Furniture Industry M&A with Bo Stump

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