Sierra Pacific Partners | LinkedIn (original) (raw)

Investment Banking

Sacramento, California 890 followers

SMB Sales + M&A The Right Way. We make deals happen | Business Brokers + M&A Advisors

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About us

Sierra Pacific Partners is a boutique investment bank offering mergers and acquisitions and other advisory services. Securities are offered through Finalis Securities LLC Member FINRA / SIPC. Sierra Pacific Partners and Finalis Securities LLC are separate, unaffiliated entities.

Industry

Investment Banking

Company size

2-10 employees

Headquarters

Sacramento, California

Type

Privately Held

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Employees at Sierra Pacific Partners

Updates

🎙️ Scott recently joined Brian from Coruzant Technologies on 𝐓𝐡𝐞 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐄𝐱𝐞𝐜𝐮𝐭𝐢𝐯𝐞 𝐩𝐨𝐝𝐜𝐚𝐬𝐭! One analogy they touched on: 𝘔&𝘈 𝘢𝘥𝘷𝘪𝘴𝘰𝘳𝘴 𝘢𝘳𝘦 𝘭𝘪𝘬𝘦 𝘳𝘦𝘢𝘭 𝘦𝘴𝘵𝘢𝘵𝘦 𝘢𝘨𝘦𝘯𝘵𝘴, 𝘣𝘶𝘵 𝘧𝘰𝘳 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴𝘦𝘴 𝘪𝘯𝘴𝘵𝘦𝘢𝘥 𝘰𝘧 𝘣𝘶𝘪𝘭𝘥𝘪𝘯𝘨𝘴. It's a helpful starting point to explain what we do, but the comparison falls short in a few important ways; especially when founder-sellers assume the processes are similar. Here’s where the analogy breaks down: 🔹 A business sale involves both tangible and intangible assets, like brand equity, customer relationships, and IP. 🔹 The deal includes contracts, employees, debts, licensing, and more. 🔹 There's multi-layered due diligence: financial, operational, and legal. 🔹 Market conditions, industry trends, and competitive forces all shape the M&A landscape. 🔹 And unlike real estate deals, M&A timelines can stretch out due to the complexity involved. 💭 So while the real estate analogy helps open the door, it oversimplifies what M&A really entails. Thanks again to Brian and Coruzant for the thoughtful conversation! Listen to it here: https://lnkd.in/gyDHKM_S #MergersAndAcquisitions #DigitalExecutive #BusinessSale #M&A #Entrepreneurship #Coruzant #PodcastInterview #BusinessAdvisory
The Digital Executive https://podcasts.apple.com
🎯 𝐌&𝐀 𝐃𝐞𝐚𝐥 𝐏𝐨𝐢𝐧𝐭𝐬 | 𝘞𝘩𝘺 𝘛𝘩𝘢𝘵 𝘍𝘪𝘳𝘴𝘵 𝘌𝘮𝘢𝘪𝘭 𝘐𝘴 𝘑𝘶𝘴𝘵 𝘵𝘩𝘦 𝘉𝘦𝘨𝘪𝘯𝘯𝘪𝘯𝘨 𝘪𝘯 𝘔&𝘈 Many sellers we speak with are inundated with inbound interest from PE firms and buy-side bankers. That’s to be expected, quality businesses that meet certain EBITDA thresholds attract attention. But here’s what many owners don’t realize: receiving an email is just one step in a much longer buy-side process. Most haven’t paused to consider where their deal fits into that journey. Here’s a high-level look at the typical buy-side process, from strategy to close: Conduct segment research and develop target criteria Build and refine a target list Prepare marketing materials Launch direct outreach (this is where sellers often first hear from buyers) Qualify targets and begin initial diligence Hold management meetings Perform pre-IOI/LOI diligence Submit and negotiate LOIs (arguably the most critical negotiation phase) Conduct pre-definitive diligence Negotiate definitive agreements Secure financing Close As this outline shows, there’s still a long road from that first inquiry to a signed deal. Closing risk persists through nearly every stage. Sellers benefit from knowing what lies ahead and having an experienced deal team to guide the way.
Scott recently had an excellent discussion with Craig, with a particular focus on integration for purposes of roll-ups. 𝐓𝐥;𝐃𝐑: For an add-on's EBITDA to achieve a platform-level multiple, it needs to be integrated ⤵️ 🧩 Integrated supply chain 🧩 Integrated IT systems 🧩 Uniform customer experience and support 🧩 Integrated product / service portfolio with cross-selling opportunities 🧩 Integrated marketing strategy 🧩 Unified culture 🧩 Organization-wide recruiting, retention, and career development pathways 🧩 Integrated data and performance metrics 📍 Without at least some of these pieces in place, add-ons are often only worth their stand-alone multiple and don't benefit from the enterprise-wide valuation. Catch the episode here: https://lnkd.in/gAp2Vj4G
018 - Scott Weavil - M&A Secrets Unveiled Bridging Gaps & Boosting Profits

