The Next Step
Helping people find the courage to try, the clarity to start and the commitment to keep going!
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Tuesday Aug 02, 2022
Tuesday Aug 02, 2022
This year, the Australian EtA and Search Fund community is looking forward to its first big event for the region. The EtA Forum (www.etaforum.com.au) will be held in Manly Beach in Sydney, on Friday 16th September.
In this episode I speak with Andrew Locke, Co-Founder & Partner at Ambit Partners. Andrew is an experienced investor, advisor, and board member. Before founding Ambit Partners, he worked as a Private Equity investor and management consultant, focusing on high-growth and emerging markets.
At the Forum, Andrew will be hosting a session to explore the unique aspects of Search Funds as an asset class, when compared to other options, including Private Equity, Venture Capital and listed equities. He’s already developed a deep experience in global Search Fund markets and in this episode he shares some of that experience with us, including what he is seeing in a range of global markets right now!
Please stay tuned as we count down the days and be sure to yell out if you have any questions or comments to offer, so we can make the EtA Forum a great event for all involved.
Tickets available at: www.etaforum.com.au
Connect with Pete: https://www.linkedin.com/in/peteseligman/
Connect with Andrew: https://www.linkedin.com/in/andrewtlocke/
What we discussed:
02:46 Andrew fill us in on how things are going at Ambit Partners
05:43 Pete asks Andrew what he is seeing more of - partner searches or more solo searches?
07:28 Andrew discusses what he has seen in the last 24 months in relation to the expansion of search as an asset class globally
09:36 Andrew talks about how fundamentals translate to new markets, not only across language boundaries, but also across cultural boundaries
13:15 Andrew tells us what we can expect from his session at the EtA Forum
20:23 Pete asks Andrew what are the biggest detractors that might stop an investor from getting involved in search?
Quotes:
We're generally comfortable investing anywhere where there's a really talented searcher, search pair, and a compelling commercial argument for the country itself.
It's a lot of highs and lows, successes and failures every day. So it's it's nice to have a partner I think, just to manage that.
When you're going for the first time in a new market, it's very unlikely you're going to find a partner at the right time by person, right skill set, it's easier to find that in a more crowded market, where there's more people who want to search to find that appropriate partner.
So we're comfortable doing both, but we certainly see kind of in our day to day the advantages of partner search.
It's great to see the type of person that can go into search and the type of geography that investors have appetite for expand and grow beyond the original kind of boundaries in North America and Western Europe. So we say that the best searchers they're far more exposed to any geography than we are as as an investor with a portfolio of investments.
Each geography each country, and each economy has a different set of characteristics that makes different types of businesses more attractive in that space. Even if you can speak the language doesn't mean you can speak the culture. People think that because you're speaking the same language, that actually everything's just going to translate perfectly. But there's a very different culture, and also very different business culture in many ways, between Australia and the US, for example, but even between Australia and various states within the US.
If you do want to build your own private portfolio, make sure that you understand how to access kind of the best deal flow essentially to the top, top talent and making sure that you're building a great portfolio for yourself, and then you bring them real value add to the search, that will attract the best searchers to you.
So many businesses fail, or they try to find a product market fit. That's why startups are so so difficult.. We get to work very closely with the searchers to understand their quality as well, and how we see them as CEOs post acquisition.
So a lot of value is actually exposed and directed during that search period And we're seeing more diversity in the profile of searchers. So older searchers, more operational experience. So it'll be interesting to see how those profiles work out.
Monday Jul 25, 2022
Monday Jul 25, 2022
This year, the Australian EtA and Search Fund community is looking forward to its first big event for the region. The EtA Forum (www.etaforum.com.au) will be held in Manly Beach in Sydney, on Friday 16th September.
In this episode I speak with Richard Hernan, Co-Founder and Managing Director at Broadleaf Financial Group. Richard runs the day to day operations of the Broadleaf Financial Group including engagement, financing and project management of the acquisition of equity stakes in financial planning businesses.
