Acquisitions That WorkAcquisitions That Work

Preferred Business Brokers

Rand Hollon

What Works?What Works?

What Works?What Works?

Over 750,000 times a year

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 The Strategic Buyer

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

“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