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Anyone on pros and cons of A&M PEPI group?
Any CDD / M&A Strategy fish willing to chat?
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Buyside pays for this?
3.5% absolutely insane just for lead gen. The MM IBs we work with would would have fees around that range, sometimes we can even push it to lower, for running the whole process not just the origination part.
Let's say I do two $50MM deals with you per year, at the same cost we can also hire 4-5 extremely strong FTE BD Directors only doing origination. And we probably only need 1 if there's even a business case. On top of that, these guys will be able to help out with the transaction process, which you don't offer
for context, I'm corp dev at a UMM industrials technology. As a potential buyer for this type of service, we would not pay more than $100k (inclusive of success fee) on a $30MM deal
If you're in like super lower market selling a laundromat or two local grocery stores then your fees might work. That's in the ballpark of small business brokers and there's not a complex deals process you need to work through.
But once you start going slightly higher in the $10MM+ deal value range where small regional or even some lower mid market investment banks would start to touch, unless you are running the entire deal process including execution, you can list out 500 different lead gen differentiators and it still won't matter because your rates are so incredibly out of touch and uncompetitive in that market. Especially since you're not running the whole process. Why on earth would anyone pay IB fees and your fees on top, where your fees could potentially exceed the IB fees but they did 90% of the execution? They're both lead genning AND running the execution. Your pricing makes 0 sense bro
Interesting
What are your credentials? Are you sourcing off market deals for SMBs if I give you a target area?
Agree with M1 that fee is much higher than most brokers.
You're being facetious. And I don't know what you are because you've provided no credentials to suggest you are anything other than Facebook marketplace.
Here's an example from experience. I was looking to acquire a business recently. The past 2 years the company had 370k and 460k SDE. The add backs were not illogical. The seller was asking 1M so essentially a ~2.5x SDE multiple (which, I know, is a non-gaap metric but it is not uncommon for smaller businesses).
I asked for prior and current years. Eventually I got 2020 which had a 300k SDE and this year which had 118k SDE for the first 7 months. Now you're seeing an estimated 240k SDE for the year or if you average out last 4 that's a 780k valuation for the same multiple. But the multiple should also come down because of the risk for 2023.
I'm not an expert but I'm saying that conversation was a waste of time because someone didn't get an realistic valuation and their broker was either trying to hide it or did not know how to price accurately or did not give them honest feedback. If you have no background, how would anyone trust you to bring them a good deal?
Aren’t you the same guy who tried to sell a tiktok account that generated $0 on here?
Can’t take you seriously do even know how cash flow valuations work?