Smart Business Dealmakers’ Post

great article on the impact an intangible (your people) can have on the value of your business.

"Because many times these people are like family — maybe not biologically, but certainly they've been through the blood, sweat and tears in growing the company to the scale. And by-and-large, you can do that with a cohesive, well-run and well-incentivize team. And that's primarily what we look for on the sell-side as a private investor in the space." DGP Capital's Jack Chang on what sellers can do to make their business attractive to buyers. #Houston #HoustonDealmakers #dealprep Read the full article: https://lnkd.in/g-ihrQue

The business owner’s dilemma – when and how to sell. From determining the timing of a sale to navigating due diligence, the process of selling can be complicated. In Aldrich’s latest Owner’s Insights discussion, RA Capital Principal Eliot Peters joins Aldrich Capital Advisor Brian Andreosky to discuss the current opportunity for owners, how to determine the right transaction timing, and what buyers value in today’s market. https://lnkd.in/gn4tZFQd #Aldrich #businesstransitions #MergersandAcquisitions #RACapital

𝐅𝐞𝐞𝐥𝐢𝐧𝐠 𝐜𝐨𝐧𝐬𝐭𝐫𝐢𝐜𝐭𝐞𝐝 𝐚𝐭 𝐚 𝐛𝐢𝐠 𝐟𝐢𝐫𝐦 𝐲𝐞𝐭 𝐧𝐨𝐭 𝐪𝐮𝐢𝐭𝐞 𝐞𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫𝐢𝐚𝐥 𝐞𝐧𝐨𝐮𝐠𝐡 𝐭𝐨 𝐡𝐚𝐧𝐠 𝐲𝐨𝐮𝐫 𝐨𝐰𝐧 𝐬𝐡𝐢𝐧𝐠𝐥𝐞? Or perhaps you’re a multi-generational team with next gen advisors who feel the pull of independence while more senior partners want to take some chips off the table Plenty of advisors fall into these 2 categories… And as we’ve seen over the past decade, the industry has answered in kind with multi-affiliation models where advisors can join as W2 employees, substantially monetize the business upfront while providing their next gen with a path to independence down the road. Or quasi-independent firms offering the best of the traditional brokerage and independent worlds in one place. The good news for advisors today is that there are more high-quality options to choose from than ever before. Interested in learning more about the landscape of opportunities available for advisors these days? Feel free to DM me to schedule some time to talk, no agenda or expectation. 

Insights into how 7 different types of buyers approach the valuation of a business... 1️⃣ Strategic Buyers - Typically existing companies or corporations looking to expand their market presence, acquire complementary technologies, or diversify their product/service offerings. For these buyers, synergy is a key consideration. 2️⃣ Financial Buyers - Financial buyers, including private equity firms and investment groups, focus primarily on the financial performance of the business. They evaluate historical and projected financials, profitability, and cash flow to determine the return on investment. 3️⃣ Individual Investors & Entrepreneurs - These buyers are often seeking a business for personal ownership and management. The appeal of the business extends beyond financial metrics. Factors such as lifestyle fit, passion for the industry, and the potential for personal fulfilment play a significant role. 4️⃣ Competitors & Industry Insiders - These buyers have an intimate understanding of the market landscape and the specific challenges and opportunities within the industry. Valuation for these buyers may involve a deep dive into the target company’s competitive advantages, market share, and intellectual property. 5️⃣ Management Buyout - In the case of a management buyout, valuation considerations are often intertwined with the team’s knowledge and experience. The buyer’s understanding of the company’s inner workings, growth potential, and the feasibility of a successful transition is pivotal. 6️⃣ Family Successors - When considering a sale to family members or internal successors, valuation may encompass a mix of financial considerations and familial dynamics. Sellers may be more inclined to consider non-financial factors, such as preserving a family legacy, ensuring the well-being of employees, and maintaining the company’s values. 7️⃣ Strategic Investors & Joint Ventures - Strategic investors and joint ventures bring both financial and strategic considerations to the table. These buyers may be interested in leveraging the business’s capabilities for mutual benefit. #businesscoachswindon #success #swindon #scaleup #businessswindon #sellingyourbusiness

