Shoot the Moon with Revenue Rocket
176 episodes - English - Latest episode: 1 day 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
Due Diligence in an M&A Deal: The Return to Earth
August 17, 2020 19:00 - 35 minutes - 32.7 MBListen to the Revenue Rocket team discuss what matters during the financial due diligence process and what happens when two companies merge together in this episode of Shoot the Moon.Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
The Impact PPP and SBA Loans Can Have on a Merger or Acquisition
August 03, 2020 18:30 - 32 minutes - 7.51 MBAs we continue to see uncertainty in the economy with several US states struggling to contain the COVID-19 outbreak, more and more businesses are relying on Federal stimulus to come through with a gift in the form of Paycheck Protection Programs (PPP) and Small Business Administration (SBA) loans. While convenient and inexpensive (and possibly free) these liabilities are popping up on balance sheets during due diligence and buyers and sellers alike are struggling to make sense of the term...
Doing Deals Remote: Two Decades of Virtual Transactions!
August 02, 2020 23:03 - 25 minutes - 5.81 MBHow do you present yourself and your business to someone without that firm handshake? Not only has Revenue Rocket been doing deals virtually since COVID-19, we’ve been doing it this way since almost inception of the business. Listen to the Revenue Rocket team dive into how deals get done virtually. There is a lot more social acceptance of virtual meetings, especially in 2020. The expectations of the majority in person meetings have lessened with the outbreak of the pandemic. There is a trem...
Understanding the Impact of Add-Backs
July 17, 2020 11:00 - 35 minutes - 32.7 MBWhen Revenue Rocket engages in a buy or sell-side M&A transaction, one of the most asked about topics is add-backs. An add-back is essentially an add-back to the profit of an expense that won’t occur after an M&A transaction is complete. Whether you’re a buyer or a seller, it’s essential to understand what these expenses are and how they impact the business. In turn, you’ll know what kind of valid profit contribution you can expect. You’ll also want to know when to throw out an adjustment wh...
The $10 Million Hurdle
July 09, 2020 00:20 - 8 minutes - 7.95 MBMany firms struggle with change. Many IT Services Providers are stuck between $5-$10 million revenue because they aren’t specialized, verticalized, and productized. At Revenue Rocket we call this our SVP model. This is not unique to IT services companies but almost any services business. Business owners need to leverage additional markets to break through these virtual sales ceilings. 3 methods of breaking through the $10M barriers; Vertical Expansion: Consider looking at adjacent mark...
2020 Check In
June 26, 2020 21:07 - 20 minutes - 18.9 MBWe’re only halfway through 2020 and it has already been quite a year. Listen to CEO Mike Harvath and VP of Growth Ryan Barnett discuss what we have seen so far in Q1 and Q2, 2020 as it relates to M&A and IT Services. Insights on deal structure, deal completion, and unrest from the global crisis. With all the economic volatility, Mike and Ryan dive into predictions for the second half of the year including liquidity, the federal election, additional changes in deal structures and more. Liste...
Changes in Deal Structures
June 22, 2020 11:00 - 10 minutes - 9.99 MBThe second half of 2020 will bring increased consolidation of distressed assets and deal structure creativity. Earnouts: With companies looking to ascertain valuation considerations based on how their businesses performed pre-pandemic, its highly likely an increase in transactions involving earnouts will be realized in the second half of 2020. Allowing sellers to earn back performance over time can accelerate the successful closing of a transaction that would have otherwise stalled out du...
The Rule of 45
June 08, 2020 18:55 - 4 minutes - 4.56 MBWhy the Rule of 45 is a critical step in identifying a defendable valuation for acquisition targets: Understanding inflated growth risk Determining the risk through calculation. We look at two metrics to identify the combined value. First, is the Year over Year growth rate as a percentage and the second is EBITDA %. To calculate the growth percentage look at the gross revenue of a business over a couple year period. Subtract the previous year revenue from the following year revenue. Mu...
DIY M&A: 10 Things to Accomplish
June 01, 2020 18:15 - 14 minutes - 13.2 MBSo, you're thinking about buying another firm on your own. Is your business ready to take this on alone? At Revenue Rocket we always ask, does 1 + = 3? Does this prospect firm get your business to a place it couldn't get alone? If so, here are 10 things to accomplish when doing an M&A transaction yourself: When is the right time to buy Cash or stock based transactions Accretive nature of a transaction How to establish proper valuations Category analysis to determine what to buy Pro...
