Forbes Burton’s Post

"Success is not the key to happiness. Happiness is the key to success." This resonates deeply in the world of business acquisitions. A recent article highlights how understanding the fee structures of M&A advisors is crucial for buyers and sellers alike. Knowing what to expect financially allows parties to make informed decisions and can lead to a more smooth and successful transaction. It's essential to align with professionals who are transparent about their costs – trust and clarity can make all the difference. Key takeaway: Be proactive in your financial understanding. It empowers you to make choices that align with your goals in the business landscape. What’s your story about financial clarity or working with advisors? I'd love to hear your experiences! #BusinessAcquisition #FinancialLiteracy #TrustInBusiness #Entrepreneurship https://lnkd.in/gqAdiRWe

Much is made of the UK M&A market, but the jewel in the crown remains our tech sector with the technology sector and IT services in particular demonstrating resilience. Per our latest M&A report, a total of 620 UK deals were announced in 2023, marginally ahead of 2022, with over 60% of these transactions led by PE or PE-backed businesses. Its never too early for a tech business to plan for exit and in doing so I usually find businesses are run with clarity and purpose. My colleague @Nick Thompson recenty hosted a seminar and shareed his experiences along with with some key market playters. Here are some great takeaways. #tech #growth #plan

🌟 Exciting Announcement: Interview with Carl Lundberg We're thrilled to share an in-depth interview with Carl Lundberg, CEO of Gerald Edelman, a renowned name in the UK's SF space. Carl sheds light on their extensive services for acquisitions entrepreneurs. Key Highlights: 🔹 Advisory Services: Carl discusses how they guide searchers through acquisitions, negotiations, due diligence, and beyond completion. 🔹 Evolving SF Landscape: Insightful take on the trend of self-funded entrepreneurs and the increasing role of M&A brokers. 🔹 Due Diligence Challenges: Gerald shares experiences and emphasizes the importance of thorough due diligence to prevent post-transaction disputes. 🔹 UK Market Dynamics: Why the UK sees more self-funded structures and the competitiveness of the PE market for small transactions. 📅 Save the Date: November 7, 2024, for the second edition of the ETA Awards, promising to be even bigger and better with categories like Lender of the Year, Community Contribution, and more! Discover Carl’s vision for the future of the UK market, including a call for government support to facilitate entrepreneurial success. 👉 Dive into the full interview for expert insights and industry trends that could shape your next big move in the SF space! 👈 Read the full interview: https://lnkd.in/dMbWHdTG #EntrepreneurshipThroughAcquisitions #EtA #SearchFund #SearchFunds #BusinessAcquisitions #SmallBusinessAcquisition #SearchFundsNews

Unfortunately, many small businesses are struggling to keep their heads above water. Even those in a more comfortable position haven’t found themselves unscathed either. So much so that UK companies are delaying their plans for growth while the economic future remains so uncertain. A well-planned acquisition can provide extra stability by combining the resources of both companies to become one stronger entity. That’s not the only benefit to pursuing an acquisition though. Find out more here: https://lnkd.in/enSEJ2T4 #BusinessAcquisition #ChamberofBusiness #SmallBusiness

[Watch] How I avoid risk when buying businesses In the second part of Jonathan Jay's interview with James Caan, published on our YouTube channel today, the entrepreneur and Dragon’s Den investor reveals his approach to risk with acquisitions. Eliminating risk as much as possible is key for all successful business investors, as it protects them from losing their personal assets and wealth. Following this principle is essential whether you are doing your first business acquisition or your 100th. In the video, James Caan reveals his risk strategy, how he eliminates risk when integrating newly-acquired businesses and how it went wrong when he failed to follow his own rules. Here is what you will discover… 👉 The two reasons why any acquisition goes wrong (you can avoid both when you know how) 👉 Why ‘cultural fit’ is so important when integrating staff from a newly acquired business (don’t overlook the importance of this) 👉 Why falling in love with a business can be fatal to a profitable deal (and results in you paying more to the vendor) 👉 Why you should never leave any stone unturned when doing due diligence (don’t 👉 Why James advocates spending social time with the management teams of the business you are looking to acquire (you never know what you’ll discover during one conversation over lunch) 👉 Why due diligence is not the primary reason why James chooses not to pursue a deal (it is something very different) 👉 Why being successful with one business in a sector does not mean you will always be successful with another in the same sector 👉 Why it sometimes pays to understand the customers of a business (this is particularly true in B2C) 👉 Why James believes you should not procrastinate when you know you’ve got it wrong with a business (speed matters to getting back on track) 👉 Why James never gives personal guarantees to this day (and why refusing to sign a PG was is the only way to limit risk to your personal wealth) 👉 Why the first 90 days is the most important when integrating businesses (your action during this period will decide whether the acquisition is a success or not) 👉 What you absolutely must not allow to happen when integrating a business (this proved fatal to one acquisition) 👉 Why you need a clear integration plan in place before you integrate a new acquisition (and appoint someone with responsibility for executing it) Watch How I avoid risk when buying businesses now: https://lnkd.in/e-tDbcJg

