Join hosts Casey Minshew and Feras Moussa on the M&A Launchpad Podcast as they sit down with Nate Pratt, CFA, Vice President of Corporate Development at OneDigital. Nate plays a pivotal role in driving growth in the institutional and wealth advisory space through mergers and acquisitions. With a wealth of experience from leadership roles at Dimensional Fund Advisors, a $575 billion investment firm, and Strategic Investment Solutions, Nate is a seasoned expert in investment consulting and corporate strategy.
In this episode, Nate shares his expertise on working with sellers, offering listeners a deep understanding of the seller’s mindset throughout the M&A process. The conversation uncovers key strategies for navigating seller dynamics, building trust, and fostering meaningful relationships with founders during the sale of their businesses.
Listeners will gain valuable insights into the importance of early succession planning, the unique challenges tied to generational differences in communication, and the emotional complexities sellers face during transitions. Nate also emphasizes the critical role of face-to-face interactions and highlights the need for a well-structured wealth management plan post-sale.
Tune in for an engaging and informative discussion packed with actionable takeaways for anyone involved in M&A or wealth management!
In this episode:
- Learn how to understand the mindset of sellers and the emotional challenges they face during M&A processes.
- Discover practical strategies for building trust and meaningful relationships with business founders
- Explore the critical role of early succession planning in ensuring smooth transitions.
- Gain insights into generational differences and their impact on communication and decision-making in M&A.
- Understand the significance of face-to-face interactions in fostering seller cooperation and closing deals.
- Hear Nate’s advice on creating a strong wealth management plan for post-sale success.
You can contact Nate Pratt at: https://www.onedigital.com/profile/nate-pratt-cfa/
Additional Resources:
- Join the M&A Launchpad Community at the M&A Launchpad Conference on May 3rd in Houston. Get your tickets here: https://www.malaunchpad.com/ and use code LAUNCH for $200 Off
- Access our archive of video interviews on YouTube https://www.youtube.com/@MALaunchpad
- Get in touch with show hosts Casey Minshew and Feras Moussa at – info@equitylaunchpad.com
- Looking to invest in M&A opportunities or partner with an advisor to acquire, scale or sell your business? Visit Equity Launchpad (https://equity-launchpad.com/)
🎧 Podcast on Spotify: https://open.spotify.com/episode/3nPLYInHCCjRf7XxppnD8V?si=mIuMcnjwRS-0RtWVgKk3-g
🎧 Podcast on Apple: https://podcasts.apple.com/us/podcast/closing-sellers-in-an-m-a-deal-with-nate-pratt/id1740382586?i=1000699063713
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Transcript
00:00 hey are you thinking about buying or
00:02 selling a business join us May 3rd for
00:05 the m&a Launchpad conference this is the
00:07 Premier conference for entrepreneurs
00:09 investors navigating mergers and
00:11 Acquisitions in the lower Middle Market
00:13 you’re going to connect with top
00:14 dealmakers gain Insight strategies to
00:17 take your business search and your
00:18 business Acquisitions to the next level
00:20 so get your tickets now at M
00:23 launchpad.com and use the code launch
00:26 for $200 off your ticket we’re looking
00:28 forward to seeing you all right and
00:30 today’s episode we talked with Nate
00:31 Pratt where we really dived into a lot
00:34 of the seller psyche and mindset right
00:36 how do you go work with a seller how do
00:38 you close a seller and in addition to
00:40 that we really dived in a lot on just
00:42 kind of wealth planning wealth strategy
00:44 and Advising and all the mechanics
00:46 around that so Casey what were your some
00:48 take some of your takeaways yeah I think
00:49 you know being someone that meets with
00:51 sellers a lot especially like off-market
00:53 deals that may not be working through a
00:55 broker you’ve got to have some
00:57 confidence and ability to learn to work
00:60 with people um this is the biggest thing
01:02 that they’re ever going to do in their
01:03 life this is probably an extension of
01:05 their life there’s so many things going
01:08 on in that seller’s head and it was
01:09 amazing what Nate said he said yeah you
01:12 might get the Reps and you might go
01:14 through a lot of processes but these
01:15 sellers go through it once man that was
01:17 impactful no and that definitely
01:19 resonated right and we get asked all the
01:21 time of like how do you work or sellers
01:22 how do you work our sellers well this is
01:23 the episode where we kind of hard to
01:25 talk about some of those things and some
01:26 of it is just so obvious but I think
01:28 sometime sometimes people just need to
01:29 hear it nervous you don’t know what to
01:32 do you’ve never done it before maybe
01:33 you’re an engineer and you’re very good
01:35 at a certain thing in manufacturing and
01:36 you’re you’re honed in there but you’ve
01:38 never gone through a sales process
01:39 talking to a seller and there’s just
01:41 significant things you’re GNA do I took
01:43 something away from this thing I took a
01:44 lot away from it but one of the things
01:46 I’m changing part of my S strategy
01:48 because Nate nailed it on one of the
01:49 items um so definitely the episode to
01:52 listen
01:56 to Hey guys go ahead and just pause the
01:59 podcast for a second when you’re buying
02:00 a business you need to ensure the
02:02 financial health of the company the
02:03 quality of earnings is Mission critical
02:05 it doesn’t matter what size business
02:06 you’re buying Patrick oconnell Advisory
02:08 Group they’re dynamic they do a great
02:10 job they’re to look over your shoulder
02:11 they’re going to make sure that you’re
02:12 doing the right thing and this guy’s
02:14 done over 200 buyers successfully just
02:16 like you so reach out to them and it’s
02:18 oconnell advisory group.com click the
02:21 link in our show notes can’t live
02:22 without this hey Nate welcome to the
02:25 show guys thanks for having me congrats
02:27 on what you’re doing this is really an
02:29 amazing Forum this creating community
02:31 and a lot of people are going to be
02:32 leaning in yeah thanks Nate appreciate
02:34 it appreciate that and so for those
02:36 listeners we did do kind of the the
02:38 quick round circle before the podcast to
02:40 kind of get a little bit more
02:41 understanding so Nate you know maybe
02:43 simplify for people what is it you do
02:45 right then we can kind of hop into some
02:46 of the the audience the the questions
02:49 that relate to the audience yeah um I
02:52 feel like I have the best job in the
02:53 world so getting to work with Founders
02:55 spec specifically in the retirement and
02:58 wealth management business um at they
03:00 think through succession planning and
03:02 m&a so I I help lead m&a at one digital
03:06 which is a financial services company
03:08 employee benefits property casualty
03:10 retirement and wealth We Touch 109,000
03:13 employers across the country primarily
03:16 small midcap midsize companies let’s say
03:20 2,000 lives and Below but particularly
03:22 500 lives and below and that touches
03:23 about 14 million people and so the
03:27 opportunity if of across our employ base
03:31 that we we survey the number one
03:33 stressor is financial stress so to be
03:36 able to bring just a treasure chest of
03:39 opportunities for very talented
03:40 financial
03:41 planners I uh I lick the Earth every day
03:45 to find great talented teams and uh to
03:48 bring them to become Partners through
03:49 m&a at one digital awesome so yeah so I
03:52 think for for those listeners this G be
03:53 the episode where we talk about Sellers
03:54 and mindset I think it’s probably one of