At the Forum, Richard will be hosting a session focused on the Four Seasons of Search, in which he’ll walk through some of his experience navigating the Searcher journey from search, through acquisition, into operation and ultimately exit. It’s a varied, challenging, exciting and rewarding journey, so we’re looking forward to sharing Richard’s experience at the Forum in September.
Please stay tuned as we count down the days and be sure to yell out if you have any questions or comments to offer, so we can make the EtA Forum a great event for all involved.
Tickets available at: www.etaforum.com.au
Connect with Pete
Connect with Richard
What we discussed:
3:03 We learn about Richard’s background and experience in the corporate world
09:32 Richard tells us what led him to go down the path of buying businesses
16:46 Richard discusses the topics for his session and what we can expect to hear from him at the EtA Forum
20:33 Pete and Richard discuss the many different hats worn during the entrepreneurial journey
Quotes:
The whole time there was this juggle between, do I start something? Or do I buy into an existing business? I felt like I'd built a background where people would trust what I do. And I had a track record of actually delivering, and not not just talking, so from that, I did a lot of research around the structures of how you finance that sort of business.
I sort of had this eureka moment of, oh, well, I'll just do this. This will be easy.
If you don't enjoy the climb, you're never gonna make it. You actually really need to enjoy that struggle and get maybe not enjoyment, but fulfillment out of that struggle.
There's a lot of lessons there that I think people can look at what I did and maybe hopefully not make the same mistakes.
Talking around here's what I went through, you guys don't have to do the same things. Here's the resources that are out there that are fantastic on the funding side.
In our model we never plan to completely exit the business, we have a wide range of shareholders, so people can get on and off the bus at any point. And as we have next generation leaders coming through, often it means that we will sell down some to make sure that there's an ideal point where people are incentivized to be genuine owners of the business.
We refer to it as hats now. What are we wearing at the moment? And there's this hat dizziness if you're doing all sorts of different things.
Tuesday Jul 19, 2022
Tuesday Jul 19, 2022
This year, the Australian EtA and Search Fund community is looking forward to its first big event for the region. The EtA Forum (www.etaforum.com.au) will be held at the Manly Pacific Hotel, on Manly Beach in Sydney, on Friday 16th September.
In this episode I speak with Michael Chew, Managing Director at Flywheel Effect. He is leading a self funded Search based in Melbourne, Australia and will be hosting a panel at this year’s EtA Forum. The focus of Michael’s panel will be deal structuring, which is a topic that quickly becomes an important skill set for all Searchers to acquire. No two deals are exactly alike and there are definitely no two vendors who have the same needs, scenarios nor aspirations!
So how is it best to attack this challenge, multiple times, for multiple opportunities throughout your Search? Michael will be exploring this with a panel of experts to deliver the audience some food for thought on their next deal.
Please stay tuned as we count down the days and be sure to yell out if you have any questions or comments to offer, so we can make the EtA Forum a great event for all involved.
Tickets available at: www.etaforum.com.au
Connect with Pete : https://www.linkedin.com/in/peteseligman/
Connect with Michael : https://www.linkedin.com/in/michael-chew-3028b61/
What we discussed
02:40 Michael gives us an update on his experience over the last 12 months running his own self funded search
05:29 Michael tells us what he is currently seeing in the market
08:43 Pete asks Michael what he has planned for the EtA Forum panel in September and what kind of approach he is going to take with the panel discussion
12:52 Michael explains how he engages with vendors in the market and the dynamic of different deal structures.
16:01 Pete & Michael discuss the importance maintaining and managing the relationship during deal structuring
24:55 Michael tells us why attending the EtA Forum is important for him and what he is most looking forward to
Quotes:
It gives them a chance to reflect and say, okay, maybe we should do something and they spend the next six months kind of getting ready. Sometimes they could use someone to help them with that.
One of the things I'm learning personally, this is more about my journey and growth is that you can't have a perfect business. And I knew that early on. But what it means for me in real terms now is you've got to find the things you've prepared to live with.