Getting Back to Business
May 07, 2020 11:00 - 10 minutes - 9.84 MBAs we’ve all started getting used to the “new normal,” we now have much to look forward to with the nation slowly opening up. As an IT Services Business owner, you should prepare for increased consolidation in the industry and what you can do to prepare your business for both organic and acquisitive growth. 1. Assess the damage: After such an economic pause it’s highly likely that some of your clients won’t be around to service post the shelter in place orders. those that are around ma...
Process Makes Perfect
May 04, 2020 11:00 - 14 minutes - 13.6 MBTo manage your organization’s transformation out of the urgent and into the important, Revenue Rocket has developed a method for a systematic transformation that brings key stakeholders along on the journey out of the reactive and into the proactive management of business change to becoming a top quartile performer. We call this the Revenue Rocket SVP Model. Specialize. Productive. Verticalize. We’ve been using the SVP Model since our inception to help our clients become best in class. In ...
Do it Yourself (DIY) Marketing Ideas that can Help your Business stay Relevant
April 28, 2020 21:35 - 9 minutes - 8.54 MB5 marketing things to tackle DIY style: SEO 101 - use the web to educate yourself on the basics of Search Engine Optimization. Its minimal effort and likely the most powerful tool you’ll build that no one will ever see. Start a Blog - People have been paying you for advice or perspective for years. It is time to put those thoughts and opinions down into words and let that new SEO bring in those new leads. Check out our blog for inspiration or a template to get you started. Build out your...
Preparing for the future: COVID-19 Challenges
April 21, 2020 15:59 - 9 minutes - 8.82 MBThere are many unknowns businesses are facing as we move through 2020 and beyond. In this episode of Shoot the Moon, Mike shares his thoughts and recommendations on how to handle the long term impacts of COVID-19. OUR INSIGHTS Demand for speed and execution: Demand for capacity and speed is still ongoing - are your clients in a good place? Uninterrupted service: while we know it’s not business as usual, but make sure your customers know you are still there for them. Creative Approach: ad...
Don't Stop Marketing!
April 14, 2020 12:00 - 7 minutes - 6.78 MBConsumers are being engaged differently these days... What used to be an in person dialog is now an online article or podcast. Is your business part of that content? Your customers are learning new things at an unprecedented rate since the stay-in-place orders went into effect and your product or service may be just what people are looking for. So, rather than cut back on marketing, use some of your new DIY talents to reach your target audience in this new and likely forever different worl...
3 Steps to Protect your Business during a Crisis
April 09, 2020 16:43 - 8 minutes - 7.47 MBIt is important as business owners and executives to inventory and quantify your exposure in times like this. COVID-19 is eating away at the health of our country. Not just our physical health but our economic health. By evaluating your risk ahead of time you can ensure you take steps early on to protect your business from rising and delinquent accounts receivable (AR) and subsequent cash flow issues. Find the 3 steps in full on our blog. If your business is severely impacted: Offer ea...
Using Add-Backs to Enhance your Valuation
March 31, 2020 00:08 - 8 minutes - 7.59 MBAn add-back is an expense that is added back to the profits of a business (most often earnings before interest, taxes, depreciation, and amortization, or EBITDA), to show the profitability and value when you take out expenses that will “go away.” Add backs play a critical role in adjusting the bottom line when analyzing the valuation of a company. A “legitimate” add back is an expense that is for owner benefit that would not continue after a transaction with a new buyer. Some examples of ...
Determining the Value of your IT Services Firm
March 23, 2020 17:27 - 8 minutes - 7.64 MBHow do you determine the valuation of your IT Services Firm? The simple answer is: multiply the revenue. Business valuation can be used to determine the fair value of a business for a variety of reasons, like positioning it for sale. Driving the Valuation of your IT Services Firm: Sustainable and growing profitability is what drives valuations for IT Services providers. This is a key factor in creating buyer interest. Especially if your firm has more than 50% recurring revenue. The buy...
Why Buy?
