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Explore the intricate world of business acquisitions with expert strategies that have proven effective over 750,000 times annually. Learn about the roles of preferred business brokers, CPAs, and attorneys in facilitating successful deals. Discover crucial factors such as financing options, the differences between asset and stock sales, negotiation tactics, due diligence, and the importance of maintaining confidentiality. Whether you're a seller looking to maximize value or a buyer seeking strategic opportunities, understanding the motivations and strategies of both parties is key to a successful acquisition.
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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