Insights into how 7 different types of buyers approach the valuation of a business... 1️⃣ Strategic Buyers - Typically existing companies or corporations looking to expand their market presence, acquire complementary technologies, or diversify their product/service offerings. For these buyers, synergy is a key consideration. 2️⃣ Financial Buyers - Financial buyers, including private equity firms and investment groups, focus primarily on the financial performance of the business. They evaluate historical and projected financials, profitability, and cash flow to determine the return on investment. 3️⃣ Individual Investors & Entrepreneurs - These buyers are often seeking a business for personal ownership and management. The appeal of the business extends beyond financial metrics. Factors such as lifestyle fit, passion for the industry, and the potential for personal fulfilment play a significant role. 4️⃣ Competitors & Industry Insiders - These buyers have an intimate understanding of the market landscape and the specific challenges and opportunities within the industry. Valuation for these buyers may involve a deep dive into the target company’s competitive advantages, market share, and intellectual property. 5️⃣ Management Buyout - In the case of a management buyout, valuation considerations are often intertwined with the team’s knowledge and experience. The buyer’s understanding of the company’s inner workings, growth potential, and the feasibility of a successful transition is pivotal. 6️⃣ Family Successors - When considering a sale to family members or internal successors, valuation may encompass a mix of financial considerations and familial dynamics. Sellers may be more inclined to consider non-financial factors, such as preserving a family legacy, ensuring the well-being of employees, and maintaining the company’s values. 7️⃣ Strategic Investors & Joint Ventures - Strategic investors and joint ventures bring both financial and strategic considerations to the table. These buyers may be interested in leveraging the business’s capabilities for mutual benefit. Please don't hesitate to drop me a message to learn more. #businesscoachswindon #success #swindon #scaleup #businessswindon #sellingyourbusiness

As a business owner, I've learned that selling your company isn't just about finding a buyer - it's about creating the right market. That's why I created this article to share my experience and insights on "Getting M&A Deals Done – Generating Demand vs. Supply." In it, I dive into: • What happens when the right buyer walks away • How skilled investment bankers create market demand • The importance of 'packaging' your company • Navigating the evolving buyer landscape • Mitigating risks with multiple buyer options Don't let your dreams of the perfect sale run away from you. Read the blog and tell me what you think! https://bit.ly/3WjgLbu #MergersAndAcquisitions #BusinessSale #InvestmentBanking #AllegianceCapital

The January 2024 issue of Smart Business Network Pittsburgh Magazine features an article from Blue River’s Sara Clevenger. / Smart Business Pittsburgh / This year drove M&A dealmakers to face unrelenting challenges and a stark decline in activity, by result. Rising interest rates, geopolitical turmoil, and unmuted fears of economic recession drove a marked downturn in deal activity and a “what next?” sentiment across the industry. Since bottoming out in the first quarter 2023, however, signs of change may be in the air. More dealmakers have reentered the ring, and M&A activity shows early signs of resurgence. Enjoy the article! #mergersandacquisitions #investmentbanking #goblueriver

In this edition of our Seller Insights series, we had the pleasure of interviewing Michael Tremain, the managing partner of the private equity group at Sovereign's Capital. Tremain's team specializes in investing in companies across diverse industries. Learn from his unique perspective:

ZIRP M&A is (hopefully) dead. Let's check it out >> Having seen both buy and sell side ZIRP deals, I am hopeful that we've seen the last of "doing deals just to do deals". As much as us lawyers, corp dev, finance-type folk love "doing deals", just saw way too many "what if we miss the boat" deals get thrown together and then left on the shelf after-purchase. Because why not? You're company is "worth" 40x ARR, and you're acquiring a company at 20x ARR, that's arbitrage...right? And although these deals make founders, execs, and (preferred) share holders lots of cash (cool?) they can end up hurting existing teams in integration and post-deal swirl, and hurt acquired teams (emotionally, professionally, etc.) if the right resources, time, and thought isn't put into the product that everyone was so excited about leading up to close. Now luckily, I've also been a part of some really important and company-defining M&A, so - it wasn't all bad during ZIRP - but lets hope the good starts to thoughtfully outweigh the bad as we become smarter about capital deployment. At Altumare Capital - the businesses we acquire are all put through the same diligence, review, and discussion around capital allocation, synergies to existing businesses, and a full and unanimous commitment to post-deal/integration success. Well, (i) because we can't afford to miss at this stage as an emerging fund, but (ii) these are not just investors dollars, they're really peoples lives behind each of these deals (employees AND customers alike) How are you handling M&A post-ZIRP?