Through GCP’s new Mergers, Acquisitions and Partnerships (MAP) Lab, we help MBEs connect with owners looking to exit including accounting, financial and negotiation support and guidance. We sat down to talk to MAP Lab Director Andrew Newsome to learn more about the MAP Lab, and how MBEs can get involved.
Let’s start at the beginning: What is the MAP Lab?
The MAP Lab stands for Mergers, Acquisitions and Partnerships and is focused around helping minority owned business scale inorganically through M&A, Strategic Joint Ventures and Franchising. We do this by helping minority businesses identify target companies, evaluate deal opportunities and connect with service and capital providers.
We also work with minority-owned businesses looking to sell by connecting them with lawyers, business brokers, investment bankers and others to help them sell their businesses at full value.
What was the motivation for creating MAP Lab?
Oftentimes when we talk about growing business, we talk about getting the next customer, contract or client. Buying an already existing business that already comes with its own customers, employees, supplier relationships, etc., can be a great way to expedite growth.
How does it work?
The process starts with an MBDA client filling out an intake form where they can detail where they are in the current deal process, what support or resources they need, and any information they can share about the opportunity. Once this intake form is done, the MAP Lab Director Andrew Newsome will set up a conversation to discuss the opportunity, assess needs and coordinate support.
Who does it benefit?
We believe the MAP Lab can greatly benefit business owners of color, opening the door to new growth strategies that are not often discussed. Ten million small businesses will be coming up for sale in the next two decades due to baby-boomers retiring, and we believe positioning current and future minority businesses owners to be able to acquire these companies can have a dramatic impact on closing the wealth gap.
How do owners looking to sell or MBEs get involved?
Email Andrew@ohiombdacenter.com
Do you have any success you can share?
One recent partnership resulted in a $3.5M NOACA contract. Currently, the MAP Lab has identified 14 businesses interested in selling and is actively matching seven of those businesses with our MBDA clients.