Shoot the Moon with Revenue Rocket
174 episodes - English - Latest episode: 4 days ago - ★★★★★ - 6 ratingsThe Shoot the Moon podcast is for IT business owners and executives. The Revenue Rocket leadership team brings their 20+ years of experience with M&A and growth strategies to IT Services company leaders worldwide.
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Episodes
Buy-Side M&A: Tackling the most Challenging task of Finding a Willing Seller
April 15, 2024 11:00 - 34 minutes - 31.6 MBHow do you source sellers on your own, and why is it so hard? Here are some of the questions we are digging into in this episode: What is buy-side M&A Why should companies be considering buying other firms? What goes into buying a company? What’s hard about sourcing when your doing the deal yourself? How do you create the list? How do you reach out to buyers? How do you determine value? How do you craft a LOI? What do you need to do in Due Diligence? How do you deal with disagreeme...
Why is selling a Business so Hard?
April 02, 2024 11:00 - 25 minutes - 23.4 MBSegment 1: The Hard Truth About Selling a Business Discussion on the complexity of the selling process Financial and legal hurdles that need to be overcome The emotional attachment to the business and its impact on the sale Segment 2: The Emotional Ties That Bind Deep dive into why selling a business is such an emotional time Identity and self-worth tied to the business The feeling of letting employees and customers down The fear of the unknown post-sale Expert Interview: A Psycholo...
Do you need an M&A Attorney?
March 26, 2024 11:00 - 24 minutes - 22.2 MBSegment 1: Understanding the Role of an M&A Attorney Primary focus of M&A attorneys: overseeing the legal aspects of buying, selling, and merging companies. Complexity of M&A transactions: due diligence, negotiation, drafting agreements, and navigating regulatory requirements. Why specialized knowledge in finance, tax law, and securities law is important Segment 2: The Generalist Lawyer: A Broad Overview What a generalist lawyer does: handling a wide range of legal matters across differ...
What’s the difference between 3X and 9X in a deal?
March 11, 2024 11:00 - 45 minutes - 42 MBThis is a must listen for buyers and sellers! What’s the difference between 3X and 9X in a deal? Size Gross and EBITDA Profit margins Growth rates and forecast Technology specialization & Vertical specialization Type of revenue: contracted, recurring Client types and concentration Deal terms: equity, selling-in Strategic buyer: the right buyer can help drive the right multiple. Competition in a deal Market/Economic conditions RELATED EPISODES: Episode 169: What are the Difference...
How to Become a Platform Investment
February 28, 2024 12:00 - 32 minutes - 29.7 MBDe-risk your biggest investment (your company) by becoming a platform company. Essentially a platform company (like an App integrator or Managed Service Provider or Digital Transformation Firm) is a top quartile, well-run company that takes capital from a private equity firm or other investor. When a private equity firm is investing, a platform company might be the first to receive investment which in turn will help them accelerate their organic growth and take advantage of acquisitions for ...
What Are the Differences Between a Valuation and a Deal?
February 22, 2024 12:00 - 29 minutes - 27 MBIn the context of mergers and acquisitions (M&A), the terms "valuation" and "deal getting done" refer to distinct stages and aspects of the transaction process. Here’s a breakdown of the differences: ### Valuation 1. **Definition**: Valuation is the process of determining the present value of the target company. It involves assessing the company's financial performance, growth potential, market position, and any synergies that the merger or acquisition would bring. Various methodologies ca...
Adjustments to EBITDA and Valuation based on Owner Comp
February 14, 2024 12:00 - 22 minutes - 20.3 MBScenarios discussed in this episode: Taking yourself out of the business Staying in the business at above-market comp Addressing spouses or children in the business What to expect post-close: consulting agreement, employment agreement Adjusting to life after a change in income and receiving cash at close Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
Should I Sell Now or Wait
February 06, 2024 12:00 - 31 minutes - 28.5 MB2023 was a challenging year for many tech-enabled services businesses as many end customers deferred projects or reduced technology-related spending. This stressed revenue growth and gross margins, reducing EBITDA for many tech-service firms. It’s tough to run a business through these times, it's easy for founders to become exhausted dealing with less while trying to run the firm as best as possible. If you founded a business in the early 2000s, you’ve been at it a long time and it may be ...