03:56 the big Focus areas and so Nate I mean
03:59 you know how does a I guess let’s talk
04:00 about that how does a Founder come to
04:02 you right what do they ask you to do and
04:04 then really what has been your
04:05 experience working with those Founders
04:07 so Ferris like that’s a huge question
04:10 and I don’t want to wax poetically for
04:11 like hours my goal the the discussion of
04:16 succession planning I don’t think it’s
04:17 Unique to financial services or wealth
04:19 managers is so personal that I don’t
04:22 think that Founders have a lot of safe
04:24 places just to kind of explore it figure
04:27 out what’s right for them U they don’t
04:29 want their clients know knowing about
04:30 it’s a very personal uh thing and so to
04:34 be able to find people in their Journey
04:36 talk to them in a way in which the
04:37 conversation makes sense and then slowly
04:40 develop trust I don’t have a field
04:42 manual for that I mean it’s truly
04:44 developing individual relationships
04:47 where people are comfortable to refer me
04:49 to have an exploratory conversation
04:51 often what they think is years before
04:53 they’re ready for it so I think if there
04:56 was one takeaway from our time you ask
04:58 me what’s one advice you’d give to
04:60 founder I mean I’ll lead with it right
05:01 here start talking and thinking about it
05:04 way before you even you want it or need
05:07 it I you guys you know Ferris and Casey
05:09 you guys are in this space all the time
05:10 I don’t know if you
05:12 would or say that’s it no I agree
05:14 because one of the things when I when I
05:16 meet so my job what I do on a daily
05:18 basis is talk to people that are looking
05:20 to sell their company that’s what I talk
05:22 to right and you’re talking about like
05:24 like you mentioned it earlier it is if
05:26 not the most important sale of their
05:29 life um it’s pretty damn close top three
05:32 decisions I was able to do I was I was
05:34 fortunate I spent you know couple years
05:36 wasn’t a long time but I I went and
05:38 worked one of my first only W2 jobs I’ve
05:41 had uh I worked with uh selling to sea
05:44 level I wanted to get really good at
05:45 selling uh so I sold poo Services
05:47 payroll benefits workers comp uh health
05:50 so I got to have that conversation oh
05:51 you know the world you know the one
05:53 Digital World this is I know man and
05:54 it’s I had that conversation every day
05:56 and I loved it because you know one of
05:58 the things you’re talking to these guys
05:59 about is you know their business and
06:01 asking us questions well when I meet
06:03 with a seller now you know number one
06:05 we’re talking to baby boomers um if I’m
06:07 trying to sell the guy and I’m trying to
06:09 do it over teams or Zoom or anything I’m
06:12 I’ve lost immediately you got to get on
06:14 a plane you got to get in the car you
06:16 got drive down healthy that’s
06:20 right and so you got to get belly BL but
06:23 you also have to take a Consulting
06:24 attitude which is like what you’re
06:27 talking about so one of the things I do
06:29 is I try to read about some of the tax
06:30 rules on a on a stock sale and an asset
06:33 sale and and and having those
06:35 conversations earlier so I can
06:37 differentiate myself from the guy
06:38 getting on there that’s you know getting
06:40 on and talking to him to try to just put
06:42 the deal together over the phone I’m
06:43 wanting to be a consultant so Nate you
06:45 and I probably take a very similar
06:46 approach when we talk to them about
06:48 wealth management what are you gonna do
06:50 with your money one of my pitches is
06:52 always hey no one knows your business
06:54 better than you so why would you take
06:57 all the money out of the business right
06:59 and go put it in is something you don’t
07:00 know anything about so keep a seller
07:03 carry or roll some equity in with us
07:05 because you know that this thing can be
07:07 very valuable if we just do a few things
07:10 these are conversations I like to have
07:11 and it’s probably similar you have in
07:12 the wealth management side uh 100%
07:16 endorsing the first part uh phones
07:19 virtual this is good this is fine
07:21 doesn’t touch sitting face to face I I
07:24 mean I don’t even care if the
07:25 conversation’s technically the exact
07:26 same
07:28 conversation uh and I don’t think I love
07:31 technology i’ love to talk about that
07:32 Tech at some point you know in our
07:34 discussion and how it’s really is a
07:36 tailwind and making things better we are
07:39 in the trust business that will never be
07:42 arbitraged away that’ll never be
07:44 disrupted away it’s a people people it’s
07:47 inefficient it’s largely in we’re always
07:50 looking for efficiency this is
07:51 inefficient the m&a game is ineff you
07:54 have to be willing to suffer through
07:55 inefficiency to be effective that’s a
07:58 Steven cuvy quote I don’t want to claim
07:59 it sounds really good it’s not you can
08:01 be efficient with things not with people
08:03 you can be effective with people but
08:05 there will always be attention and the
08:07 man the minute we try to over
08:10 optimize human engagement you’re going
08:13 backwards I’m getting philosophical up
08:15 top but like love it no no especially
08:17 this age group of most sellers I mean
08:19 right there was age group they grew up
08:21 meeting face to face maybe they had a
08:23 phone at some point before you know the
08:25 current Modern Age and but but to tag on
08:27 what you’re just saying like like think
08:28 about age groups the people that are
08:30 listening to this podcast right now are
08:32 probably in Millennials right that’s
08:35 usually G to be who it is which I
08:36 represent I know I look way older on my
08:38 Benjamin buttons I’m just saying like
08:40 there’s Pro we we find a lot of 30s
08:42 somethings early 40s somethings that are
08:44 saying hey I’m I am not in a position to
08:46 go out and buy or start a company from
08:49 zero Revenue I have a salary I gotta
08:51 make some money I’ve got kids I got all
08:53 this stuff but they don’t know how to
08:55 talk to the seller who’s a baby boomer
08:58 and these are different conversations
08:59 one thing about being an exer is that
09:01 we’re kind of the guys in the middle we
09:02 know how to you know look at Trump’s
09:03 cabinet right now like him or not the
09:05 whole cabinet is xers and and that’s
09:07 because we we are kind of the middle
09:08 ground of the the bridge between the the
09:10 generations but the Millennials is a
09:12 massive generation just like the Boomers
09:14 but they talk different way so I think
09:17 the people that are listening right now
09:18 Nate they they really want to hear like
09:20 when you’re talking to that seller to
09:23 that person to make this financial
09:25 decision man that’s right what are those
09:27 skills what are those things I need to
09:29 do and get out of Zoom don’t do it on
09:31 your phone so so I mean you want to like
09:33 I I want to tack on you’re saying so
09:35 many things very I’m very uh you know
09:38 You’ got me all spun up so um the last
09:41 thing you said are what are those skills
09:44 like that seems to be what people’s
09:46 question is and I almost want to like
09:49 completely uh unwind that right there is
09:52 no magic script to this and I want to
09:54 make sure hey guys is my video and audio
09:56 okay I feel like I’m coming in out a
09:57 little bit okay like if we go into
10:00 conversations thinking I have to have
10:02 like a snake charmer a script to make
10:05 progress in a
10:07 relationship you’re lost right I heard
10:09 this great coach he’s like you know the
10:12 company spent a $10 million developing
10:14 this incredible sales pitch and like
10:17 we’ve got the best uh script and we’ve
10:20 worked on it we pitch a Consultants came