Looking to buy a business? Have you ever wondered why some business acquisitions seem to hit a snag right out of the gate? In our journey working with thousands of business transactions, we've seen a pattern: newcomers to the acquisition game often struggle with due diligence. What goes wrong, and how can you steer clear of these pitfalls? ➡ Spotting the Details: It’s tricky, right? Without previous experience, it's all too easy to miss the little things in financial or legal docs that can hugely impact the business's value. ➡ Risking It All: And then there’s risk—without enough experience, it’s tough to spot all the potential traps waiting in the wings of a deal. ➡ Getting the Price Right: How much is too much? Without a solid grip on valuation techniques, you might end up paying more than you should, or worse, walking away from a great deal because you underestimated its worth. 🚀 Feeling a bit daunted? Here’s a friendly tip: Lean on the experts. Bring experienced advisors on board, and dive deep into learning the essentials of due diligence and business valuation. It’s like having a GPS in the complex journey of buying a business. Thinking of making a business acquisition and want to do it right? Why not chat with someone who’s been down this road? Feel free to drop me a message or let’s start a conversation right here on how to make your investment a success! #BusinessAcquisition #DueDiligence #InvestmentTips #BusinessValuation #Entrepreneurship #valuation #qualityofearnings Peak Business Valuation

Do you know the true value of your business? South African business owners are savvy in running their businesses. Yet, there's often a disconnect between what they think their businesses are worth and their actual value. This misalignment can be attributed to biases or a lack of valuation knowledge. An independent business valuation is a compass that helps business owners navigate this terrain. It provides an objective assessment of a company's economic worth and can be a game-changer for decision-making. Here's why obtaining an independent business valuation is a smart move: 1. Selling or Exiting: For business owners looking to sell, a proper valuation sets the stage. It helps determine the right asking price, increasing the chances of a successful sale and ensuring a fair deal. 2. Mergers and Acquisitions: Seeking funding from investors or financial institutions? A business valuation adds credibility and showcases your business's true worth, securing favourable financing terms. 3. Obtaining Financing: In merger or acquisition scenarios, a valuation ensures transparency and fairness, benefiting both parties and facilitating mutually beneficial deals. 4. Strategic Planning: Business valuations unveil a company's strengths and weaknesses, guiding owners in decision-making. They assist in identifying areas for improvement, growth, and strategic focus. In a world where informed decisions are essential, independent business valuations are indispensable tools for business owners. Whether you're selling, financing, or strategising, an independent specialist can provide the objective insights and information needed to make smart financial decisions. Don't let bias or uncertainty hold your business back—discover your true value with an independent business valuation. To find out more about the added benefits of independent business valuations, read our latest article, Unlocking the True Worth: The Power of Independent Business Valuations for South African Businesses, by Vladimir Babenko - https://bit.ly/3ZRPApD #BusinessValuation #FinancialDecisions #Strategy #SouthAfricanBusiness #Entrepreneurship

📝 Memoirs of a COO - "Greed is good!" Having completed a gruelling year of restructuring the business, in order to modernise and create regulatory resilience I was half expecting the next stage of evolution of the firm. “I need your confidence as this info for the next few weeks is strictly FYEO” “The thinking around the future has crystallised in the parent and will come as no shock to you that they are now looking to sell the business.” This was indeed not a shock and seemed like a natural step given the work we had all put in over the past year or so. Up to this point I’d never really been at the heart of any M&A activity and acquisitions still conjured up images of Gordon Gekko of Wall Street fame. His often (mis)quoted speech in the film where he spells out why greed is good in making his case for ‘Teldar Paper’, was a label applied frequently to the excesses of financial markets in the 80’s. Were we about to be descended upon by loud brace wearing, brash ego maniacs?  The truth of the subsequent activity and characters was far more subdued (although we did spend time with a rather charismatic brace wearing Private Equity chap!). The value in the business had evolved over 100 years and it remained a key player in UK capital markets. Why should we be acquired?  As businesses evolve they develop cultural norms and behaviours which under observation in isolation are absolutely fine. However when you observe cultural differences between organisations you can quite clearly see differences and opportunities for ‘arbitrage’. This opportunity is something that acquirers look for (as well as the usual sales and financial metrics).  As we met a range of suitors, one thing appeared clear in the discussions and that was the clear growth ambitions of the potential acquirers.  We had the same or similar strategies for the business BUT the unassailable fact was that these other businesses had very different cultures from us.  We, along with our advisors, settled on a UK acquirer who were entrepreneurial and had grown their business over a relatively short space of time. Culture would indeed be the enabler of this deal and it was refreshing albeit stressful, with long hours and weekends sacrificed to complete the transaction within a challenging timeframe (something I came to enjoy!). The business flourished under the new owners and clearly benefited from a step change in culture which only really occurs with such a transaction. The value of the business multiplied significantly over subsequent years. The activity we had gone through and executed was somewhat removed from the world of Gordon Gekko and although the profit and value motive was strong, the enabler was opportunity fuelled by culture that made it happen not necessarily greed! Lesson 👨🎓 M&A transactions that are time bound are great for generating intense activity. 👨🎓 Culture does indeed eat strategy for breakfast! *Favourite Gordon Gekko quote 👇

“Failing to have a well thought out exit strategy early in the journey could cause significant complications when a business owner decides to sell the business and exit.” https://buff.ly/3R9ahYA #Valuation #Businesstips #SuccessionPlanning #ExitPlanning