4. “The way we've tried to structure this, outside of the initial getting to know the founders, understanding ambitions and goals and making sure that alignment is there, is trying to put a framework around how to manage different growth across different practices of our company.”

Blake has been put in the same position, and he argues that people are what make the culture. So, when determining if a deal is a good fit, he says it’s crucial to think about, within current archetypes, who additional leaders will be interacting with.

“Cognizant doesn't buy companies to grow them at the same rate that they were growing at. We buy them to grow much faster,” Blake says. “The people that are going to enable that, our client partners or sales teams, are interacting with each of those acquisition archetypes differently, and those are things that we have to take into consideration for each deal.”

In this episode of Deal Talk with 7MA, Scott and Blake discuss effective transitional strategies, how to know when a deal is right for both parties and how maintaining an open line of communication is crucial in M&A.

💡 Featured Guest 💡

Name: Scott Kaplan

What he does: As the Director of Corporate Development at S4 Capital, a digital marketing services firm providing data, media and creative services, Scott oversees the company’s research, diligence and eventual integration of its mergers across its global practice.

Company: S4 Capital

Words of wisdom: “Look for teams that are leaders of a space, who are people that other people want to work with. Those are the exact types of companies, and I think reputation, that we would hope to find in a lot of our mergers.”

Connect: LinkedIn

💡 Featured Guest 💡

Name: Blake Clifton

What he does: As the head of Corporate Development at Cognizant, a publicly traded global systems integrator focused on outsourced IT and digital transformation, Blake helps the company grow in its strategic battlefields and has led the organization’s seven acquisitions in those sectors.

Company: Cognizant

Words of wisdom: “That's what you're starting to look for, when the acquired company starts to leverage the platform and do things that they couldn't do on their own and go beyond the scope of what the initial content was in the acquisition.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ If your cultures don’t mesh, it’s not a good deal. Cultural alignment is crucial, and so is effective communication between both parties to ensure that this is a deal that will work once it goes into effect.

★ When they leverage your platform, you know something’s working. When the leaders of acquired companies begin taking on roles outside of the company that they were acquired for and expand past what they were able to accomplish pre-deal, that’s a success.

★ Ease transition tension by setting them up for success. Some employees won’t see this deal coming, so build a whole team in charge of answering questions related to IT, contact information and other things that could get lost in translation.

★ Put it all out in the open. Late-stage deal jitters might happen, and if they do, open up a healthy conversation. Ask them what their concerns are, because once you understand their perceived risks, you can begin to talk them down.

⚡ Episode Insights ⚡

[05:15] How culture plays a factor in mergers: Both Scott and Blake work at service-based and people-based organizations where cultural alignment is crucial when connecting with new entrepreneurs.

[16:11] What makes two companies mesh: When you’re open with strategy from the start and you maintain an honest and open line of communication, Scott and Blake agree that an acquisition is much more likely to go smoothly.

[20:11] Making the most of the hand you’re dealt: Blake argues that you know a deal was successful when the leaders of the company you’re bringing in do more with the resources your company already has than they could have done by themselves.

[22:50] Once you’ve reeled them in, make sure they stay: Many employees won’t see this deal coming, so make sure that on day one, they know exactly who to call with questions. And communicate with the leadership of the company you’ve acquired or merged with to make sure you don’t disrupt anything.

[28:34] Always ask — why us? If you don’t know what you can offer the company you want to make a deal with, you won’t make it happen. You have to be clear on what makes your team the right fit.

[32:30] Every little thing is going to be alright: If there is late-stage deal stress, be direct and ask where it’s coming from. Ask why the deal needs to be changed to handle their concerns, because once you put it on the table, that’s when the reassuring can begin.

[36:19] The “new normal” will change M&A, and that’s OK: Many first-time meetings that would require a plane ticket will be done on Zoom going forward, but as long as we’re flexible and allow ourselves to be comfortable with such changes, that can help deals move quicker.

[45:04] Buying companies to grow them even faster: Even if you could manufacture organically, sometimes opting to not do a deal in-house will help speed up the process.

Connect with 7 Mile Advisors

☑️ Follow us on Twitter & LinkedIn.

☑️ Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

☑️ Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

The Key Components of an Attractive, Successful Company

7 Mile Advisors — Tue, 22 Dec 2020 12:01:00 -0400

Glenn Youngkin didn’t plan on becoming the Co-CEO of one of the world's largest private capital firms. He was shooting for the moon — and wherever else NASA would be sending astronauts by the time he graduated.

“I went to college with this ridiculous ambition to be in the space program,” Glenn says. “And I guess no one really told me that when you're 6’6” and weigh 220 pounds, they're not going to let you into a rocket ship.”

He studied engineering at Rice University in Houston to be closer to NASA, but it was his additional focus on managerial studies that led him down a different path. After receiving his Master of Business Administration from Harvard Business School, Glenn landed in the world of private equity, alternative asset management and financial services, and the vast majority of his experience — 25 years — was at The Carlyle Group.

In this episode of Deal Talk with 7MA, Glenn discusses what he learned at The Carlyle Group, which includes how to adapt to the increasingly technology-driven world, the importance of ESG components in every business plan and the key components of every good business that attract investors.

“If an investor is looking at a management team and evaluating their company, it just is a lot more fun when it's a good business,” he says. “And it's a lot more challenging if the business is either running into headwinds, or candidly just isn't that great a business model. … just do everything you can to build robust business models.”

💡 Featured Guest 💡

Name: Glenn Youngkin

What he does: As the Co-Founder and Chairman of the Virginia Ready Initiative, Glenn works with his wife with the goal of helping Virginians experiencing employment disruption due to COVID-19. Through the initiative, the pair rewards those who pursue training for in-demand jobs.

Organization: Virginia Ready Initiative

Words of wisdom: “You’ve got to go where the opportunities are, first and foremost.”

Connect: LinkedIn

🗝️ Key Points 🗝️

Top takeaways from this episode

★ Tech dominates, so get onboard. One of the biggest evolutions in private capital over the last 10 years, Glenn argues, is the rising number of private equity firms investing in predominantly technology-driven industries such as software or healthcare. And if you’re looking to enter the business field in general right now, he adds that you better have tech skills.

★ Quality leadership makes a good company. Glenn believes there are four key components to a good business — sustainability, preparation, leadership and culture — but if you don’t have skilled, effective management, the other three won’t matter.