10:22 in ETC he goes you give that script to
10:25 someone that feels nervous or insecure
10:27 hand them a phone let’s see what the
10:29 results are
10:30 so I’m not suggesting you need to have
10:32 um fake authenticity it has to be
10:35 genuine the way I see these things
10:37 maximizing Effectiveness is go in
10:39 curious and go in with like a a spirit
10:42 of gratitude and um curiosity and let
10:46 the opportunity reveal itself it will it
10:50 will every time it will reveal we’re
10:52 trying to get the right conversations
10:53 with the right people the hardest part
10:55 takes place before the conversation
10:57 happens right so you get to the point to
10:59 where you’re talking to the person that
11:02 uh is trying to solve something you go
11:04 in curious and generally trying to
11:06 understand what their best interest
11:07 could be it’s impossible to have a bad
11:09 experience so I I don’t know if that’s
11:10 too we’re just talking about that is
11:13 that is a lot of my technique and it’s
11:14 just years of doing it but it’s a lot of
11:16 just sitting there and and like you said
11:17 gratitude first off I’m really impressed
11:20 with the individual that built this
11:22 amazing company and had the fortitude to
11:24 sit in this thing for 30 years 40 years
11:27 and then have his kids look at him and
11:29 go I don’t want it and you’re like God
11:32 that would just break my heart to if my
11:34 kids yeah just give me the check you
11:37 know what though I hear what you’re
11:38 saying you’re not wrong but man I’ve
11:40 seen some and I’m working right now with
11:42 some really cool situations where their
11:44 kids are there and the kid and the
11:47 father like they the liquidity event
11:49 that’s available for them is is not um I
11:54 think people often so wealth manager in
11:56 particular there’s no widgets right
11:58 we’re not making widgets the only thing
11:60 that we’re actually purchasing on this
12:01 on the buyer side and the seller is
12:03 selling is trust I mean it’s actually
12:07 wild that there’s such
12:09 a yes knowledge
12:12 yes and maybe wisdom even a slightly
12:15 like knowledge and wisdom I think wisdom
12:16 is better yeah um so but there’s no it’s
12:20 not like a product there’s not like a
12:21 you know a warehouse right we don’t have
12:24 an operations of it so it’s almost like
12:25 what are we actually buying right and
12:27 and the age group of your client base
12:29 typically gets older and so far people
12:31 tend to die so like it what are what so
12:34 you’re actually trying to understand
12:36 what are you buying right and that’s a
12:38 very interesting thing to think about
12:40 where I was going with this though Casey
12:42 uh this is a really great team that
12:44 we’re very fortunate to partner with
12:45 right now we’re going through the
12:46 process they’ve got both of their kids
12:48 and these are super talented smart late
12:51 20s early 30s and they see what their
12:55 career opportunity is going to be able
12:58 to be on the other side Amplified
12:60 Tailwinds in a bigger Organization for
13:02 bigger impact and I’d argue that’s
13:04 probably the most significant thing Gen
13:05 2 wants yes we all want to make money
13:08 but I can I can promise you that’s
13:10 rarely the number one priority of the
13:11 Sailor they’re already wealthy right so
13:14 they’re trying to figure they they want
13:16 to make sure their their their I think
13:18 it goes in this order they want to make
13:19 sure their people are cared for and
13:21 their clients are then cared for that’s
13:23 a provocative statement most people
13:24 always say I got to make sure the
13:25 clients are taking care for actually if
13:28 the people are taking care for the
13:30 clients are going to be taken careed for
13:33 right because the clients love these
13:35 people and so if you can create a
13:37 narrative story in a framework in a
13:38 vision where the gen two and gen 3 is
13:41 like yes wow this
13:44 yes now you got now you got something to
13:46 talk about and there’s a real deal to be
13:48 had that doesn’t always happen right
13:50 especially if there is no gen two or gen
13:52 three right that’s that’s another kind
13:54 of conversation you can talk about that
13:56 we can talk about that in the service
13:57 industry and you said something earlier
13:59 about
13:60 you know a lot of your clients say hey I
14:01 don’t need to talk to you yet right and
14:03 I think you know with wealth planning
14:05 it’s a lot like tax planning right if
14:07 you’re try to do it similar at the time
14:09 you made a big exit now you’re you’re
14:10 really kind of screwed up right like the
14:13 best tax planning is done years in
14:15 advance right and you start strategize
14:17 and then you know tax planning leads to
14:19 wealth planning too because there
14:20 there’s a lot of symbiotic relationships
14:21 and so you know if you’re a seller out
14:23 there right looking to make an exit
14:25 first of all you call me right let me
14:26 evaluate the business but besides that
14:29 actually
14:30 right you start talking to your wealth
14:32 planners in advance start to build up
14:34 some that poor because you know early on
14:36 there’s very low hanging fruit of things
14:38 that can be done to help kind of set you
14:40 up for a better exit or a more aligned
14:43 exit or getting just some of the
14:44 mechanics in place to maybe even allow
14:46 you to do the
14:47 exit so right FIS so right on all the
14:51 different vectors I I would say to like
14:54 double down on one thing you said trying
14:56 to figure out what you actually want I’d
14:58 actually argue that’s one of the the
14:60 biggest riddles that sellers it’s an
15:04 unarticulated I don’t actually know what
15:06 I want so to say I’m ready to sell man
15:10 that is actually there’s so many layers
15:12 of things to consider and the word sell
15:15 especially in a service oriented like
15:17 wealth management I don’t think it’s the
15:18 right word right if you’re really trying
15:20 to sell and like disappear Jan one like
15:22 the day it close a lot of buyers don’t
15:25 want that especially when like what what
15:27 is that what’s going on unless there’s
15:28 something tragic and there’s a way to
15:29 massage it so really what it’s I think
15:32 the right term in a service oriented
15:34 wealth management what do I who do I
15:35 want to partner with what type of
15:37 partnership is going to be kind of the
15:41 the Catapult into what’s best next for
15:43 my team and clients and of course me
15:46 because the this is almost by definition
15:48 their largest financial asset yes even
15:52 though these are very wealthy people the
15:53 actual Enterprise Value the business
15:54 where multiples are at today and they’re
15:58 high but it you only experience the
16:01 wealth creation of that asset if you
16:05 sell so otherwise it’s a liquid and um
16:09 you know it’s I’m stating the obvious
16:10 but that that can get that’s not a
16:13 that’s not an unimportant you know point
16:15 so anyways the point that you were
16:16 making feris with was really good try to
16:18 understand what you really are trying to
16:19 solve for and that’s not just the first
16:22 question I think people are seduced into
16:24 asking is what are the multiples you’re
16:26 paying Nate what are you what are your
16:27 ranges right what what is
16:30 and like it’s actually no secret the
16:32 industry is like so transparent I mean
16:34 the markets are pretty efficient I you
16:36 know some people don’t like that term
16:38 but in terms of like where the range of
16:40 pricing is you know the smaller the firm
16:42 smaller the multiples bigger the firm
16:44 they go up but you know I I see things
16:47 you know um we talk it’s a very
16:49 interesting in the in the wealth
16:50 management space we talk uh
16:52 AUM uh because it sounds really good
16:55 like and then but that’s not Revenue
