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Subscribe to Take Five to get our top 5 quick weekly reads on the world of SMB, M&A, and EtA from the team at Kumo. Kumo aggregates hundreds of thousands of deals into one easy-to-use platform so that you can spend less time sourcing, and more time closing deals.
This week, we're taking a look at the world of outsourced finance services with Chris Williams, owner of System Six, a financial services business that does bookkeeping, payroll, bill pay, and invoicing.
System Six’s goal is to serve as the day-to-day finance team for small businesses whose owners don't have the time or inclination to manage those tasks themselves.
The Story:
Chris acquired the business in July 2021 when it was doing $2.5 million in revenue with 18 employees.
He was the textbook searcher. Chris came from a finance background in investment banking and private equity and got his MBA before going out to buy his own business.
It’s the dream that has launched a thousand MBA acquisition ships and in Chris’s case the dream has been realized.
As of early 2024, the company has almost doubled to $4.5 million in revenue with 38 employees.
Find the rest of The Small Business Mentor’s post here.
Stern MBA students are getting a front row seat in the rapidly evolving ETA sector through a new Stern Solutions experiential learning project that was first launched in Fall 2023.
“ETA Search Pipeline Deal Sourcing” was designed and led by Adjunct Professor Andrew Breen, who has actively engaged in the ETA process. The inaugural project consisted of MBA students from Stern’s two-year Full-time MBA, one-year Andre Koo Technology and Entrepreneurship MBA, and Langone Part-time MBA programs.
According to Professor Breen, “Entrepreneurship through Acquisition is a prime growth sector for MBAs as they are able to put all of their skills from their MBA experience into action and can explore entrepreneurship as a career path through acquiring and then slotting in as CEO of a profitable existing business. Rather than developing a product or service from the ground up, they can identify existing opportunities that have the potential to reach new heights and drive that success without the stress of constantly raising capital or running short of it.”
Find NYU Stern’s article here.
When we reached out to investors, we were able to tell a simple and appealing story. We’re buying an artificial turf installation business for 4.0x EBITDA. We will create value by capturing the whether and population growth driven growing demand for artificial turf installation due to our reputation and installation capabilities and we are offering a 2.0x step up.
Raising capital is not about convincing people of your view of the world. It’s about clearly laying out your view of the world so the people that agree with can invest with you and get a piece of the upside if both of you are right.
Read the rest of Buy Small Sell High’s post here.
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