Shoot the Moon with Revenue Rocket

In this episode of the Shoot the Moon podcast, Matt Lockhart and Ryan Barnett discuss the key questions buyers ask when considering acquiring an IT services firm. The discussion provides insights for IT services business owners preparing for a potential sale, emphasizing the importance of being prepared, transparent, a

Rolling equity involves sellers retaining a portion of their equity in a new company structure, often used by private equity firms for future exits. Retaining equity, on the other hand, means sellers keep a stake in their original business, maintaining operational control and potentially sharing services with a broader

Mike Harvath, Matt Lockhart, and Ryan Barnett discuss the process of renegotiating deals after a Letter of Intent (LOI) has been signed. They explain that while an LOI is non-binding, it sets the stage for final agreements. Changes in business conditions or due diligence findings can necessitate renegotiation. Key fact

The podcast discusses how tech-enabled services companies can secure premium offers during mergers and acquisitions. Key insights include: Valuation Factors:Deals are typically valued at 6-11x trailing 12-month EBITDAGrowth rates of 15-25% are crucialEBITDA margins above 15% are idealRecurring revenue above 60-70% is a

Valuing the Worth of Your IT Services Company: Internal vs. External Valuation Considerations. In this episode we cover:Understanding the Role of Valuations in IT Services CompaniesImportance of Valuations for IT Services CompaniesInternal valuations and Corporate GovernanceDifferences Between Internal and Open Market

We're diving into the critical role of legal counsel in M&A transactions. Key points included the necessity of having an M&A lawyer familiar with the industry and transaction size to efficiently manage legal aspects. The conversation emphasizes the importance of early lawyer engagement, especially during the LOI stage,