Eric Pacifici, founder of SMB Law Group, explains why small business buyers and sellers should avoid hiring large corporate law firms.
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“Having a high powered corporate law firm on your side, it's like bringing a bazooka to a night fight. It doesn't make a ton of sense.”
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More from Eric Pacifici
Opinion
Pacifici: Generalist and Big Law attorneys poorly serve the $2M–$25M market
“Most folks who do M&A in the two to fifteen million or two to twenty five million dollar enterprise value space are either general lawyers who don't know M&A at all, do a really bad job for their clients.
We see that a ton on the sell side, or they're really g…”
Eric PacificiJun 26, 2024▶ 2:36Startup Acquisition Stories With Eric Pacifici of SMB Law Group
Insight
Pacifici: Earnest money deposits do not belong in small business M&A
“Earnest money deposits, for example, is not an M&A concept. Very Common in real estate. Obviously, if you ever bought a house, put down some earnest money, and it makes a lot of sense there. It doesn't make sense in in small business M&A, but you've got a lot …”
Eric PacificiJun 26, 2024▶ 4:16Startup Acquisition Stories With Eric Pacifici of SMB Law Group
Insight
Pacifici: Small business buyers often seek exits within 18 to 48 months
“What we're seeing is there's a relatively fast life cycle. You know, guys and gals will go out and buy businesses when they're 35 and fresh out of business school or whatever, and then 18 to 24 to 36 to 48 months later, they're oftentimes looking to sell.”
Eric PacificiJun 26, 2024▶ 6:22Startup Acquisition Stories With Eric Pacifici of SMB Law Group
Insight
Pacifici: Ex-Wall Street buyers struggle in SMB deals by skipping QoE providers
“I see a lot of really sophisticated people financially struggle with the financial diligence piece of it, because they come in, you know, they've got 10 years of experience at Goldman Sachs, right? And they're like, I don't need a higher quality of earnings pr…”
Eric PacificiJun 26, 2024▶ 10:30Startup Acquisition Stories With Eric Pacifici of SMB Law Group
Disclosure
Pacifici: SMB Law Group closed $950M in enterprise value last year
“Well, last year we closed about nine hundred and fifty million enterprise value. The amount that we, those are closings. The amount that we worked on is in the several billion and then in terms of sheer number, maybe a couple hundred transactions that we've wo…”
Eric PacificiJun 26, 2024▶ 3:31Startup Acquisition Stories With Eric Pacifici of SMB Law Group
Insight
Pacifici: SMB deals typically die in financial diligence or from deal fatigue
“Generally speaking, your deal is going to die really in one of two stages. It's either going to die in the lending process, in the quality earnings process, you know, your financial diligence, you've gone under LOI, you've now lifted the hood, and you're seein…”
Eric PacificiJun 26, 2024▶ 9:33Startup Acquisition Stories With Eric Pacifici of SMB Law Group
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