In this episode, we interview Thomas Smale, the founder of FE International, a market-leading merging and acquisition firm that focuses on SaaS, e-commerce, and content business selling. They have a presence in New York, London, and San Francisco with a 94.1% success rate after selling over 800 companies.
Thomas talks about the processes they use in acquiring businesses and making it beneficial for both parties. He shares the categories of companies they work with and the ones that do not meet their standards.
Listen in to learn the emerging trends in online business buying and selling due to the Coronavirus crisis.
- Thomas explains how the process of acquisition for internet companies works and how his company has done over 800 deals.
- He explains the 3 categories of buyers they work with- family-owned businesses, strategic buyers and buyers who have raised money from a group of investors.
- Why there are no set rules when it comes to performing SaaS transactions. How they approach the valuation of companies during the buying and selling process.
- Why they don’t work with companies that are not profitable and how they work around it for compensation in a situation where expenses are taking up.
- The overall difference between getting investments for your business and selling it and how the liquidation process works.
- The recommendations that Thomas has for both business sellers and buyers during the Coronavirus crisis.
- Why online businesses are doing well during this crisis and the appealing aspect of ‘work from anywhere in the world’ business.
- Thomas talks about how they work towards getting the best deal out of a buyer when it’s a well-performing business and how the Coronavirus is affecting the value of businesses.
- What advice does Thomas have for both buyers and sellers during this crisis?
“As a buyer looking for really good bargains and you think you can buy a $1M business at $200k don’t waste your time and if you’re a seller or a business owner and your business has been affected be patient and don’t make any rash decisions.” -Thomas Smale