★ No business plan is complete without a strong Environmental, Social, and Corporate Governance (ESG) component. Every single investment Carlyle makes has a meaningful ESG component, Glenn says, so he suggests companies take a hard look at their non-financial factors when preparing to be evaluated by potential investors.

★ During a pandemic in particular, you have to adapt or you’ll fail. Glenn recognizes that many companies might have been preparing for the next recession before COVID-19 even came into existence, but responding to it and its lasting effects isn’t the same as responding to a traditional recession. Take a look at what’s changed (such as more virtual meetings) and get used to it.

⚡ Episode Insights ⚡

[5:36] Getting started in the business world: Glenn planned on going into engineering, not finance, but his first job out of college led him down a different path.

[10:59] As technology improves, private equity firms evolve: Over the last 10 years, technology has been the underlying distinguishing characteristic of a business. Glenn says that’s why private equity firms are investing in predominantly technology-driven industries such as software and healthcare.

[14:21] Building a good business is key: Glenn says it’s a lot easier (and a lot more fun) to evaluate a company when it’s a successful one, but beyond that a company needs to be sustainable, have done its homework (to prepare for investors), have quality leadership and maintain a good work culture.

[19:13] Looking back to help others move forward: Glenn reflects on his 25-year career with The Carlyle Group and offers advice for anyone interested in going down a similar path.

[23:10] Adaptation is the name of the game in a pandemic: When he and his wife saw the record unemployment numbers in the spring, Glenn asked a pivotal question: “How do we not have a jobs program, but in fact, incentivize targeted retraining for people to get into high-growth, in-demand jobs?”

[33:09] To understand the current recession, think pre-pandemic: Glenn says recessions, or economic dips in general, are generally caused by confidence waning as opposed to economic expansion dying of old age.

[38:34] The more technology expertise, the easier it’ll be for job seekers: Glenn offers several pieces of advice for those entering the job market, and explains how to ensure they’ll stick out during a time of mass unemployment.

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Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

Are Deals Getting Done During the COVID-19 Pandemic?

7 Mile Advisors — Wed, 26 Aug 2020 03:00:00 -0400

The COVID-19 pandemic has brought a sense of uncertainty to business owners, strategic buyers, and private equity groups who continue to gauge the long-term ramifications to the stock market.

In this episode of Deal Talk with 7MA, Ariail Barker and Andy Johnston explore a recurring question in the M&A space, are deals getting done during the COVID-19 pandemic? They examine how businesses are handling the fallout from the pandemic and how the team at 7 Mile Advisors has been able to help clients overcome these obstacles.

Andy Johnston stresses deals ARE getting done. As the pandemic took hold, and the stock market was rapidly atrophying, uncertainty gripped the M&A world. However, companies appreciated that there was still plenty of value in acquisitions, whether it was making investments or acquiring other businesses to accelerate their growth.

Many business trends accelerated exponentially, especially in industries such as IT services and outsource business services. IT services benefited immensely from companies implementing robust IT solutions for employees working from home as well as the rush to replace manual processes with software-driven solutions.

For both investors and strategic buyers, it “really made it more urgent from their perspective to go acquire certain companies that were filling gaps and meeting the needs of their clients at a faster pace than they could accomplish just through organic hiring or other organic means.” (2:33)

Andy also tells us how 7 Mile clients (mostly in the IT Services space) have become very comfortable with the remote delivery model, although it does depend on the type of client and industry vertical. For instance, companies dedicated to oil & gas have been restricted from traveling, which will, unfortunately, affect their industry. However, companies highly involved in e-commerce (5:10) are often sought after.

With this said, valuations have rebounded to pre-pandemic numbers, and the stock market has shown incredible strength. The only challenge is to keep that strength high, as Johnston puts it, “[s]o what we’re really seeing is a focus on enduring growth. Making sure that the reason that the company is experiencing growth this year is not a one-time, short-term need. And two, that their delivery model is sustainable.” (15:48)

To learn more about where you are business-wise, or if you are interested in selling your business, but are not sure if it’s the right time, don’t hesitate to contact the 7 Mile team at www.7mileadvisors.com. You can also find more information on our recent blog post Are Deals Getting Done During the COVID-19 Pandemic?

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Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

Successful Physician Partnership Strategies in Today’s COVID-19 Environment

7 Mile Advisors — Mon, 20 Jul 2020 03:00:00 -0400

Despite the struggles of the Healthcare industry amid the COVID-19 pandemic, interest in executing transactions and deals remains high. Private equity and strategic investors continue to be on the lookout for providers with whom to strike deals.

In this episode of Deal Talk with 7MA, 7 Mile’s Ben Garber leads the discussion on the evolving landscape of the healthcare M&A space in the wake of COVID-19. Ben is joined by Frank Pellegrino, Lara Flatau, and Angela Humphreys from Bass, Berry & Sims.

Frank and Lara discuss a few sticky areas to be aware of during transactions, including internal issues among stakeholders in the group. (5:10) They also examine how structures and terms have adjusted to the new environment and the complicating factors that affect executing a strategy during such uncertain times. (9:47)

The group stresses the importance of preparation and getting your operations in order, even if you haven’t received any calls yet. (3:13) And, when a buyer shows interest in your practice, it’s vital to seek the guidance of a team of transactional lawyers and other qualified counsel to advocate on your behalf. (18:08)

Getting good deals through a smooth and fast transaction is possible if you have the right people on your side to ensure the decisions you make support the core of your practice. (29:06)

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Our website: www.7mileadvisors.com.

Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

Voya CEO on Executing M&A Transactions During COVID-19 Pandemic

7 Mile Advisors — Mon, 15 Jun 2020 03:00:00 -0400

Businesses in industries across the board are still reeling from the impacts of the current COVID-19 health crisis. The majority have had to pivot and rethink many of their processes while generating innovative solutions to better serve their clients. In the M&A space, for instance, have transactions changed dramatically because of the pandemic?

