Your host, Alex Shevelenko, talks with the CEO of FE International, Thomas Smale. FE International specializes in tech-focused M&A advisory services for businesses in the $1 to $100 million exit sector. With over 1500 deals closed and a total value of over $50 billion, Thomas' experience in the SaaS, e-commerce, and digital media content categories is awe-inspiring.
One of the key topics discussed was why small business owners choose to engage with Thomas and pursue an M&A exit strategy. Thomas firmly believes that every entrepreneur should have an exit strategy in mind, even if it's not immediate. Whether it's due to personal or financial changes, or the emergence of a new business opportunity, having a specific financial exit goal is crucial.
Thomas shared his insights on the changing landscape of M&A deals. He explained that while strategic acquisitions are still important, the opportunistic aspect of M&A is becoming more challenging. Interestingly, he mentioned that buyers are becoming more disciplined but also more creative. For instance, private equity funds that previously wouldn't consider deals below a certain valuation are now open to smaller deals. This means that there is a lot of demand for relatively small businesses with valuations below $100 million.
Thomas emphasized the importance of focusing on building a good business rather than solely planning for an exit. He cautioned against getting caught up in specific metrics that may not be relevant to every business and advised entrepreneurs to prioritize revenue growth and the overall size of their business. He also highlighted the significance of profitability and tangible results, rather than relying on potential and big visions that have yet to be realized.
To learn more about Thomas' work, click HERE and HERE.
Think you'd be a great guest on the show? Apply HERE.
Want to learn more about Alex's work at Relayto? Check out his website at https://relayto.com/.
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