Building ETA Skills and Supporters - One Year Reflection

About a year ago, I posted a thread about building skills for #smb #acquisitions. Since then, I've launched Private Market Labs seen a ton of transactions, and talked to a lot of people on our Insights podcast.

Here's an updated version of the thread after another year in SMB:

Even for self-funded searchers, small business M&A is a team sport. Successful buyers know that acquiring an enduringly profitable business requires help and are willing to use resources and time to connect with the right people.

SMB buyers engage lawyers, accountants, financial analysts, asset valuation experts, tax experts, insurance experts, technology consultants, and others during the M&A process. Each of these professionals has a unique skill set designed to increase a buyer’s chances of success.

For this particular group of "professional skills", buyers can maximize their ability to get what they need by using tools such as DueDilio (partnered with us at Private Market Labs)

However, finding experts is often a secondary concern; running a small business requires leadership, strategic vision, operational talent and people management. Most of the investors I've talked to, like ^redacted‌, focus on these pieces first when deciding where to write checks.

Buyers with backgrounds in private equity or investment banking have a clear advantage. They have helpful professional connections, a recognizable career arc that appeals to investors, often larger bank accounts for down payments, and helpful technical skills.

Students at top MBA programs with Entrepreneurship Through Acquisition courses, advisors, and clubs, also have an advantage. These buyers can build relationships with investors and experts that come to recruit within their programs or have relationships with faculty.

Buyers without close personal connections to the M&A process face steeper challenges when it comes to finding experts and capital. While we're looking to build pathways to connections through our platform, non-traditional buyers have historically faced a tougher path.

We recommend people in this category of searcher to leverage communities like Searchfunder, Beki Darlin's Our WAEE, Andrew Hoffman's SF Coalition, and others.

And remember, there's always the "hustle door" as our recent podcast guest Bakari Akil mentioned - there's no substitute for being knowledgeable and persistent with your outreach.

Ultimately, I want to see more people from broader backgrounds achieve their dreams of business ownership. While #eta can be difficult and risky, I talk to smart and motivated people daily that are hungry for a shot. We'll keep working to make this process easier and more open