In this episode of Deal Talk with 7MA, host Leroy Davis joins Rod Martin, Chairman and CEO at Voya Financial, and PPI International’s Jim Galli, to discuss their personal experiences conducting M&A transactions during the crisis. Rod shares how Voya has shifted its focus to retirement investment management and employee benefits, what that shift looks like for them, and the challenges they faced in making that pivot. (7:35) For Voya, the switch to remote work was nearly seamless due to the existing infrastructure and remote-capable tools, surprising even Rod. (9:22)

Rod goes on to explore innovations and changes to the business landscape amid the pandemic, including the shift to a virtual workforce. (15:04) Companies are still willing to do business, so you have to be open to other ways of conducting transactions. There is a focus on developing more flexible and adaptable products, as well as prioritizing the needs of your clients. (21:50)

Both Rod and Jim agree that now is the time for change and introspection. Companies should be thinking about how they can serve their clients using various engagement tools and provide better solutions and value through education and experience. (23:52)

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Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

Should Your Business Apply for the Main Street Loan Program?

7 Mile Advisors — Mon, 25 May 2020 03:00:00 -0400

This episode is the second part of a series discussing the loan programs currently in place surrounding the COVID-19 pandemic – listen to the first episode here.

The U.S. government has taken strides in assisting small and midsize businesses that are suffering financially due to the COVID-19 pandemic. In addition to the Paycheck Protection Program (PPP) from the Small Business Administration, the Federal Reserve will be offering the Main Street Loan Program (MSLP). Although, as of publication, the MSLP hasn’t launched, you can use this time to prepare your materials, should you decide to apply.

In this episode of Deal Talk with 7MA, McGuireWoods Partner Clayton Stallbaumer and Associate Kayla McCann Marty join 7 Mile Advisors Partner Andy Johnston for an in-depth discussion on the different facets of the MSLP and what it means for lenders and borrowers alike. They explore how the loan program operates and the role the Federal Reserve plays in the lending market. (04:04) The program encourages borrowers to take on loans from eligible sources by removing the typical credit risk associated with the loans.

Clayton and Kayla address borrower eligibility (07:09) and how interested parties should be considering the terms of restrictions, requirements, and post-loan covenants. Mainly, these rules are dependent on how your business plans to move forward – continue operations normally during the pandemic or consider a sales transaction in the future. (10:29)

They also provide insight on compensation limits (13:39), minimum requirements from the Fed, and a practical timeline for the process to take place (17:48). Also examined in this episode are additional uses of the granted loan, for instance in acquisition transactions, and the legal consequences you may potentially face if you file for bankruptcy.

While there is no final guidance yet from the Fed, you are encouraged to consult with a qualified legal team to assess your options. (28:14) Begin taking stock of your network now and explore potential loan relationships, so once the MSLP rolls out, you can initiate the process immediately.

Links Mentioned During the Episode:

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Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

Exploring the Main Street Lending Program for Businesses

7 Mile Advisors — Thu, 14 May 2020 03:00:00 -0400

Many businesses have suffered significant hardships, with some financial loss leading to bankruptcies and even closures, due to the COVID-19 pandemic. While traditional lenders are hesitant to loan money at this time, the government is spearheading loan program options in an effort to provide economic stability and maintain access to credit.

In this episode of Deal Talk with 7MA, Elliot Davis’ associates Ryan Loveless and Josh White explore the intricacies of the Paycheck Protection Program (PPP) and the Main Street Lending Program (MSLP). The discussion includes an analysis of the benefits to businesses looking to pursue growth today and after the crisis has abated. They discuss the specifics of the Federal Reserves’ MSLP (03:29) and compare it to the PPP, the program run by Small Business Administration and the Treasury Department. (07:07) There are three types of loans available, which vary in terms of the amount you can borrow, amortization terms, and transaction fees. (14:29)

Ryan and Josh go on to discuss what you can expect when applying for the MSLP, including qualifications, terms (13:52), and how to determine whether your business is eligible for the program. (24:13) They also address the do’s and don’ts of allocating resources from the loan (27:19) and how to prepare your business. (29:51)

When considering the MSLP, it’s critical that you first consult with a trusted advisor, accountant, or consultant who can guide you through the process. It’s also important to start conversations with multiple banks to discern which presents the most suitable opportunity. (40:07)

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Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

7 Mile's Industry Bankers Discuss the Impact of COVID-19 Pandemic on Consumer, Healthcare, and IT Verticals

7 Mile Advisors — Mon, 04 May 2020 03:00:00 -0400

This episode of Deal Talk with 7MA features a panel discussion, held as part of a Carnegie Mellon series, on the effects of the current health crisis across some of 7 Mile's core industry verticals. Host Andy Johnston gathers the insights of 7MA Managing Director Mark Landry and Vice Presidents Ben Garber and Garth Martin on the state of the three key industries in terms of the market and M&A transactions.

Regarding the Consumer industry, Mark highlights three key factors for companies in this space. It’s essential to first check what consumer behaviors have been influenced by the crisis and which of these will continue even after. You also need to consider shifting towards e-commerce and domesticating or near-shoring your third-party supply chain, as opposed to concentrating it in a singular location. (09:55)

Garth, whose expertise is in IT services, examines the exaggeration in digital transformation that is happening in the IT space. More companies are focused on maximizing the use of enterprise technology and other solutions, so businesses can shift to e-commerce. There is also an increased interest in cloud solutions that will enable people to continue working from home. (12:20)

Ben discusses his target industry - Healthcare. The COVID-19 pandemic is largely a healthcare issue, and while there is a negative effect on retail healthcare services and hospital and health services budgets, a noticeable uptick has occurred in the digital health space. (18:39) The crisis has accelerated trends that were already underway, particularly in terms of telemedicine and remote patient monitoring. (21:00)

The panel also explore different programs offered by the government to ease financial setbacks particularly in SMEs. (34:39) They also provide practical advice to businesses who are operating in these fields on how to stay afloat and continue operations post-pandemic.

Common across the board is the need for constant communication with your end-client base (14:55), and a focus on securing strong long-term contracts and license agreements. (14:08)

This pandemic has brought about a multitude of changes, but don’t lose hope, as change often breeds opportunity. Be mindful of and take advantage of these opportunities, putting yourself in the best position for continued success after the crisis is resolved.

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Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

The Role of AR and VR for Businesses During the COVID-19 Pandemic

7 Mile Advisors — Wed, 22 Apr 2020 03:00:00 -0400

Within a relatively short period of time, the COVID-19 pandemic has imposed many fast-paced changes to our every day lives. But despite our current situation, people still have to fulfill everyday needs without setting foot outside the home. Thankfully there are different types of technology at your disposal, which includes tools for augmented reality (AR) and virtual reality (VR). The AR/VR industry is gaining more attention recently, which can present a great opportunity for various businesses.