Understanding Revenue Models and How They Impact Valuations
January 24, 2024 13:00 - 29 minutes - 27.4 MBMatt & Ryan take over this Shoot the Moon podcast episode! We're talking about revenue models in IT Services companies and how each model impacts valuations in an M&A transaction. Oftentimes recurring revenue leads to a higher EBITDA which leads to a higher valuation. The more recurring revenue you have, the more you can bump up that EBITDA range, but there are different types of revenue to consider. Recurring Revenue: Yearly or monthly contracts that often auto renew with a price increase...
What is Deal Facilitation?
January 10, 2024 13:00 - 28 minutes - 26 MBIf you get a deal on the table, when do you accept it? M&A advisors usually work from origination to close, however an advisor can be utilized for specific functions in the process like origination only on helping getting a deal across the finish line. There are many different ways in which an M&A advisor can assist you, like deal facilitation. What is deal facilitation? What’s the role in crafting an LOI? What’s the role in Due Diligence Support? What’s the role in negotiation? Why is ...
Elements of a Great Introduction Call
January 03, 2024 13:30 - 35 minutes - 32.1 MBWhat are the right elements for an introduction call What should you talk about, and what shouldn't you talk about What do sellers want to hear from buyers? Culture – the more specific you can be the better Strategic fit Capability of doing a deal Strategy after a transaction Highlighting why the seller was targeted What has to be shared as a seller What you do; service offerings How you sell and keep customers – highlighting recurring and repeat revenue streams Target market/cust...
Strategies to Manage High Seller Expectations
December 28, 2023 12:00 - 29 minutes - 26.8 MBHow do you bridge the gap between someone who wants $7M but you're company is worth $6? Do you take the gamble and put structure in it that sounds like a win win or do you cancel the deal? Tune in to find out! Win Win situations How big of an apetite does a buyer have? Do you take the RISK? What kind of structures do you use if you take the deal? Buyer and seller sharing in the risk What happens when you don't take the deal? Why you should use an M&A advisor in a situation like this ...
Aligning Leadership in M&A for a Better Deal Outcome
December 19, 2023 12:00 - 27 minutes - 24.9 MBWhat we cover in this episode of Shoot the Moon with Revenue Rocket: Start early alignment in the process Be aligned with your partners on selling in vs selling out Valuation becomes critical and ongoing Valuations are important Work through disagreements with your partners Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
Importance of Determining ROI on an M&A Investment
December 12, 2023 12:00 - 23 minutes - 21.1 MBHow do you determine ROI for an M&A transaction? Let's say you're acquiring a firm for $20M.. what kind of return on investment should you make long term from this acquisition? Learn all about ROI on M&A in this episode of Shoot the Moon. Introduction What is ROI? Factors affecting ROI in M&A investment Methods of calculating ROI Limitations of ROI Summary of the factors affecting ROI in M&A investment Related Episodes: Episode 129: Questions to Ask Before you Consider an M&A Initia...
Celebrating Growth at the Inc 5000 Gala
December 04, 2023 12:00 - 25 minutes - 23.4 MBOver 400 of the 5000 companies on the 2023 list are IT Services companies! Learn more about our inclusion on the Inc 5000 list here >> See Revenue Rocket's profile on Inc 5000 here >> Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
M&A Insights Q4 2023
November 22, 2023 14:00 - 23 minutes - 22 MBIn this episode of Shoot the Moon, we're talking about what we are seeing in the market for Q4 2023 M&A for tech-enabled services firms.Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
Between the LOI and Deal Close, What Should you Expect?
