Masters in Small Business M&A

Today’s guest is James Bohannon of Belzberg & Co., a family office with a significant history of backing lower middle market independent sponsors and leading direct investments. James joins Peter to discuss the emerging “F2E” (Finance to Entrepreneurship) category, where pedigreed investment professionals are leaving “partner-track” roles in private equity or investment banking to acquire and operate lower middle market businesses. James shares how this category differs from traditional ETA or independent sponsor models, why more top-caliber finance professionals are pursuing this path, and how family offices evaluate and partner with these emergent operator investors. The discussion also covers James’ perspective on capital formation, the role of anchor investors, and the key characteristics he sees in the most promising “F2Es”. Discussion Points: The emergence of the “F2E” (Finance to Entrepreneur) investor in small business acquisitions How “F2E” differs from ETA, search funds, and traditional independent sponsors Why mid-career finance professionals are leaving partner-track roles to buy businesses The risks and personal stakes F2E operators bring when investing their own capital How capital formation works between F2Es and family offices The role of anchor family offices in supporting these new sponsors How reputation and relationships drive deal flow and partnerships in the ecosystem Gaps in skill sets when transitioning from large PE firms to smaller, scrappier deals Why fundraising and sales become core responsibilities for first-time sponsors How family offices source and evaluate emerging sponsors The importance of alignment and trust between investors and F2E sponsors Why the individual operator (“the jockey”) often matters more than the specific deal The potential for F2E to become a meaningful pipeline of talent into the lower middle market over the next decade Masters in Small Business M&A is produced by its host Peter Lehrman and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors and professional acquirers. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, our Industry Top 50 reports, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you learn more and get started for free at Axial.com. Resources James Bohannon LinkedIn Peter Lehrman LinkedIn Belzberg & Co. Axial Website

Eliot Kerlin, Founder and Managing Partner of Broadwing Capital with 25 years in lower middle market private equity, shares his perspective. He discusses how market definitions, fund sizes, and deal economics have shifted. He explores the rise of operationally-focused investing, new buyer pathways like independent sponsors and family offices, and Broadwing’s sector strategy including the CloudScale 365 acquisition.

In this engaging discussion, Thomas Ince and Logan Lowery, Managing Partners of LP First Capital, delve into the intricacies of independent sponsorship. They share the fascinating story behind their firm's name, emphasizing its dual significance in fostering investor trust. The duo discusses why they often initiate transactions as all-equity, then leverage later, and the importance of aligning with a diverse mix of LPs. They also explore the significance of cultural fit in partnerships and the firm's commitment to speed and responsiveness in sourcing deals.

Today’s guest is Bo Stump, a partner at Stump & Company, a family-owned third-generation M&A advisory firm based in Charlotte, North Carolina.  The folks at Stump & Company are among the most trusted and respected thinkers and advisors on exit strategy and M&A across the entire furniture supply chain, from wholesale materials and manufacturing, all the way to branded goods and their evolving distribution channels.  In this episode, Peter and Bo discuss how the furniture industry’s supply chain has evolved — from domestic manufacturing to global sourcing and now e-commerce — and how these shifts impact profit pools, relative valuations, and buyer appetite.  The conversation also reveals how Stump & Company thinks about sell-side exit process dynamics, how they do the calculus on what kind of process to run, what kinds of buyers to invite, and how they handle the often competing interests of certainty of close, speed to close, and optimal price and terms. Discussion Points: History and evolution of Stump & Company The firm’s niche focus in the furniture and home goods sectors Shifts in manufacturing: domestic, offshore, and hybrid models Rise of e-commerce and omnichannel distribution The growing influence of interior designers on furniture purchasing Attributes that drive premium valuations in furniture businesses How Bo’s team runs different types of M&A processes A case study on optimizing buyer fit over the highest bid Private equity’s cycles of engagement in the furniture space Bo’s take on how to prepare for an exit and “timing” the market Masters in Small Business M&A (sign up for podcast drops here) is produced by its host Peter Lehrman and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors and professional capital partners. In every episode, we delve into the dynamic world of small business M&A, interviewing a diverse mix of seasoned and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Resources: Bo Stump LinkedIn Peter Lehrman LinkedIn Peter Lehrman X Stump & Company Website

