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  • [G&A] Growth & Acquisition - James Altucher; M&A Veteran Carl Allen; The Art of the Deal; Buy and Scale; Succession Planning Woes; AI Arms Race; Service As A Strategy;

[G&A] Growth & Acquisition - James Altucher; M&A Veteran Carl Allen; The Art of the Deal; Buy and Scale; Succession Planning Woes; AI Arms Race; Service As A Strategy;

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In the News

As MSP business merger and acquisition activity heats up in 2024, affected companies must ensure that their critical cybersecurity protections are in place and kept up to date. Like any other company, an MSP can get caught up in the complexity of M&A negotiations and inadvertently let their defenses down, leaving them vulnerable to cyberattacks including phishing, DDoS attacks, and more. Guarding against such threats may be even more important when business leaders are busy making M&A deals. Read more here…

Consolidation through mergers and acquisitions (M&A) has long been the norm within the managed services provider (MSP) industry. But the last few years have seen M&A activity rise to a fever pitch as companies from every imaginable niche are buying each other up at a near record pace. In 2023, ChannelE2E and MSSP Alert collectively reported on 339 deals and there were dozens more that were mentioned in our daily roundups. This year, we’ve already reported on more than 120 deals and there are more every day. Read more here…

US-based private equity firm focused on software and software-enabled tech services companies, acquired Eka Software Solutions (“Eka”), a global provider of commodity management solutions with a specialty in the soft ags and energies markets. STG will merge Eka with the Quor Group (“Quor”), an existing STG portfolio company that specializes in CTRM offerings within the metals ecosystem. Read more here…

A paradigm shift from traditional SaaS models to service-based strategies heralds a new era for tech startups, especially in the realm of artificial intelligence (AI). This transition is not just a trend but a strategic response to the current market's demands for better cash flow management, scalable operations and the necessity to accommodate a burgeoning remote workforce. Read more here…

In the dynamic world of telecommunications, staying ahead requires constant innovation. VMO2, a renowned leader in the field, recently embarked on a journey to evaluate latest technology as an opportunity to enhance end-to-end customer experiences and automate low-value tasks within their B2B sales process. The aim was to achieve time and cost savings, while improving sales conversion.

To leverage this opportunity, we had to overcome some challenges. From navigating complex technologies to ensuring a seamless customer journey, VMO2 recognized the need for a comprehensive solution. This led to a collaboration with experts from Client Engineering and Consulting, under my technical leadership, to build a pilot that could reimagine the sales experience. Read more here…

He’s worked in IT for 35 years in various roles, including as a software programmer, systems manager and chief technology officer. He’s now an industry analyst for research firm Gigaom. The current arms race was spurred by the launch of ChatGPT at the end of 2022, says Mr Collins. Since then, many such generative AI systems have emerged, and millions of people use them every day to create artwork, text or video. Read more here…

In today's competitive business landscape, integrating innovative technologies such as machine learning (ML) into traditional processes is becoming crucial for growth and sustainability. Machine learning, especially in conjunction with accounting, offers remarkable opportunities for businesses to enhance efficiency, accuracy, and decision-making. Read more here…

As digital, CRM, and more have evolved to create an abundance of digitally-infused customer experience activities, marketers have become responsible for an ever-growing list of options for how to spend their marketing dollars. While these innovations and the MarTech solutions that come with them have added immense value for the industry, they have also posed challenges for CMOs who’ve become deeply focused on optimizing each and every channel to ensure their reporting to the C-suite demonstrates value. The bigger picture – driving business growth – took a back seat. Read more here…

In 2022, family businesses had their biggest growth spurt in 15 years, and three in four expect to grow this year. But a new report from Deloitte indicates a lack of succession plans and a disconnect between the generations in family businesses.

Just 13 percent of family business members in the next generation say the business would "continue to run smoothly and without interruption if an important family employee moved on, retired, or passed away," compared with 24 percent in the current generation, according to the survey.  Read more here…

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The Short Take: Guest host David Green warmly welcomes M&A veteran Carl Allen to share his extensive expertise. Carl delves into his transformative journey from a structural engineer to an M&A titan, providing an authentic glimpse into the high-stakes world of business acquisitions. As the conversation unfolds, Carl candidly reveals the nuances that distinguish corporate deal-making from Main Street business sales, emphasizing the critical role of rapport and seller psychology.