November 08, 2023 12:00 - 39 minutes - 36 MBYou’ve done a lot of hard work of finding a suitor and there’s an LOI you’ve agreed to. We want to walk through some of the major steps as you work towards a deal close. The linear flow! First comes the LOI, then a big due diligence list which could come with a quality of earnings, then there may be a chance for renegotiation of the deal, through this process you will get different data requests (some outside of the formal due diligence list), be prepared to look at employments agreements, f...
Selling your Business in Uncertain Times
November 01, 2023 13:00 - 28 minutes - 25.8 MBWhen its tougher headwinds, it is tougher to demonstrate accelerated growth. The real value in your business is the historical growth, but uncertainty can be tough. Here's what we cover: Recent flat or down growth does not define your value Why IT Services is a great industry for M&A even with uncertainties - Valuations are still very high! Lots of options for selling in & selling out Valuations consider past & future performance - not just what you've been feeling the last few months! ...
Understanding Caps and Baskets in M&A Transactions
October 25, 2023 12:00 - 26 minutes - 24.2 MBBelow is what we discuss in this episode all about Caps & Baskets in an M&A Process: Introduction Definition of indemnification provisions Importance of indemnification provisions in M&A deals Caps and baskets Definition of caps and baskets Differences between caps and baskets Why caps and baskets are needed Caps Upper dollar limit of the seller’s indemnification obligations to the buyer Negotiation of indemnification cap – differences between buyers and sellers here Different cap...
A Short LOI vs a Long LOI
October 18, 2023 11:00 - 30 minutes - 28.4 MBWe're answering the following questions in this episode of Shoot the Moon: What is a letter of intent? What is an indication of interest? What’s critical in a letter of intent? Why would you issue a letter of intent versus as indication of interest? The leading line of a letter of intent is it’s non-binding in nature. What portions of an LOI survive if the deal does not close? What are the benefits of a longer LOI? What risks come with that longer LOI? What risks come with a shorter ...
What Will be Your Take Home Portion of the Deal?
October 11, 2023 11:00 - 32 minutes - 30.2 MBWhat will be the take home portion of an M&A deal: Taxes Working capital; harvest cash but need to keep cash in the business. Appropriate vs historical Extinguishing debt Legal fees Accounting fees M&A advisory fees Deal structure: seller note Deal structure: earn-out Deal structure: equity Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
All Roads Lead to M&A
October 04, 2023 15:00 - 19 minutes - 18 MBEven if you're doing strategy, at some point M&A is going to be something that is of major consideration. Mergers and acquisitions play a critical role in accelerating growth, and even if you started the company a long time ago, the end will eventually be in mind for an owner. Episode Summary: It’s common for founders to think a successful exit is on the future. Leave up to 50% of growth on the table if you don’t consider buying firms Growth and expansion often gets to a sticking point w...
Understanding Reps & Warranties for Buyers and Sellers
September 26, 2023 12:00 - 24 minutes - 22.1 MBEpisode Summary Expect a reps and warrants provision in a purchase agreement, both buyers and sellers will have reps and warrants. You’re vouching for what you provided is correct. Buyers will ask for some type of surety in reps and warrants; expect a hold back. That could be 10% of the cash in the deal. Reps and warrants are for pre-close activities; you’re attesting what your providing is true and correct. This does not impact post transaction activities There could be options for a ho...
The Importance of Equity throughout an Organization
September 20, 2023 11:00 - 18 minutes - 17 MBIn this episode of Shoot the Moon, we're talking about ownership within firms. The Revenue Rocket team dives into different types of equity that can apply at every level within a company and the benefits and alignment that come from equity both during and after a business combination.Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
Overview of Rolling Equity in an M&A Transaction for a Seller
September 13, 2023 13:00 - 30 minutes - 28 MBBenefits of Rolling Equity a. Allows seller to retain some ownership and control of the company post-sale b. Opportunity to potentially receive additional compensation from the buyer Potential Risks of Rolling Equity a. Risk of reduced sale proceeds if the company does not reach performance milestones b. Potentially complex tax implications for seller Summary of this episode: Exchanging the value of the equity in your firm for the value in the combined equity. Ideally ...
