07:11:23 - This week in The Hub - Main Street Weekly

What you need to know about buying, growing or selling small to medium businesses. The news, the pods, the social influencers. Curated from the world of SMB (small to medium business)

We do the research and bring you what’s pertinent when you want to grow, scale, buy or sell your first or your next business. 

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In the News, Blogs, and AI …

And global M&A deal volumes fell 8% from the second half of 2022 but 14% year over year, according to PwC.

Recession fears and still-rising interest rates in the first half of 2023 caused global merger and acquisition activity to stay relatively cool. 

Global M&A deal volumes fell by 8% from the prior quarter and 14% from the prior year (second half of 2022). By deal value, activity dropped 15% quarterly and 40% year over year, according to data from PwC and Refinitiv. (850 words) Read more here…

By attracting attention from threat actors, merger and acquisition (M&A) events are a significant source of cyber crime risk. So much so that, according to a 2020 IBM Institute of Business Value study, more than one in three executives said they experienced data breaches that can be attributed to M&A activity during integration.

Security ratings, provided by security rating services (SRS), can deliver an overview of risk to stakeholders. But attack surface management (ASM) tools give security teams actionable insight on a daily basis throughout the entire M&A process. (1065 words) Read more here…

When ChatGPT and similar chatbots first became widely available, the concern in the cybersecurity world was how AI technology could be used to launch cyberattacks. In fact, it didn’t take very long until threat actors figured out how to bypass the safety checks to use ChatGPT to write malicious code.

It now seems that the tables have turned. Instead of attackers using ChatGPT to cause cyber incidents, they have now turned on the technology itself. OpenAI, which developed the chatbot, confirmed a data breach in the system that was caused by a vulnerability in the code’s open-source library, according to Security Week. The breach took the service offline until it was fixed. (1052 words) Read more here…

Tom Redekopp, managing director of the business law group at Dentons in Toronto, knew there was a seismic shift underway in mergers and acquisitions traffic when deals started abruptly falling apart midstream earlier this year.

Rather than the usual pace of one deal per year stalling out, transactions were suddenly being abandoned on a monthly basis.

“I think it’s like four deals dying in the last four months,” Redekopp said. The cross-border M&A specialist said factors such as rising interest rates and turbulent earnings were in some cases combining to change the acquirer’s mind. (1076 words) Read more here…

A confluence of several strong forces has reshaped an essential element of the M&A dealmaking process: due diligence. Emerging risks and new regulations have compelled buyers and sellers to reshape their investigation and dealmaking process to better protect themselves. Here’s how: (1800 words) Read more here…

In the Pods …

In this video, Jonathan Jay sits down with three dealmakers who have bought multiple businesses and are ready to share insider tips and tricks of the trade. First, Jonathan Jay talks to Andy about his successful acquisition strategy and the growth of his business. Andy shares his experience of buying his first business just a few months after completing a Dealmakers Mastermind programme. He explains how he identified a genuine seller and completed the deal in just eight weeks. [36:24] Listen here…

Gia Cilento and Walid Costandi discuss their experiences in mergers and acquisitions (M&A) and their current project, a chocolate roll-up. They emphasize the importance of transparency, treating everyone well, and being upfront about expectations. They also highlight the need for business owners to prepare their companies for sale and delegate responsibilities to create a more scalable and valuable business. Additionally, they introduce their program, Cash Out Wealthy, which helps business owners sell their companies and maximize their value. [56:22] Listen here…

Holdco entrepreneur Chase Murdock buys very small businesses with potential for rapid growth & decades of staying power. Decada Group identifies businesses that can be 5x'd in 5 years and acquires them with cash flow from the existing portfolio — no outside investors. Also, they are cool, fun businesses that add to the fabric of their hometown Salt Lake City. A custom hat maker. A workshop for local artists. Not your typical assemblage of boring businesses. [1:24:21] Listen here…

The world of M&A is complex, but it is possible to plan, learn, and be flexible enough to make an acquisition successfully happen. Cassio Bobsin takes a broad perspective of entrepreneurship and gives his insights into start-ups, mergers, integration, taking a company public, and the influence of AI on the M&A industry. Cassio doesn’t take the typical scientific approach to decide about an acquisition – he looks at core competencies, synergies, and best practices of a company and how to integrate them. [51:00] Listen here…

Andrew Morbitzer, VP/Head of Corporate Development at Typeform

Give your team members access to the best in class courses, templates, and networking opportunities in the industry. Our academy was designed to lead practitioners with the outdo with the M&A practices. It’s also a great way to show your support for M&A Science. [49:00] Listen here…

Ben Rizzo, Founder of Hartwood Point, makes direct private investments across the US and UK, primarily in operator-led buyouts. Ben talks with Succession Stories host, Laurie Barkman, about acquisitions, and how he turned around a distressed business and sold it in just two years. Having experience on both sides of M&A deals, Ben shares practical tips for business owners and acquisition entrepreneurs. Owners will gain insights about what you can do now to get your business sell-ready and be better prepared for a great exit when the time comes to sell. [39:19] Listen here…

In the Knowledge 

The 21st century wasn’t supposed to be full of so many headaches.

Or so much paper.

