Welcome to the “Show Me The Way” podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Pat Trysla, CEO/Owner of Frontier Investment Banking, to discuss mergers and acquisitions through the lens of an investment banker, predictions about the valuation market in 2023, and tips from an investment banker for those going through a merger or acquisition.
Ep. 16 — The Attorney Who Became an Investment Banker with Pat Trysla
Introducing Pat Trysla, Attorney Turned Investment Banker
Dave asks Pat to share a bit about his background, and shifts to his current role.
- Pat briefly talks about his background before discussing what he currently does at Frontier Investment Banking.
- After prompting from Dave, Pat talks about how he enjoys putting deals together, and the process of bringing people together through business deals.
- He then continues by discussing some of the more difficult parts of negotiating deals, listing off a few examples.
Dave asks Pat to speak about ‘deal fatigue’ and how often he sees this occur.
- Pat begins by noting that deal fatigue is very common, especially because selling a business is often an emotional process.
- He continues by explaining certain situations where it can become a real problem, and when having expert help can really come in handy.
Through the Lens of an Investment Banker
Dave asks Pat what he sees in mergers and acquisitions now that he would have never seen as an attorney.
- Pat explains briefly what he does in his role, and how they drive value in the negotiations.
- He then explains the difference in how an investment banker approaches the deal, trying to tell the story of the business.
- Pat continues by explaining how they can examine the deals being proposed in the competitive marketing process, and help populate an appropriate pricing model before presenting those to the client.
Dave asks how often people work with investment bankers to get their business ready for sale.
- Pat says that the earlier an investment banker gets involved in the process, the higher the chances you will get a better offer.
- He then explains part of the process through which they help put together a better story of the value of your business.
- Pat continues by talking through the thoughts behind timing the sale, or partial sale, of your business, and why it may not always be when you are ready to retire.
2023 Valuation Predictions
Dave says that he hasn’t seen much of a change in valuations yet, but asks Pat to prognosticate about what 2023 will hold.
- Pat talks about the different strengths that can be found in the current marketplace, and why the deals will keep on rolling.
- He continues by working through a few anomalies they experienced, but noting that he hopes the course correction of 2023 won’t be too rough.
- He explains how different businesses are looked at in different economic conditions, and how rising interest rates, inflation, rising labor and supply chain issues affect valuations.
- Pat says that people purchase or sell businesses for different reasons, and notes how these different reasons might play into the larger plan of the business.
Merger and Acquisition Tips From an Investment Banker
Dave asks Pat to share a few points of wisdom for anyone looking to go through a merger or acquisition.
- Pat reiterates that starting early and be ready for that process, is point number one.
- He continues by saying that you should be cognizant of when and how to buy or sell, understand and be prepared to prove your valuation, and run a competitive marketing process.
- He then explains his mindset and reasoning behind those key points.
To learn more about Pat or Frontier Investment Banking, visit their website: https://www.frontieribc.com/
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.