Legal Counsel and M&A Transactions for IT Services Firms
September 06, 2023 11:00 - 19 minutes - 18.2 MBHere's what we cover in this episode of Shoot the Moon: Where does legal counsel gets involved: NDA, LOI, Purchase agreement Roll of an accountant, M&A advisor, client and legal counsel? When do you bring legal counsel? Importance of an M&A lawyer and M&A in IT services specifically: what does a generalist typically miss? What are common legal items in tech-services businesses that may not be common elsewhere? E.g. sign and close, working capital, reps & warrants, asset deals vs stoc...
6 Things that could be Surprises to Sellers
August 30, 2023 11:00 - 31 minutes - 28.9 MBHere are the 6 (& a bonus!) we talk through: The Length of the Deal Negotiations - M&A deals can take weeks, months, and even years to close The Complexity of the Process - Due diligence, legal paperwork, lien releases need to be completed. Quality of Earnings detail: 1-2 months of an intensive audit A debt free transaction and having adequate working capital Legal implication of an asset purchase: terminating employees and rehiring them, notifying customers of the transaction and a cha...
The Benefits of an Internship Program featuring our Class of 2023 Interns
August 24, 2023 11:00 - 32 minutes - 30.1 MBEpisode Summary: What is an intern program and why is it important for IT service leaders to consider one Benefits of having an intern program, such as increased productivity, improved customer satisfaction, and potentially positive brand reputation Steps for establishing an effective internship program, such as identifying goals and objectives, recruiting interns, developing job descriptions, setting expectations for the intern experience, and providing feedback Tips on how to create a ...
I tried to Sell my Business but was Unsuccessful, What Gives?
August 17, 2023 11:00 - 29 minutes - 26.6 MBHere's what we cover in this episode of Shoot the Moon: M&A is hard and the most unnatural act in business; expect challenges and some loneliness in the process. Answer questions on your readiness for a sale: personnel motivation, financial readiness, history of success Avoid common mistakes of over valuing the business, ruling out suitors before discussions, being unwilling to negotiate, not having succession plans in place, waiting for suitors to knock on your door Run the business lik...
Why Sellers with Vertical Market Approaches Earn Premium Valuations
August 09, 2023 13:00 - 26 minutes - 24.5 MBSummary of this Shoot the Moon Podcast episode: Picking a vertical market brings a level of differentiation that brings value Customers are easier to acquire and keep which increases revenue and profit will increasing the level and value of intellectual property. If buyers are in alignment with vertical markets, they are willing to pay up; not only do you get a premium from enhanced EBITDA, you gain more in strategic synergies Firms outside the vertical may want to get in and will acqui...
Navigating Exit Strategies: What are your Options?
August 02, 2023 11:00 - 25 minutes - 23.6 MBListen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
Perfect in M&A Doesn’t Exist: Learn Where you can Flex
July 25, 2023 15:00 - 27 minutes - 25 MBIf you're trying to find the absolute perfect deal (M&A), we know that 99.9% of the time it is not the reality. Being able to be flexible and adaptable in changing environments is crucial for success in business. Revenue Rocket has seen it all in our 23 year, and we'd love to talk with you about your organic and inorganic growth goals. Reach out for a no-obligation introduction call: [email protected] Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-...
Picking and Winning a Vertical Market with Guest Dennis Dimka from Uptime Legal
July 19, 2023 17:00 - 40 minutes - 36.7 MBWin your vertical market! Below are some points discussed in this episode: Challenges of being a generalist - how do you stand out? Picking a vertical market brings extreme clarity to your strategy Sales and marketing click into place by focusing on 1 market It’s critical to commit. Uptime changed their name to Uptime Legal to dedicate themselves to 1 market. Understanding Revenue Rocket's proven growth method: SVP Listen to Shoot the Moon on Apple Podcasts or Spotify. Listen to Shoot...