As long as I'm transparent, I feel like I've not broken the relationship with them, and vice versa. I'm happy for the competition, the competition is going to be there anyway
It really just comes down to timing and kind of fit that determines whether you get a deal done.
Our main objective is to share insights with people who are in the search process for how you can go about managing the different parties that are involved, and managing risks and managing value.
I certainly think there's an education piece for sellers and it's not comfortable for them to start but you've kind of got to help them understand why it's important. This isn't an abnormal situation, this is all normal part of this process. And you can be comfortable that you're not being exposed unnecessarily.
It's having really plain English conversations about what's important to each party in a way that helps them understand the other person's side. And it's that work and through time that builds the relationship, because it's more than just shaking hands and having your coffee, it's actually getting into the details.
It is a relatively lonely space, and just having real interactions with the community is by far my most important driver for attending the events. I have no doubt there'll be lots of insights and learnings and new people that I meet, which will influence me.
Monday Jul 11, 2022
Monday Jul 11, 2022
This year, the Australian EtA and Search Fund community is looking forward to its first big event for the region. The EtA Forum (www.etaforum.com.au) will be held at the Manly Pacific Hotel, on Manly Beach in Sydney, on Friday 16th September.
In this episode I speak with Paige Kohalmi, Founder at Greenstorm Capital. She will be hosting a panel discussion at the forum, with a focus on how Searchers can make their deals more backable… and find those backable businesses in the first place!
Paige will interrogate a panel of investors to learn exactly what they’re looking for in a deal and how best to get them over the line. Paige is six months into her own Search and has recent, relevant experience sourcing, assessing and pitching potential deals to investors, so she is perfectly placed to get to the bottom of investor expectations for the benefit of the Forum audience.
Please stay tuned as we count down the days and be sure to yell out if you have any questions or comments to offer, so we can make the EtA Forum a great event for all involved.
Tickets available at: www.etaforum.com.au
Connect with Pete: https://www.linkedin.com/in/peteseligman/
Connect with Paige: https://www.linkedin.com/in/paige-kohalmi/
What we discussed:
02:55 We learn about Paige’s background and how she became a searcher
06:51 Paige discusses the learnings she has extracted in the last 6 months
11:25 What can we expect from her panel session at the EtA Forum?
20:24 Paige tells us about the different methods of engagement she’s been using with investors
24:05 In what ways will the Forum in September be useful to the search community?
Quotes:
I think a big learning has been, how to use the different investors that I have on board and the different people within the community at large and where they can come in and be useful at different stages as well
There's another part of me that kind of thinks that rite of passage is something that's almost necessary as part of your evolution as a searcher as you're thinking through these things, and probably makes you stronger for it.
What has definitely evolved in the last six months is getting a much better understanding of how to come up with that perfect deal. That is that unicorn that kind of suits everybody. The key message there is that there are multiple ways to look at an opportunity and consider a deal. And not only that, but there are different levers that can be pooled and changed and dynamics of that deal structure that can make it more attractive, and or less attractive, and how you can change that.
Because you do have to, as the searcher, balance all of these different opinions and take them into consideration. So you don't want to get through the process and then not have that support at the end of the day.
And also being reflected back to myself as well and constantly checking in with - is there still a deal that that I want to back myself in and that I want to potentially relocate my family for and change my life.
I think that community pot has just it gave me the confidence first and foremost to even do what I'm doing.
Monday Jul 04, 2022
Monday Jul 04, 2022
This year, the Australian EtA and Search Fund community is looking forward to its first big event for the region. The EtA Forum (www.etaforum.com.au) will be held at the Manly Pacific Hotel, on Manly Beach in Sydney, on Friday 16th September.
In this episode I speak with Luke Taylor, Founder at Acheron Capital, who is hosting a session focused on the unique role of Investors in the Search Fund model. It’s a great opportunity to hear a bit about Luke and his journey in Search, along with his thoughts on what he’ll aim to get out of the panelists during his session at the Forum.