“Mid-sized companies say their [accounts payable (AP)] departments are spending about 50% of their time collecting invoices and paying suppliers,” Brett Sussman, vice president of American Express Business Blueprint and Banking, told PYMNTS. “That’s not the vision that they had for those departments.”

That’s because while manual accounting and finance processes do work, they remain full of ongoing inefficiencies whose operational impact can be like pouring molasses over a firm’s growth flywheels. (750 words) Learn more here…

In the simplest terms, business development can be summarized as the ideas, initiatives, and activities that help make a business better. This includes increasing revenues, growth in terms of business expansion, increasing profitability by building strategic partnerships, and making strategic business decisions. (2526 words) Learn more here…

Are you ready to unlock the huge potential of social media for your small business? Social media has revolutionized the way businesses connect, engage, and influence their audience. It offers a tonne of opportunities that can propel your business to new heights.

But why is social media growth so crucial for small businesses, and how can you leverage this powerful marketing channel effectively? 

We’ve put together a comprehensive guide on everything you need to know (1550 words) Learn more here…

In the BIG Guys Corner … (middle market and above) 

Doggett Auto Group expands Beaumont footprint with acquisition of 4 Kinsel dealerships 

Doggett Auto Group acquired four dealerships in Beaumont, Texas, from Kinsel Motors, including Kinsel Toyota.

Doggett Auto Group is adding to their portfolio with the acquisition of four Beaumont-area auto dealerships. The new acquisitions include Kinsel’s Toyota, Ford, Lincoln and Mazda dealerships on Beaumont’s Eastex Freeway 96, located in the heart of Beaumont’s metro area. (540 words) Read more here…

After a slow two quarters, M&A activity involving public US equity real estate investment trusts picked up in the second quarter with several merger agreements.

While elevated interest rates and an associated higher cost of debt slowed down take-private deals in the REIT sector, all-stock transactions remained prominent.

Four REIT merger deals totaling $24.27 billion in transaction value were announced in the second quarter. Combined with the $868 million privatization of INDUS Realty Trust Inc. announced in the first quarter, M&A transaction value totaled $25.13 billion in the first half of 2023, down 62.4% from a high of $66.86 billion in the same period in 2022, according to S&P Global Market Intelligence data. (450 words) Read more here…

In the Sosh … who to follow this week

Walker Deibel is a serial acquisition entrepreneur, WSJ & USA Today bestselling author, an Emmy-nominated film producer, and an award-winning M&A advisor. He is the creator of Acquisition Lab, the premier business buying accelerator for entrepreneurs.

Connect with him on LinkedIn. On Twitter. On YouTube.

Elise is an experienced CEO, board director and entrepreneur with more than 25 years of experience steering companies through complex business challenges. She leverages her digital marketing, public relations and high-growth expertise on both sides of the board room…

Connect with her on LinkedIn. On websites mitchcommgroup.com (Company), or elisemitchell.com (Book, public speaking, blog). On Twitter.

In the calendar … 

Special Event sponsored in conjunction with our sister newsletter, The Deep by Ronald Skelton

The Exit Meetup is a local meet-up for like-minded business owners.

Meet others, and talk about growth and the opportunity to buy or sell. Plus, hear from a successful acquisition entrepreneur. This is an informative and entertaining meetup aiming to connect owners and investors in a fun environment. Check it out

A twice-monthly networking meeting where acquisitions entrepreneurs come together online to build teams, share ideas and resources, and help each other succeed. The first and Third Tuesday of each month. Check it out

The annual Southeast Entrepreneurship Through Acquisition Conference is hosted by the Duke Innovation & Entrepreneurship at the Duke Fuqua School of BusinessBatten Institute at the University of Virginia Darden School of BusinessUNC Kenan-Flagler Business School and Georgetown University McDonough School of Business. This conference is designed to educate, encourage and equip current and recent MBA students and mid-career professionals in the Southeast US to pursue the acquisition and operation of a small or mid-sized business. Check it out…

The official “Un-Conference” of micro-PE. Where Holding Companies Meet, Learn, Scale, and Grow. Check it out

This will be an afternoon/evening mixer for SMB owners, investors, and operators. We'll be in the Hill Country of Texas with - Catered food - Live music - Pool - Fire pit - Fly in, build your network, and make some IRL friends.

The Self-Funded Search Conference is the first and only conference dedicated exclusively to the self-funded search model of entrepreneurship through acquisition (“ETA”) – exclusively for self-funded searchers. This annual conference is hosted by the Self-Funded Search Association (“SFSA”), a not-for-profit organization (NFPO) for individuals who are seeking to purchase a company through the self-funded path to entrepreneurship through acquisition. Check it out

The State of Search in the U.S. Conference focuses on search fund entrepreneurs, bringing them together with investors, students, and faculty. By Rice Entrepreneurship Association. Check it out

The Booth-Kellogg ETA Conference is an annual event that brings together search fund entrepreneurs, investors, MBA students, faculty, and other participants in the ETA ecosystem to meet one another and share insights into this rapidly-growing area. The 10th Annual Booth-Kellogg ETA Conference at the Marriott Magnificent Mile | 540 Michigan Ave, Chicago, IL. Check it out

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