How Two Hard Earned Acquisitions Paid Off for Malcom Peace

This episode was brought to you by The Magnolia Firm. Specialty M&A Business Brokerage firm helping business owners sell their company. https://exit.themagnoliafirm.co/top

In this episode we introduce you to Malcolm Peace, who shares his insights on acquisitions. Malcolm believes that acquisitions are about "Buying Time," as they provide an opportunity to fast-track growth and success. He emphasizes the importance of getting inspiration from various sources to enhance decision-making.

Malcolm credits his mentors for guiding him in his journey. Their wisdom and advice have played a significant role in shaping his approach to acquisitions. He reflects on whether an ERP project was merely a skill test or a real customer, highlighting the importance of intentionality when all the pieces start coming together.

Drawing inspiration from tennis legend Andre Agassi, Malcolm explains how Agassi figured out Bjorn Borg's serve. This example demonstrates the significance of studying and understanding the nuances of a deal. Malcolm also shares his experience of launching a private equity firm as a minority partner and the subsequent blowup.

Sourcing a deal can be a rollercoaster ride, and Malcolm cautions against getting emotionally attached to a deal. He shares insights from his private equity experience, particularly on the quality of earnings and the benefits of looking at deals closer to home.

The episode continues with discussions on the role of brokers and building an outreach system to change outcomes. Malcolm introduces the search criteria thesis, the 3 D's, and reveals how long it took him to find his first acquisition. He also emphasizes the importance of helping owners work above the business to scale and exit successfully.

Malcolm shares details about his second acquisition, including how he financed the deal using the "Her Price, My Terms" approach. He highlights the remarkable $900,000 in free cash flow generated by the shrimp industry. The episode delves into capital raising and staying connected with investors.

Exploring the concept of HoldCo dreams, Malcolm discusses the presence of a General Manager in the acquired company. He compares his feelings about this deal to losing his first deal and shares how he settles himself when faced with uncertainties.

In this insightful episode, Malcolm Peace provides valuable perspectives on acquisitions, mentorship, intentionality, sourcing deals, free cash flow, and the emotional journey of a dealmaker.

SHOW NOTES:

00:00 Episode brought to you by The Magnolia Firm

00:51 intro to Malcolm Peace and his first look at acquisitions

04:10 Acquisitions are about "Buying Time"

05:56 Getting Inspiration

08:30 How his mentors guided him

11:10 Was the ERP project a skill test or real customer?

13:45 The Pieces start coming together when you are intentional

15:18 How Andre Agassi figured out Bjorn Borgs serve

15:59 Launching a PE firm as minority partner - and the blowup

22:26 Sourcing a deal and what happens when you get emotionally attached to a deal

26:56 What his PE experience taught him about Quality of Earnings

28:00 looking at deals closer to home

29:02 Episode brought to you by The Magnolia Firm

30:35 Broker or no broker - change the outcome?

31:00 Building an outreach system - before and after results

33:28 The search criteria thesis - The 3 D's

35:58 How long did it take to find your first acquisition

39:17 Helping owners to work above the business - to scale and exit

40:22 Malcom's 2nd Acquisition

42:37 How he financed the deal - Her Price My Terms

44:45 $900,000 in free cash flow - shrimp

47:43 How much he raised in capital - Why you need to stay in touch with investors

49:17 All cash Friends & Family round?

52:26 What is he doing with the excess free cash flow...bigger deals?

53:20 HoldCo dreams

53:49 Did company have GM in place?

54:17 How do you feel about this deal compared to losing first deal

56:25 Owner Second Guessing the Deal

57:43 What Malcom does settles himself

LINKS to Malcolm Peace

https://www.linkedin.com/in/malcolmpeace

https://tsetserra.com/