A Buyer’s Perspective — Why the Human Side is More Important Than Money in M&A Transactions

About the Episode

This edition of M&A Talk offers a refreshing perspective on what really matters in a business – the people. Austin King discusses topics that impact a seller and what his investment firm considers when making acquisitions in the industrial services sector. He discusses how cultural diligence can ensure people and culture will mesh, how to balance qualitative decisions with traditional quantitative measurements, working with owners who want to remain with the business part-time, and how building relationships impacts business.

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“It’s refreshing to lift up the curtain and see what goes on behind the scenes and see what really matters. To the entrepreneurs out there, this stuff really, really matters. You have to know a transaction from a technical level, but ultimately it is about people.”

Jacob Orosz

In this Episode

Learn More

• The Basics of Independent (Fundless) Sponsors in M&A
• The Role of Family Offices in M&A
• Net Working Capital (NWC) for M&A – A Complete Guide
• M&A Basics | Why Do Business Owners Sell Their Business?

Resources Mentioned in This Episode

• Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue by Jacob Orosz
• The Art of the Exit: The Complete Guide to Selling Your Business by Jacob Orosz
• Applied Mergers and Acquisitions by Robert F. Bruner

Terms Mentioned in This Episode

• Family Office: A privately held company whose sole purpose is to handle the personal and professional affairs of a wealthy individual or family.
• Independent Sponsor: An independent (aka fundless) sponsor is an individual or group of individuals seeking to acquire a company but who have not raised the equity committed to the transaction in advance.
• LP: Limited Partner in a partnership.
• OSHA: Occupational Safety and Health Administration – national workplace safety regulator.
• PE Firm: Private Equity Firm – a company that raises money from institutional investors and then invests these funds into private companies.
• Search Fund: A pool of capital raised by a management team to acquire and manage a business.
• CapEx: Capital Expenditures – funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment.

Meet Our Guest

Austin King

Executive Chairman of Steel River & CFO of CraneTech

Austin King is a Co-founder of Steel River and serves as Chief Financial Officer and Head of M&A at CraneTech. Steel River was founded out of a deep desire to acquire and operate businesses while providing founders with an alternative exit opportunity. Austin is focused on building the next generation of industrial services companies that will leverage cutting-edge technology, put employees first, and make the USA a leader in manufacturing again.

Before co-founding Steel River, Austin was Director of Business Development at Alpine Investors, where he was responsible for sourcing and closing over $200 million in enterprise value across various service industries. Prior to that, Austin was a consultant for Accenture, focused on driving operational efficiencies and cost savings for Fortune 500 clients. Austin graduated Magna Cum Laude from Providence College with a B.A. in Economics and Political Science.

Location: Los Angeles, California

LinkedIn: www.linkedin.com/in/austin-king12

Website: www.steelriver.co