Today’s guest is Nick Huber, founder and owner of Bolt Storage and current CEO of Somewhere.com, a worldwide staffing business acquired in 2024.  Nick joins Peter to discuss the formative acquisitions across his entrepreneurial journey – from growing a distressed storage portfolio into 60+ properties, to the $52M acquisition of worldwide remote staffing firm, Somewhere.com. They cover his transition from operator to acquirer and back to CEO, capital structuring tactics, and why he bet so big on Somewhere.com.  On top of it all, Nick found time to publish his book, The Sweaty Startup, and offers key insights from the book and why he wrote it. Discussion Points: Nick’s first storage buildout in 2015 and the pivot to acquisitions A turning point deal: buying a mismanaged Erie, PA portfolio at public auction Transitioning from scrappy operations to managing a global team Building out a PE-backed acquisition engine for Bolt Storage Underwriting and managing 62 storage acquisitions with global remote staff Why Nick slowed down storage deals after the 2022 interest rate spike The story behind acquiring Somewhere.com for $52M Breaking down the deal structure and equity incentives Rebuilding operations post-acquisition: new hires, new brand, new funnel Why South Africa became central to Somewhere.com  Transforming sales and recruiting teams using global talent Which industries are adopting global hiring (law, construction, SaaS, architecture) Why AI is not replacing Somewhere.com’s business model anytime soon Lessons from raising outside capital and the pressure that comes with it The overlap between operating and authoring The Sweaty Startup Masters in Small Business M&A (sign up for podcast drops here) is produced by its host, Peter Lehrman, and the team at Axial (www.axial.com).  Axial helps qualified business owners confidentially explore growth capital and exit transactions with top-ranked M&A advisors and professional capital partners in the lower middle market. The podcast seeks to explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Resources: Peter Lehrman LinkedIn Peter Lehrman X Nick Huber Website Nick Huber LinkedIn Nick Huber X The Sweaty Startup Book Sweaty Startup Bolt Storage Somewhere.com RE Cost Seg AdRhino Spidexx Pest Control BoldSEO Titan Risk Bolt Builders

On today’s episode, Kyle Tucker, founder of Tucker’s Farm Corporation, joins Peter Lehrman to share his journey from big league private equity and hedge fund land to creating a unique investment platform focused on roll-ups in the lower middle market.  Kyle shares how early inspiration from Warren Buffett and experiences in private equity shaped his approach to long-duration, high-compounding investments. They discuss Tucker’s Farm's focus on aggregation strategies, the importance of friction in deal sourcing and in deal execution, and why Kyle prioritizes operational scale over traditional private equity paths. Discussion Points: Kyle Tucker’s early inspiration and career path through Apollo and Viking The appeal of value investing and structured private equity strategies Discovering the potential of roll-ups and aggregation strategies Founding Tucker’s Farm and its focus on high-compounding investments Structuring deals for flexibility and identifying true compounders Lessons from launching a med spa roll-up and handling early setbacks The role of friction in sourcing and why opacity creates opportunity How Tucker’s Farm balances operational scale with investment judgment The evolving private equity landscape and navigating market saturation Kyle’s perspective on staying in the lower middle market while scaling horizontally Masters in Small Business M&A (sign up for podcast drops here) is produced by its host Peter Lehrman and the team at Axial (www.axial.com). Axial makes it easy for qualified business owners to confidentially explore growth capital and exit transactions with the lower middle market’s top-ranked lower middle market M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com.

Today’s guest is Lance Fenton, a Partner at Serent Capital, a private equity fund investing in bootstrapped vertical market software businesses. In this episode, Lance breaks down Serent’s software investment thesis, how it evolved over time, and how they think about sourcing, returns, hold period, and the future prospects of these niche businesses. Lance shares how Serent approaches value creation, the importance of high gross retention, the role of pricing optimization, and how they are responding to AI’s arrival as a threat and opportunity across their portfolio. Lance shares an unusually transparent and candid look at Serent’s direct sourcing model, why they prioritize long-term relationships with founders, and what makes an investment business truly great over decades of success. Discussion Points: Serent Capital’s transition from B2B services to vertical market software Why high recurring revenue and high ROIC drive investment decisions The adoption curve of Vertical Market SaaS: from on-premise to cloud and beyond How shifting to SaaS from on-premise improves net revenue retention The role of payments in vertical software and its impact on valuations How Serent thinks about downturns and risk in underwriting deals The key attributes Serent looks for in vertical software investments Why pricing strategy is a critical lever for growth The role of AI in the evolution of software businesses Why Serent prioritizes direct sourcing over intermediated deal flow The challenges and advantages of a long-term sourcing approach How PE firms evolve and sustain long-term success Masters in Small Business M&A (sign up for podcast drops here) is produced by its host Peter Lehrman and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Resources: Lance Fenton LinkedIn Serent Capital Website Peter Lehrman LinkedIn Peter Lehrman X