Key Takeaways:

  1. The transition from corporate to Main Street M&A involves a significant emphasis on seller psychology and building rapport with business owners.

  2. Creative deal structures, such as the "annuity deal," can be more attractive to retiring business owners seeking income rather than a large upfront sum.

  3. Seller psychology is key in determining a business's value, often superseding traditional financial metrics.

The Short Take: Pace Morby and Cody Barton deliver a masterclass in modern business acquisition and growth strategies. The duo, known for their prowess in real estate and business operations, delve into practical steps for scaling businesses, turning losses into substantial profits, and leveraging creative financing.

Key Takeaways:

  1. Creative Financing Mastery: Pace Morby emphasizes the importance of creative financing in business acquisitions, which can unlock numerous opportunities and facilitate smoother transactions.

  2. Team Building and Operations: Cody Barton highlights the critical role of assembling a high-performing team and setting up robust operational systems to drive business growth.

The Short Take: Gayen and Joe engage with Christine McDannell of The Magnolia Firm. Christine shares her expertise on transitioning from the corporate grind to business ownership, offering practical advice on finding and buying a business. Her insights, drawn from her extensive experience in founding, acquiring, and selling businesses, provide a roadmap for aspiring entrepreneurs.

Key Takeaways:

  1. Business Acquisition Process: Christine outlines the step-by-step process of buying a business, from initial search to negotiation and final purchase.

  2. Operational Expertise: She emphasizes the importance of improving operational efficiency and leveraging digital tools to scale businesses.

The Short Take: Luke and Phil from nextAdvisory.nz provide a comprehensive overview of key considerations when buying a business. They answer audience questions, covering topics such as finding potential businesses, performing financial analysis, and deciding whether to buy or build a business.

Key Takeaways:

  1. Finding Businesses: Start by searching online marketplaces like Trade Me and engaging with business brokers. Networking and direct inquiries to business owners can also uncover opportunities.

  2. Financial Analysis: Focus on trends, key financial ratios, and the validity of financial documents. Understand add-backs and how they might affect the perceived profitability of the business.

The Short Take: In the “How to Buy 40 Businesses in 4 Years” podcast episode, Jeff Homer shares his extraordinary journey of acquiring and scaling music schools across America. What started as a small side project turned into a massive roll-up strategy, leading to the acquisition of 40 music schools and a successful exit to private equity.

Key Takeaways:

  1. Starting Small: Jeff Homer began his acquisition journey with a small music school, Dana V. Music, which he transformed through operational tweaks.

  2. Operational Efficiency: Implementing digital tools and improving operational processes were key to scaling the business efficiently.

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Founding Member Shout-Out

Shout out to our founding member, with over 30 years in M&A, this company offers a Resource Center helping you buy good businesses. Very underpriced - get it now before they finish upgrading the site and very likely up the pricing.  visit: https://www.diomo.com/

In the Knowledge 

The information in the following articles is important for any business, particularly for new acquisitions. Add them to your Knowledge Bank.

In a world where success stories often seem like overnight sensations, it's refreshing to hear the journey of someone who has truly embraced perseverance and resilience. From a blue-collar background to founding a social media platform and later a B2B software company, Scott Kaplan's experiences offer valuable insights into personal development, entrepreneurship, and the transformative power of sports. Perseverance and finding joy in one's work emerge as recurring themes throughout Kaplan's discussions. Read more here…

Small and medium-sized businesses (SMBs) need to find unique ways to get their products to customers that go beyond good sales or marketing tactics. In fact, the secret sauce for many businesses is in the work done behind-the-scenes. For many, there’s a method to the madness that involves an assortment of physical recordkeeping, Excel spreadsheets and applications for point of sale, shipping and customer relationship management. Not only is there a higher chance of human error with significant pieces of the operational puzzle strewn across the proverbial floor, but it’s time and energy consuming to keep track of the critical components that keep products moving and customers happy. Embracing digital, integrated technologies can help. Read more here…

