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By now I am sure you are aware U.S. workers are leaving their jobs at rates that have not been seen in decades. Therefore, I will not take time to discuss the 2 million workers who quit their jobs in April 2021 alone. Instead, I would rather discuss what makes employees happy, how to measure if yours are satisfied, and steps you can take to increase employee job satisfaction so you can hopefully maneuver around a problem many companies are facing. What Satisfies Employees? Numerous theories discuss the foundation of job satisfaction, but for sake of time, I will only reference a few that sum up the pack pretty well. For one to be satisfied with their job, basic needs must be met first. Clayton Alderfer refines Maslow's classic hierarchy of needs with ERG theory. In summary, for a person’s needs to be met they must be physiologically satisfied, maintain a sense of belonging, and truly feel as their full and actual self. This is an oversimplification, but you get the point and can read the work of smarter people than I if interested in the topic. The takeaway as it relates to the workplace is self-esteem and self-actualization are the purest forms of satisfaction, and for that to occur a person must be able to provide for themselves and feel as if they belong. Tending to basic needs is important because they make up half of what employees value and are referred to as extrinsic values- things like pay, job security, benefits, and status. On the other hand, employees also have intrinsic values. This side focuses more on the job itself. Employees want to be interested in what they do. They want to be challenged and have the ability to learn. Even more, workers do not want to be challenged for no reason, they want to be challenged because they are growing and doing impactful work. There are two sides to what employees value and each is important for job satisfaction. Herzberg’s two-factor theory shows how they work together. Notably, this theory challenges the common fallacy that if you pay workers more, they will be satisfied. Pay and benefits (extrinsic values) are only half the battle. Lots of pay and great benefits will simply leave employees not dissatisfied. For employees to be satisfied, their intrinsic values must also be addressed. However, this does not mean you can negate compensation because intrinsic values are not considered if employees cannot provide for themselves. Having employees who are satisfied with their jobs is important for more than just turnover rate. A company’s values are equal to the sum of their employees’ values, and nearly 70% of an employee’s satisfaction is determined by their work situation. Furthermore, satisfied employees have an increase in performance, take greater initiative, miss fewer days, and quit less often. With that, you can begin to understand that employees who are satisfied with their work will exude that satisfaction to customers, and employees who are not satisfied will do the same Are your Employees Satisfied? How can you determine if your employees are satisfied? One way is to use a weighted facet model where you ask a bunch of questions about each component of an employee’s job, put a weight on the questions most important to you, and measure where you stand. Sure, this is one way that may have some benefit in monstrous organizations, however, there are faults. Sending surveys like this alienates employees from management, creating a “them and us” dynamic. Second, there is an issue of not knowing whether or not employees have been honest in their responses, which leads to making the wrong adjustments. Overall, this method does not foster trust, and trust is king. I prefer an alternate approach, one that does build trust- be present in your workplace. For CEOs, VPs, Supervisors, and so on, the goal is the same- getting to know your team. The more you do this, the greater the trust, the greater the trust, the greater the honesty, the greater the honesty, the greater the understanding of your employees’ true level of satisfaction. Beyond removing the “us and them” dynamic, beyond knowing how your team feels about the company and their role in it, with great trust comes great knowledge of your organization. Trust this strong helps identify problems earlier and innovations sooner. Ways you can increase job satisfaction To begin, pay your employees and provide competitive benefits to satisfy their physiological needs and increase extrinsic motivation. No need to discuss that any further. Intrinsic motivation, on the other hand, is slightly more nuanced. Start with an assessment of how you have designed the positions within your company. The roles and responsibilities of positions that provide the greatest level of satisfaction allow employees to: use a variety of skills, be included in the creation of the product or service from start to finish, contribute in a meaningful way, have greater levels of autonomy and responsibility, and receive feedback on their performance from the outcome of the work. Having these five characteristics in place creates job enrichment through vertical job loading. Which is just a fancy way of saying you allow autonomy, challenge employees, and provide responsibility. Once meaningful roles are established, attention should be focused on leaders, and more importantly, leadership styles. Refrain from transactional leadership and develop transformational leaders across your organization. Transformational leaders treat each of their employees as an individual by addressing their unique needs. Transformational leaders inspire and motivate employees to be their best through positive reinforcement rather than punishing their failures. This approach goes beyond training skills for the short-term and develops traits that are felt across an organization for years to come. Be proactive in understanding what increases employee job satisfaction. Dedicate the time it takes to get to know your team and earn their trust. Build leaders who transform an organization rather than simply manage one. Your customers will benefit, your employees will become more involved, and your company will be better off for years to come.

The term “quiet quitting” basically didn’t exist until this past August. But now it’s everywhere and the definitions of the term and opinions on the topic vary widely. Is it really anything new? Isn’t it just a regular work shift? Are the quiet quitters the disengaged and slackers? Is it connected to burnout? Do they love their work but get their sense of purpose outside of work? Let's look at some data A 2019 Gallup Organization study found, before the pandemic, that: Only 18% of respondents were fully engaged at work Only 17% of respondents felt highly resilient at work Only 14% of respondents trusted their senior leaders and team leader In 2018, the Center for Disease Control reported that: 71% or adults had at least on symptom of workplace stress, such as headaches, or feeling overwhelmed or anxious In 2021, a quarter of the US workers quit their jobs – an historic high Deloitte survey of aged 18-38 found work-life balance to be the top priority and when choosing an employer, 75% preferred remote or hybrid environments Quiet Quitting - Our Definition It is NOT Doing the minimum Pretending to work Slaking off Mentally checked out Taking advantage of the company It IS Finding fulfillment without climbing the corporate ladder Loving your work Firm boundaries between work and personal life Limiting 24/7 connectivity Leaving work on-time Less emotionally invested Managing overachievement It’s Not New, But a Continuation of a Trend Discussion about work versus personal life have been around since the 1800’s. 1800’s – 16 hour days – Work/Sleep/Work 1900’s – 8 hour work day – Work/Recreation/Rest 1970’s – Work/Life Balance movement takes shape with more women entering the workforce 2000’s – Work/Life Integration with technology driving 20/7 connectivity 2020’s - Quiet Quitting - Life focus, fulfillment, and personal sense of worth outside of work It’s Good For Your Company Lower burnout, anxiety and stress Higher productivity Improved focus and better decision making Increased team engagement Improved thinking outside the box and innovation Improved well-being, happiness, and organizational trust Increased resilience to do the work and less likely to quit What Does This Mean For Leaders? Our workplace and workforce has changed. C-Suite boomers are retiring, and Gen X and Millennials are the next executive leaders. So let’s embrace the future! Foster A New Leader Mindset Today’s organizations need our help in fostering a different Mindset about work and employees We believe that employees are your greatest asset to deliver for your stakeholders. Talent is the engine that drives an organization When your team has affinity for their work – when they love what they do - they deliver amazing results, and this cultivates