Interviews

An Interview with M&A Source Member, Jeff Snell

Tell us about your pre-M&A career and how it led you to doing this work?

After college I entered the technology industry selling computers and related products/services at retail. I then transitioned into commercial, then started my own firm. After 7 years I sold it and had a negative experience with two brokers. The buyers, who were IBM executives suggested I consider becoming a business broker because in 5 of 9 attempts to buy other businesses the broker did something or didn’t do something that killed the transaction when my broker vanished and I managed the process in first person without any friction.

What personal characteristics and strengths have supported your success in this industry?

I believe that a successful intermediary needs to be a great listener, be very creative in problem solving, have a strong technical grasp of deal making and always put the clients interests first.

What is your greatest M&A accomplishment?

Selling a business to an almost $100 billion public company at a 27.3x multiple.

With regard to the majority of your engagements, do you work as a team or do you handle things on your own?

I run my process from beginning to end.

Do you just do M&A or do you provide other services – valuations, consulting, etc.?

I provide mainstreet and lower M&A valuations and am admitted as an expert witness as to business valuation for litigation and equitable distribution purposes.

What is the biggest mistake you have made when working on a deal?

Not addressing working capital early enough in the process.

What are the three most important qualities that you think a good M&A advisor needs to have?

Listening, creative problem solving, integrity.

What is your most interesting deal that you are working on today?

I have a software development company that is 100% virtual with captive employees in India. It’s interesting in that it is not technically eligible for SBA guarantee due to foreign assets, but when I assisted the seller when buying it was able to get an SBA approved loan and the current buyers also have preliminary approval.

How long have you been an M&A Source member and what do you get out of your membership?

Approximately 15 years. There are many benefits of membership, but the three most notable are access to other industry experts, the conferences and member benefits.

As a seasoned M&A advisor, what changes and trends do you see on the horizon that will impact on M&A?

I think it will affect mainstreet first, but there will continue to be pressure to automate the M&A process using technology. Online valuation tools are an example. I also think middle market firms will continue down market for transactions when adverse macro-economic factors are in play as we are today.

What advice would you give to new people entering the profession?  

Earn your M&AMI, consume as much education as possible. Attend MAS conferences, become a volunteer and never stop learning.

Please tell us something about yourself that has nothing to do with your M&A career?

During and after college I served in the Army Reserves and national guard as a combat engineer and later in artillery. I raced Dodge Vipers and formula cars as a hobby for over a decade, winning several championships in both classes. I have four children who I was a single father to after their mother died from cancer complications while running 7 businesses. At the time and to this day, they attend four different schools.