08: Inside Middle Market M&A: What Every Business Owner Must Know Before Selling

Bill Snow, Author, Speaker and M&A Professional

 In this no-nonsense conversation, host Bruce Eckfeldt welcomes Bill Snow, a veteran investment banker with Focus Investment Banking. Bill brings nearly 20 years of M&A experience and an unfiltered perspective on how to navigate the complex world of business exits. Starting with his own unconventional path into the profession—joking that he became an investment banker because he “couldn’t do anything else”—Bill unpacks the realities of selling companies in the lower middle market, typically ranging from $10M to $300M in revenue.

Bill outlines the various exit paths founders can take—full sale, majority stake, or minority recap—and explains why having a clear goal is essential before engaging buyers. He emphasizes that the biggest valuation driver isn’t market conditions, but company performance and structure. Founders must make themselves expendable, diversify revenue streams, and manage working capital efficiently to attract top-dollar offers.

He also breaks down the distinction between financial and strategic buyers, revealing how strategic imperatives—like location, systems, or operational synergies—can lead to valuation premiums. However, those deals don’t materialize by chance. Founders must prepare thoroughly, and engage the right professionals: an experienced investment banker, an M&A-savvy attorney, and a supportive accounting team.

Bill walks listeners through the full M&A process—from initial marketing to IOIs, LOIs, due diligence, and final close—typically taking nine months. He highlights key failure points, like poor financial performance or inadequate legal support, and shares war stories of deals lost due to last-minute setbacks.

For founders contemplating a sale, Bill’s biggest advice: start preparing early, control what you can control, and know that buyers respond to clarity and strong fundamentals. This episode delivers a masterclass in M&A fundamentals that every founder-CEO should hear well before they consider selling.

Key Takeaways

• Clearly define your exit goals—buyers respond to clarity and purpose.

• Make yourself as founder expendable—owner dependency kills valuation.

• Strategic buyers pay premiums when synergies solve their core problems.

• Poor inventory and AR management can erode deal value by millions.

• A strong, experienced M&A attorney is essential to avoid costly delays.

• Most deals fail due to underperformance during the sales process.

• Working capital calculations are critical—don’t underestimate the details.

• The ideal exit process takes ~9 months; rushing invites risk and error.

Contact Information:

• Bill Snow’s Website: https://www.billsnow.com

• Focus Investment Banking: https://www.focusbankers.com

• LinkedIn: https://www.linkedin.com/in/billsnow/