resilience; and resilience is so important in our work and life today Flexibility is – and will continue to be key – related to work schedules, locations. Let’s work to foster “balance”. Understand What Your People Value Each employee is a unique person with distinct loves, interests and skills. People in the SAME job do their work differently, so find their strengths. Marcus Buckingham calls this Love + Work and through his current research, has found that if employees are doing work they love, even if only 20% of the time – they are are more engaged and their level of resilience increases. Research by neurobiologists suggests that when “love chemicals” are released, you widen your perspective on yourself and liberate your mind to accept new thoughts and feelings. You remember details more vividly. You perform cognitive tasks faster and better.. You are more optimistic, more loyal, more forgiving, and more open to new information and experiences. One could say that doing what you love makes you more effective, but it’s so much more than that: You’re on fire without the burnout. Use the Gallup Q12 statements to talk with your people about what they value. For example: Was I excited to work every day last week Did I have a chance to use my strengths every day? My leader cares about my opinions Is Your Culture Aligned? Culture defined is shared values, attitudes, standards, beliefs and behaviors that guide our perceptions, judgments and actions. Align your leaders and managers to the organization’s new mindset – whatever it is for you and your organization – but be aligned and onboard. Set boundaries. For example: emphasize that answering after-hours calls or emails is optional introduce an on-call system, where necessary develop a way to mark messages as urgent and define the guidelines of what constitutes an appropriate after-hours emergency reward employees for staying late by allowing them to leave early another day intervene when coworkers pressure each other to overwork and create a way for staff to safely report this occurrence give employees random paid personal days Promote well –being as a value and part of setting boundaries Build Trust What is trust, why is it so important and how do we define trust? Here is one definition - A firm belief in the honesty, integrity, reliability, truth, ability, character, or strength of someone or something - to rely upon or place confidence in someone or something. A 2016 Global CEO Survey by PWC reveled that 50% of CEOs worldwide considered lack of trust to be a major threat to their organizational growth. From the ADP Research Institute study, they found that those who trusted their teammates, their team leader, and their senior leaders were 12 x as likely to be fully engaged and 42 x likely to be highly resilient. How to build trust? Recognize excellence Give employees a voice in their own job design Communicate often Intentionally build relationships Facilitate whole-person growth Show vulnerability Action For Leaders Now The ADP Research Institute and Marcus Buckingham's 2019 study provide some practical next steps. Here are four ideas for action: Organize Around Teams Their study found, that when people are organized around teams, they are 2 x more likely to be fully engaged. We’re not talking about team work, but organizing work through select teams. Today most organizations are not built around teams. Although plenty of teamwork is happening, leaders can’t see it or take advantage of it. Just look at most existing human-capital management software systems – they display individuals and who they report to, but not which teams they’re on. So what’s the difference between team work and organizing work around teams? An organization with a focus on teams institutes formal team joining discussions in which people learn why they were picked for their assignments. This introduction includes detailed descriptions of the skills and talents they bring to their teams and what they can rely on or turn to each teammate for Help them understand the WHY – the impact team’s work has on the organization – when this is understood, – motivation increases But the most important part of being on a team is developing trust with the individuals who constitute it. Make Weekly Check-ins Your Culture We all have done 1-1’s right? Did you know that organizations that build trust view a once-a-week check-in between employees and team leaders as the core human ritual at work. During this chat the team leader will not be checking up on or appraising the person or giving feedback. Instead, the leader will be talking about the short-term past and future, asking, “What did you love about last week?” “What did you loathe?” “What are your priorities this coming week?” “How can I best help?” According to Buckingham, Asking those four questions every week for an entire year will ensure that employees build trust with their team leaders. Invest In Your People Be creative! Think about what each employee values and offer both personal as well as career-oriented investment options. One way to get started is to use the Q12 for an investment framework. Other examples are Amazon which offers college tuition; Starbucks and UPS offer student loan reimbursement; and Google provides discretionary time off to pursue personal projects. ASK them! Give Recognition There is a ton of current research on the value of recognition and employee fulfillment which contribute to engagement and well-being. It is fitting that we include some ideas about recognition as part of the quiet quitter discussion. Recognition refers to praising, acknowledging or expressing gratitude to employees for who they are and what they do . We’re not talking about recognition programs . Workplace recognition often focuses on work output and work-related achievements, but let’s add human-centric milestones too – celebrating birthdays, weddings, birth of a child, and other personal accomplishments. Recognize individuals as well as teams. Public or private? Each employee is unique and values recognition differently. Here are some ideas: Fulfilling Give recognition a few times a week. This sounds like alot but it can be as simple as saying thank you in a team meeting or sending an email of thanks. Authentic Recognition becomes more meaningful when it is clear why it is being given. Telling employees how their work made an impact takes the words “good job” to a new level. Embedded in the Culture Simply having a recognition program is not enough. A culture of recognition is one in which gratitude, praise and appreciation are freely given, regularly received, and reach all corners of the organization. Where everyone feels empowered to take part in showing appreciation and commending achievements. Personalized ASK! What does your team appreciate? Some favor low key acknowledgment while others feel fulfilled through public recognition. Monetary? Time off? Special lunch?

Entrepreneurs are optimistic by nature. We get it. It’s in our DNA too. Making lemons into lemonade is SOP. Next year we hope it will always be better. But will it? Clearly there is an array of operational issues that can improve a business. But weigh this against the macro landscape of economic uncertainty, interest rate volatility and political turmoil. The Capital Markets remain strong today but will that be the case if or when your company turns around? Moving one level down you may face country risk for your sourcing and/or sales. Supply chain issues can upend your just in time inventory levels. Tariffs may play havoc with your pricing model. You may be on the short end of customer concentration issues and labor is finally playing catch up with their wage demands. Finally, the micro issues of running a business continue with internal operation or accounting surprises at every turn. Customers may reduce SKUs, consumers may turn fickle in their spending habits and possibly you or one of your key managers suddenly face a health issue. If you are ready to sell your business, look at the greater landscape. Compare the dynamics that are the key drivers. Look a bit further and recognize how little control you really have on the future. One question to ask yourself is why play “Russian Roulette” with your most valuable asset and push things off? A follow up question might be can you afford to wait? We have seen this picture play out before with our prospects and clients betting that next year will be better. Sometimes they are right but often things happen. The numbers go sideways or worse. The business needs more time to dig itself out from a hole. One thing is for sure. As the business owner you are one year older and a successful sale of the business seems more elusive than ever. When considering selling your business, think long and hard on the decision. When you are ready, we urge you to stay the course. The Sellside Group is happy to review your options with you and help plan your future goals and objectives.

