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Acquisitions That Work. Preferred Business Brokers Rand Hollon. What Works?. What Works?. Over 750,000 times a year. Buyers. The Players. . Sellers. . Preferred Business Brokers. . CPAs. . Lawyers. . Large Amounts of Money. . (maybe yours). The Pieces.
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Acquisitions That Work Preferred Business Brokers Rand Hollon
What Works? Over 750,000 times a year
Buyers The Players Sellers Preferred Business Brokers CPAs Lawyers Large Amounts of Money (maybe yours)
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: CQ + PQ > IQ The World Is Flat, Thomas L. Freidman
The Successful Acquisition “All acquisitions are local.” Deals from Hell, Robert F. Bruner
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 • 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 • Keep your foot on the gas – a well run business is a valuable commodity in any market • Maintain confidentiality
The Strategic Buyer’s Goals • Increase Market Value • Strengthen Strategic Position • Add Organizational Strength • Improve Reputation
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 • Maintain confidentiality • Have a transition and integration plan for the target business “Execution is the chariot of genius.” - William Blake
CQ + PQ > IQ “At the end of the day, it’s always an art, not a science”- Dan Scheiman, Senior VP, Cisco Systems