#356: Q2 2023 Economic & M&A Market Update with Brian Beaulieu, Jeff Buettner and John Thwig

THREE SEGMENTS IN TODAY'S QUARTERLY ECONOMIC AND M&A UPDATE:

1. UNDERSTANDING & NAVIGATING ECONOMIC CYCLES WITH BRIAN BEAULIEU:

We need to understand and navigate the ebbs and flows of economic cycles. From dissecting sector-specific challenges in banking and real estate, to understanding the economic cycle and its impacts, to providing actionable strategies for economic highs and lows, the discussion emphasizes the importance of a forward-looking approach, early forecasting, and strategic planning in ensuring business success in fluctuating economic conditions.

2. NAVIGATING SHIFTING M&A CURRENTS WITH JEFF BUETTNER:

The world of M&A is being reshaped by shifting interest rates, cautious lending, and economic conditions. Despite a tightening landscape, founder-led businesses have a unique opportunity to capitalize on this shift, if they're equipped with the right knowledge and strategic flexibility.

3. UNPACKING THE NEW LANDSCAPE OF SBA LENDING WITH JOHN THWING:

The changes in SBA lending practices are creating a new world of possibilities for business owners. From allowing partial buy-ins to slashing the standby period for seller financing, these transformations offer innovative financing, growth, and exit strategies.

// WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast

View Section:

ButcherJoseph, Jeff Buettner // 08:18

ITR Economics, Brian Beaulieu // 40:57

Live Oak Bank, John Thwig // 1:08:31

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Interview Quotes:

09:58 - “In the last three months or so, it has been a bit of a slower pace of progression. Obviously there is continuing interest in what the FEDs will do going forward. At this point it has given the universe of buyers an opportunity to recalibrate and rethink of the way they are approaching value.” - Jeff Buettner

13:40 - “You’re going to be talking about prices for the particular asset coming down.” - Jeff Buettner

22:00 - “Not only have a competitive type of scenario with private equity and strategics if you're selling to an ESOP, but it actually might be the more lucrative route to pursue.” - Jeff Buettner

41:59 - “We had three banks fail now and all three of them had something in common, and that is they were very focused in terms of who they lent money to.” - Brian Beaulieu

49:14 - “Office space amounts to about 14% of total private commercial, so it’s not like it’s the lion’s share of it. So I recite those numbers to myself at night when I start to hyperventilate.” - Brian Beaulieu

1:06:19 - “We thought that maybe, because the country went into so much more debt, we thought that would change the timeline, but no it doesn’t. As long as you win the ugly dog contest, you can get away with it.” - Brian Beaulieu

1:15:15 - “Now some of the changes that are going on in SBA SOP (standard operating procedures) are going to liberalize a little bit of that so SBA might be a fit more often than it was previously.” - John Thwig

1:15:33 - “Unless it’s an ESOP, where there's no owners over 20%, an SBA loan is always gonna require a personal guarantor.” - John Thwig

1:29:35 - “Banks love revenue streams.” - John Thwig