When considering selling your business, whether you’re contemplating a partial exit or a complete sale, it’s crucial to understand the process and make informed decisions. Selling a business is a significant step that requires careful planning, valuation strategies, and insight into the buyer landscape. Whether you’re thinking about selling to a private equity firm, a family office, or a larger corporation, this guide will help you navigate the process. 1. Is Your Business Sale-Ready? How to Determine Your Business’s Worth The first question on any business owner’s mind is, Is my business sale-ready?  In simple terms, being "sale-ready" means that your business is prepared for a sale transaction, which involves operational, financial, and legal readiness.     How to know if your business is sale-ready: Financial Health:  Buyers want to see a clean, well-organized financial history, typically covering the last 3-5 years. Your revenue should be stable or growing. Operational Efficiency:  Buyers are interested in businesses that run smoothly, with documented processes and clear responsibilities. Streamlining operations and having reliable, talented management in place is key. Legal Compliance:  Ensure all legal documentation is in order, including contracts, intellectual property rights, employee agreements, and any pending litigation. A buyer will conduct due diligence, and legal issues can derail a sale or reduce the valuation. Determining Your Business's Worth: Valuing a business involves more than just looking at its revenue or assets; it’s a complex process that includes assessing the business’s cash flow, market position, and potential for future growth. There are several methods for determining value: EBIDTA: The most common valuation metric is EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) which should be 10% or above.  In some categories top-line revenue and strength of brand are strong considerations as well. Valuations are based on a multiple of EBIDTA and there are varying ranges based on industry, size of business, growth and recurring revenue. For example if you have $25 million in top line revenue, and $4 million in EBITA, your sell price could be between 5x ($20mm) and 8x ($45mm), or more. Comparable Company Analysis (CCA):  This approach looks at the sale prices of similar businesses in the same industry and region. It also includes getting educated on the deal flow in your category.  Are you in a fragmented industry that is ripe for consolidation, add-ons and tuck in? Discounted Cash Flow (DCF):  The DCF method values the business based on its projected future cash flows, discounted to their present value. Asset-Based Valuation:  This method involves calculating the value of a business based on its assets, minus liabilities. Achieving Your Desired Valuation: Achieving the valuation you want involves preparing your business in a way that highlights its strengths and mitigates its weaknesses. Increasing profitability, reducing risk, improving your market position, and ensuring solid legal and financial frameworks will all work in your favor.  It is also critical to reach a critical mass of potential buyers, and to have a firm date for this interested to submit an LOI (letter of intent).  This ensure you see the highest valuations on offer (rather than answering how much you want to see for) and all potential models and terms at the same time.   2. Minority, Majority, or Full Sale: What’s the Difference? The structure of the sale—whether minority, majority, or full—will significantly impact your role post-sale, the price you can command, and your control over the business. Minority Sale:  Selling a minority stake (less than 50%) in your business means you retain control, but you gain an investor who will have a say in key business decisions. This is often appealing to business owners who want to raise capital while still being involved in running the company. However, minority investors will expect some level of influence over business operations and governance. Majority Sale:  Selling a majority stake (more than 50%) means you give up control of the business. The buyer gains a larger say in the company’s direction, operations, and strategy. This is often the case with private equity or larger corporations looking to take over a business with a hands-on management style. A majority sale typically results in a higher purchase price compared to a minority sale because the buyer gains control over the business. Full Exit:  A full exit involves selling 100% of the business, which means you may walk away completely, or you may be asked to stay on for a transitional period. The terms of your involvement are negotiable with potential buyers. This type of sale is common for business owners looking to retire or exit the business entirely, immediately or in the near future. A full sale creates a liquidity event and a clean break, but it also means relinquishing control and ownership. Each sale type has its own implications for the business owner’s involvement, future income, and personal goals. Carefully consider your opportunity to role ratio and how much you wish remain involved in the business or if a clean exit is more appropriate. 3. Private Equity, Family Offices, or Larger Companies: Which Suits You? Once you’ve decided to sell, choosing the right type of buyer is crucial. Different buyers come with different goals, expectations, and resources. Private Equity Firms:  These investors typically acquire businesses with the goal of improving operations, growing the business, and eventually selling it for a profit (typically in 3-7 years). Private equity firms usually focus on scaling companies and improving efficiency. If you’re open to relinquishing some control and want to grow your business rapidly, private equity might be a good fit. You want to consider how many or how few changes the acquiring company may want to make. Family Offices:  A family office is a private wealth management firm that invests on behalf of a wealthy family. Family offices tend to take a more patient approach to investing and may allow business owners to stay involved in the business. Family offices may focus on long-term growth rather than quick returns, making them a good choice if you want a more hands-off investor but are still seeking to grow the business. Larger Corporations:  Selling to a larger company can often result in a smoother transition and a high valuation, particularly if the acquisition enhances the acquiring company’s existing business. Larger companies may be more interested in strategic acquisitions, and they may offer you a way to continue your business operations under their umbrella. However, selling to a larger corporation may also mean giving up much more control, as they may have different goals or a more rigid corporate structure. 4. Actions to Take Before Selling Your Business Before you start the sale process, it’s important to take several preparatory steps: Organize Financials and Documentation:  Ensure your financial statements, contracts, and other key documents are up to date and organized. Clean financials will help potential buyers feel confident in your business. Consult with M&A Advisors:  Mergers and acquisitions advisors can guide you through the complex process of selling your business. They will help you maximize the value of your business, find potential buyers, and structure the deal to meet your personal and financial goals. Consider Tax Implications:  Selling a business has significant tax consequences. Work with an accountant or tax advisor to understand the implications of the sale and how to minimize your tax liability. Prepare for Due Diligence:  Be ready for an extensive due diligence process, where buyers will scrutinize your business’s financials, operations, and legal standing. Having everything organized will make this process smoother. 5. Why an M&A Advisory Team is Essential for a Successful Sale Selling a business is complex, and it’s crucial to have a team of professionals guiding you through the process. An M&A advisory firm provides the expertise needed to navigate the sale, from preparing the business for sale to negotiating the best terms.    Here’s why working with an advisory team is essential: Maximized Valuation:  M&A advisors help identify ways to increase your business’s value, whether through operational improvements, optimizing your financials, or structuring the deal in a way that appeals to buyers. Go to Market:  Professional M&A advisors will prepare your GTM materials, including a CIM (confidential information memorandum) deal teasers and marketing materials Access to Buyers:  M&A firms have access to a large and often massive network of potential buyers, including private equity firms, family offices, and large corporations, increasing your chances of finding the right buyer for your business. Negotiation Expertise:  Negotiating the terms of a sale can be challenging, particularly when it comes to balancing price, terms, and personal goals. An M&A advisory team can advocate on your behalf, ensuring you get the best deal possible. Due Diligence and Deal Structuring:  M&A advisors help ensure the deal is structured properly to meet your needs, handle tax implications, and mitigate risks. They also manage the due diligence process, keeping it as smooth and efficient as possible. Selling a business is a monumental decision, perhaps the most important financial and personal decision of your life, and choosing the right approach, buyer, and advisors can make all the difference in ensuring a successful exit. Whether you’re considering a minority stake sale, a majority stake, or a full exit, a strategic, informed approach will help you maximize the value of your business and achieve your personal and financial goals. For business owners considering a sale, it’s crucial to partner with an experienced M&A advisory firm like SellSide  Group that understands your business and can help you navigate the complexities of the process. Contact us  today to explore how we can assist you in achieving a successful business sale

Understanding the Right Time to Sell Your Facility Services Business Deciding to part ways with your business is a mentally, physically and emotionally challenging decision. The process is rarely clear, the future is foggy, and emotions run high. Family, friends and shareholders all want their say and often hold competing opinions. One of the top questions a business owner struggles with throughout the process is, "When is the right time to sell?". The "right" time to successfully exit typically resides at the intersection of the performance of the business, the performance of the economy, and your own personal goals. I have had the privilege to work with many business owners as they navigate these waters. I have also represented buyers and understand what they demand and take into consideration when looking to acquire. With this unique perspective, I have prepared a guide to help business owners make informed decisions. By taking a methodical and objective approach to the decision-making process, you can ensure that you're well-prepared to navigate the complexities of a sale and achieve the best possible outcome for yourself, your business, and the people who depend on you. Key Business Performance Drivers That Impact Valuation Profitability and EBITDA as Value Drivers Prospective buyers will assess whether the business generates consistent profits and achieves desirable financial performance. Thus, the profitability of your business is the number one influence on valuation during a sale. Higher profitability translates into a higher valuation because most businesses are valued based on a multiple of EBITDA. Therefore, your EBITDA is your starting point and everything else covered in this article influences the multiple placed on your EBITDA. A strong track record of profitability indicates the business's ability to generate sustainable earnings. Typically, buyers will analyze a trailing twelve month (TTM) EBITDA, where more recent months carry greater weight. It is important to note that the majority of buyers will not consider forecasted EBITDA. While a strong forecast will influence the multiple, it will not serve as a starting point for buyers. In addition to evaluating the overall profitability, buyers and valuation experts will consider certain adjustments known as add-backs. These add-backs include owner compensation that exceeds a typical CEO salary, which is regarded as a discretionary expense. Such adjustments recognize that the owner's compensation may be higher due to their dual role as owner and executive. By adding back this excess compensation, the true earnings potential of the business can be accurately reflected, resulting in a higher valuation. Furthermore, one-time costs or expenses not expected to recur in future years may also be considered add-backs. These expenses could include consulting fees or special expenses incurred by the owner, such