On this episode of Deal Talk with 7MA, SubVRsive’s CEO Anthony Burke, Pillsbury Partner Josh Tucker, and Mark Landry from 7MA talk about AR, VR, and other emerging technologies and discuss some of the advantages they offer during this worldwide crisis. They touch on how the Consumer landscape has changed rapidly over the past few weeks, with more people having access to these types of technology and being willing to use them. (06:38) Telemedicine, which is recently gaining increased endorsement from authority figures, online education, and e-commerce will be among the areas that experience the most change. (07:14)

The current economic climate presents a great opportunity for companies to take advantage of, particularly the brick-and-mortar businesses looking to create a digital presence. (21:12) It’s a great time to learn about the new tech and see how your clients can take advantage of this once in a lifetime opportunity. (25:38) They also provide practical advice for companies involved in the M&A market, the B2B sector, and other businesses in general. (29:57)

AR, VR, the Internet of Things, and other similar technologies are going to continue to grow even as the crisis comes to an end.

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Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

Insurance Industry Update Amidst the COVID-19 Pandemic

7 Mile Advisors — Tue, 14 Apr 2020 03:00:00 -0400

Our world is in a new normal right now, as everyone is doing their part to help flatten the curve and deal with the COVID-19 pandemic the best way they know how. Besides the grave effects on public health, the crisis is also causing suffering across businesses, economies, and industries.

On this episode of Deal Talk with 7MA, Mark Hug from Paradigm Partners International and former Insurance Commissioner for the State of Iowa Nick Gerhart share how the Insurance sector has been affected by the COVID-19 pandemic. They mention how this crisis has highlighted and attracted a growing interest in certain trends that previously existed even before the outbreak, including a variety of trends in technology like AI and wearables. (02:05) Hug and Gerhart further discuss how technology can be used by insurance companies, at a time when the industry is suffering a significant blow. (18:40)

In addition, they share different strategies that insurance companies can adopt, such as exploring new lest interest-sensitive products and riders to attach to existing plans. (14:43) Insurance providers should also look at their existing portfolio and see where they can make the necessary adjustments. (12:53)

For Hug and Gerhart, it’s important that insurance carriers put a greater emphasis now on being innovative, creative, and consumer-oriented not only during the outbreak, but even more so after this crisis comes to pass. (16:36)

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Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

Utilizing Geospatial Technology for Business Growth with Robert Laudati

7 Mile Advisors — Mon, 09 Mar 2020 03:00:00 -0400

In today’s digital space, it’s necessary for companies to leverage technologies in order to facilitate expansion and growth. There is value in being part of a prolific ecosystem of partners and vendors where you mutually benefit from each other’s products and services. Currently, there is a growing demand for geospatial technology, and it's a great time to take advantage of the expanding market and dive in.

On this episode of Deal Talk with 7MA, Director at Esri’s Global Partners and Alliances division Robert Laudati talks about geospatial technology in-depth and what it could mean for businesses today. Our world has become more virtual and you don’t need to have a physical presence in an area to operate in it. With the right technology, plan, and solution set, companies based in one region can do business in another across the globe. (17:16) Having this type of relevant and modern technology will help create a favorable image with potential clients.

He also dives deep into collaboration and the value of being part of a virtual economy with different partners. Besides having the opportunity to leverage mature products, you have an edge over your competitors as investors are interested in those that are part of a strong ecosystem. (18:50)

For Laudati, utilizing geospatial technology and being in this strong industry is a great opportunity to build solutions that will not only benefit you, but others as well.

If you’re curious about geospatial technology, or learning more about becoming an Esri Partner, you can reach out to Robert Laudati by emailing him at RLaudati@esri.com. For more information, visit esri.com.

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Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

The Importance of Preparing Accounting Principles Before Starting a Sell-Side Process

7 Mile Advisors — Mon, 24 Feb 2020 03:00:00 -0400

It pays to come prepared before entering any business transaction, particularly if you are selling your business. No one likes surprises and a lack of clarity during the process, both on the buyer’s side, as well as on your end as a seller, can lead to major problems. However, there are several accounting steps to consider ahead of time that can help the process run more smoothly.

This episode of Deal Talk with 7MA features Pat McKay from Templeton & Co., a full-service accounting firm. McKay dives deep into the necessity of planning and preparing before a transaction, especially on the accounting and numbers aspect in the business. (02:50)

She stresses how doing the books and other accounting tasks well in advance can help you tell the story of your business better. Having your books aligned shows stability in your business and you can gain confidence from potential investors. (06:45) It also allows you the opportunity to spot any issues and correct them beforehand. Besides confidence, you also increase credibility, giving your business extra plus points to the other party in the transaction.

McKay also shares a few tips and strategies that can help you prepare prior to a business transaction. She stresses that preparation has to happen months in advance (15:51), and if possible, to start as early as you can. (21:38)

It’s also a good idea to hire a third-party auditor or an independent group to take a look at the numbers, as your in-house team may not have the necessary background and skill set to do the task properly. (09:24)

According to McKay, the best situation is when you get to talk more about your business and your value drivers, rather than just explain what these numbers mean to a buyer. (24:53) And this can only happen when you have your accounting documents done and in order.

To find out more information about Pat McKay and Templeton & Co., visit their website at https://templetonco.com/.

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Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

Technology and Venture Capital Environment in Ukraine, with Yevgen Sysoyev

7 Mile Advisors — Mon, 11 Nov 2019 03:00:00 -0400

In this episode of Deal Talk with 7MA, 7 Mile Partner Leroy Davis talks with Yevgen Sysoyev. Yevgen is a Managing Director and one of the founders at AVentures Capital, a venture capital firm based in Kyiv, Ukraine. AVentures Capital is a hybrid investment fund that invests primarily in firms based in Ukraine, but get most of their revenue from the United States and the European Union.

Yevgen begins by talking about his home country of Ukraine and explores why he believes the Unkraine is responsible for producing so much talent in the fields of math, technology, and software engineering. (3:54) Yevgen then spends a few minutes discussing the venture capital industry in Ukraine and how that industry is developing. (7:27)

We then hear Yevgen reveal where AVentures Capital is most interested in investing their money. (12:31) This leads to a discussion about Ukraine’s financial capabilities compared to other countries around the world. (14:48) Yevgen wraps up the episode by examining how the current entrepreneurial climate in Ukraine was fostered. (19:06)

To find more information about Yevgen Sysoyev and AVentures Capital, visit their website at aventurescapital.com or follow Yevgen on Twitter @YevgenSysoyev.

