#31 | JJ Barto: A $14.73 Check Almost Ended the Whole Deal

A $14.73 personal check turned up in the quality of earnings review, and the seller nearly walked over it. JJ Barto explains why that happens.More on JJ Barto and this episode: thedealtablepodcast.com/episodes/jj-bartoBarto is a partner at Broadwing Capital, a Dallas lower middle market private equity firm focused on first-time institutional capital: founders and families who spent 20 to 40 years building businesses doing $5 to $50 million of EBITDA in business services and niche manufacturing. His description of the firm is that they are sharp folks with really soft elbows.This is one of the most candid explanations of how lower middle market private equity actually works that a founder can get. Why 60 percent of businesses that go to market never transact, why 30 percent of signed letters of intent fall apart before closing, and why identity loss rather than money is the hardest part of selling a company you built.He walks through Broadwing's founder intention planning, a diligence process for understanding what the seller wants after the deal closes, and the delegation framework he sums up as a river without boundaries becomes a swamp. Plus who is really competing for these deals now, family offices against searchers against independent sponsors, and how tariffs and uncertainty move valuations.JJ Barto is a partner at Broadwing Capital, a Dallas private equity firm investing in lower middle market business services and niche manufacturing companies. He has more than 20 years of experience with privately held companies and started his career building log cabins in Colorado.KEY MOMENTS00:00 "Sharp folks with really soft elbows"00:47 What lower middle market means03:39 The private equity villain narrative05:37 Identity loss when you sell07:18 Founder intention planning10:13 A river without boundaries13:27 Searchers and the new buyer universe27:25 60% never sell, 30% of LOIs die30:39 The $14.73 check that broke a seller47:07 AI as a tool, not a strategyNewsletter: thedealtablepodcast.com/connectLane Carrick on selling a business, The Optima Advantage: amzn.to/48nLElWFollow The Deal Table: YouTube, LinkedIn, Instagram, Facebook, TikTok, XThe Deal Table is hosted by Ryan Harper and Lane Carrick, filmed in Dallas, and produced by Harper Belmont Media.Sponsored by Capital Southwest.