16:57 right what matters is like revenue and
16:58 profit but a is very salacious and we
17:01 talk a so there’s probably 14,000 firms
17:04 independent advisers more or less and
17:06 more growing every day um it’s a kind of
17:10 uh nonlinear distribution so you have a
17:12 bunch more 100 million and Below um let
17:16 me get let me just give you like a quick
17:17 like survey and I’ll end with where
17:18 multiples are at so usually an advisor
17:20 can grow practice on Charisma alone to
17:24 from Z to 300 million is some support
17:26 staff but that’s the rain maker to go
17:28 from three 00 million to a billion in
17:31 AUM um you got to kind of invest into
17:34 some more Junior talent and probably
17:35 some expanded um support staff so think
17:39 zero to 300 million that could be
17:41 anywhere from one man I met this one
17:42 talented adviser 400 million under
17:44 management one dude one dude dang uh but
17:48 that’s not common so um and also you
17:51 know there’s complexities around that
17:52 when you go to buy right like okay there
17:54 there’s what’s the growth from here
17:56 right you’re stretched completely to the
17:57 to the Tilt how do how do we grow from
18:00 whatever Enterprise Value we both
18:01 determines Fair like you get another
18:04 client you almost want to lose two more
18:06 just to kind of so you have risk we have
18:09 the owner risk and we we see it too
18:10 right it’s the owner that running the
18:12 business and it’s like everything’s
18:13 based on him and he’s he’s a superstar
18:16 but man we got to replace you yeah but
18:19 but but it’s what you were saying though
18:20 it’s that sellers need to really
18:22 understand what they won I think
18:23 everybody’s infatuated with a big exit
18:26 but then some guys like oh shoot like
18:28 you know like one of my partners dad is
18:31 I mean he’s like I can only fish so much
18:33 each day right like so he I mean the
18:35 business is his lifestyle like he’s
18:37 really not going to want to sell it’s
18:38 not even about the money anymore it’s
18:40 about it keeps him mentally fit right
18:42 versus some guys they like the idea of
18:44 exiting but then they don’t like the
18:46 idea of well the business I thought was
18:47 worth 20 it’s really worth 15 and I’m
18:50 not going to sell for 20 because I’m
18:51 stubborn and I can just wait out another
18:53 four years and that’s we just had a
18:55 business deal that we’ worked on for
18:56 nine months kind of collaps in that same
18:58 vein right where seller thought it was
18:60 worth more didn’t have any other buyers
19:01 we’re the only buyers we gave a fair
19:03 offer and we’re going to buy the
19:04 business someday but it wasn’t aligned
19:06 and you know with where his mindset was
19:09 but it’s again it’s that consultive
19:10 mentality it’s it’s a so Nate with your
19:12 firm one point you so you run the m&a
19:14 you’ve got the team you’re buying we got
19:16 a great team I want to be clear I don’t
19:17 want got 25 people I help lead kind of
19:20 tip of the spear relationship type yeah
19:22 of course yeah so you’re on the m&a you
19:23 guys see the deals you talk to the
19:25 sellers all the time that’s right and
19:27 you probably and this is good good
19:29 advice for our listeners that are
19:31 searching right because you you take a
19:34 consultive strategy to selling having
19:37 them sell their business right you know
19:40 talk you know what it is it’s a patient
19:42 you’ve got to get in front of them
19:43 you’ve got to build a relationship you
19:45 all of this stuff no one just goes hey
19:47 take my business right you know I mean
19:49 you don’t want to buy that business that
19:51 that person that
19:52 wants but you’ve got to take a
19:54 consultive sales process there’s a
19:56 pipeline so that seller that says Hey
19:58 I’m maybe it wouldn’t have fit today
20:01 don’t just like scrap that and get rid
20:02 of it stay in contact oh my gosh those
20:04 are the best those are the best deals a
20:06 year later right and by the way like it
20:08 takes time right folks are this is an
20:11 emotional Journey it’s rarely ever about
20:13 the money and um it never fits cleanly
20:17 into you know our pipeline you know
20:19 timeline we this is just as much farming
20:23 as it is hunting so it’s having a it’s
20:25 having that patient patient mentality um
20:28 in yourself process right you find a
20:30 business you like the business you like
20:31 the seller you like those things but at
20:33 the end of the day they may still just
20:35 be trying to and you said it’s not the
20:37 money the money is not the number one
20:38 conversation so if you’re losing the
20:40 deal based on the seller going hey
20:42 you’re not paying me enough then you
20:44 might have missed something in that in
20:45 that in between one of the hardest
20:47 things to do is make a rich person
20:48 richer it’s just like you know they’re
20:50 already they’re already wealthy I heard
20:52 another quote today that I liked which
20:53 is it’s hard to make millionaires work
20:55 hard and so once they get to a point you
20:58 know they’re well they’re not going to
20:59 work harder
21:01 either that’s exactly right and on that
21:03 note like the the wealth management
21:05 industry is it’s going through a
21:06 Renaissance it’s growing 10 14% there’s
21:08 only 2 to 3% growth of new advisors
21:12 entering the space so you have this
21:14 massive generation exiting you don’t
21:16 have enough Talent that’s coming up to
21:19 be able to service $30 trillion is
21:21 transferring over the next 15 years of
21:24 wealth and so this is like actually a
21:26 real problem and we we need to solve you
21:29 know as a and I I have a very strong
21:32 kind of pointy point of view what was
21:36 family office fam like uh services for
21:40 let’s say nine figures is now available
21:42 for 50 millionaires or decamillionaires
21:44 what was available for decamillionaires
21:46 is now coming down to highet what was
21:49 high Net’s now for Mass AFF fluent and
21:51 folks that have zero to whatever they
21:53 need help and I absolutely push back
21:55 that those are not profitable
21:57 relationships
21:59 what’s not profitable is sourcing those
22:01 through a phone book just dialing for
22:02 dimes but if you have a systematic
22:04 environment to meet where they’re
22:05 calling you and they need your help
22:08 that’s very Pro and and also a very
22:10 great environment for young people to
22:11 chop wood no and it’s actually kind of
22:14 an interesting point is that a lot of
22:16 things have down leveled right similarly
22:18 like Tech I mean Tech you see it all the
22:19 time where you know the at the very
22:21 beginning only the most affluent can buy
22:23 a phone but now everybody even if you’re
22:26 homeless has a cell phone right and so
22:29 same thing wealth planning has kind of
22:30 moved down that tier and you know you
22:32 see that I agree with you the world of
22:34 the family office is controlling
22:35 everything I think it’s it’s it’s moving
22:37 away from that right it’s really that
22:39 next say what do you mean by that you
22:42 know because you hear about family
22:43 offices all the time and yes you have
22:45 the mega family offices those will
22:46 always be there right but I think that
22:48 we’re in a world where you’re you have a
22:50 lot more people that you know to me
22:52 family office you really got to be like
22:54 40 million and up right we have a lot of
22:56 people that are 20 30 millionaires 40
22:59 millionaires right you know one
23:01 successful exit get you there where they
23:03 need the guidance and you’re seeing a
23:05 lot more of those people right because
23:07 it’s you know think about maybe another
23:09 way to look at it is each year there’s a
23:11 certain number of people minted into
23:12 that category versus minting a new