as personal expenses that are not directly related to business operations. By excluding these one-time costs, the add-backs reflect the normalized earnings of the business and enhance its profitability, consequently increasing its valuation. It is crucial to present a clear picture of profitability and highlight any relevant add-backs that can improve valuation. By demonstrating consistent profitability and justifying add-back adjustments, you position your business as a desirable investment opportunity for potential buyers, maximizing its value in the marketplace. Revenue Quality: Recurring vs. Project-Based The next most important aspect hitting valuation is revenue, but not all revenue is viewed the same. Understanding the impact of recurring revenue versus project-based work on valuation is crucial. Recurring revenue, particularly through scheduled maintenance contracts, holds immense value in the eyes of potential buyers. If your business has established contracts for scheduled maintenance, this significantly enhances its valuation. These contracts provide a steady and predictable income stream, showcasing the reliability and stability of your business to prospective buyers. The longer the duration of these contracts, the higher the potential for increased valuations, as they demonstrate long-term customer relationships and revenue sustainability. On the other hand, project-based work introduces a certain level of risk for buyers. When evaluating project-based revenue, factors such as project size in terms of monetary value, project length in time, and the type of work involved come into play. By its nature, project work is often perceived as more uncertain and volatile than recurring revenue streams. As a result, buyers may view new construction and one-off retrofit work as riskier due to its reliance on securing individual projects and the potential for fluctuations in revenue. However, it's important to note that project work can also offer opportunities for growth and profitability, depending on the specific market and industry dynamics. Acknowledging the interplay between recurring revenue and project-based work is essential when assessing the value of your services business. By recognizing these dynamics and positioning your business accordingly, you can make informed decisions about the ideal timing for selling your business and maximizing its value in the market. How Customer Dynamics Affect Your Business Sale Another crucial aspect impacting valuation is the nature of customer relationships. Strong connections with customers enhance the business's worth, indicating loyalty and recurring revenue. Conversely, weak ties raise concerns and lower valuations. It's important to determine who owns these relationships and ensure their transferability. Skilled management or technicians staying with the business post-sale instill confidence in customer retention. The composition of customer relationships also matters. Relying on third-party intermediaries like general contractors or help desks/dispatchers requires evaluating partnership strength and reliability. Consistently winning projects with contractors and maintaining long-term agreements with help desks/dispatchers can positively influence valuations but still do not carry the same weight as direct customer relationships. Customer concentration is an ultimate factor impacting valuation of the business. Heavy reliance on one or just a few customers raises risk and greatly reduces not only valuation but also interest of many buyers. Diversifying the customer base mitigates risk and should be a top priority. Strive for no single customer contributing over 17% of total revenue. End markets where customers operate also impacts valuation. Buyers seeking to enter or expand in the markets you serve value businesses higher— buyer reservations or volatility in your target end markets lower valuation. Understanding market dynamics helps position the business strategically and attract the right buyers. Assessing customer relationships, concentration, and end markets maximizes the valuation of a services business. Mitigating concentration risks and aligning with attractive end markets position the business for a successful sale at its true market value. Organizational Factors That Influence Buyer Interest Several key factors come into play when evaluating the organizational structure of your services business for a potential sale. First and foremost, the transition timeline regarding the owner's involvement is a critical consideration. Different buyers may have varying preferences regarding how long they expect the owner to stay in the business post-transaction. While some buyers may require the owner's presence for several years to ensure a smooth transition, others may only want a shorter period to observe a successful handover. Understanding and aligning these buyer preferences with your plans will facilitate a more harmonious negotiation process. The need for the owner’s involvement in day-to-day operations is a major aspect that impacts the transition timeline and valuation of the business. Buyers will assess the extent to which the business relies on the current owner for its daily operations. If the business is highly dependent on the owner's involvement, it can lengthen the transition timeline and potentially raise concerns for buyers. On the other hand, if the business has a capable and empowered leadership team in place, with individuals who can step up into more senior roles, it enhances the value and attractiveness of the business. A strong leadership team not only reduces the perceived risk for buyers but also indicates the potential for the business to thrive under new ownership. Moreover, the revenue-generating capabilities of your team plays a significant role in valuation. Buyers will assess the presence and effectiveness of sales representatives in winning new business. If the business has proactive and successful sales reps who consistently bring in revenue, it positively impacts the valuation. Conversely, if there is a lack of adequate sales representation, valuation suffers. Similarly, the quality and availability of skilled service technicians should be considered. The ability to attract and train new talent is crucial, demonstrating the business's capacity to grow and adapt. Additionally, whether service technicians are direct employees or subcontractors can influence the valuation, with direct employees typically commanding a higher valuation due to greater control and stability. Assessing the organizational structure of your services business is essential when preparing for a sale. By addressing these factors and positioning your business with capable leadership and revenue-generating mechanisms, you increase its appeal to potential buyers and pave the way for a successful transition. The Role of the Economy in Timing Your Exit Understanding the state of the market and the overall economy is vital when considering the sale of your services business. Evaluating the sensitivity of your business to economic changes can provide valuable insights into its stability and future prospects. One aspect to consider is the relationship between your customers and the end markets they operate in. Assessing whether your customers' industries are more or less affected by economic fluctuations can help gauge the potential impact on your business's performance. Industries with higher sensitivity to economic changes may introduce greater volatility and risk to your business, potentially impacting valuation. Another vital factor to consider is the availability and cost of labor. Labor market conditions can have a direct influence on the operations and profitability of your business. Therefore, understanding the labor market dynamics, such as the availability of skilled workers and prevailing wage rates, is crucial for assessing the potential risks and opportunities associated with your business's labor requirements. Evaluating the broader economic outlook is also critical. An analysis of whether your end markets are expected to experience growth or decline can provide valuable insights for potential buyers. Buyers who perceive positive growth in your end markets place a higher valuation on your business. Conversely, if your end markets are anticipated to face challenges or decline, it may lead to a lower valuation due to perceived risks and limited growth potential. Furthermore, buyers want to see a track record of success. Therefore, if your business has experienced 3+ years of consistent growth the timing may be optimal- especially if the future looks grim. Unfortunate as it may be, even a single down year can influence a buyer to lower valuation or even walk away from the deal out of fear. By carefully considering the sensitivity of your business to economic changes, the characteristics of your customers' end markets, labor market conditions, and the overall economic outlook, you can provide potential buyers with a comprehensive understanding of your business's position within the broader market. This analysis enables buyers to assess the future prospects and potential risks associated with your business, ultimately allowing you to strike while the iron is hot. Aligning the Sale with Your Personal Goals The business owner's personal goals play a profound role in the decision to sell a services business. One key consideration is the possibility of the next generation taking over the business. For owners with family members or individuals within their organization eager to assume ownership, the opportunity to pass the torch can hold significant sentimental value. The prospect of keeping the business within the family or ensuring continuity among dedicated team members can be a compelling reason to not pursue a sale at all. However, many owners do not have family in the business and would like to pass ownership on to a new entity who shares similar values. Equally important is the well-being of the people within the organization. Many business owners prioritize the protection and support of their employees during the transition process. Selling the business with the intention of preserving jobs, providing growth opportunities, and maintaining a positive work environment demonstrates a genuine concern for the team that has contributed to the business's success. Such considerations can generate a sense of loyalty and goodwill among potential buyers, further enhancing the business's appeal and value. It is also important to have candid conversations with potential buyers early on in the process to see alignment with your intentions are met before the deal is too far down the line. Another aspect that holds meaning for some business owners is the legacy of the name and reputation they have built over the years. A strong and respected brand carries intrinsic value, representing the hard work, integrity, and quality associated with the business. Preserving the legacy of the name becomes an essential objective, ensuring that the business's identity and positive standing in the market endures even after the ownership transition. Valuation expectations are a crucial element in the decision to sell a business. Every owner has a desired financial outcome from the sale, whether it is to fund retirement, pursue new ventures, or secure their family's future. Understanding the realistic value of the business and aligning it with personal expectations is a critical consideration. Owners must assess whether their valuation expectations are attainable in the current market or if further growth and strategic positioning are necessary to meet those goals. Ultimately, the personal goals of the business owner, encompassing the aspirations for the next generation, the well-being of the organization's people, the preservation of the business's legacy, and the desired financial outcome, shape the entire process of selling a services business. By integrating these personal goals with the broader considerations of the market, profitability, customer dynamics, and organizational structure, owners can make well-informed decisions that honor their legacy while ensuring a successful transition to new ownership. The Bottom Line: Preparing to Sell Your Facility Services Business To ensure a successful sale of your facility services business, taking action now is crucial. Evaluate the key factors discussed - performance of the business, market conditions, and personal goals. Assess your business objectively, identify areas for improvement, and implement strategic measures. Seek professional guidance if needed. By proactively addressing these factors, you can position your business for a successful sale that maximizes its value. Don't wait - start preparing for a lucrative exit strategy today. If you're ready to explore your exit options or need expert guidance, contact us  to speak with an experienced M&A advisor. We’ll help you position your business for maximum value and ensure a smooth, successful transition.

