Episode 156: Things to do upfront before getting into deal-making with Pete Moore
Pete Moore is the Founder, Managing Partner and Chief Dream Architect at Integrity Square (ISQ). The leading boutique financial advisory firm and an early-stage investor in the HALO sector. He started the HALO Sector, HALO Movement and Podcast - HALO Talks. Since founding ISQ in 2010, the firm has played an active advisory role in 100+ mergers & acquisitions, private placement, and advisory assignments across North America, Europe, and Asia. He and his team have also invested in passionate entrepreneurs at Switch Playground, HigherDOSE, XTEND, Greco Fitness, Promotion Vault, and The Athlete Book. He is also the author of the recently released book “Time To Win Again.”
As a kid, Pete never dreamed his career path would turn out quite this way, but he did have early exposure to the internal workings of a business. His father’s career, as the CEO of a beverage equipment company, gave him a chance to explore a new potential passion. He’d go into the office with his father, exploring all the pieces of the company from the manufacturing plant to watching his father do the daily inventory. Pete thought when he grew up he’d be a general manager or CEO of a small business. All that changed when he got to business school. He discovered there’s an investment banking operation that focuses on advising older people in building generational wealth. From humble ambition as a child to his amazing success now, Pete is a great example of the path to becoming a deal-maker.
You might be surprised to realize that typically, deals are in the preparation phase for at least two to three months before the deal occurs. That time is spent collecting all the due diligence, answering all questions, and making all parties hyper-aware of the details of both the company and the deal. Many entrepreneurs get caught up in the returns and scale of a deal, ignoring the preparations one needs to get out of the way before meeting a buyer. Those wrapped up in “the unit economics” and may need to be reminded of the nuances of the deal. Unit economics, in simple words, are the direct costs and revenues associated with a business model on a per-unit basis. A unit refers to any quantifiable item that creates value for a business. If we’re talking about a retail store, its unit economics is the amount of revenue it’s able to generate every month from each single customer.
But Pete does a beautiful job of explaining that investors are searching for the simplicity of the model. They want to know why it works and then to see the growth plan. Then, you move on the valuation vs the realistic value of the deal. These are all important elements but not everything there is to the deal. To truly prepare, the deal-maker needs their client to answer all the questions a buyer might ask in advance. Collect those answers before meeting and see if the story checks out. This helps with alignment between client and deal-maker.
Pete and Corey explore all these concepts before diving into the future of deal-making, how to run a business like a pro-sport team, and his latest book. This episode is packed with honest talk from two pro-deal-makers. To learn more about the book and Pete head here: https://www.halotalks.com/academy/time-to-win-again
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