23:15 family office that’s not more Legacy
23:16 that’s really hard and really rare right
23:18 and so you have a lot more people with
23:20 and I think it all ties back to with
23:22 just the ephemeral nature of information
23:24 now right everybody can learn mechanics
23:27 and so that’s allowed people to get to
23:29 that 30 million tranch right getting to
23:31 100 million tranch well that’s a whole
23:32 another set of skills mindset and
23:35 risk-taking but a lot of people in I see
23:37 this real estate if you just stay the
23:39 course right a a a couple there’s a book
23:41 that I really like called the the
23:43 millionaire real estate investor talks
23:45 about a couple combined income I’m
23:46 making up numbers I don’t remember the
23:47 specifics like $80,000 a year but how do
23:50 those people over the course of 30 years
23:51 retire millionaires very very vanilla
23:54 you don’t have to do you know and I
23:56 remember reading that book 15 years ago
23:57 it was kind of an eye opener right and
23:59 so it’s that kind of stuff that can mint
24:01 a lot more of those people in that $10
24:02 million you know tier that need the
24:05 guidance that you know don’t have the
24:07 exposure but what you just said is so
24:10 magical and what I would say is the
24:11 Elixir and what you just said is
24:14 planning right if you’ve got a plan it
24:16 almost doesn’t make matter what you make
24:19 you’ve got the recipe right and then
24:21 allow compound to do what it does but if
24:24 you don’t have a plan it feels mystical
24:26 and Out Of Reach so that goes all the
24:28 way back to it’s actually planning
24:30 that’s what people want and need is
24:32 planning the asset allocation
24:33 Investments I don’t want to say those
24:34 are table Stakes um but it’s the
24:38 planning right the magic is having a
24:39 plan and it doesn’t matter if you have
24:41 no money some money a lot of money you
24:43 need a plan and uh that’s the business I
24:45 love being in because it changes lives
24:47 right it improves the quality of an
24:49 individual’s life marriages Family
24:52 generations and so it’s it’s kind of a
24:54 noble thing we get to do and you guys
24:56 are doing the same thing you’re in it
24:57 every day and
24:59 yeah man I get pumped up talking about
25:00 it that’s exciting stuff are you guys
25:03 interested in the multiples does it make
25:04 sense for me to to
25:06 land love it well yeah I keep that’s the
25:08 too many land the plane references but
25:10 rounding third land the plane you know
25:11 whatever inning we’re in um there’s kind
25:15 of three in my opinion there’s kind of
25:16 three tranches maybe four of the wealth
25:19 management space you think about them
25:20 like what what where do they live 0 to
25:22 300 million these are broad Strokes it’s
25:24 not scientific this is me just kind of
25:26 Nate you know musings 0300 pure Charisma
25:29 some support you double down you invest
25:31 in the company you’ve got now you got
25:33 five to 11 12 people you go 300 to let’s
25:37 say 1.2 billion 1.3 to go that next to
25:41 go from a billion AUM to two billion AUM
25:45 is a lot that’s a whole another
25:47 reinvestment back uh the business is
25:50 amazing right so reoccurring Revenue
25:52 it’s sticky you have the Tailwinds of
25:53 the market which I guess with the
25:55 exception of last month just go up and
25:57 to the right since 2008
25:59 um it’s a good business but it’s
26:01 actually still very manual technology
26:04 which we’re I mean I love talking about
26:05 what AI is doing I mean the planning the
26:07 the capability it’s incredible you can’t
26:10 you know AI in individual meetings you
26:12 only can have two to five meetings a day
26:14 that’s like a lot and so to go from a
26:17 billion to two billion you either have
26:19 to completely reinvest profits or you
26:21 got to start taking outside Capital
26:22 private Equity capital and then to go
26:24 from let’s say two billion and there’s
26:26 plenty of EX exceptions so if somebody’s
26:28 listen this like Nate look I’m a 2.8
26:30 billion I’m completely independent
26:32 you’re totally off I’d love to talk to
26:34 you please call but two billion 2 to 10
26:36 you might be taking private 10 and above
26:38 you’re usually you’ve got to you know
26:40 Access Capital to be able to deploy and
26:43 grow so those are kind of and then you
26:45 have the megas above and into wirehouses
26:46 and Banks so those are kind of the
26:48 ecosystem and in terms of multiples how
26:50 those fit I mean I see everything
26:53 from I’m talking eida some people like
26:55 the price off Revenue I think profits
26:57 what matter we all agree
26:59 on the smaller end you know you look at
27:01 anything from 5678 at close then you
27:03 have an earnout that could be 2 three4
27:06 additional turns uh up to you know the
27:09 low double digits touching the teens for
27:13 the bigger ones the earn outs are still
27:14 part of it so when you think about that
27:16 full package these are VAR every dollar
27:18 let’s say like a billion dollar from
27:20 every dollar that goes into that
27:22 profit it’s now worth 10 111 12 to the
27:25 Enterprise value of the entity becomes
27:28 very difficult for Gen 2 to buy every
27:30 day that passes a new dollar drops it’s
27:33 if you look at the graph it’s like it’s
27:35 a geometric exponential increase and the
27:37 earning power of nextg it can’t catch up
27:40 so that’s where you know what we do
27:42 really helps so why AR we doing a roll
27:44 up you know and then the space Nate he
27:46 is that’s what they’re doing it’s very
27:48 much available I’ll tell you what’s not
27:49 getting talked about in the industry and
27:51 like uh is 100 million and below so eyes
27:55 want scale private wants scale but the
27:58 market of ad and there’s a lot of them
28:00 tons of opportunity yeah and actually
28:03 for listeners to know do you have to be
28:04 certified is there you know do you have
28:06 to do your jary duty what do people need
28:08 to know about the space if you want to
28:11 be an operator like you actually you are
28:12 an adviser and you want to purchase an
28:14 advisory for uh yeah you got to be
28:16 licensed you which is which is a good
28:19 thing that’s I I wouldn’t I wouldn’t
28:20 look at that as like oh that’s a a
28:23 hurdle I can’t most of the people that
28:25 are looking at this are super smart
28:27 people and they can they can pass these
28:29 tests and the tests are very valuable
28:31 and knowledgeable but my guess is you
28:34 know fairis that a lot of these folks
28:35 are already in the industry they have
28:37 some to be an investor private Equity
28:39 have a strategy that’s a very different
28:41 different situation if you got an
28:42 operator that you’re acquiring the
28:44 licensing can be a bit different but
28:46 compliance in regulatory environment is
28:48 very real I I think that pushes paw on a
28:51 lot of people that are quotequote
28:52 outside in like oh my gosh like what do
28:54 I not know it’s it’s all learnable stuff
28:57 the compliance and Regulatory
28:58 environment it’s a good thing it’s not
28:59 bad and then do you guys do you guys are
29:01 you guys
29:02 fiduciaries we are also on which is a
29:05 very important thing that word nobody
29:07 knew what that word meant 20 years ago
29:09 right it was kind of obscure in fact
29:10 that’s when the whole independent
29:12 advisor was born right in the 80s and
29:15 90s where they’re leaving the banks and
29:16 they’re like no I’m going to be a
29:17 fiduciary sit on the side of the client
29:20 and for decades that’s what that’s what
29:23 this independent advisory space was born
29:26 but what’s cool is on the other side of
29:28 what we’re talking about consolidation
29:30 is now we’re getting scale with the
29:32 fiduciary promise up front and that’s
29:36 that’s ultimately benefiting the end
29:38 clients tremendously I totally agree I
