Deal Talk With 7ma

Local and global investors alike are eager to tap into demand for nearshoring from U.S. and Canadian businesses, which remains high. Investors are also starting to back companies that serve local markets. In this episode of Deal Talk with 7MA, host Ben Bruggeworth talks with 7MA colleagues Horacio Yenaropulos and Daniel Siller, both managing directors at 7MA. Investors are “looking for nearshoring advantages and for good businesses with good capabilities inside the region,” says Horacio. Horacio and Daniel explain why investors are so excited about Latin America, the factors affecting supply and demand, and how they expect the growth of private equity in the region to play out. Investor interest has increased following the pandemic, and both Horacio and Daniel expect it to grow further as the region develops the language and technology skills that U.S. and Canadian companies desire. They warn, though, that founders and owners should expect lower valuations and increased scrutiny during due

“We at 7 Mile Advisors are serving companies who are helping businesses procure and use technology in an effort to develop, capture, connect, move, store, compute, and secure data,” explains Founding Partner Tripp Davis, of his work at 7MA. On this episode of Deal Talk with 7MA, host Ben Bruggeworth talks with 7MA colleagues Tripp Davis, a Founding Partner, and Tim Frye, a Managing Director, about the Managed Services Providers (MSPs) space and what they ultimately foresee happening in the market. Since 2008, 7 Mile Advisors has been an investment bank solely focused on technology services as a sector-centric bank. They drill into the marketplace in specific sub sectors to map landscapes and identify key businesses that they can serve via M&A, private capital raising, and strategic growth advice.The MSP sector is an area in which 7MA spends a lot of time. Due to the velocity and complexity of technology environments, it’s a fast-growing market. Tripp and Tim share their own experiences and what

7MA’s Sydney Scadden, Nic Anderle, and Tyler Ratterree all have one significant thing in common - they sought internships to propel their careers. While in college, Nic had two internships  - one at RSM, which gave him great hands-on accounting experience, and another at Copper Run, which ultimately swayed him to pursue an investment banking career path. With a plethora of internship experiences under his belt -  in everything from commercial banks and their loan servicing departments to working in his college’s admissions department - it took Tyler more time to discover his interest in investment banking. In fact, it wasn’t until his internship at PwC during graduate school that he found his calling in deal processes. For many, like Sydney, the ultimate goal of an internship is to have the role transition into or lead to a full-time job, which is exactly what she achieved. Sydney was a summer intern analyst at 7MA before being hired as an employee. She went from setting up phone call

Happy New Year and thank you for joining us in our first 2023 episode of Deal Talk with 7MA. In today’s episode, 7 Mile’s co-founders Leroy Davis, Andy Johnston, and Tripp Davis join Steve Sypek to reflect on the eventful period in the M&A world over the past couple years.They recount coming off a historic year in 2021, where M&A activity in the technology services space and the broader market was at all time highs. They discuss some challenges that 2022 introduced that they may not have expected heading into the year. They analyze the impact of geo-political events such as Russia’s attacks on Ukraine and the Fed sparking further caution as they aggressively drove interest rates higher following a prolonged period of near zero rates. Throughout the episode, they provide insight into how 7 Mile Advisors responded to these events and what they see on the horizon for the IT Services Industry in the M&A world.

After attending the HIMSS Global Health Conference & Exhibition, Andy Johnston and Ben Garber have insight into the top industry trends as they relate to digital transformation. According to Andy and Ben, healthcare providers and digital service companies are increasingly coming together to shape a more interconnected data environment. The focus on cybersecurity initiatives was an emerging topic of particular interest. As companies embrace digital and move their data to the cloud, the danger of cyber threats increases dramatically. While cybersecurity solutions are developing rapidly, it’s difficult to keep pace with data exposure risks. That’s why it’s vital to not only focus on your digital transformation solutions, but also on diverse security protocols to protect your information. Individual companies aren’t the only ones focused on cybersecurity. The government is playing an increasing role in regulation to create specific standards of compliance. Through cybersecurity executive orders, the Biden adm