During times of uncertainty—from economic turmoil to workforce hiring challenges to budget cuts—CEOs are under the spotlight. Having worked in private equity (PE) and as a CEO for many years, I’ve had the fortune of working with numerous CEOs and boards, where I’ve seen opportunities that companies can capitalize on for long-term growth and viability. Read more here…

The technology so many of us use for work and daily tasks is often so reliable that it comes as almost a shock when a service or tool isn’t working. But whether due to cyberattacks, natural disasters or something else, downtime is likely to hit every company that builds internal and customer-facing technology, and every such company needs to be ready. Read more here…

Hey, friends, we could use your help to grow “Growth & Acquisitions” and bring it to more people so we can continue to serve you and others. If you like something we shared this week, please share it on X (formerly known as Twitter) or LinkedIn and tag us when you do. Let’s get people talking.

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

Under a definitive agreement announced on Thursday (May 16), SilverBow shareholders will receive 3.125 shares of Crescent Class A common stock for each share of SilverBow common stock they own, with an option to receive cash at a value of US$38 per share, subject to a cash consideration cap of US$400 million.

John Goff, chairman of the board at Crescent, said the deal will place the business in a more favorable position. Read more here…

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In the Sosh … who to follow this week

James is a Top 10 Linkedin Influencer, prolific writer, successful entrepreneur, chess master, and venture capitalist. He has started and sold several companies and is actively invested in, or advises, over 30 different companies in areas ranging from tech to energy to healthcare to biotech.

He is the author of the Wall Street Journal Best Selling books: 'Choose Yourself', and The Power of No (co-author), as well as "The Choose Yourself Guide to Wealth" (most recent book), "The Choose Yourself Stories", SuperCash, Trade Like Warren Buffett, Trade Like A Hedge Fund, The Forever Portfolio, 40 Alternatives To College, and I Was Blind But Now I See.

James is the Co-founder of 20 companies, including some that have sold for large exits. Previously he was a hedge fund manager.

He is currently on the board of a public company with a billion dollars in revenue and advises several others.

James' writing has been featured in The Financial Times, Forbes, The Wall Street Journal, TechCrunch, and The Huffington Post.

Find and connect with him here: LinkedIn. 

In the calendar … 

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...

Experience The Wall Street Journal’s Future of Everything Festival May 21-23, 2024, where diverse global newsmakers share unique perspectives on navigating a changing world. Immerse yourself in live performances, explore pioneering technologies and indulge in the city’s inventive culinary scene. Check it out…

Capital Camp is an upcoming event scheduled for May 21-23, 2024, in Columbia, Missouri. The event is described as a gathering for "curious, kind, and thoughtful investors, capital providers, entrepreneurs, and executives" who are pushing boundaries and breaking new ground.

The event spans three days and three nights, offering serious investing conversations in a relaxed setting—think shorts and sandals rather than suits and ties. Attendees can expect interactive programming, a variety of outdoor activities, and an endless supply of food, drink, and entertainment.

The event has received high praise from past attendees, with many describing it as the most valuable and best investing conference they've ever attended. Check it out…

AI & Big Data Expo North America – Conference & Exhibition June 5-6 - SANTA CLARA CONVENTION CENTER, CA

Discovering the intelligent future through AI & Big Data. AI & Big Data Expo is the leading event for Enterprise AI, Machine Learning, Security, Ethical AI, Deep Learning, Data Ecosystems, and NLP. Check it out…

Through a dynamic mix of lectures, case studies, class discussions, hands-on learning, and visits from guest speakers, this program provides critical insights and powerful tools for the successful formulation and execution of an M&A strategy — one that creates true value for your organization. Check it out…

Join us at the San Diego Small Business Expo 2024, a must-attend event for entrepreneurs and small business owners! Get ready to connect, learn, and grow your business in person at the Sheraton San Diego Hotel & Marina on Fri Sep 20, 2024 at 10:00AM PST. Check it out…

The Kayo Women’s M&A Summit unites 300 women leaders in mergers & acquisitions, private equity deal-making and capital markets. Over the course of two days, attendees can expect to generate deal opportunities through peer-to-peer networking, educational content, and a supportive community atmosphere in the private equity hub of Boston. Check it out…

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