In this live episode, Peter Lang takes the hot seat to answer Ashton Shanks' insightful questions on building an acquisitions company. They discuss different funding options like convertible notes, SBA financing, receivables financing, and mezzanine debt. Lang weighs the pros and cons of working with various capital sources like banks, private equity firms, and VCs when raising funds.
When building an acquisitions team, Lang emphasizes the importance of having an industry insider who can effectively communicate with sellers. He also advises on key roles like list generation and sales associates to support the high volume of outreach required. On the operations side, Lang recommends building in-house financial and accounting expertise rather than outsourcing so that institutional knowledge stays within the company.
Key Takeaways:
Convertible notes and SBA financing can help fund early deals
Mezzanine debt allows more control compared to PE or VC money
The head of M&A should be an industry insider who can build rapport
Need dedicated roles for list generation and sales associates
Keep accounting/finance in-house to retain knowledge
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