Add-Backs 101
July 05, 2023 13:00 - 32 minutes - 29.7 MBWe. Deal. With. Add Backs. Every. Single. Day. Tune into this episode to understand all things add-backs! What are they, why do they matter, and how to manage them during a process.Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
Informing your Team of your Decision to Sell
June 21, 2023 11:00 - 29 minutes - 26.8 MBInforming your team of your decision to sell your firm Layers of communication and timeline: Who starts with knowing and who comes into the loop before the rest of the company How do you position it Types of deal structures & how they effect your employees how you announce to the company Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
Breaking Down the Successful Sale of Project Deacon
June 14, 2023 11:00 - 29 minutes - 27.3 MBProject Deacon was an opportunity to acquire a growing, profitable cloud-hosting firm focused on the dental practice market with over 80% recurring revenue. They provide Cloud Desktop as a Service (DaaS), Managed Services, and IT Professional services - essentially a one stop technology shop of all the needs of growing dental services organizations. Revenue Rocket represented the firm as their sell-side M&A advisor. Let's break down the sale: Running your business before a sale Profitabil...
Run your Business like it's Not for Sale, BUT...
June 08, 2023 11:00 - 23 minutes - 21.4 MBIt's hard to make a big choice in monetizing your life's work. It is important to understand the concept of not running your business like its for sale... but... listen was we dive into keeping a steady hand on the tiller when selling your business,Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
Understanding Structure as part of an M&A Transaction
May 31, 2023 13:00 - 47 minutes - 43.9 MBUnderstanding Structure as part of an M&A Transaction We're diving into a lot of different structures and what they mean: Theres a big correlation between higher enterprise value and the structures you can have Earn outs need to focus on your company's growth goals with defined targets You have to earn out your earn out! Earn outs can lead to higher enterprise values Timing of payments should align with return on investments Seller notes: are they guaranteed payments? Should they be t...
CEO and Leadership Transitions When Selling your IT services firm
May 24, 2023 15:00 - 30 minutes - 27.8 MBAs a business owner considering an exit: Make sure you can delegate the responsibilities to people running your company. Bring the right people into your team and consider compensating them for what the exit looks like to make sure they are bought into the sell At home: financially, friends & family, and important to replace a large chunk of your life that you will miss post-exit Who will be your sounding board? Advisor? Other CEO friends? Listen to Shoot the Moon on Apple Podcasts or S...
How to Treat Goodwill in an M&A Transaction
May 17, 2023 11:00 - 22 minutes - 20.9 MBGoodwill on your balance sheet is a filler of the true valuation of the business. Goodwill is the value a company gets from its brand, customer base and reputation associated with its intellectual property. We've been getting a lot of questions and talks of Goodwill with our clients and during transactions lately and hope this episode gives you some insight into why it matters during a merger or acquisition. Listen to Shoot the Moon on Apple Podcasts or Spotify. Listen to Shoot the Moo...
Picking a Technology Partner as an IT Services Firm
May 09, 2023 11:00 - 39 minutes - 35.9 MBWhen picking a technology partner... All relationships require investment and care in order to have them be fruitful and successful and no technology partner vendor is an exception. There are so many win-win scenarios when it comes to working with an OEM. In the tech-enabled services market, service providers need to partner with leading providers of cloud, software, and hardware solutions to meet the needs of their customers. In this podcast we will dig into what things an IT service pro...
Understanding Fee Tail provisions in M&A Contracts
May 03, 2023 11:00 - 27 minutes - 25.2 MBWe’ve talked a bit about what to expect for fees when evaluating M&A vendors – you can check out previous podcasts and blogs on the topic on our website at RevenueRocket.com. Today we want to dig into a provision you’ll find in nearly all M&A related contracts – a tail for a transaction after an agreement comes to an end. But Before we jump into the specifics of tail related provisions, there are a few things you should know about how the M&A business operates Types of M&A contracts Excl...