Pablo Hernández became an entrepreneur at just 14 years old when he founded Ingenia Agency, the company he still runs today. As the oldest of seven boys, he had an early start to entrepreneurship through his father, who owned a successful chain of language schools in Mexico. Pablo would accompany his father to work over the summer months, where he first discovered the possibilities available through the internet. "I was one of the few guys in Mexico who knew how to program websites. Anybody I would find: my dad's lawyer, my dad's architect, the school psychiatrist, the psychologist, I would say, You need to have a website," Pablo recalls. "I always had the vision of building amazing websites. I wanted to build the website for the Mexican Stock Exchange, for Coca-Cola, and Grupo Bimbo. All three happened." Pablo shares insights into the international growth his company has experienced over the past few years, including expanding into a U.S. office based in Houston. Pablo also shares how the potentially controv

Tom Delbrook grew up loading trucks at UPS. What was originally just a part-time job to get through college led him to discover deals and acquisitions. “UPS was a great business to learn from. They're willing to constantly challenge you and give you jobs you're not prepared for to see if you can pull it off,” Tom says. Tom recently joined the 7 Mile Advisors Atlanta team. Just as he experienced at UPS, he believes that people need to be willing to constantly try new things, look at new models, and consider new ways of doing things — it’s one of the many reasons he’s eager to support businesses in technological advancement. On this episode of Deal Talk with 7MA, Tom discusses how digital transformation has moved forward since COVID started and the incredible technological advancements that have occurred in such a short period of time. He also touches on why private equity has been more interested in IT services lately and shares a few tips for choosing an advisor if you’re looking to sell. “People that had fiv

In this special episode, recorded during 7 Mile Advisors’ 2021’s ACCESS Conference, 7MA Managing Director Horacio Yenaropulos hosts a panel discussion on exploring international M&A trends, focused on Latin America. Joining Horacio are experienced international investor Mario Masrieh, Principal at Trivest Partners, which recently invested in Argentinian FinTech company Veritran; and Daniel Lopatin, Co-founder and CFO of tech consultancy ArganoUV. Daniel’s company United Virtualities was https://www.7mileadvisors.com/transaction/united-virtualities-acquired-by-argano-a-trinity-hunt-portfolio-company/ (acquired by Argano) in February 2021, in a deal that was facilitated by 7MA. Latin America has a need and market for new digital solutions. Mario says that this was one reason Trivest invested in Veritran. “When you look at the unbanked and underbanked populations ... there's a huge white space,” he says. “Both the governments and the private sector need to bring the populations into the financial institution

In this special episode of Deal Talk with 7MA, Partner Tripp Davis leads a discussion on navigating M&A as a business owner or operator. For the panel discussion, which was part of 7MA’s ACCESS Conference 2021, Tripp is joined by David Lewis, Founder and CEO of DemandGen (https://www.7mileadvisors.com/transaction/demandgen-acquired-by-bdo/ (acquired by BDO)) and Partner at BDO Digital; Andy Fay, Chief Revenue Officer of Innovasource (https://www.7mileadvisors.com/transaction/green-global-holdings-llc-acquired-by-3b-market-cap-publicly-traded-multinational-cpg-company/ (acquired by Energizer)); and George Young, Founder, CEO, and now Managing Director of Kalypso (https://www.7mileadvisors.com/transaction/kalypso-acquired-by-rockwell-automation/ (acquired by Rockwell Automation)). This panel of sellers have all navigated successful exits — some in the midst of the COVID-19 pandemic. In this episode they’re sharing first-hand lessons from their own experience in M&A and first-hand insights from the proce

Join 7MA Partner Leroy Davis as he sits down for a fireside chat with the Assistant Director for Science and Exploration Science Directorate at NASA Headquarters, Richard (Rick) Davis. On this special episode of Deal Talk, as part of the 2021 ACCESS Conference, they discuss Richard’s background and the fascinating work his team is doing on the Mission to Mars program. Leroy takes the opportunity to ask Rick how he first became interested in space, his involvement in the Mars Mission, and the technology behind the project. Private equity investors will be interested to hear Rick’s take on private equity, commercial involvement in space exploration, and how NASA and the government partner with private entities to advance space travel. Rick grew up on a farm outside of Charlottesville, Virginia, in a rural town called Happy Creek. There, the lack of light pollution means “the night skies are dark as anything and you could just see star fields like you wouldn't believe," he explains. "I remember walking outside a