29:40 mean you know for those who don’t know
29:41 what fiduciary means it means that you
29:44 know they have to act in your interest
29:45 and if they do something like you know
29:48 Nate tells you to invest with his buddy
29:49 Casey right where it’s not clearly the
29:52 best investment opportunity but it’s
29:54 more of a relationship well then
29:55 obviously he kind of broke his fiary
29:56 duty right that’s what that word means
29:57 for people to kind of understand so
29:59 you’re you know you’re TR you’re
30:00 investing with someone that you
30:02 trust sorry go
30:04 ahead yeah I mean there’s so many
30:06 definitions and and attorneys really
30:08 like to kind of expand what the
30:10 definition I think what you just said
30:11 Ferris is is is spoton just I mean to
30:14 simplify it you’re sitting on the side
30:16 of the client not on the side of the
30:19 product yeah and that’s now you’re
30:22 sourcing the product and figuring out
30:23 what’s right but that does matter and if
30:27 you’re not you got to like say you’re
30:28 not and then you can continue to do
30:31 business all right perfect well I was
30:34 going to say so Nate real quick so for
30:36 our listeners you know they’re they are
30:39 looking I’d say majority of the people
30:40 that are listening they’re looking for
30:42 that person to talk to they’re looking
30:43 for that guy that that transition that
30:46 buyer give us some advice when you when
30:49 you guys talk to these guys when you
30:50 talk to these wealth managers when you
30:51 talk to them about their exit you talked
30:53 about how the relationship and those
30:55 kind of things like what is your process
30:57 when you meet with somebody and you’re
30:59 they’re looking to sell their company
30:60 and they’re going through that how does
31:02 Nate process and work through with that
31:05 relationship yeah I mean I’ll I’ll tell
31:07 you exactly how it goes it almost goes
31:09 like what we’re doing right here it’s
31:10 like having a private podcast where um
31:14 by the time we’re talking it’s in they
31:17 know what who I am right they know what
31:18 I what I represent and so it actually
31:20 creates a really easy Catalyst to Simply
31:23 ask like Casey tell me your story what’s
31:26 the origin story
31:28 and there’s gyms in there that will
31:31 matter for the next six months all the
31:32 way through so like that moment for
31:35 folks to tell unless you’re that’s
31:36 actually not something people get to do
31:38 often right even if they’re you know
31:40 closers or rain makers is get to tell
31:42 the origin story in that process you get
31:44 to know who they are what matters to
31:46 them it’s like getting the answers to
31:48 the T I’m not again these are not tricks
31:49 I’m not trying to bamboozle anybody but
31:52 when folks tell their story it’s a
31:54 special moment and pay attention talk as
31:56 little as you can unless something’s
31:57 interesting and ask ask them to expand
31:59 further oh my gosh that hour just
32:01 disappeared right and now you know these
32:03 people and they more importantly they
32:05 feel like they know you right even
32:07 though you didn’t talk too much so just
32:08 to like pause on that talking tip number
32:11 one listen more than you talk and
32:14 sometimes hard for a lot of us uh we
32:15 want to talk and we remember we’re
32:17 having that many we need to listen
32:19 because they’re going to give you
32:19 they’re going to give you their they’re
32:20 going to give you the bullets basically
32:22 right they’re going to tell you right
32:23 there but maybe more importantly you’re
32:25 going to find out if you’re listening
32:26 well if this is not a right opport
32:29 and good gravy that is so important for
32:31 everybody you don’t want to chase
32:33 waterfalls right like TLC shout out
32:37 90s ex don’t go chasing don’t go chasing
32:40 waterfalls right and that’s very
32:42 difficult especially if you have like a
32:43 rapport and you’re like I felt really
32:45 good I could you know this could work so
32:49 it actually takes getting burned um I
32:51 don’t mean burned but just you know
32:52 things not working out time where you
32:54 can really develop a mature kind of
32:56 pallet for I don’t think this is there’s
32:58 a lot of things I like but it’s probably
32:59 not a fit she sticks in the rivers and
33:01 the lakes right stick the river yeah
33:04 those are those are very calm but after
33:06 that Casey just to kind of like answer
33:07 like what what goes from there hey let’s
33:09 let’s have another conversation and
33:11 let’s in my case I want to socialize
33:13 them with leadership I do want them to
33:16 kind of hear the story I usually tell
33:18 the story at her second meeting pretty
33:19 deeply I might give like a little
33:21 preview up top but I’m trying to get to
33:23 know who they are we’ll hear their
33:25 that’s right that’s right and that’s
33:28 socialize with leadership is that now
33:29 you’re you’re creating value of maybe
33:31 inviting them to an activity um whining
33:34 and dining a little bit you know is that
33:36 the next step typically yeah I mean some
33:39 of this you’re you’re getting my own
33:40 like not tricks of the trade but like
33:42 what I believe I believe dinners matter
33:44 more than lunches or breakfast or in
33:45 office in fact I almost like require a
33:48 dinner so a dinner is not in office it’s
33:50 a 60 Minute take me I like that I 100%
33:53 agree with that I typically try to do
33:54 coffee CU they keep it convenient they
33:57 just slip out the door my partner Ben
33:58 will try to do I always push the dinners
34:00 because I agree you get to know people
34:02 much better on a dinner if they’re not
34:04 going to have the dinner that also is
34:06 telling right we’re talking about top
34:08 three five most important decisions of
34:10 your life you have a dinner it’s not
34:12 time constraint minimum two hours
34:15 probably three hours I’m not I’m not
34:16 promoting wine but there’s a whole kind
34:19 of community component right I do like
34:22 wine I am promoting one but there’s a
34:23 whole like Community component of dining
34:26 it’s an experience it’s unrushed and
34:29 I’ve never left one that was bad I’ve
34:31 left ones that didn’t work out you don’t
34:33 leave a dinner that’s so I will hop on
34:35 an airplane and fly across the country
34:37 just like I did on Monday to have a meal
34:41 huge advice I and I and I have always
34:43 tend to go just because I’m trying to be
34:44 convenient for them and us right like
34:46 hey you know coffee it’s not real
34:49 binding but you’re right dinner man
34:52 that’s a that is an intimate it’s always
34:54 intimate it’s a it’s a it’s a time to
34:56 just come together it’s what we’ve
34:58 always done with our families and a
35:00 natural filter right like part of it is
35:02 to get them more invested and if they
35:04 can’t make that investment then again
35:05 it’s exactly what Nate said you probably
35:07 don’t have the right guy and we’ve made
35:08 some of those mistakes too right and so
35:09 you really the guy that shows up is the
35:11 guy that’s a lot more
35:13 motivated so what I I mean just like
35:16 this is literally what I do on we’ve met
35:17 a couple times maybe we had a good zoom
35:20 no the zoom is I would actually
35:21 recommend a zoom over a coffee
35:22 especially the first one because it’s
35:24 kind of like a coffee it’s convenient to
35:26 you and them then you go the dinner
35:28 and then you say and I say look these
35:31 conversations are not lunch
35:33 conversations these are dinner
35:34 conversations and I rarely get push back
35:37 on that because they agree right and so
35:39 I am asking them to carve out three
35:41 hours generally on a weekday in the
35:43 evening that’s some social that’s a
35:45 social Covenant that they’re making with
35:46 me are you drinking if they drink and if