Links mentioned in this episode:

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Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

Private Equity and the Buy and Build Strategy with Matthew Picciano

7 Mile Advisors — Mon, 28 Oct 2019 01:00:00 -0400

In this episode of Deal Talk with 7MA, our own Rory Julyan talks with Matthew Picciano of Alpine Investors. Matt is a principal at Alpine, most recently leading their deal origination team where he finds new platform investments, as well as add-on acquisitions.

Matt begins by discussing his current role and what differentiates Alpine from other private equity firms. (1:18) Matt talks about Alpine’s focus on talent development and CEO-in-training programs. (3:13) Matt then tells listeners why the buy-and-build Matthew Picciano model has been popularized in the private equity space and why Alpine likes the model. (6:47) Matt comments on whether he thinks the buy-and-build strategy is being driven by real value or due to the pressure to deploy record levels of cash. (11:57) Matt then points to Evergreen Services as a great example of the buy-and-build strategy within Alpine and explains how the company approaches the strategy with growth in mind. (15:10)

Matt spends a few minutes addressing the importance of models focused on annual recurring revenue, both from cloud services and subscription software. (24:28) Matt then examines overall market trends that demonstrate how the market is valuing recurring revenue more and what that means for business owners. (27:45)

The conversation wraps up with a deep-dive into the CEO-in-residence and training program. Matt explores this unique offering and how it can benefit founder-owned businesses looking to step away from day to day management. (31:11)

To find out more about Alpine Investors you can visit their website at www.alpineinvestors.com. Also, to find out more about Evergreen Services you can visit www.evergreensys.com.

Connect with us:

Our website: www.7mileadvisors.com

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Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts.

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

How Patents, AI, and Machine Learning Affect Value with Josh Tucker

7 Mile Advisors — Mon, 23 Sep 2019 03:00:00 -0400

In this episode of Deal Talk with 7MA, 7 Mile host Ariail Barker talks with John Cooper and Josh Tucker, two experts in the artificial intelligence (AI) and machine learning space. John is a director at 7 Mile who has worked on many deals involving AI and machine learning. Josh is a partner with Pillsbury Winthrop Shaw Pittman in the intellectual property group. Josh’s practice specializes in software and, in particular, AI/machine learning and data science invention.

John begins by discussing what the terms AI and machine learning really mean in practice and how they affect valuation. (4:45) Josh and John then outline typical questions from clients and prospective clients concerning patents and machine learning. (8:56) Increasingly, mergers and acquisitions (M&A) buyers are becoming more knowledgeable regarding topics such as AI and machine learning. John goes on to discuss the factors involved in the evaluation of companies in the AI and machine learning space. (17:58) The conversation wraps up with an analysis of when companies considering a deal in the AI and machine learning space should begin engaging with industry experts. (26:57)

Links mentioned in this episode:

· Pillsbury Winthrop Shaw Pittman

Connect with us:

Our website: www.7mileadvisors.com

Follow us on Twitter & LinkedIn.

Let us know what topics you would like to hear about on Deal Talk with 7MA by emailing us at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on iTunes, Stitcher, TuneIn, Spotify, or Google Podcasts

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle-market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC, that provides investment Banking services and advises on mergers, acquisitions, and private capital transactions around the globe.

Trends in the Life Insurance Industry

7 Mile Advisors — Mon, 02 Sep 2019 03:00:00 -0400

In this episode of Deal Talk with 7MA, 7 Mile partner Leroy Davis talks with Barry Jacobson, insurance executive with Paradigm Partners who has over 40 years of experience in the insurance industry. Before accepting his current position with Paradigm Partners, Barry spent years in product development and ran the U.S. life insurance business for Travelers. Barry was also the founder and former President of International Life at ACE, which is now Chubb. Barry is also the creator of Math Motivators, a volunteer-driven math tutoring program that pairs high school students in under served communities with tutors.

Barry begins the episode by providing an overview of the current state of the direct-to-consumer market and why the life insurance industry has lagged behind most other industries when it comes to direct-to-consumer sales. (4:41) Barry goes on to discuss the challenges the life insurance industry has faced in the direct-to-consumer market. (14:28) Barry then details how insurance companies are using technology to administer policies and educate consumers (17:36) Barry also talks about the pitfalls of direct-to-consumer online sales and the difficulties involved with offering insurance at a lower price online. (23:45)

Barry spends a few minutes examining how new technology and innovation in DNA collection is helping the insurance industry collect more data on applicants. (29:11) Barry then outlines, from a legal perspective, what data insurance companies can utilize when evaluating applicants and setting prices. (33:00) Barry goes on to discuss why lead-generation may be the biggest obstacle facing the direct-to-consumer market and how technology firms cracking the code. (36:40) Finally, Barry talks about his foray into teaching high school math in the middle of his career and what lead him to found Math Motivators.

Quotes:

On how millennials have changed the way the life insurance market is communicating with consumers:

“We want to buy our life insurance online, we want to push a button…We're not giving you our blood anymore, we're not giving you a urine sample, we're not requesting our doctors to send you the reports…and we want a good price for it because you have to be saving money by coming direct to me and cutting out the agent." (27:32)

On how buying life insurance online presents a challenge:

“The insurance companies that are trying to figure this out, one of the biggest hurdles, and they're working through this, is 'how do we educate them through the web? How do we get people, how do we get access to the right people, at the right time, and convince them that they need to buy life insurance without an intermediary?' That's not easy.” (6:39)

Links mentioned in this episode:

· Epigenetics

· 23andMe

· Math Motivators

Connect with us:

Our website: www.7mileadvisors.com

Follow us on Twitter &

Martín Umaran: Globant and the Future of IT Services

7 Mile Advisors — Mon, 12 Aug 2019 07:00:00 -0400

In this episode of Deal Talk with 7MA, partner Leroy Davis talks with Martín Umaran, Chief of Staff, Co-founder, and head of M&A at Globant. Martín discusses how Globant was formed, what the company is doing in the IT sector, and how the technology Globant is bringing to the market will change the future of technology.