How has the IT Services sector fared in M&A activity over the last 18 months? On this episode of Deal Talk with 7MA — part of a series recorded during the ACCESS 2021 Conference Hosted by 7 Mile Advisors — Partner John Cooper provides an update on the M&A landscape. He walks us through how 7MA sees the M&A landscape including general market trends, commentary from the firm, target markets, and Q&A from the audience. View the accompanying presentationhttp://www.7mileadvisors.com/wp-content/uploads/2021/10/ACCESS-2021_MA-Market-Update.pdf ( here). 7MA has closed 29 deals since October of 2020 with another 10 deals under LOI. Alongside positive deal stats, they are also hiring aggressively in response to the strong market.  Over the last number of years, key international players have made aggressive M&A moves around the Technology sector. Those in the private equity market are also looking to make strategic moves to deploy capital in the Tech sector, as it's viewed as an attractive and

If there’s a key to success in entrepreneurship, it could be peer-to-peer networks. Alex Robbio learned this firsthand. With his brother, Federico, and father, Luis, Alex co-founded Belatrix Software, a company that provides digital solutions and IT outsourcing services from Latin America mostly to clients in the U.S. Together they bootstrapped from zero to over 700 employees, with delivery centers in and operations in five different countries - including Spain, Peru, and Colombia, as well as sales offices in Silicon Valley, New York, and Florida.  In 2019, with the help of 7MA, the trio https://www.7mileadvisors.com/transaction/belatrix-software-acquired-by-globant/ (sold the company to Globant). In January 2021, Alex realized that entrepreneurs aren’t necessarily ideal employees, so he left and has since been working closely with https://endeavor.org/ (Endeavor), which seeks to uplift handpicked entrepreneurs through investment and peer networks — a community Alex credits with helping Belatrix reach it

In the wake of COVID-19, 7 Mile Advisors’ recently appointed Managing Director of the Latin America (LATAM) sector, Horacio Yenaropulos, is seeing many companies reflect on the shortcomings the pandemic revealed. In particular, many realized they were well behind in terms of digital transformation. As companies try to catch up, the good news is that there are new projects on the horizon. Notably, a significant number of European companies are looking to partner with counterparts in Latin America. Horacio, who is based in Mendoza, Argentina, hopes to combine his previous experience in financial leadership and digital transformation with his local knowledge to build bridges between these companies.  He says it’s important to understand the different cultures in various countries within Latin America, and more broadly across the continent. For example, knowing that many Latin American companies are family-owned changes the way you do business.  Above all, Horacio sees opportunity on both sides of

With more than 25 years of experience advising businesses, Leroy Davis knows the sweet spot for selling a company. While many entrepreneurs have heard of the $20 million valuation rule, he shares there’s much more to it than numbers and forecasting. “We don’t put a hard line on 20 [million of revenue], we try to dig on some of these more intangible factors,” Leroy says. “And we get surprised regularly with some of the revenue multiples that we see, particularly in today’s market.” According to Leroy, entrepreneurs, particularly those in tech, must consider many financial factors when determining when to sell — and having a team of experts by their side can provide a complete picture of their options. This team is also invaluable to forecasting, one of the most important areas that potential buyers look for. Not hitting numbers is the number one reason why deals go sour, Leroy says. He also talks about how to set yourself up to attract the right buyer at the right time. On this episode of Deal Talk with 7MA, L

When Zilker Technology co-founders Rob Thomas and Sean Wyrick attended 7MA’s annual conference in 2019, they noticed a shift in the conversations they were having with other businesses and with investors. They decided it was time to test the M&A market for Zilker, a digital consultancy and systems integrator with deep experience in a number of sectors. Not surprisingly, Zilker’s co-founders turned to 7 Mile Advisors, with whom they had built a relationship over several years. “It came down to trust and credibility. It's a very, very big decision to entrust the future of your company,” says Rob Thomas, CEO of Zilker. “Having a good guide in that process is really important.  On this episode of Deal Talk with 7MA, 7 Mile Advisors Senior Associate Sydney Scadden sits down with Rob and Sean to talk about https://www.7mileadvisors.com/transaction/zilker-technology-acquired-by-ey/ (selling their company to Ernst & Young) in October 2020.  Zilker entered the deal process with a clear picture of wha