35:49 they don’t drink do you not drink I mean
35:51 what case he wants all the tips now no
35:53 no these are great this Gr stuff you’re
35:55 talking about yeah yeah absolutely um
35:60 most people enjoy wine but not everybody
36:03 I’m not going to drink alone so I’m not
36:05 going to order you know a bottle of the
36:07 finest if that’s you know if they’re
36:08 doing G January or if there’s a personal
36:11 conviction I’m not going to you know I’m
36:12 going to absolutely respect that but
36:14 that’s also actually very ceremonial
36:16 right like it’s not uncommon for there
36:18 to be Lia and nice food and um it’s it’s
36:22 not designed to Sidetrack it’s designed
36:25 for both parties to feel comfortable and
36:28 I mean look you can look back thousands
36:29 of years I mean this is how treaties got
36:31 made this is how treaties got made you
36:33 know so that is great you know Churchill
36:35 Churchill basically you know woed Stalin
36:38 by his unnatural ability to consume
36:41 vodka so it
36:44 was but you know I mean this is like
36:46 this is this is gold because there’s so
36:48 many people that are coming from
36:50 different angles and degrees and every
36:52 kind of thing and you’re giving them top
36:54 level sales advice here which is that
36:56 the it is the it is the is the process
36:59 of building a relationship closing is
37:03 not a it’s not it’s not just
37:04 transactional we’re not selling a a a
37:07 widget here and they buy it and it’s
37:08 gone we’re literally building a
37:10 long-term relationship because we’re
37:12 also now gonna ask that person to stay
37:15 with us for two years a year and run the
37:18 business with us we’re not they’re not
37:21 running away they’re not they’re not
37:23 just hey give me the check I’m out of
37:24 here most of them are going to have a
37:25 seller carry we want them to finance
37:28 some of it I mean and an earnout Nate
37:30 even talked about an
37:31 earnout so B Bingo and so 100% Casey and
37:37 so my best friend is a CEO of a
37:38 manufacturing company and talk about
37:40 like an area where we should all be very
37:43 bullish on future productivity in
37:45 America you know yeah the stock markets
37:47 you know boomed Nidia you know AI Etc
37:51 that which is great the actual value of
37:54 all this technology comes from the
37:56 businesses we’re talking we are the impl
37:57 MERS of this technology we’re actually
37:60 the value delivery of all the Innovation
38:03 that’s taking place right um so just a
38:05 quick bullet of optimism for all of us
38:08 for like years to come doesn’t mean it’s
38:09 going to be easy and hard but there’s so
38:11 much you guys there’s so much
38:14 productivity gains in every facet of
38:16 industry it’s it’s a good time to be in
38:18 an m&a discussion but where I was going
38:20 with Casey what you said even in a
38:23 manufacturing environment so yeah wealth
38:26 there’s not a product right it’s person
38:29 even with a a manufacturing environment
38:31 what we’re really doing is providing a
38:33 legacy earnout what’s the Legacy earnout
38:36 that this person that they built that
38:37 their identity’s been wrapped up with
38:39 what new vision and new Legacy do they
38:41 get to be a part of henceforward that
38:43 matters that requires Vision that might
38:46 require a little salesmanship but you a
38:49 great mentor told me this they said
38:50 people don’t buy because they’re
38:52 convinced they buy because you’re
38:55 convinced and you can’t fake that I mean
38:58 I’ve seen the worst sales people be
38:59 passionate about something and the next
39:01 thing you know I got a different
39:03 car no I mean sometimes it’s the most
39:06 you know the like Casey just said we’re
39:08 given the top secret you know most elite
39:11 tips and suggestions for closing Sellers
39:13 and what’s the answer it’s the most
39:15 obvious of them all right it’s having a
39:17 meaningful conversation a meaningful
39:20 interaction not just the coffee I mean
39:22 you know people didn’t need to listen to
39:23 this podcast to hey hey you should have
39:25 a dinner and not just a zoom call with a
39:27 seller but also they needed to listen to
39:29 this podcast and realize they should
39:30 have a dinner with a seller not a zoom
39:31 same thing and so it’s people getting
39:33 that timing of the process yeah and how
39:35 do you do it so it’s all the and I would
39:37 I would just add you know like you’re
39:39 saying you know yeah have that
39:40 introductory Zoom the broker the
39:42 conversation then immediately mve to and
39:44 my normal is lunch or coffee I’m now
39:47 changing as of this very moment to
39:50 dinner because I get to a dinner right
39:53 but it’s like that’s the the next let’s
39:55 have dinner let me take you to dinner
39:57 let’s spend some time because that’s
39:59 going to allow us to really build that
40:02 deep relationship so I would argue like
40:06 I’m glad we’re in agreement on that but
40:07 just to take a big axe to the industry
40:11 that’s not what happens no especially if
40:15 if there’s intermediaries it’s sort of
40:17 like hey here’s the Sim all right give
40:19 me your almost best offer and then I’ll
40:23 think then we potentially will talk
40:26 right so I’m just acknowleding that I
40:28 totally get it and somebody’s running a
40:29 process and you know their motives are
40:31 just simply a price and maybe that’s the
40:33 way to go this is the inefficient part
40:36 that I think for those that are willing
40:37 to
40:38 embrace uh has longer term stickiness of
40:41 actually closing opportunity so you have
40:43 to actually believe that the buyer and
40:45 seller have the capacity to have a great
40:47 transaction that does take vetting but
40:50 that’s very different than being an
40:52 absolute Financial foot race before you
40:53 even get to kind of you know press the
40:56 flesh have a breakfast have not have a
40:58 dinner so I just this is the hardest
41:00 part that’s inefficient that I work
41:01 every day who do I want to meet how do I
41:03 meet them and how do we have the
41:05 conversation before they actually think
41:06 that they need
41:08 itely is a great way to shift here but
41:11 Nate unbelievable great great
41:14 information I love sales I love
41:16 relationship building I love people um
41:19 it’s one of my favorite things to do in
41:20 this whole thing is the people part you
41:22 can’t fake that Casey you can’t fake
41:23 that no and and it’s genuine you know
41:26 and then but what you’re adding is that
41:28 value when it’s so hard if I’m not that
41:31 person or maybe I I’m I’m very good at
41:34 at this one thing and now I’ve got to go
41:36 out and search for a company now I got
41:38 to go meet with an owner and I have no
41:40 process I have no way to run that
41:42 process they’ve never had to sit down
41:44 see level sales and and and actually
41:46 develop a conversation or a talk track
41:49 you know this is big this is something
41:50 to think about Don’t just run out there
41:52 and and and go through some practice and
41:55 I’m just going to close my little
41:56 conversation here is like I’ve told so
41:58 many people that have started the search
41:60 process is look just start taking on a
42:02 ton of deal flow and talking to Sellers
42:05 and setting relationships and meeting
42:07 with them it may not be the perfect but
42:09 you’re going to get better at the
42:10 conversation you’re going to get better
42:12 at your process you’re going to know
42:13 your conversation because those take
42:16 reps that right there AB right it’s it’s
42:19 a lot of work I tell you Nate you didn’t
42:21 start just doing this yesterday you’ve
42:23 got thousands and thousands and
42:25 thousands maybe tens of thousands of
42:27 reps that allow you to have be genuine
42:30 to not have to think about what’s next
42:33 you know to be able to work through that
