Presentation Transcript
Acquisitions That Work: Acquisitions That Work Preferred Business Brokers
Rand Hollon
What Works?: What Works?
What Works?: What Works? Over 750,000 times a year
The Players: Buyers Sellers Preferred Business Brokers CPAs Lawyers Large Amounts of Money The Players (maybe yours)
The Pieces: The Pieces
No Compete Agreements
Financing
Asset Sale vs. Stock Sale
Contract Provisions
Letters of Intent
Buyer’s Due Diligence
Purchase Price Allocation
Role of Attorneys and Accountants
Transition and Integration Roles
Etc., Etc., Etc.
The most important valuation formula you’ll ever need:: The most important valuation formula you’ll ever need:
CQ + PQ > IQ The World Is Flat, Thomas L. Freidman
The Successful Acquisition: The Successful Acquisition “All acquisitions are local.”
Deals from Hell, Robert F. Bruner
The Seller: The Seller
A change in competition
A partnership break-up or stockholder change
Retirement
Unexpected changes in finance (divorce/medical)
Ready to explore other business opportunities
Business has grown beyond seller’s ability to manage
Desire for a big payoff
Relocation
Owner’s heirs don’t want company or are not competent to run it
Owner wants to simplify his life
The Seller’s Goals: The Seller’s Goals Get Top-Dollar
Have a Good Chemistry with the Buyer
Peace of mind
Wants to leave his employees in good hands
Wants to leave his customers in good hands
Buyer success
The Seller’s Strategy: The Seller’s Strategy
Keep your foot on the gas – a well run business is a valuable commodity in any market
Maintain confidentiality
The Strategic Buyer : The Strategic Buyer
The Strategic Buyer’s Goals: The Strategic Buyer’s Goals Increase Market Value
Strengthen Strategic Position
Add Organizational Strength
Improve Reputation
A Successful Acquisition: A Successful Acquisition Increase Market Value
Your business. Your Investment.
Strengthen Strategic Position
Increase Market Share
Improve Profitability
Add a Service Offering
Add a New Market Area
Add Organizational Strength
Add Depth of Employee Talent
Improve Reputation
With Employees, Customer Base or
Industry at Large
The Buyer’s Strategy: The Buyer’s Strategy
Maintain confidentiality
Have a transition and integration plan for the target business
“Execution is the chariot of genius.”
- William Blake
“At the end of the day, it’s always an art, not a science” - Dan Scheiman, Senior VP, Cisco Systems: “At the end of the day, it’s always an art, not a science” - Dan Scheiman, Senior VP, Cisco Systems
CQ + PQ > IQ