Globant is a publicly traded global IT services company based in Argentina, with more than 8300 employees and presence in the US, UK, Spain, India, Brazil, Colombia, México, Perú, Chile, Uruguay and Argentina.

First, Martín gives listeners a glimpse into Globant’s origin story. (2:16) Martín then discusses why he has chosen to remain with Globant and his vision for the company’s future. (6:58) As an IT services company, Globant must continue to be nimble and adapt. Martín explains how the company continues to thrive in a rapidly evolving industry. (13:27)

Martín talks about industry adoption of newer technologies such as AI and machine learning. (18:18) Given Globant’s role in bringing technology such as AI and machine learning to businesses, and knowing how that will change the employment landscape for students, Martín gives high school or college students advice on where they might want to focus their career goals. (21:52) Martín wraps up the episode by looking toward the future of Globant.

For more information on Globant, visit their website at www.globant.com

Quotes:

On Globant’s top priorities:

“…we're always very keen on how to manage people and how to keep knowledge and how to innovate around that, that's the most important thing for us.” (09:33)

On why he loves working in global IT services:

“…in third world countries, working in digital, working in software, working with IT, it's a fantastic way to…bring opportunities to places [where it] is difficult to have first level…top jobs. (11:25)

Links mentioned in this episode:

Globant: Leading the IT Outsourcing Revolution in Latin America

Connect with us:

Our website: www.7mileadvisors.com

Follow us on Twitter, Google +, LinkedIn, and YouTube

What topics would you like to learn about on Deal Talk with 7MA? Let us know at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts

Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC that provide investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

7 Mile Expands Healthcare Practice & U.S. Footprint

7 Mile Advisors — Tue, 16 Jul 2019 02:00:00 -0400

In this episode of Deal Talk with 7MA, 7 Mile Director Neil Churman sits down with Ben Garber, the newest member of the 7 Mile team who will be expanding the firm’s healthcare practice.

Ben opens the episode by discussing how his prior experience in the healthcare sector lines up with 7 Mile’s IT practice. (5:47) Ben and Neil then examine recent developments and trends in the healthcare market. (7:58) With this episode of the podcast originating from 7 Mile’s new office in Pittsburgh, Ben and Neil have an extended discussion about their connection to the city and the strong, entrepreneurial business climate. (12:05) Ben goes on to express his gratitude for the warm reception 7 Mile has received in the Pittsburgh market. (20:10) Ben then wraps up the episode by revealing a bit of his strategic plan for scaling 7 Mile’s healthcare practice (22:19)

Quotes:

Ben on the opportunities created by increases in outpatient healthcare facilities:

“As the hospital becomes disintegrated and pushed out into a variety of outpatient facilities, that creates a greater fragmentation in the provider landscape, as well as the opportunity for roll-up platforms in each one of those sectors.” 10:05

Ben on how 7 Mile’s decision to put down roots in Pittsburg has been received by the local investor community:

“Yes, we would be thrilled to have a national, professional top caliber investment bank here locally, that we could work with. So, we didn't always have to get on the plane to New York, Chicago, or San Francisco, please." 20:37

Links mentioned in this episode:

Connect with us:

Our website: www.7mileadvisors.com

Follow us on Twitter, Google +, LinkedIn, and YouTube

What topics would you like to learn about on Deal Talk with 7MA? Let us know at ariail@7mileadvisors.com.

Subscribe to Deal Talk with 7MA on Apple Podcasts, Stitcher, TuneIn, Spotify, or Google Podcasts

Amber Walsh: Women in Private Equity

7 Mile Advisors — Mon, 27 May 2019 07:00:00 -0400

In this episode of Deal Talk with 7MA host Ariail Siggins talks with Amber Walsh, a partner at McGuire Woods. Amber discusses women in private equity, the impact of getting more women involved, compares how men and women network, and the way work-life balance has changed now that women have more control in the boardroom.

Amber leads a team of nearly 50 attorneys heading up McGuire Wood’s healthcare practice. During her career, Amber has primarily focused on private equity-backed health care; working for portfolio companies and investors. She also founded and leads McGuire Woods’ Women In Private Equity Initiative.

Amber starts this episode off with how she founded McGuire Wood’s Women In Private Equity Initiative and the importance of having more women involved in private equity. (3:03) Ariail and Amber then discuss studies talking about the differences in how men and women network. (11:17) After founding McGuire Wood’s Women In Private Equity Initiative, Amber talks about the change she would love to see come out of initiative over the next five years. (17:41)

Women’s role in private equity is changing. Amber discusses this change and talks about the most impactful relationships she’s developed in her career. (20:19) Amber then wraps up this episode with a discussion on the evolution of work-life balance over the past ten years as women have become increasingly involved in boardroom decision-making. (26:16)

For more information on the Women In Private Equity Initiative, visit https://www.mcguirewoods.com/services/industries/Private-Equity/Women-Private-Equity or email Amber at awalsh@mcguirewoods.com.

Quotes:

On the real difference in how men and women network:

“So men tend to make networks that are broader, but shallower, and more transactional focused… women, by contrast, tend to form longer, smaller, and deeper network that are based more on trust then on transaction, and often don't use them as effectively to accomplish goals.” (12:25)

On the importance of not overlooking men as possible mentors for women in the workplace:

“Men who actually care about elevating women, men who focus on working with their most talented colleagues in whatever way they need to work to get the job done and retain that talent, those are incredibly important mentors.” (23:16)

Links mentioned in this episode:

Connect with us:

Our website: www.7mileadvisors.com

Follow us on Twitter, Google +, LinkedIn, and YouTube

Have topics you want to hear about? Email Ariail with your suggestions or questions at ariail@7mileadvisors.com

Subscribe to Deal Talk with 7MA on iTunes, Stitcher, TuneIn, Spotify, or Google Podcasts

Mark Landry and Sydney Larese: Research on Digital Marketing in the Consumer Space

7 Mile Advisors — Mon, 13 May 2019 23:30:00 -0400

In this episode of Deal Talk with 7MA host Ariail Siggins discusses research produced by 7 Mile Advisors examining trends in the digital marketing space of our consumer practice. Ariail is joined by the head of 7 Mile’s consumer practice, Mark Landry and associate Sydney Larese, both of whom contributed to the research.