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🎯𝐌&𝐀 𝐃𝐞𝐚𝐥 𝐏𝐨𝐢𝐧𝐭𝐬 | 𝘚𝘵𝘢𝘳𝘵𝘪𝘯𝘨 𝘢𝘵 𝘵𝘩𝘦 𝘦𝘯𝘥 Every successful M&A process starts the same way: by understanding what success looks like for our client. No two owners, or businesses, are the same. That’s why we begin every engagement by identifying the desired outcome and then building the strategy around it. Here's what that looks like in practice ⤵️ ▶️ 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐓𝐲𝐩𝐞 Full sale, majority or minority recap, dividend recap, ESOP - each option serves a different purpose. The right structure depends entirely on the owner’s goals. ▶️ 𝐏𝐨𝐬𝐭-𝐂𝐥𝐨𝐬𝐢𝐧𝐠 𝐑𝐨𝐥𝐞 Will the seller stay on as CEO? Support for a 6–12 month transition? Step away entirely? These choices shape the buyer pool and influence deal terms. ▶️ 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 & 𝐋𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲 𝐄𝐱𝐩𝐞𝐜𝐭𝐚𝐭𝐢𝐨𝐧𝐬 Is the owner seeking maximum upfront liquidity? A chance to reinvest alongside a strategic partner? A larger future payout through an earnout or growth equity? Understanding this informs our negotiation approach. ▶️ 𝐍𝐨𝐧-𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐏𝐫𝐢𝐨𝐫𝐢𝐭𝐢𝐞𝐬 How important are employee continuity, brand preservation, or legacy? These factors often carry as much weight as price. Aligning strategy with purpose from the outset isn’t just smart, it’s essential. That’s how we position our clients for successful, values-aligned outcomes.#MergersAndAcquisitions #MiddleMarket https://lnkd.in/gzHAbXuM
Understanding our clients’ goals {M&A Process/1}

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🎯 𝐌&𝐀 𝐃𝐞𝐚𝐥 𝐏𝐨𝐢𝐧𝐭𝐬 | Does the peg have legs {𝘸𝘰𝘳𝘬𝘪𝘯𝘨 𝘤𝘢𝘱𝘪𝘵𝘢𝘭} In many deals, the working capital peg is one of the most important, and most overlooked elements of negotiation. Too often, it gets pushed to the tail-end of the process, when fatigue is high and leverage is low. 𝘉𝘶𝘵 𝘩𝘦𝘳𝘦’𝘴 𝘵𝘩𝘦 𝘤𝘢𝘵𝘤𝘩: working capital has a dollar-for-dollar impact on the final purchase price. 💰 Deals are usually structured as cash-free, debt-free, meaning the buyer takes over the business’s assets (including working capital), but not its cash or debt. The “peg” is the agreed-upon working capital level, and at closing, the actual number is compared to the peg. If actual 𝐖𝐂 > 𝐩𝐞𝐠, the seller may pocket more. If actual 𝐖𝐂 < 𝐩𝐞𝐠, the buyer could claw back some value. So what should sellers be watching out for in the buyer’s WC calculations? 📌 𝐊𝐞𝐲 𝐖𝐚𝐭𝐜𝐡𝐩𝐨𝐢𝐧𝐭𝐬: Use of peak vs average historical working capital Inclusion of non-operating or one-off items Aged or uncollectible receivables left in by sellers Obsolete inventory still on the books Pegs based on seasonal highs rather than sustainable levels Inclusion of cash (most pegs are net of cash) Tweaks to accounting definitions of current assets/liabilities 𝘉𝘖𝘛𝘛𝘖𝘔 𝘓𝘐𝘕𝘌: Aligning on peg parameters early (at LOI stage) can save everyone headaches later, but timing it right depends on when the buyer begins serious due diligence.
🎯 𝐌&𝐀 𝐃𝐞𝐚𝐥 𝐏𝐨𝐢𝐧𝐭𝐬 | "𝘉𝘶𝘺 𝘮𝘺 𝘱𝘳𝘰𝘥𝘶𝘤𝘵" {industry characteristics/2} Again, for anyone involved in ETA or M&A, we highly recommend Adam Coffey's book, 𝘌𝘮𝘱𝘪𝘳𝘦 𝘉𝘶𝘪𝘭𝘥𝘦𝘳. 🔑 In the book, Adam also breaks down what to look for in PRODUCT BUSINESSES 👇 Whether you're building to sell or scaling strategically, these 5 traits consistently stand out in high-demand product businesses: 1️⃣ 𝐇𝐢𝐠𝐡 𝐌𝐚𝐫𝐠𝐢𝐧𝐬 Strong gross (and ideally net) margins fuel profitability. They give you the flexibility to invest in innovation, weather market shifts, and stay competitive. 2️⃣ 𝐂𝐫𝐨𝐬𝐬-𝐒𝐞𝐥𝐥𝐢𝐧𝐠 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 A flagship product is great, but pairing it with complementary offerings? That’s how you increase revenue per customer, build loyalty, and boost lifetime value. 3️⃣ 𝐋𝐞𝐚𝐧 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠 & 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 Light manufacturing and minimal inventory requirements keep overhead low and production nimble, key for cash flow and adaptability. 4️⃣ 𝐒𝐭𝐫𝐨𝐧𝐠 𝐎𝐧𝐥𝐢𝐧𝐞 𝐏𝐫𝐞𝐬𝐞𝐧𝐜𝐞 Visibility = viability. A robust digital presence not only drives sales but unlocks valuable customer data and long-term engagement. 5️⃣ 𝐅𝐫𝐚𝐠𝐦𝐞𝐧𝐭𝐞𝐝 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 Fragmentation means lower entry valuations, more acquisition targets, and real potential for roll-ups and multiple arbitrage. (A favorite for strategic buyers and PE firms!) 💡 𝐁𝐎𝐓𝐓𝐎𝐌 𝐋𝐈𝐍𝐄 : If you're building a product business with an eventual exit in mind, this is your checklist. Aligning with buyer expectations is more than smart, it's strategic. And for a deeper dive into what buyers actually want, we highly recommend checking out any of Adam’s books. 👇 What would you add to this list? Drop your thoughts in the comments.
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Scott recently had a great conversation with Tahir Javed Kashif, who owns the largest brokerage in Dubai. ⚡ Tahir and Scott spent a lot of time talking about transaction preparedness and speed, with Tahir walking me through some of the ways he's using new AI tools to help pick up the pace even further, particularly with buyer screening. Check it out 👇

