acquisitions that work acquisitions that work preferred business brokers rand hollon
TRANSCRIPT
Buyers
Sellers
Preferred Business Brokers
CPAs
Lawyers
Large Amounts of Money
The PlayersThe Players
(maybe yours)
The PiecesThe Pieces
No Compete AgreementsFinancingAsset Sale vs. Stock SaleContract ProvisionsLetters of IntentBuyer’s Due DiligencePurchase Price AllocationRole of Attorneys and AccountantsTransition and Integration RolesEtc., 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 AcquisitionThe Successful Acquisition
“All acquisitions are local.”
Deals from Hell, Robert F. Bruner
The SellerThe 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 GoalsThe 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 StrategyThe 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’s GoalsThe Strategic Buyer’s Goals
Increase Market Value
Strengthen Strategic Position
Add Organizational Strength
Improve Reputation
A Successful AcquisitionA 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 StrategyThe Buyer’s Strategy
Maintain confidentiality
Have a transition and integration plan for the target business
“Execution is the chariot of genius.”
- William Blake