Sydney discusses the effects of digital marketing on consumer's desires and expectations (4:18), how consumers are coming out as the big winners in modern day digital marketing (9:32), and the impact of digital marketing on the M&A activity of companies. (11:15)

Sydney then switches gears to talk about how digital marketing is affecting the work of traditional marketing agencies. (13:13) Sydney finally talks about how consumer companies can no longer afford to neglect digital marketing and how the millennial generation thinks about digital marketing. (15:15)

If you are interested in trends in the digital marketing space through the lens of consumer companies and how these trends affect the M&A space, this conversation is for you. You can view the research discussed in this podcast by reading Sydney’s white paper entitled Consumer Marketing Landscape. If you have any questions for Sydney or Mark or just want to dive a little bit deeper, Sydney can be reached at sydney@7mileadvisors.com and Mark can be reached at mark@7mileadvisors.com.

Quotes:

Sydney on how the Amazon Effect is changing consumers desire to acquire more information before making a purchase:

“I think a big value add that consumers are looking for are they want to know as much product information as possible before they actually end up purchasing it.” (05:27)

Mark on how he sees digital marketing affecting the M&A activity of larger consumer products companies:

“Consumer products businesses are starting to buy up these digital start-ups to hopefully just learn from them and understand how they're getting proximity with the consumer in this whole digital ecosystem.” (15:13)

Links to research and mergers mentioned in this episode:

Consumer Marketing Landscape Research
Zodiac acquired by Nike: (12:02)
McDonald's acquires Dynamic Yield (12:24)
IPG acquires Axiom (13:55)

Connect with us:

Our website: www.7mileadvisors.com

Follow us on Twitter, Google +, LinkedIn, and YouTube

Have topics you want to hear about? Email Ariail with your suggestions or questions at ariail@7mileadvisors.com

Subscribe to Deal Talk with 7MA on iTunes, Stitcher, TuneIn, Spotify, or Google Podcasts

Neil Churman: Trends, and Impact of Technology in the Industrial, Energy, and Environmental Sector

7 Mile Advisors — Mon, 29 Apr 2019 07:00:00 -0400

In this episode of Deal Talk with 7MA host Ariail Siggins talks with 7 Mile Director Neil Churman. He heads up the firm’s infrastructure, industrial, energy, and environmental practice. Neil discusses trends, the impact of technology, and some events centered around the infrastructure, industrial, energy, and environmental sector of 7 Mile’s business.

Neil, a civil and environmental engineer by education, comes to 7MA after many years with a publicly traded engineering firm out of Pittsburgh. There he moved from an engineer working in the field to a more corporate role where he worked in a corporate development focused on M&A and strategic growth. Now at 7 Mile, Neil uses his experience with more high-tech business to give perspective to the traditional engineering, industrial, and infrastructure oriented businesses on how technology can benefit their businesses.

Neil discusses how businesses should think of technology in terms of either acquiring it through acquisition, in-house development, or through a partnership with another firm. Neil then talks about trends in the infrastructure, industrial, energy and environmental sectors.

Neil also discusses several upcoming events 7 Mile is hosting. The first brings together traditional industrial service businesses and private equity firms to inform CEO’s about the mergers and acquisition process and how private equity can help. The second is an event more specific to the environmental sector. This includes current trends in the environmental and energy industry, and also include private equity.

Quotes:

Neil on how technology is needed by most firms:

“I think that technology really is the differentiator. It does not mean that you have to have a team of software developers writing your own proprietary software. We're really talking about technology enablement.” (14:55)

Neil on the need for firms in more industrial oriented industries to look to technology:

“Technology enablement is coming if it's not already there and if you don't start to push that envelope, one of your competitors is going to beat you to the punch.” (15:40)

Links mentioned in this Episode:

RS&H (10:12)
Ajax Building Corporation (12:16)
Structure Tone General Contractor (13:00)
McGuireWoods (22:29)
Tecum Capital (21:54)
Incline Equity (21:55)
PNC Riverarch (21:57)
Pillsbury Law (23:56)
Environmental Business International (23:59)

Connect with us:

Our website: www.7mileadvisors.com

Follow us on Twitter, Google +, LinkedIn, and YouTube

Have topics you want to hear about? Email Ariail with your suggestions or questions at ariail@7mileadvisors.com

Subscribe to Deal Talk with 7MA on iTunes, Stitcher, TuneIn, Spotify, or Google Podcasts

How Robotic Process Automation is Changing Business with Robert Wells

7 Mile Advisors — Mon, 18 Mar 2019 16:00:00 -0400

In this episode of Deal Talk with 7MA, our own Mark Landry, managing director of 7M’s consumer and retail practice, talks with Robert Wells, a managing director at CFGI about the robotic process automation and the solutions intelligent automation can provide companies. Robert describes robotic process automation as finding processes in companies that can be controlled and customized by a bot with low risk but high return on investment.

Robert discusses the driving factors of why companies are investing in RPA and how RPA can be deployed across an entire company and in many cases the efficiencies gained by automation allows money to be spent on more critical projects.

If you are interested in how business leaders are thinking and deploying robotic process automation this conversation is for you.

Quotes:

Robert on why many RPA fail:

“A lot of RPA projects that fail due to the fact that they run full-speed into building bots without doing any of the proper discovery that's needed in the beginning.” (10:25)

Robert on how RPA is usually received by his customers:

“Then when the bot's actually fully functioning, the look on their face of when a bot is doing what a human has done that takes 10 hours, and the bot does in five seconds, is quite incredible, so it's quite fun.” (12:45)

Robert on the key elements on running a business properly today:

“Dashboards, reporting, analytics, those are the key elements to running a business properly.” (15:33)

Next Episode:

Look for our next episode on April 15th, where we dive into more exciting topics in the M&A world.

Links mentioned in this episode:

CFGI [01:19]

Connect with us:

Our website: www.7mileadvisors.com

Follow us on Twitter, Google +, LinkedIn, and YouTube

Have topics you want to hear about? Email Ariail with your suggestions or questions at ariail@7mileadvisors.com

Subscribe to Deal Talk with 7MA on iTunes, Stitcher, TuneIn, Spotify, or Google Podcasts

Rone Reed: Wealth Management Challenges Following a Merger or Acquisition

7 Mile Advisors — Mon, 04 Mar 2019 14:45:00 -0400

In this episode of Deal Talk with 7MA Tripp Davis, one of the partners at Seven Mile discusses the value of wealth management with Rone Reed, senior vice president at US Trust. Rone addresses the challenges that often take place after an M&A transaction for business owners where a shift in liquidly and structure occurs when one going from running a business to managing wealth within a family.