I Help Business owners buy and sell Businesses successfully in Dubai
6mo
Here's an amazing virtual chat with Scott Weavil, founder of Sierra Pacific Partners. If you’ve ever wondered what it takes to navigate the highs and lows of selling a business, this is the conversation for you. Scott has a way of making the complex world of M&A feel approachable—and exciting! We dove into: ✅ How he helps sellers achieve life-changing exits. ✅ Surprising twists in the deal-making process (and how he handles them). ✅ The game-changing role of AI in modern M&A. ✅ Lessons from Wall Street that apply to small business owners. What really stood out? Scott’s passion for helping his clients find not just financial success, but personal fulfillment in their business transitions. Curious to learn more? Check out the full conversation here: https://lnkd.in/eFn5Xk_D #SmallBusinessExits #PodcastChat #BusinessGrowth #MergersAndAcquisitions #Leadership
Whether you're an acquisition entrepreneur or an owner eyeing an exit, we highly recommend Adam Coffey's new book, 𝘌𝘮𝘱𝘪𝘳𝘦 𝘉𝘶𝘪𝘭𝘥𝘦𝘳. 🔑 In the book, Adam breaks down what to look for in SERVICE BUSINESSES: 1️⃣ 𝐑𝐞𝐜𝐮𝐫𝐫𝐢𝐧𝐠 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 - For predictability / stability, lower customer acquisition costs vs lifetime value, and easier financial planning. 2️⃣ 𝐃𝐨𝐰𝐧𝐭𝐮𝐫𝐧 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞 - Focusing on targets that fulfill needs rather than wants lessens the impact of adverse macro conditions. 3️⃣ 𝐅𝐫𝐚𝐠𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 - Fragmented industries have more supply and, thus, lower purchase prices; plus, there's greater opportunity for consolidation and multiple arbitrage. 4️⃣ 𝐄𝐚𝐬𝐞 𝐨𝐟 𝐑𝐞𝐜𝐫𝐮𝐢𝐭𝐢𝐧𝐠 - In order to grow, you must be able to recruit and retain workers. That's easiest in industries where there is an ample labor pool (eg, lower-skilled roles in positions that are attractive to workers). 📍 If you're a seller with a services business building with the end in mind (as you should be), matching buyers' criteria is a great roadmap.