March 02, 2020 19:14 - 12 minutes - 11 MBYou’re leaving 50% of growth on the table if you’re not proactively open to buying another company to accelerate growth. If you’re thinking this could be the right move for your business, we recommend looking at firms half your size. This is what we call “the sweet spot.” There are exceptions to this as some firms can take on higher debt or handle a higher profit company, but there are risks. Mike shares his thoughts on buying firms half your size, the same size and larger throughout this ep...
The Luxury of Perspective
February 18, 2020 01:21 - 14 minutes - 13.7 MBThe luxury of perspective is paramount to your success in life and happiness as a person. Many don’t realize how limited their perspectives are in many situations. It’s important to include “Yes, and” instead of “Yes, but” in professional and personal conversations. Why? Opening your mind to different perspectives will help you as an IT Services executive or business owner become more successful in all facets of life. For example, if you view someone’s level of success based on one perspecti...
IT Services Companies: 2019 Review and 2020 Predictions
January 21, 2020 23:04 - 9 minutes - 9.16 MB2019: A Year in Review M&A in IT Services Was Hot We saw a record year in the number of transactions. Not only with Revenue Rocket but in the industry in general Overall across industries there was a flattening in M&A volume except for IT Services where we saw an acceleration in deals Companies valuations increased with most deals having at least a 6X multiple Private Equity buyers are looking to invest or buy IT Services companies, accounting for a higher number of transactions than 20...
Private Equity Investing In IT Services Companies
January 09, 2020 17:31 - 7 minutes - 6.94 MBWe’ve noticed greater interest from private equity companies investing in or acquiring IT service providers with a strategic approach – not just a financial one. Leading with a strategic buy, followed by add-on acquisitions, Private Equity companies are building larger portfolios and expanding interests within specific target markets. For sellers, there are good reasons to entertain an investment or an acquisition from a private equity buyer: An opportunity to fully exit your business Dea...
Profit is Important
October 28, 2019 15:46 - 5 minutes - 4.92 MBYou are building your company to ultimately sell the for a significant amount of money. We get it; it’s your biggest asset as an IT Services business owner. The most profitable firms we see are running their business at higher than 15% net income - where does your business fall? What separates profitable companies vs not profitable companies: Market Focus - are you focused on a narrow set of customers with a prospect profile? Can you market them effectively? Efficiencies - how are you ap...
Expanding Your IT Services Business into New Markets
September 30, 2019 19:07 - 6 minutes - 6.24 MBIt is a competitive landscape out there in the world of IT Services. Listen to Mike’s experiences and insights into the market(s) you are in or should be in. Mike's Thoughts: The goal: Be number 1 or number 2 in the market you’re in. Be the expert! Align your go-to-market strategy, your marketing, and your sales. Focus on driving efficiency in your business by effectively marketing in a few markets, sometimes just one. We find that firms who do this have very little competition in the mar...
How to Position your Business for Sale when Approaching Retirement
September 17, 2019 22:42 - 10 minutes - 9.77 MBIn this episode of Shoot the Moon, we cover the hot topic of CEOs who are approaching retirement or are thinking about retiring. There is a handful of things to think about when selling your business: Intersection of technology: specialization Your Market focus: verticalization How well you build out the offering you have from a services perspective to look like a product: productization At Revenue Rocket, we call this the SVP (Specialize, Verticalize, Productize) model which we believe...
How to Optimize Profit to Grow your Business Quickly
August 31, 2019 16:11 - 6 minutes - 5.56 MBThis Shoot the Moon episode dives into the balance of growth and profit with the rule of 45. Our host, Mike Harvath, dives into this rule and how it impacts your business based on revenue. Find more info about our success stories using this rule on our website. Optimize your business for profit, and grow sustainably with a little insight from this episode. Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.
Microsoft Inspire: Takeaways from M&A Done Right
August 08, 2019 15:38 - 8 minutes - 8.02 MBIf you missed us at Microsoft Inspire (or joined us for our favorite event and want to learn more), listen to our take aways from M&A Done Right, our growth strategy event. The event included 5 M&A experts who joined us for a Q&A panel, all relating to mergers and acquisition in the IT space. In this episode, Mike Harvath covers some of those M&A questions asked and answered. Mike covers these questions: Current Market Outlook What is going to happen after 2020? How does a company maximi...