As we look ahead to 2025, the Mergers and Acquisitions (M&A) landscape is poised for dynamic shifts driven by macroeconomic forces, a new U.S. Administration, strategic repositioning, and evolving sector demands. M&A trends in 2025 are expected to reflect a surge in middle-market activity, increased private equity involvement, and a heightened focus on sector-specific consolidation. Below, we outline the trends shaping the market, identify industries with heightened activity, explore the outlook for middle-market and lower middle-market M&A, and provide insights into key sectors like technology, healthcare, consumer products, and industrials. Top Industries Driving M&A Trends in 2025 Technology M&A Trends: The technology sector will remain at the forefront of M&A activity. Technology M&A trends in 2025 will focus heavily on AI, cybersecurity, and scalable infrastructure as companies race to meet digital demands. With artificial intelligence (AI), cybersecurity, and cloud infrastructure continuing to dominate corporate agendas, the TMT M&A outlook suggests that tech consolidation will accelerate as firms pursue scalability and innovation. Expect both strategic buyers and private equity (PE) firms to aggressively pursue acquisitions. Tech companies are under pressure to consolidate and scale amid growing demand for digital transformation solutions. Healthcare M&A Forecast: Healthcare services, biotech, and MedTech will continue to experience strong deal flow. Healthcare M&A trends in 2025 will be driven by innovation, aging populations, and the need to scale next-gen delivery models, making the sector a hotbed for middle-market acquisitions. As aging populations and innovation in healthcare delivery systems drive demand, PE-backed rollups, acquisitions of niche technologies, and partnerships will proliferate. Consumer Products and FMCG M&A Trends: Major Consumer Packaged Goods (CPG) and Fast-Moving Consumer Goods (FMCG) companies are actively divesting non-core or underperforming brands to focus on high-growth areas such as health, wellness, and sustainable products. Expect a significant realignment of portfolios as companies replace legacy brands with emerging, innovative businesses. Energy and Industrials M&A Activity: The industrial sector is primed for a mix of consolidation and growth-oriented deals, particularly in renewable energy and clean technologies. Industrial and energy M&A trends for 2025 indicate rising interest in ESG-aligned businesses and operational transformation through acquisitions. Amid shifting ESG (Environmental, Social, and Governance) mandates, companies will pursue M&A strategies to meet sustainability targets and modernize operations. 2025 M&A Outlook: Sectors Facing Headwinds While deal flow remains resilient in many industries, some sectors may experience a slowdown due to headwinds like rising interest rates, regulatory challenges, or economic uncertainty. M&A trends in 2025 suggest that real estate, traditional retail, and financial services may lag unless transformation or tech integration is evident: Real Estate: Rising borrowing costs and uncertain valuations will constrain real estate M&A. Traditional Retail: Disruption from e-commerce and reduced consumer spending could temper deal-making unless retail assets are tech-forward or omnichannel-focused. Financial Services: Regulatory scrutiny may dampen activity in banking and insurance unless it involves fintech or digital-first innovation. Middle Market M&A Outlook: Key Drivers and Opportunities The middle market (transactions between $50M-$500M) and lower middle market (below $50M) will remain vibrant in 2025. Middle market M&A trends in 2025 are expected to include premium valuations for high-growth businesses, especially in tech, healthcare, and sustainability. Private equity firms, which sit on significant amounts of dry powder, will continue to target founder-led, profitable businesses as they aim for growth through add-ons and bolt-on acquisitions. Middle Market M&A Trends: Increased competition for quality assets will drive valuations higher. Businesses in resilient sectors like technology, healthcare, and sustainability will attract premium valuations. Lower Middle Market  M&A 2025: Family-owned businesses and niche operators will see strong buyer demand, especially in fragmented markets where roll-up strategies remain attractive. Strategic buyers will also lean heavily on middle and lower middle market M&A to drive innovation and growth as economic uncertainty could limit organic expansion opportunities. CPG M&A Strategy 2025: Brand Divestitures and Strategic Focus A major trend gaining traction is the divestiture of non-core and underperforming brands by large CPG and FMCG companies. As companies focus on streamlining operations, improving profitability, and targeting higher-growth areas, they are shedding legacy brands that no longer align with long-term strategic priorities. Emerging M&A Trends to Watch in 2025 and Beyond Acquisitions of Emerging Brands: Major players will acquire smaller, high-growth brands, particularly in categories like wellness, clean beauty, and sustainable products. Investment in Innovation : Internal R&D and partnerships with start-ups will replace older, stagnant brands. Focus on Direct-to-Consumer (DTC) : Companies will prioritize digital-first, agile brands with direct access to consumers. This realignment creates opportunities for mid-market operators and PE firms to acquire divested brands at favorable valuations and reinvigorate them with capital and strategic focus. How to Prepare for a Business Sale in the 2025 M&A Landscape Highlight Growth Potential : Beyond historical performance, clearly articulate your business's growth story. Buyers value businesses with opportunities for expansion, whether through geographic markets, product innovation, or digital transformation. Partner with the Right Advisors : Engage experienced M&A advisors, legal counsel, and investment bankers to navigate the sale process effectively. They will help position your business, manage due diligence, and negotiate the best terms. Understand the Value of Minority vs. Majority Stakes : Owners should consider the implications of selling a minority versus a majority stake. Selling a minority stake can provide liquidity while retaining control and benefiting from future growth. However, buyers of majority stakes often look for operational control, which may come with a change in management dynamics. Evaluate Tax Implications : A sale of any stake or a full exit will have significant tax consequences. Work with financial advisors to structure the deal in a tax-efficient way, considering capital gains taxes, estate planning, and rollover equity opportunities. Enhance Intellectual Property (IP) and Digital Assets : Strengthen your IP portfolio, digital presence, and technology infrastructure. These are key differentiators that can significantly enhance valuations, especially in tech-forward industries. Plan for Post-Sale Integration : Whether selling a minority stake or exiting entirely, consider how the business will integrate into the buyer's operations. A strong integration plan demonstrates value continuity and smooth transition for customers, employees, and partners. Prepare for Enhanced Due Diligence : Buyers are becoming more rigorous in their due diligence. Be prepared for scrutiny of financials, legal matters, supply chains, ESG compliance, and cybersecurity risks. The M&A environment in 2025 will be shaped by strategic realignment, technological advancements, and evolving buyer priorities. Middle-market and lower middle-market companies will remain particularly attractive, while sectors like technology, healthcare, and consumer products will drive deal volume. Business owners planning an exit must focus on preparation, growth positioning, and professional guidance to achieve a successful outcome in what promises to be a competitive landscape. If you're considering a business exit or seeking acquisition opportunities, contact us  to speak with our M&A advisors.

