In this episode of the M&A Mastermind Podcast, host Nick Olsen interviews Matt Dean, founder of Scare the Bear Capital. They discuss the unique aspects of the government contracting (GovCon) market, the investment strategies employed by Scare the Bear, and how they help small businesses grow through non-controlling investments and advisory support. Matt shares insights on the importance of filling gaps in business operations and the role of strategic connections in facilitating growth. The conversation also touches on the current state of the GovCon industry and offers key takeaways for M&A advisors.

Takeaways

• Scare the Bear Capital focuses on non-controlling investments in small GovCon businesses.
• The unique market of GovCon is often overlooked by larger investors.
• Advisors at Scare the Bear must invest their own money and time into portfolio companies.
• The firm helps small businesses appear larger to achieve better valuations.
• Investment strategies are tailored to help motivated managers grow their companies.
• Talent acquisition is a critical component of business growth in GovCon.
• The federal government remains a significant buyer of services, despite market fluctuations.
• Filling operational gaps is essential for successful partnerships between investors and businesses.
• The firm aims to create ownership mindsets within small businesses to attract investment.

About the show:

• The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.
• The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.
• With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.

Chapters

00:00 Introduction to Scare the Bear Capital

07:36 Understanding the Government Contracting Market

13:18 Investment Strategies and Non-controlling Interests

20:29 Advisory Support and Talent Acquisition

25:12 Collaborative Growth Among Portfolio Companies

30:23 Navigating Challenges in the GovCon Industry

34:40 Conclusion and Key Takeaways

Keywords

GovCon, private equity, small business growth, investment strategies, advisory support, talent acquisition, government contracting, M&A