2020 was quite a year. Despite unprecedented setbacks and volatility, business moved and deals took place. On this episode of Deal Talk with 7MA, the firm’s Founding Partners Andy Johnston, Tripp Davis, and Leroy Davis review major transactions from the past year and discuss market opportunities that arose over 2020. Despite the various challenges over the year, 7MA closed 14 deals since April and the firm increased its staff by 25%. “We're obviously very pleased and excited for our clients who are able to navigate really successful and strategic transactions,” Andy says, “and our ability to keep bringing on really exciting clients now who’re exploring the market, and certainly 2020 you know, revealed who was ready to get deals done.” It wasn’t easy to make investments given the peculiar circumstances, but those who took the risk were rewarded. At the start of the year, the partners could not have anticipated what the world and the market would look like by December. “[COVID-19] allowed us to kind of tak

On this episode of Deal Talk with 7MA, Managing Director Ben Lunka joins us to provide an update on the M&A market over the course of this exceptional year. This episode is part of a series recorded during the ACCESS 2020 Event. In this episode, Ben discusses how the M&A market has navigated COVID-19, general market trends and themes we saw over the course of the year, particular segments of the market that the 7 Mile team focuses on, and where we see the market trending from an M&A activity evaluation and volume standpoint. COVID has had a tremendous impact on the economy, and there is always a resulting impact on the M&A market. During the initial fall in March and April, companies had to scramble to calibrate their strategies in an effort to mitigate the effects of COVID. However, now that those strategies are beginning to play out, we’re seeing a move towards areas where they see predictable growth and predictable market opportunity with cloud infrastructure, e-commerce, and remote softwar

Jeff Vogel, Partner at Court Square Capital Partners; Jared Ruger, Partner at Bertram Capital; and Iveshu Bhatia, Managing Director of Private Equity at Audax Group, can all agree on one important piece of advice: your partner matters more than the cost of capital, so be honest with them. “Things that allow you to communicate well will fundamentally come from having command of your business and being honest about where you're good, where you're bad and what you need help with,” Iveshu says. “There's a partner for everyone that's out there. … As long as you communicate clearly and honestly, you will be able to find the right partner for you.” When making a deal in the M&A space, you have to remember you'll be working very closely with this team for several years, so make sure you get along with them both socially and professionally. Jared suggests speaking with several of their references, particularly executives who have partnered with them in the past, to see how they dealt with issues such as dips in th

Scott Kaplan, Director of Corporate Development at S4 Capital, and Blake Clifton, Head of Corporate Development at Cognizant, are both overseeing M&A at people-based organizations, which requires a commitment to effective communication and culture. “How do we maintain cultural alignment as we expand into new geographies and new capabilities with new entrepreneurs?” Scott recalls, explaining the question he posed to his team when, through a merger, they became the operative arm of digital marketing firm S4. “The way we've tried to structure this, outside of the initial getting to know the founders, understanding ambitions and goals and making sure that alignment is there, is trying to put a framework around how to manage different growth across different practices of our company.” Blake has been put in the same position, and he argues that people are what make the culture. So, when determining if a deal is a good fit, he says it’s crucial to think about, within current archetypes, who additional leaders wi

Glenn Youngkin didn’t plan on becoming the Co-CEO of one of the world's largest private capital firms. He was shooting for the moon — and wherever else NASA would be sending astronauts by the time he graduated. “I went to college with this ridiculous ambition to be in the space program,” Glenn says. “And I guess no one really told me that when you're 6’6” and weigh 220 pounds, they're not going to let you into a rocket ship.” He studied engineering at Rice University in Houston to be closer to NASA, but it was his additional focus on managerial studies that led him down a different path. After receiving his Master of Business Administration from Harvard Business School, Glenn landed in the world of private equity, alternative asset management and financial services, and the vast majority of his experience — 25 years — was at The Carlyle Group. In this episode of Deal Talk with 7MA, Glenn discusses what he learned at The Carlyle Group, which includes how to adapt to the increasingly technology-driven world, th