Ecosystem vs. Traditional Roll-Up Strategies in Mergers & Acquisitions In the fast-paced realm of mergers and acquisitions, two distinct roll-up strategies  have emerged as powerful mechanisms for reshaping industries: ecosystem roll-ups and traditional roll-ups. While both approaches aim to consolidate market share and optimize operations, their methodologies and outcomes diverge significantly, reflecting a shift in the paradigm of business expansion. Understanding Traditional Roll-Up Strategies Traditional roll-ups, a longstanding strategy in the consolidation playbook, revolve around acquiring companies within a specific industry or sector. This strategy seeks to achieve economies of scale, reduce competition, and capitalize on synergies within a particular market niche. A quintessential example of traditional roll-ups can be observed in the pharmaceutical industry, where companies like Pfizer and Johnson & Johnson have expanded their portfolios through strategic acquisitions of drug developers, manufacturers, and distributors. What Are Ecosystem Roll-Up Strategies? On the other hand, ecosystem roll-ups adopt a broader perspective by consolidating complementary businesses across different industries or sectors. Rather than confining acquisitions to a single domain, ecosystem roll-ups aim to create a holistic network of interconnected entities, each contributing unique value to the ecosystem. This approach transcends traditional industry boundaries, fostering innovation, diversification, and resilience. Ecosystem Roll-Up Examples: Alphabet and Microsoft One of the most prominent examples of ecosystem roll-ups is the tech conglomerate Alphabet Inc., the parent company of Google. Alphabet's strategy revolves around acquiring companies across a spectrum of industries, including artificial intelligence, healthcare, and autonomous vehicles. By integrating these diverse entities into its ecosystem, Alphabet leverages synergies and fosters innovation across multiple domains, propelling its growth trajectory and market dominance. Another notable example of ecosystem roll-ups in action is Microsoft's acquisition of LinkedIn. While Microsoft is primarily known for its software and cloud computing services, the acquisition of LinkedIn provided it with access to a vast professional network and valuable data insights. By integrating LinkedIn's platform with its suite of productivity tools and cloud services, Microsoft created a synergistic ecosystem that enhances user engagement and drives revenue growth. Traditional Roll-Up Example: Berkshire Hathaway & Amazon Success in traditional roll-ups often hinges on achieving operational efficiencies and cost savings through consolidation. Berkshire Hathaway, under the leadership of Warren Buffett, exemplifies this strategy with its diverse portfolio of subsidiaries spanning industries such as insurance, utilities, and consumer goods. By centralizing operations and capitalizing on economies of scale, Berkshire Hathaway delivers consistent shareholder value and weathered economic uncertainties over decades. In contrast, ecosystem roll-ups thrive on the synergistic relationships among diverse businesses within the ecosystem. Amazon's acquisition of Whole Foods Market exemplifies this approach. By integrating Whole Foods' brick-and-mortar presence with Amazon's e-commerce prowess and logistics infrastructure, the acquisition created a symbiotic relationship that enhanced customer convenience and accelerated Amazon's penetration into the grocery industry. Why Ecosystem Roll-Ups Are Gaining Momentum While both strategies have their merits, the dynamics of the modern business landscape increasingly favor ecosystem roll-ups. In an era defined by rapid technological advancements and evolving consumer preferences, the ability to adapt and innovate is paramount. Ecosystem roll-ups offer a dynamic framework for navigating this complexity, enabling companies to harness the collective strengths of diverse entities while fostering agility and resilience. Furthermore, ecosystem roll-ups facilitate cross-pollination of ideas and expertise, driving innovation at the intersection of different industries. Tesla, the electric vehicle pioneer, embodies this ethos by leveraging expertise from industries as diverse as automotive, energy, and software. By integrating cutting-edge technologies and business models from multiple domains, Tesla revolutionizes transportation and energy systems, reshaping entire industries in the process. Conclusion: Choosing the Right Roll-Up Strategy In conclusion, the choice between ecosystem roll-ups and traditional roll-ups extends beyond mere consolidation objectives—it reflects a fundamental shift in strategic thinking. While traditional roll-ups excel at optimizing operations within a single industry, ecosystem roll-ups offer a broader canvas for innovation, diversification, and long-term growth. As businesses navigate an increasingly interconnected world, embracing the power of ecosystems may prove to be the ultimate competitive advantage, enabling them to thrive in the face of evolving market dynamics and technological disruptions. For more insights on mergers and acquisitions strategy, Contact us  and explore how we help companies grow through strategic M&A planning.

As a leader, it is important to explicitly communicate what you expect from your team. One of the ways we do so effectively is by setting goals. Overly simplified, goals align mission, vision, resources, and personnel. When talking goals you will generally be taught good ones include an objective, a quantifying metric, and a timeframe. This framework allows management to organize and plan, while also providing explicit tasks to employees. But something is missing because this framework does not address the volatility of the world in which we operate. The forces that shaped the landscape you crafted your strategy in are likely to change. So how do your employees address change while also executing your strategy as intended? Simple, include a new element in your goal framework: Your intent. Traditional Goal Setting Let’s look at goal setting through the lens of something more relaxed in a home setting. You are having company over for dinner to celebrate a birthday. Between cleaning, work, and many other tasks that require your attention you are spread thin so you delegate the shopping to your son and daughter. Their goal: Purchase enough food to cook for a group of 10 by 3pm. This is a good goal. You gave them an objective (purchase food to cook), a quantifying metric (enough for a group of 10), and a timeframe to complete the goal (by 3pm). With this information, your children can go off to the store while you manage other areas of interest with the assumption that you will be able to begin cooking at 3pm. So you think. The world is a volatile place where change is the only constant and anything that can go wrong will go wrong. Well today is no different and a truck crashed into the only grocery store in town, closing it for the rest of the day. As one would expect, your son and daughter come back to you so you may solve the problem for them. Now some task must suffer while you determine how you will feed your guests. If only there was a way they could have solved this problem on their own. Goal Setting With Intent Let’s revisit that goal we made earlier and add our intent: Purchase enough food to cook for a group of 10 by 3pm. The intent is for our guests to be full no later than 7pm. Now, when your children arrive at the grocery store and see it will be closed for the day they are not hung up on finding food to cook. Instead, they make a detour to a local restaurant and place an order for catering to be delivered to the house at 6pm. Knowing the intent of their goal has equipped them with the information needed to take individual actions that solve the problem. All without ever having to bother you. Adding intent to a goal is not a new concept; the military uses it all the time. Yet I do not see it included in nearly enough business strategies. Employees who know what to do are great, but employees who know why they’re doing what they’re doing are infinitely more valuable. Next time you are assigning goals, include your intended end-state and watch the decision making capabilities of your team increase exponentially.