He reflects on his own experience working with Investors who are very much motivated to support Search, which inherently attracts hands-on investors, who like to give advice, give back and mentor Searchers through their journey. And from the investors perspective, Luke comments that there's a real opportunity if you're an investor and considering funding search to work alongside somebody, to give them the benefit of your knowledge.
Please stay tuned as we count down the days and be sure to yell out if you have any questions or comments to offer, so we can make the EtA Forum a great event for all involved.
Tickets available at: www.etaforum.com.au
Connect with Pete: https://www.linkedin.com/in/peteseligman/
Connect with Luke: https://www.linkedin.com/in/luke-taylor11/
Tuesday Jun 28, 2022
Tuesday Jun 28, 2022
This year, the Australian EtA and Search Fund community is looking forward to its first big event for the region. The EtA Forum (www.etaforum.com.au) will be held at the Manly Pacific Hotel, on Manly Beach in Sydney, on Friday 16th September.
In this episode I speak with Jake Nicholson, Managing Director at SMEVentures. I asked Jake about his experience with bringing a search fund based business model to a new market and why he chose Australia. Jakes tells us that in all the markets he explored, they needed to line up with the 3 pillars of capital, deal flow and talent. The answer came clearest and quickest from Australia.
You can hear more from Jake at his session at the EtA Forum as he reveals how the Australian market is doing compared to the US and how we can identify some early indicators of where success and failure might be.
Please stay tuned as we count down the days and be sure to yell out if you have any questions or comments to offer, so we can make the EtA Forum a great event for all involved.
Forum tickets available at: www.etaforum.com.au
Connect with Pete : https://www.linkedin.com/in/peteseligman/
Connect with Jake : https://www.linkedin.com/in/jakenicholson/
Pete's first podcast interview with Jake : https://www.peteseligman.com.au/blog/search-funds-101-with-an-industry-veteran
What we discussed:
03:53 Jake talks about the process of bringing a search fund based business model to a new market
11:16 Jake tells us what he is currently seeing in relation to the talent in Japan
13:03 Pete asks Jake his perspective on Australia when it comes to search fund, and is it an environment that's appropriate for search fund activity?
14:47 Jake talks about what we can expect to see from his session at the EtA Forum and the comparison work he is doing with US market.
21:06 Pete discusses potential challenges in Australia right now and in particular, talent.
#capital #search fund #dealflow #searcher #australianmarket #talent
Tuesday Jun 21, 2022
Tuesday Jun 21, 2022
This year the Australian EtA and Search Fund community is looking forward to its first big event for the region. The EtA Forum will be held at the Manly Pacific Hotel, on Manly Beach in Sydney on Friday 16th September.
In the lead up to the event, I will be interviewing the speakers and moderators to give you some insight into the experience, capability and knowledge that will be on offer when we all come together for the first time.
In this first episode, I interview Jake Nicholson, Ak Sabbagh, Michael Chew and Nick Bamford. These are the guys whom I've been working with over the last few months to bring the EtA Forum to life, so what better way to start this Season than with a chat to them! I get their thoughts on Search / EtA in Australia and what they hope to achieve through the Forum itself.
Please stay tuned as we count down the days and be sure to yell out if you have any questions or comments to offer, so we can make the EtA Forum a great event for all involved.
Forum tickets available at: www.etaforum.com.au
Wednesday Dec 01, 2021
Wednesday Dec 01, 2021
Steve Ressler is an entrepreneur and an experienced investor and advisor in the Search Fund space. He's originally from Ohio and presently based in Washinton DC.
Steve was attracted to the Search Fund model because it had similarities to private equity, where you buy great businesses or invest in one at a fair price, but also having the responsibility of an entrepreneur, where you reform and manage a business to reach new heights.
Steve is now backing over 30 searchers and has followed on into over 30 individual acquisitions in the small business space in America.
In this episode, I had an interesting conversation with Steve. Having heard of Steve's experience and background, I used this opportunity to ask him a lot about the investor's perspective; what do investors look for in a good Searcher? What do Searchers typically learn during their Search Phase and into their operation phase?