🎯 𝐌&𝐀 𝐃𝐞𝐚𝐥 𝐏𝐨𝐢𝐧𝐭𝐬 | 𝘔𝘪𝘯𝘰𝘳𝘪𝘵𝘺 𝘋𝘪𝘴𝘤𝘰𝘶𝘯𝘵𝘴 𝘪𝘯 𝘖𝘸𝘯𝘦𝘳𝘴𝘩𝘪𝘱 𝘈𝘨𝘳𝘦𝘦𝘮𝘦𝘯𝘵𝘴 When it comes to buy/sell provisions in ownership agreements, one of the trickiest topics is how equity is valued when someone exits. Should minority or marketability discounts be applied? It depends, but the impact is huge. 𝐀 𝐪𝐮𝐢𝐜𝐤 𝐫𝐞𝐟𝐫𝐞𝐬𝐡𝐞𝐫: 𝘔𝘪𝘯𝘰𝘳𝘪𝘵𝘺 𝘋𝘪𝘴𝘤𝘰𝘶𝘯𝘵𝘴 ▶️ Reflect lack of control over business decisions. 𝘔𝘢𝘳𝘬𝘦𝘵𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘋𝘪𝘴𝘤𝘰𝘶𝘯𝘵𝘴 ▶️ Reflect the difficulty of selling a stake in a private business. 𝐇𝐞𝐫𝐞'𝐬 𝐰𝐡𝐞𝐫𝐞 𝐢𝐭 𝐠𝐞𝐭𝐬 𝐜𝐨𝐧𝐭𝐞𝐧𝐭𝐢𝐨𝐮𝐬: ▶️Majority owners tend to favor these discounts as they reduce buyout costs. ▶️ Minority holders usually oppose them because they can significantly undervalue their shares. 𝐀 𝐟𝐞𝐰 𝐤𝐞𝐲 𝐭𝐡𝐢𝐧𝐠𝐬 𝐭𝐨 𝐤𝐞𝐞𝐩 𝐢𝐧 𝐦𝐢𝐧𝐝: ▶️ Discounts might make sense for companies with clear controlling ownership (e.g., PE-backed firms). ▶️ They can overlap with control premiums, complicating appraisals. ▶️ If used in formula-based valuations, they may shift decisions away from full appraisals. 𝐁𝐨𝐭𝐭𝐨𝐦 𝐥𝐢𝐧𝐞: Whether you're exiting or rolling over, make sure you clearly understand how your equity will be valued before you sign. 💬 What’s your experience with buy/sell clauses and valuation disputes? Have discounts ever worked for or against you?#MergersAndAcquisitions #BusinessValuation
🎯 𝐃𝐫𝐢𝐯𝐢𝐧𝐠 𝐕𝐚𝐥𝐮𝐞 𝐢𝐧 𝐚 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐒𝐚𝐥𝐞 | 𝘔&𝘈 𝘋𝘦𝘢𝘭 𝘗𝘰𝘪𝘯𝘵𝘴 🎙️ Scott recently joined Robert Plank on the 𝘔𝘢𝘳𝘬𝘦𝘵𝘦𝘳 𝘰𝘧 𝘵𝘩𝘦 𝘋𝘢𝘺 podcast for a deep dive into M&A and business succession planning. They covered key factors that drive value in a business sale, including: 🔽 ✅ Building a track record of steady profitability ✅ Reducing owner dependence ✅ Keeping clean, well-organized financials 🔑 One standout theme? 𝐏𝐫𝐞𝐩𝐚𝐫𝐚𝐭𝐢𝐨𝐧 𝐢𝐬 𝐞𝐯𝐞𝐫𝐲𝐭𝐡𝐢𝐧𝐠. Whether you're thinking of selling next year or five years from now, the groundwork you lay today makes all the difference. 🎧 𝐋𝐢𝐬𝐭𝐞𝐧 𝐭𝐨 𝐭𝐡𝐞 𝐟𝐮𝐥𝐥 𝐞𝐩𝐢𝐬𝐨𝐝𝐞:https://lnkd.in/gUxZDJ5Y📺 𝐖𝐚𝐭𝐜𝐡 𝐭𝐡𝐞 𝐜𝐨𝐧𝐯𝐞𝐫𝐬𝐚𝐭𝐢𝐨𝐧:https://lnkd.in/ds2FmpC6If you’re thinking about buying, selling, or preparing your business for a future transition, feel free to reach out. We're always happy to connect and chat through strategy.#MandA #BusinessSuccession #ExitPlanning #Entrepreneurship #WeavilLaw #PodcastGuest

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Sierra Pacific Partners | LinkedIn (original) (raw)

Investment Banking

Sacramento, California 890 followers

SMB Sales + M&A The Right Way. We make deals happen | Business Brokers + M&A Advisors

About us

Locations

Employees at Sierra Pacific Partners

Updates

https://www.youtube.com/

https://www.youtube.com/

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