While working at Sellside Group, I've gained a great deal of experience in the world of mergers and acquisitions (M&A). The practice is industry agnostic and can occur in any sector. Although M&A deals share similar objectives, each deal is unique. Several factors influence each deal, such as the companies' size, operations, owner's desires, and the economic landscape of the specific industry. Sellside Group's leadership team is truly exceptional. From our CEO, David Weiss, to our Managing Directors and M&A Director, Jake Kitka, they are dedicated to educating and empowering everyone on the team about M&A. Thanks to their guidance and support, I had the opportunity to play a critical role in a sell-side transaction for a commercial facilities maintenance client in the southeast United States. Working closely with the client and my colleagues, I was able to source a strategic buyer with a robust acquisition-based growth strategy. This transaction ultimately resulted in a successful transaction for our client, which played a key part in my finishing 2022 as the top revenue-generating intern. Here are a few valuable pieces that I learned about M&A: The M&A Process Many executives consider implementing an M&A strategy to either grow the value of their business or exit the company, but what exactly does the M&A process entail? Developing a Strategy The first piece of the process is developing an acquisition strategy by leadership within the business. While doing so, it is important first to consider the purpose of the transaction—is leadership looking to exit the company, are they seeking a capital infusion through an equity sale, are they positioning to enter a new market, or is the company aiming to offer new products or services? These are all things that need to be considered before testing the market. Valuation On the sell side, leadership should take action to make their company as attractive as possible to potential buyers. A few things they should do are make sure they can clearly articulate the company's culture and the management team's succession. Leadership should also prepare their current financial statements and make adjustments, such as adding back one-off costs or inflated owner salaries, to the EBITDA, as a multiple of the EBITDA is often used during the valuation process, among other tools. After current financials are in order, the company should generate pro forma financial statements to show a positive operating runway to potential buyers. It is also important to consider what type of deal the owner is willing to accept—do they want to stay on board with the company after the sale? Do they want an immediate exit from the company? Do they want an advisory role? How do they want their payout structured? All of these aspects can make or break a potential fit as they can each dramatically change the overall appeal of an offer and are particularly important for family businesses as this can add another level of stress to the process. There are many similar themes on the buy side compared to the sell side. Leadership should start the process by developing a strategy for the acquisition. Each strategy can look very different based on the company type and the acquisition's nature. For example, a private equity firm may be looking to build out their portfolio in a general industry but may not have the expertise or desire to step into the industry and help run the company, while on the other hand, a strategic buyer may be looking for a particular industry fit as they want to be involved in the day-to-day operations and steer the company in a specific direction. These differences greatly influence the offer structure the company desires to submit. They should also build a budget for the deal. While it is impossible to know the exact transaction cost in the early stages, the company should know how much they are willing to spend. This will allow them to narrow down the companies they are searching for and act quickly, as a company's EBITDA can give them a ballpark estimate of its valuation. Target Identification After the strategy is set, the search for potential targets begins. In this stage, privacy and secrecy are paramount as competition can gain useful insight, giving them a strategic advantage. To protect themselves, companies often hire 3rd party firms to represent the company and maintain anonymity while facilitating the search for a suitable target on either the buy or sell side. Typically, the 3rd party company can source and vet potential companies to buy or sell the client company to. During this process, meetings are held with the candidate's leadership and the 3rd party company to determine cultural fit. Once this has been established, the potential counter company will be provided with a non-disclosure agreement (NDA) and a confidential information memorandum (CIM), which conveys valuable information about the client company, such as customer concentration, notable vendors, financial statements, business structure, a market analysis, industry analysis, end market breakdowns, and other information to help determine if the company would be a good operational and strategic fit. A good CIM tells the story of a business and illustrates why it may be an attractive investment. Following the delivery of the CIM, it may be determined that a site visit is in order. Here, the 3rd party company can organize an in-person visit between the client and counter business so they can get to know each other and better understand how the company operates on a day-to-day basis. After the CIM is reviewed and meetings are held, the buying company will submit a letter of intent (LOI) outlining the purchase price, payout structure, and other terms the company agrees upon to close the deal. The entity receiving the LOI can negotiate the terms of each LOI and ultimately decide which they want to accept. Due Diligence & Closing Following the acceptance of an LOI, the purchasing company will go into the due diligence phase, where there is a thorough investigation and analysis of the target company that another company is considering purchasing to assess risks and opportunities and verify the accuracy of information provided. After carefully considering legal documents, financial statements, employee contracts, and customer and supplier relationships, the purchasing company can proceed with the acquisition and determine an appropriate valuation and terms for the transaction. Post-Merger Integration The final stage of an acquisition is commonly overlooked. Post-merger integration encompasses the integration of two or more companies involving each company's people, processes, cultures, and systems. Without proper integration, the acquisition is bound to fail as there is culture clash and inefficiencies across operations, which prevent the deal's potential value from being harnessed. Practical Experience: Finding the Right Buyer for a Sell-side Client I was part of the sell-side transaction for a commercial facilities maintenance client in the United States. The company I sourced, has an acquisition-oriented growth strategy. This type of strategy allows a company to quickly gain access to a new market by acquiring a business already operating in that market and allowing the company to quickly start providing services to the new market that otherwise would take years to implement competitively. These benefits can make an acquisition-based growth strategy more attractive to business leaders than an organic growth strategy. In this case, the company acquired our client and now has a strong presence in a new geographic region. While it may be capital-intensive upfront, the benefits to a company's top line and long-term strategic positioning outweigh the costs of tying up cash or onboarding additional debt. The Bottom Line As a business leader, you're tasked with taking all relevant factors of the environment into account and steering the business on a track of growth toward success. Each company has its path and a unique picture of what success looks like to them. The potential benefits of implementing an acquisition strategy are constant across nearly all companies. If performed successfully, an acquisition can allow a company to pivot and overtake competitors, and the transaction can become invaluable to the firm. While this strategy is not for everyone and may not work for every business, middle-market executives are responsible for learning about and considering how an acquisition or exit strategy could impact their business.