Why a Go-to-Market Strategy is Critical during Economic Uncertainties
April 26, 2023 11:00 - 23 minutes - 21.7 MBWhat happens during an economic downturn: Buying cycles elongate Customers cut discretionary spend Multiple levels of approvals happen at targets, slowing down the process More competitors start searching for the same deals What you can do: Specialize in what you’re best at – talk about what it means to specialize Pick an industry and work on addressing critical pains where they Make things easy to buy Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow you...
The Importance for Sellers to have Financials in Order while being Acquired
April 20, 2023 11:00 - 16 minutes - 15.5 MBThe time between getting a financial request and sending the information can be critical. 1. It shows that you're organized and prepared. When a company is considering acquiring another business, one of the first things they're going to want to see is that business's financials. Having your financials in order shows that you're organized and that you know what's going on with your money. This can give the acquirer confidence that they're not buying a lemon. 2. It makes due diligence ...
Questions to Ask before you Consider Selling your Firm
April 12, 2023 11:00 - 26 minutes - 24.3 MBConsidering a sale is a very personal decision for a business owner. You've spent your life and energy building a business and now you've decided to consider a merger or acquisition. We get it - we've helped hundreds of firms sell and we're sharing what we've learned and what it takes to start a process. 1. What is the current market value of your firm? You'll need to know how much your firm is worth before you can start shopping it around. There are several ways to value a tech-enabled...
Questions to Ask before you Consider an M&A initiative
April 04, 2023 12:00 - 26 minutes - 24.3 MBWill I hit my revenue and profit goals with organic growth alone? M&A is the fastest path to growth What is my strategy in acquiring another firm? Will this expand revenue, add new services, bring new people, or add a geography? How will this impact channel relationships? What are the potential benefits of an acquisition for my company’s growth and success? Do I have the right team in place and is it’s culture defined? Will my leadership team be able to lead a new group? What t...
The Power of Making Decisions
March 28, 2023 12:00 - 13 minutes - 12.1 MBKeep a steady hand on the tiller. We're talking about the importance of making decisions as an IT Services leader - yes you read that right! We often see struggles and delays in decision making in business which can get in the way of growing and prospering. Listen as we unpack decision making and how to keep your business moving forward.Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
The Critical Pillars to M&A Success
March 21, 2023 11:00 - 26 minutes - 24 MBOrigination: research, outreach & marketing – we’ve got a team of dedicated researchers finding your list, dedicated outreach team contacted buyers & sellers and supporting it with marketing Deal Flow & Negotiation: Moving a deal forward, creating an LOI and negotiating a purchase agreement – all the things that happen to move a deal through the pipeline). Financial Analysis: Valuations, Cash flow analysis, deal support Due Diligence: where we verify that the information provided is co...
Verticalization: Why You Should be an Expert in Your Market
March 15, 2023 11:00 - 19 minutes - 17.7 MBIT Services customers today are expecting experts in their market. IT Service providers should pick one vertical market and be the dominate player in that market, aligning with your technology specialty. When you pick a vertical market you: Narrow your marketing focus to companies that need your services allowing for better leads Build referrals and references of like-minded businesses that will recommend your business Concentrate sales efforts on deals you know you can win Set yourse...
Value of an Industry Specific M&A Advisor
March 07, 2023 12:00 - 29 minutes - 27.2 MB"Birds of a feather fly together." Why should you use an industry specific advisor when entering into an M&A process: 1. Industry Specific Knowledge An industry specific M&A advisor will have a deep understanding of the trends, challenges, and opportunities that are unique to your industry. This knowledge can be invaluable in helping you to identify potential acquisition targets and negotiating the best possible deal. 2. Access to Key Players An industry specific M&A advisor will als...