I gleaned some insights from his experience that can help anyone that is thinking about coming to Search and the ways in which they can test whether or not it might be a good fit for them.
Show Notes:
02:46 – Steve talks about his history from being a government employee to being involved in startups, and how he got into the Search space.
05:41 – Steve talks about his experience in dealing with other co-investors in the Search space, and having invested in different kind of businesses such as first-generation businesses and talks about the difference between private equity and the Search Fund model.
11:48 – Steve shares his thought about typical things that he is looking for a Searcher in which he could determine whether or not that person is going to have a successful time being a Searcher
15:52 – Steve talks about what Searchers learn during the Search Phase and operation phase, and what are his insights and experience from these phases in the search fund procedures.
29:37 – Steve talks about the skill set that a Searcher must-have, and he shares his tips for new emerging markets that would make sure they are on the right path for growth.
Connect with Pete: LinkedIn
Connect with Steve: LinkedIn
Wednesday Nov 17, 2021
Wednesday Nov 17, 2021
Ahron Oddman is the CEO of PSS, a small business he bought in early 2020 that provides software and learning on demand for school students in America. Ahron has a diverse background, including spending 15 years in the military as a Marine and five years working in sales for a startup. He's also done an MBA at Harvard. Through all of that experience, he concluded that the next step for him was to commence a Search. He did a self-funded Search in late 2019 and acquired his business in early 2020, an interesting and challenging time as the world was dealing with the start of the COVID 19 pandemic. In this episode, we dig into Ahron's journey and how he came to Search in the first place, where he thinks his attributes and aspirations were a good fit for the model, and a little bit about his experience during the search process. We also discuss some of the lessons he's learned during the first 18 months in the hot seat running the business that he acquired. It's a great conversation. I enjoyed speaking to Ahron. I look forward to catching up with him again in another 12 months when his business continues to grow and even starts to launch some new products. Show Notes:02:03 – Ahron talks about his journey coming to Search, coming through the military, and getting a degree in business.11:29 – Ahron talk about what are the necessary skill you must develop if you’re planning to start a search in a couple of years, such as Sales, Operation, Accounting, etc.17:24 – Talks about a leader’s standpoint in changing operation, to not have a debate but rather an interactive conversation on what are the steps that would take the business to new heights.19:26 – Ahron talk about his business and how he ended up buying the company.28:03 – Ahron talk about taking steps in the Search process and not just waiting on a perfect business and having another opportunity to pass by.Connect with Pete: LinkedIn Connect with Ahron: LinkedIn
Wednesday Nov 03, 2021
Wednesday Nov 03, 2021
Alex Simmons is the founder of Voyager Equity, Australia's first traditional Search Fund launched in early 2019. Before launching that fund, Alex was a manager with Partners in Performance in Sydney and prior to that, an investment manager in the UK. He's had some interesting experience across management, consulting, and also private equity. In this episode, I get Alex's perspective on the search phase as he prepares to complete an acquisition later this year. We discuss in this conversation how he's used a steady approach to ensuring that he doesn't just buy any business, he wants to buy a good business with which to build value.Alex gives us the highs, the lows, some of the challenges, and also talks through some of the attributes that others might need to think about if they're considering Search for themselves. I hope you enjoy it. Show Notes:01:44 – Alex talks about how quickly you can connect with people in a range of other markets. How culture affects different kinds of markets, and how a lot of things might work in this country but don't work in other countries.04:24 – Alex talks about how he got involved in the search and what really took him to the point to decide that it is the right path to take for himself and what are the important things you need to ask yourself before taking the searchers path.11:34 – Coming to the end of his search phase, Alex talks about his experience and some key take-outs, good and bad, that might help reflect what he's been through in that search journey and what he would tell people considering that in mind.16:57 – Alex talks about his expectation coming to the search on the marketplace in terms of vendor and vendor response and his current perspective of the vendors in the Australian market and the market itself. 26:09 – Alex talks about his priorities what he would be focusing on in his six to twelve months of acquisition.Connect with Pete: LinkedInConnect with Alex: LinkedIn