A recent Club E event convened a panel of seasoned experts to dissect the strategic dimensions of entrepreneurship through acquisition. Moderated by Rick Brimacomb, the discussion featured Jeff Liebl, President and CEO of Geocomm; Lisa Holter Ankel, attorney at Avisen Legal; Mike Harvath, President and CEO of Revenue Rocket; and Troy Rosenbrook, President of Highland Bank.
Collectively, the panelists offered decades of expertise in business operations, legal structuring, M&A advisory, and acquisition financing. Their insights illuminated the critical drivers of success for aspiring entrepreneurs pursuing this pathway, addressing strategic intent, financial viability, and operational alignment.
Panel Composition: A Multidisciplinary Perspective
The panelists were selected for their complementary expertise, providing a holistic view of the acquisition landscape:
Jeff Liebl, an experienced operator, brought insights from technology acquisitions and advisory roles.
Lisa Holter Ankel, with 30 years in M&A and private equity law, offered a finance-savvy legal perspective.
Mike Harvath, a former IT services entrepreneur and founder of a global boutique investment bank, shared strategic and transactional acumen.
Troy Rosenbrook, with over 40 years in commercial banking, highlighted financing dynamics across industries.
This convergence of disciplines enabled a robust exploration of the acquisition process, from inception to execution.
Key Takeaways: Strategic Imperatives for Acquisition Success
The discussion distilled several actionable insights for entrepreneurs:
1. Defining Strategic Intent
Jeff Liebl emphasized that a clear strategic rationale—whether achieving financial stability, pursuing an exit, or scaling an enterprise—is foundational. This clarity informs financing options, deal structuring, and post-acquisition strategy, mitigating risks of misalignment.
2. Evaluating Revenue and Profit Quality
The panel highlighted the importance of targeting businesses with high-quality revenue streams. Jeff Liebl advocated for recurring, diversified income models, while Mike Harvath stressed the need for strategic, cultural, and financial alignment, prioritizing firms in the top quartile of growth and profitability.
3. Leveraging Search Funds
Lisa Holter Ankel outlined the search fund model, a structured approach for entrepreneurs to identify and acquire businesses. This two-phase financing mechanism—funding the search, then the purchase—requires careful management of equity stakes and investor expectations to balance control and returns.
4. Mastering Legal Structures
Legal frameworks significantly influence acquisition outcomes. Lisa Holter Ankel noted:
Asset vs. Stock Purchases: Asset deals limit liability exposure, while stock deals inherit all historical risks.
Indemnification: Robust warranties and representations safeguard against post-closing surprises, such as inventory or receivable discrepancies.
5. Securing Financing
Troy Rosenbrook described a favorable 2025 financing environment, with Highland Bank focusing on businesses with repeatable cash flows. SBA loans offer first-time buyers lower entry barriers, though alignment with lender risk profiles remains essential.
6. Prioritizing Cultural Fit
Mike Harvath identified cultural compatibility as a critical success factor, warning that mismatches can undermine even financially sound deals. Jeff Liebl reinforced this, noting the importance of retaining talent in knowledge-driven firms.
7. Optimizing External Capital
For entrepreneurs using outside funding, the panel advised:
Troy Rosenbrook: Align on exit horizons and financial objectives.
Lisa Holter Ankel: Assess equity’s impact on decision-making autonomy.
Jeff Liebl: Define investor involvement upfront.
Mike Harvath: Model scenarios to anticipate term sheet implications.
Practical Lessons: Addressing Acquisition Challenges
The panelists shared strategies to mitigate common risks:
Cultural Due Diligence: Mike Harvath urged thorough cultural assessments to prevent post-deal friction.
Liability Management: Lisa Holter Ankel recommended scrutinizing warranty histories and reserves, especially in manufacturing.
Seller Financing: Troy Rosenbrook highlighted its role in smaller deals, bridging due diligence gaps and aligning interests.
Guidance for Emerging Entrepreneurs
The panel concluded with tailored advice:
Mike Harvath: Leverage expert guidance to navigate complexity.
Troy Rosenbrook: Build experience by evaluating multiple targets.
Jeff Liebl: Align personal goals with business demands.
Lisa Holter Ankel: Engage financing advisors early for realistic planning.
Conclusion: A Strategic Framework for Acquisition Success
The Club E session affirmed entrepreneurship through acquisition as a compelling growth strategy when executed with discipline. By anchoring decisions in strategic intent, targeting quality assets, and ensuring alignment across culture and capital, entrepreneurs can unlock significant value. The panel’s insights offer a clear framework for those pursuing this path.
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