42:34 relationship and it’s such a big part of
42:36 this deal of m&a because sales and pride
42:41 development Casey you are hitting on the
42:43 absolute nerve ending of the process may
42:46 may I just add one small Aster to what
42:48 you just said is that the seller has not
42:52 had those
42:53 reps oh that’s a good point wow great
42:57 point
42:59 so um yes we you want reps I’m thinking
43:04 about the audience that you’re you’re
43:05 talking about that’s in the market hunt
43:07 yes repetition matters right but there
43:10 will be always an
43:14 asymmetry of of the moment where you
43:17 have the experience of the situation
43:20 more than they do and how do you help
43:22 them how do you bring them along right I
43:24 think helps you know how do you manage
43:27 that right if I’m a lot stronger than
43:29 someone then I know to Baby punch them
43:31 after a certain amount of reps the first
43:33 time maybe it goes too hard maybe our
43:35 information overload we get I we we had
43:37 the bill blow up because we got too
43:38 complicated in the structuring like the
43:40 seller just could not comprehend it and
43:42 so reps leads to realizing like okay
43:45 you’re slowly gauging that person and
43:46 you level up or level down based on kind
43:49 of who you’re sitting across bingo bingo
43:51 right so that’s being an athlete right
43:53 this is why we’re we’re not snake
43:54 charming right I cannot give you a paint
43:56 by numbers process on this but what you
43:59 can do is develop reps to have
44:01 peripheral vision helps side defense be
44:03 able to understand what actually is
44:04 happening and figure out hey this is
44:07 calls for adjustment or it doesn’t
44:09 actually say this I this is where I
44:12 think we should part friends right but
44:14 to be able to know it’s up to you to
44:16 determine when those moments are
44:17 happening the seller is emotionally
44:19 experiencing a a first time thing and so
44:23 it’s uh that’s we have so much to talk
44:25 about this is really great I feel like I
44:28 one but maybe we’ll do a session to so
44:31 awesome well Nate it’s awesome man so I
44:33 guess we’ll go ahead and move on to our
44:34 rocket round where we asked the same
44:36 listener the the the the interviewer the
44:38 same question same three questions yes
44:40 so first question for you Nate what do
44:43 you like to do in your free
44:44 time man I wish I could tell you I was
44:46 really interesting um I love to read but
44:49 that’s because I sit on a lot of
44:51 airplanes um going to those dinners
44:54 right yeah people my kids think like
44:56 what do you do dad you just what you
44:58 don’t do anything you just talk see the
44:60 guitar behind you say that again I see
45:03 the guitar behind you yes well I used to
45:06 be yeah the the origin story is what I
45:08 like to do I thought I was going to be a
45:09 famous jazz musician right so I went to
45:12 school on a basketball scholarship and I
45:14 was like I I graduated and a corporate
45:17 America it’s actually a joke that no one
45:19 in high school I was voted most likely
45:21 to be on Saturday Night Live I was not
45:22 voted to be in Corporate America uh and
45:24 so for five six years if you ever seen
45:26 the movie la la land with Ryan Gosling
45:28 yeah uh that’s how I met my wife I was
45:30 playing like Italian piano and Italian
45:32 restaurants and thought I was going to
45:34 save the world via American Jazz so
45:37 that’s what I like to do all right most
45:39 memorable moment in your business
45:41 Journey yeah uh you guys prep me for
45:44 this and nobody likes hearing about
45:45 successes so I would probably say uh my
45:49 biggest
45:50 failure um was I wanted to be in the
45:54 financial services
45:56 industry and I um I had I was a p i I
46:01 had to completely reinvent myself I had
46:02 a mentor say you have to find somebody
46:04 that’s basically going to give you a
46:05 break and so I got an internship at a
46:09 public pension plan so a government
46:13 agency it took I cold called them for
46:14 three months to convince them to let me
46:16 work there for free which a government
46:19 agency’s like head blown they’re like
46:20 how do we I wor and they they hired me
46:24 but I wasn’t getting paid anything but I
46:25 had the badges to get in the government
46:27 business Etc but as and I was working it
46:29 was a$2 billion pension fund in the
46:31 Central Valley of California and these
46:32 are the most kindest people in the world
46:35 and it gave me a calling card to
46:37 basically reach out to the industry and
46:39 so I would I would reach out to asset
46:42 managers and investment professionals I
46:45 had no idea what their emails were I
46:47 create 10 derivatives of their email on
46:49 the BCC and I would say hey I’m an
46:51 intern and I’d love to hear your story
46:53 Etc so I would get um amazing notes
46:57 I mean daily I would get uh a lot of
47:01 nothing and then periodically it’s like
47:03 lose my email and then like 10% of the
47:06 people saw what I was doing and they met
47:09 with me and it became it’s a network
47:12 that I still like so grateful to this
47:14 day I would do that every day for a
47:16 period of time and I can’t recommend it
47:18 enough not to spam you got to have like
47:20 a you know a reason for reaching out but
47:23 um so it was a lot of failures that was
47:25 married to some uh successes and you
47:27 only need one you only need one success
47:30 absolutely I love it last question so
47:32 what do you like to do what what is your
47:33 favorite tool or resource that you like
47:35 to use yeah I mean I know this is going
47:38 to be so unoriginal and every guess that
47:39 you’ve had I’m sure in the past few
47:41 months is like it’s like AI right now
47:44 that said I’ll tell you how I use it and
47:46 I use it all the time right so I use
47:48 Gemini for research and I use chat GPT
47:51 for language I think chat GPT I mean I
47:53 can take um I can take an email it has
47:56 15 iterations back and forth copy and
47:60 paste it from Outlook throw it into chat
48:01 GPT and say Hey I want a concise
48:03 response kind of py funny make it be
48:05 three sentences and I want to talk about
48:07 getting together in two two
48:09 weeks oh boom I’ll do that on text
48:12 messages and it just it reduces the
48:15 calories the brain calories I spend to
48:17 create kind of sensitive every email I
48:18 have is a sensitive conversation as you
48:20 can imagine it’s difficult to
48:21 reconstruct Chad PT and Gemini have been
48:24 really really fantastic that is awesome
48:26 awesome awesome Nate definitely
48:28 tremendous amount of information yeah I
48:30 think we just finished the uh the zoom
48:31 call so I think we’ll have a dinner
48:33 schedule here soon as we kind of discuss
48:34 but really enjoyed the conversation so
48:37 how do people get a hold of you Nate
48:39 yeah you can find me on LinkedIn Nate
48:41 Pratt uh one digital you’ll see me there
48:44 LinkedIn is probably the best spot we
48:45 have a really fantastic presence on
48:47 LinkedIn tons of great content events
48:49 across the country and uh that’s it
48:51 likewise awesome and we’ll put that on
48:53 the show guys thanks so much and again
48:54 congrats on what you did what you’re
48:55 building this is like the community
48:58 aspect of what you’re building it’s so
48:59 cool to know what it’s going to be in 10
49:01 years and you’re tapping you’re tapping
49:03 you’re tapping people’s interest
49:05 appreciate it Nate thank you so much for
49:06 being with us today definitely thank you
49:09 my pleasure thank you guys thank you for
49:10 listening to the m&a Launchpad podcast
49:12 if you’ve enjoyed today’s podcast and
49:14 would like to support us please leave us
49:15 a rating and a review after you listen
49:17 I’m Casey minu and I look forward to
49:19 talking with you next week