Royce Yudkoff and Richard Ruback, Harvard Business School professors and co-authors of the Harvard Business Review Guide to Buying a Small Business, share their insights on the evolving landscape of Entrepreneurship Through Acquisition (EtA). They discuss the shift from funded to self-funded searches, highlighting why this model has gained traction among MBAs. The duo also explores how financing options have transformed, the impact of SBA loans, and the increasing diversity in the EtA space, revealing how small business ownership now serves as a viable alternative career path.

Do you love your home “IT and AV guy”? We didn’t think so.   In this episode, Peter Lehrman sits down with Hagan Kappler, co-founder of Daisy, an emerging national player leader in home technology installation, integration, and servicing. Daisy has acquired eight companies in roughly 12 months, and is beginning to integrate franchise opportunities into the buy-and-build M&A playbook.   The conversation is all about Hagan, her team, her authentic history of operating and transacting in related categories, and Daisy’s unique approach to combining M&A and franchising.  Hagan details how her team is drawing lessons from other home services markets, how they’re experimenting with new recurring revenue business models, and how they’re tackling other challenges that plague the residential A/V and smart home categories.  Discussion Points: The Daisy origin story and the idea of a national smart home services model The market opportunity: A $30 billion industry with no national brand Hagan’s transition from home services to smart technology Differentiating through service with the recurring "Daisy Care" model Building a brand and operational infrastructure: CRM, training, and call centers Balancing M&A and franchising strategies for scale Strategic geographic expansion and post-acquisition value-add initiatives The unfair advantage of an experienced M&A team in home services The importance of optionality in financing and operational models Franchising as a growth engine: improving owner quality of life and increasing business valuation Recurring service offerings as a key differentiator Aligning the business for 2025: Scaling recurring services and brand identity Masters in Small Business M&A (sign up for the podcast here) is produced by its host Peter Lehrman and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Resources Hagan Kappler LinkedIn Daisy Website Peter Lehrman LinkedIn Peter Lehrman X Axial Website

In this episode, Peter Lehrman sits down with Adam Breslawsky, founding partner and managing director of lower middle market investment bank Oberon Securities. Adam shares Oberon's origin story, detailing its humble beginnings, initial challenges, early clients and eventual growth into what is now a firm of 80 bankers across the U.S.  The conversation dives into the intricacies of recruiting and retaining top investment bankers, the evolving art and science of investment banking, the transformation in the buyer landscape and its implications for competitive deal dynamics, and how Oberon endeavors to be exceptional. Adam also weighs in with his advice on what business owners must focus on when preparing for an exit and how they should evaluate and hire an M&A banker. Discussion Points: The founding story of Oberon Securities and its early challenges The success-based compensation model, recruiting, and fostering banker retention Attributes that distinguish the average banker from the excellent banker The old-school approach to generating leads by building quality relationships The evolving buyer landscape and how Adam assesses buyer suitability for his clients Advice for business owners planning an exit: timing, preparation, and banker selection Putting together the right pitch to win a business owner engagement Oberon's commitment to staying focused on its core mission Masters in Small Business M&A (sign up for podcast drops here) is produced by its host Peter Lehrman and the team at Axial (www.axial.com). Axial makes it easy for small business owners to confidentially explore growth capital and exit transactions with top-ranked lower middle market M&A advisors and professional capital partners. In every episode, we explore the dynamic world of small business M&A, interviewing a mix of proven and emerging owners, operators, acquirers, and M&A advisors whose strategies and methods are being put to the test. If you’d like to go deeper, head to Axial.com, where we make available the Axial member directories, downloadable tools for dealmakers, the Axial quarterly lower middle market investment banking league-table rankings, the SMB M&A pipeline report, and other useful information. If you’re a business owner, professional acquirer, or M&A advisor, you can start using Axial for free at Axial.com. Resources Adam Breslawsky LinkedIn Oberon Securities Website Peter Lehrman LinkedIn Peter Lehrman X Axial Website