As an intern at Sellside Group, I have gained invaluable experience in the consulting industry and the business world. I have also had the privilege to see firsthand the behind-the-scenes of what employers look for in their interns. As a college student, the ladder of the three is an essential tool to be able to fine tune our CVs and make ourselves more competitive on the job market. At Sellside, I have the opportunity to speak and work indirectly with an abundance of 35 seasoned executives, including Marinus Ferreira and Michael Burress, whom I both want to thank for their continuous support and guidance. Because of the close contact I had with Marinus Ferreira when we worked together on Project New Roots , I decided to interview him with a student's perspective on his intriguing past to not only get to know my coworker better, but to learn from him. How have your childhood experiences carried onto your work today? Growing up in Secunda, a small town in South Africa named after Sasol's second extraction refinery plant (hence Secunda) to a hard-working family, Marinus gained a wealth of values. Integrity, honesty, and determination, he says, are the values which he still carries with him in the business world. In fact, in Marinus' household, failure was not an option if you have determination. You have extensive experience in the Petrochemical, Oil & Gas, Metals and minerals sectors. Do you believe your academic background helped you throughout your career, and do you believe that in today’s world, someone seeking employment in the Petrochemical, Oil & Gas, Metals and minerals sector should have such a background? Marinus learned the basics of accounting and finance in high school, which was enough to land him his first entry-level accounting job. While he doesn't necessarily believe that a degree is necessary, he places a strong emphasis on the importance of education and strong moral values. According to Marinus, having strong values like honesty, hard work, and respect, which he learned from his family, can take you far in life. He believes that even though these values may seem obvious, "common sense is not always that common," and stresses the importance of treating everyone with respect, regardless of their social status. To answer my first question, Marinus emphasized the importance of his gap year, which revealed his dislike for repetitiveness in a job such as accounting. He says, "Take chances, bet on yourself when the world won't bet on you. You must only convince yourself that you can make it (which is the biggest struggle)." For Marinus, risk-taking and determination are some of the most important attributes that a person should display, not necessarily a degree. New entrepreneurs lack confidence, he says. The main concept of starting a company shouldn't be about making money. If you find a job you love you will never work a day in your life. People start businesses for the wrong reasons. Always try your best, enjoy the experience and be willing to learn as there is always something to learn. In terms of landing an entry-level job, from a student's perspective, Marinus says that interviews should just be a conversation. Seek interest in what they're doing and if it starts being a conversation you are on the right path. The key, according to Marinus, is to have a positive attitude and a willingness to learn: "if I fail, I'll try better the next time". As an employer, accountability is the best thing in life to work with, so become accountable for your actions and learn from your mistakes. A hot topic for the new generations, when it comes to seeking jobs, is to find their passion. What got you into the staffing industry, and did you pick it up as a passion? Why did you choose the staffing industry. Marinus, who hails from South Africa, where unemployment is currently at 42%, knows firsthand the importance of taking whatever job opportunities are available. However, he also recognizes the satisfaction that comes with being able to provide employment to others and contribute to their ability to support their families. He sees this as a very fulfilling aspect of his job. For him, finding his passion was more of a journey than a goal. Marinus likes to follow the proverb, "We have two ears and one mouth so that we can listen twice as much as we speak", and only through listening can you learn more and inch towards finding a passion. Regarding Thusanyo Project Services, if you were to tell a recruiter what your leadership style is, what would it be? Lastly, what excites you the most about where Thusanyo Project Services company is heading? What are the biggest challenges you face during these times of high inflation and interest rates? The approach Marinus found most success with is "I'll employ you and leave you work". It is hard and inefficient to upskill and micromanage everyone within a company. If you are hired, you are expected to do the job. Instead, people must find their own way, and getting kicked in their pool is the best way to learn. You must allow people to make mistakes to learn, otherwise they will be stuck in the same place. A very exciting aspect about Thusanyo, says Marinus, is that we always have to evolve and show resilience. A recent example saw the company import labor into Bermuda due to high cost of capital caused by a recent increase in the minimum wage. In terms of the high interest rates, Marinus believes that Thusanyo has been able to deal with it in the past as interest rates are always high in South Africa. In fact, Marinus announced that "[Thusanyo] grew a lot this year, and we opened in the US, and very excited to bring in international niche and leadership". He firmly believes that the US recession will be a big opportunity for them, as less permanent employment means more temporary employment. It will be essential, in the coming months, to allow clients to understand their culture. Marinus wants to elevate and assist their clients.

In the ever-evolving landscape of global business, companies face unprecedented challenges to maintain their competitive edge and drive exponential growth. Amidst this dynamic environment, an M&A (Merger and Acquisition) based growth strategy has emerged as a compelling avenue for businesses seeking to achieve above-average growth rates. By strategically combining forces with other companies, organizations can unlock new opportunities, synergies, and scale, enabling them to propel their growth trajectory to unprecedented heights. In this thought leadership piece, we delve into the compelling reasons why M&A acquisitions lead to remarkable growth rates and showcase notable success stories that exemplify the transformative power of this strategy 1. Synergy and Scale: At the heart of M&A acquisitions lies the promise of synergies and scale. By uniting complementary strengths and resources of two or more entities, organizations can create a powerful force that supersedes their individual capabilities. These synergies manifest in operational efficiencies, cost savings, and optimized processes that significantly enhance overall performance. A compelling example of this concept is The Walt Disney Company's strategic acquisition of 21st Century Fox in 2019. Through this merger, Disney bolstered its content library, streaming capabilities, and international presence. The integration of these assets catapulted Disney into a dominant position within the media and entertainment industry, driving exceptional growth and reinforcing its status as a global entertainment powerhouse. 2. Market Diversification: In today's interconnected world, market diversification is an essential aspect of sustainable growth. M&A acquisitions allow companies to expand into new market segments or geographic regions, thereby reducing dependence on a single market and mitigating risks associated with market volatility. An exemplary case is Amazon's acquisition of Whole Foods in 2017. By venturing into the grocery retail sector, Amazon diversified its revenue streams and established a strong presence in brick-and-mortar retail. This bold move not only contributed to Amazon's impressive growth but also solidified its position as an innovation-driven industry leader. 3. Innovation and Talent Acquisition: The pursuit of innovation is a driving force behind any organization's quest for long-term success. M&A offers a unique avenue to infuse companies with fresh ideas and cutting-edge technologies that position them at the forefront of industry evolution. Moreover, acquiring companies can access a pool of talented employees whose expertise and vision can fuel innovation within the acquiring organization. A standout illustration of this dynamic is Facebook's acquisition of Instagram in 2012. By integrating the rapidly growing social media platform, Facebook tapped into a novel avenue for growth and established a more comprehensive social media ecosystem. This strategic move was pivotal in Facebook's sustained growth and global influence. 4. Speed to Market: In a rapidly changing marketplace, speed is of the essence. M&A acquisitions present a strategic advantage by enabling companies to swiftly enter new markets, access new customer bases, and gain competitive advantages without the protracted timeline associated with internal product development. A striking demonstration of speed-to-market is Microsoft's acquisition of LinkedIn in 2016. This landmark move fortified Microsoft's presence in the professional networking and HR solutions space, fast-tracking its expansion in the enterprise sector. While M&A-based growth strategies hold immense potential, companies must approach them with due diligence, meticulous planning, and thoughtful integration. The success of such endeavors hinges on comprehensive risk assessments, cultural alignments, and a shared vision for the future. In conclusion, the art of growth lies in making bold and visionary decisions, and M&A-based strategies provide a compelling framework to achieve above-average growth rates. By harnessing the power of synergies, diversification, innovation, and speed, organizations can navigate the complex business landscape with confidence and capitalize on untapped potential. As companies embrace M&A as a transformative growth catalyst, they embrace the promise of unleashing unparalleled growth, driving industry disruption, and redefining their place in the global market. The journey toward exponential growth begins with a strategic vision and an unwavering commitment to harnessing the power of collaboration and integration. Are you ready to embark on this transformative path to success?

Typically, it is not better product knowledge or more training on their sales process. These are the basic tickets to entry. What separates the successful from the unsuccessful is courage and how they spend their time. As a sales person, how you spend your time and who you spend your time with is totally within your control. Do you want to spend it with a customer that only has the potential to buy a small amount from you or do you want to spend it with a customer that can buy a large amount from you? Many sales people are intimidated to meet with big customers. The reality is the buyer at a big customer is the same person at a small customer. That buyer likes to do the same things in their free time, they love to talk about their families, their favorite hobbies and teams, and they have the same issues and problems at work and home. The only difference is the quantity that they order. It is your choice who you spend your precious time with. Be courageous!