Rone brings over ten years of experience in wealth management at US Trust and has specific expertise planning with individuals or families who are contemplating a merger or acquisition. These experiences allow Rone to speak about the challenges of wealth planning for clients who find themselves in the M&A world.

Rone discusses how new wealth is created in this economy, and the role values and outlook on wealth play in dealing with the consequences of not planning appropriately prior to a transaction on a family. Rone also talks about what types of advisors a person should have on their wealth planning team and the value of using advisors who focus specifically on M&A issues. Finally, Rone wraps up this episode by talking a little about opportunity zones, some dangers of them and the clever opportunities they present for clients after an M&A event.

If you are interested in the challenges and impact that selling a generational business can have on an individual or a family from a wealth management perspective, this conversation is for you.

Quotes:

Rone on the wealth management questions he most often gets asked by M&A clients:

Can we afford to sell the goose that's laying the golden egg? And if we do, how do we do this without messing up our children? [09:21]

Rone on the biggest underestimation that owners have going into M&A transaction:

I think they're totally unprepared for the emotional impact of the process and the transaction itself. [11:25]

Rone on the impact of values:

We find is that if everybody else in the family understands the perspective they have on wealth, it helps the process along. [18:32]

Rone on what is most important in selecting advisors:

I think the most important thing is experience, direct specific experience in the M&A space. And the second is chemistry. [24:22]

Next Episode:

Look for our next episode on March 18th, where we dive into more exciting topics in the M&A space.

Links mentioned in this episode:

Entrusted by David York [13:17]

A book that frames the concept of wealth, beyond just money, in terms of knowledge, investment of time, and values in business and family.

Connect with us:

Our website: www.7mileadvisors.com

Follow us on Twitter, Google +, LinkedIn, and YouTube

Have topics you want to hear about? Email Ariail with your suggestions or questions at ariail@7mileadvisors.com

Subscribe to Deal Talk with 7MA on iTunes, Stitcher, TuneIn, Spotify, or Google Podcasts

Mark Landry: A Conversation with 7MA's Newest Managing Director

7 Mile Advisors — Mon, 18 Feb 2019 08:00:00 -0400

In this episode of Deal Talk with 7MA your host Ariail Siggins discusses 7MA's new consumer and retail practice with its managing director Marc Landry. Marc discusses globalization's impact on M&A, the emergence of the digital marketplace and big data, the value of acquiring smaller niche businesses from a consumer products perspective.

Marc comes to 7MA after many years of consumer products leadership all around the globe and most recently leadership in the technology space. These experiences uniquely qualify Marc to speak about how globalization and technology have changed M&A for consumer products businesses and where its headed in the future. Now at 7 Mile, Marc seeks to use his experiences to help entrepreneurs and founders, who are contemplating the future of their business they built or grew, help get to that next leg of their journey.

Marc also discusses how legacy companies are just beginning to embrace new technologies that allow them to market to one and how that may drive the consumer M&A space in the future, and his thoughts on the direction of the global economy over the next 12-24 months. Marc also talks about some of the best moments from his 40-year career giving listeners insight into what makes him tick and provides new business graduates a bit of advice as well.

If you are interested in how leaders of consumer products companies think about M&A and what drives their decisions in the space along with how technology is changing those decisions, this conversation is for you.

Quotes:

Marc on larger businesses acquiring smaller, more niche businesses:

"You're hoping to learn from [them] ... so you can make one plus one equal three to five, as opposed to just two." [10:59]

Marc on leading businesses:

"At the end of the day, it's about working with very smart people who have a very keen insight with huge energy, and helping them get to where they want to get to." [21:33]

Marc on advice to any business owner contemplating a change:

"Whether you're near some type of an event, a merger, or recapitalization, or it's in the distance, it never hurts to talk to folks like myself or 7 Mile." [29:08]

Next Episode:

Look for our next episode on March 4th, where we dive into more exciting topics in the M&A space.

Links to companies and articles on mergers mentioned in this episode:

Unilever [01:02]
Unilever's acquisition of Chesebrough Ponds [01:14]
Suave [03:13]
Bombas [14:52]
Dollar Shave Club [15:37]
Unilever acquisition of Dollar Shave Club [15:37]
Arrow Digital [19:31]
Soft Vision [20:56]
Phoenix Brands [22:04]

Connect with us:

Our website: www.7mileadvisors.com

Follow us on Twitter, Google +, LinkedIn, and YouTube

Have topics you want to hear about? Email Ariail with your suggestions or questions at ariail@7mileadvisors.com

Subscribe to Deal Talk with 7MA on iTunes, Stitcher, TuneIn, Spotify, or Google Podcasts

Welcome to Deal Talk with 7MA

7 Mile Advisors — Wed, 30 Jan 2019 01:51:00 -0400

Welcome to Deal Talk with 7MA, a bi-weekly podcast by 7 Mile Advisors that aims to give listeners a look behind the curtain of the middle market Mergers & Acquisitions world. 7 Mile Advisors is a middle-market M&A firm based out of Charlotte, NC that provide investment Banking services and advise on mergers, acquisitions, and private capital transactions around the globe.

In this introduction episode, your host Ariail Siggins discusses her journey into the M&A world and some basics of the industry. In the weeks to come, Deal Talk with 7MA will provide insight into investment banking and the M&A space through honest conversations with industry thought leaders, business pioneers, and innovators.

Next Episode:

Look for our next episode on February 18th featuring Marc Landry, 7 Mile Advisors newest managing director, discussing our new consumer practice.

Links and Other Resources:

Salt Fat Acid Heat: Mastering the Elements of Good Cooking by Samin Nosrat [02:28]

Resources that provide insight into the M&A Industry [04:41]

Connect with us:

Our website: www.7mileadvisors.com

Follow us on Twitter, Google +, LinkedIn, and YouTube

Have topics you want to hear about? Email Ariail with your suggestions or questions at ariail@7mileadvisors.com

Subscribe to Deal Talk with 7MA on iTunes, Stitcher, TuneIn, Spotify, or Google Podcasts