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  • [G&A] Growth & Acquisitions: Business Valuation How To; Buy, Double & Exit; Say No To "Mergers of Equals"; Embrace Failure to Grow; +++

[G&A] Growth & Acquisitions: Business Valuation How To; Buy, Double & Exit; Say No To "Mergers of Equals"; Embrace Failure to Grow; +++

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In the News

After a couple of lean years in the merger and acquisition world, it feels as if the cadence of deals has picked up going into 2024. Take a closer look at the M&A opportunities that companies are chasing these days, and I think you’ll find interesting insights about the direction of the U.S. economy. Read more here…

The year 2023 can aptly be summed up as a year of exploration, with the remarkable debut and early applications of generative artificial intelligence (AI). As this technology continues to rapidly advance, 2024 marks a significant turning point for people and businesses alike, moving beyond the concept of AI and its influence to determining how they can adopt it for the long haul in impactful ways Read more here…

No one wants to fail; however, embracing failure can be a transformative experience. In this article, we asked eight business leaders to share personal experiences on how they have dealt with failure in the workplace. Their lessons will show that failure doesn't have to be a negative, but can be a catalyst for empowerment and growth. Read more here…

While many organizations already use AI, its potential may be just beginning. AI can transform productivity and is expected to contribute $15.7 trillion to the global economy by 2030, according to PwC’s Global Artificial Intelligence Study. The findings also indicate that strategic investments will be needed to make that happen. Read more here…

Despite a modest increase in deal announcements recently and some increasing chatter about deals in the works, total mergers and acquisition activity has been muted for much of the past two years. We attribute slowing activity to a decelerating US economy and uncertainty about the Federal Reserve’s stance on interest rates. Moreover, the regulatory environment remains a burden. In such uncertain macroeconomic regimes, management teams can be tempted to instigate change by doing deals with companies that are similar in size, so-called merger of equals. Read more here…

A world where small businesses run smoother, decisions are driven by data, and delivering top-tier customer value is closer than you think, and it’s being propelled forward by the recent boom in Artificial Intelligence (AI). If the trends we’re seeing now continue at their current rate, wondering whether you need AI for your business could equate to the early 2000s when business owners were unsure if they needed a website or not. Read more here…

Hey, friends, we could use your help to grow The Hub - Main Street Weekly, 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.

The Short Take:

John Seiffer, a business coach and author, discusses the concept of exiting a company without selling it. John shares his own experience of systemizing his company and reducing his involvement to just a few hours a month, which allowed him to focus on other interests and ultimately exit the company on his own terms.

Key Takeaways:

  1. Systemizing a company and reducing the owner's involvement can increase its value and create more freedom for the owner.

  2. Defining outputs and creating systems within different areas of the business is essential for scalability and efficiency.

  3. Documenting standard operating procedures (SOPs) and utilizing technology can streamline processes and improve productivity.

The Short Take:

Arthur Petropoulos focuses on the strategies for maximizing business value, particularly for privately held businesses. Arthur shares insights from his experience in helping companies sell or secure capital, emphasizing the importance of starting small, understanding the value of the business, and iterating from there.

Key Takeaways

  1. Start with Understanding Value: Begin by grasping the current value of your business and use this as a foundation to build upon.

  2. Importance of Financial Models: Developing robust financial models and presentations is crucial for businesses looking to sell or secure capital.

  3. Focus on People, Process, and Product: These three elements are key to creating enterprise value and should be the focus of any business strategy.

The Short Take:

A detailed account of an entrepreneur’s journey from starting a business to achieving financial freedom through a lucrative exit. It covers topics like the challenges of making money, the intricacies of selling a company, and the entrepreneur’s experiences with investment, including a mention of the Fyre Festival.

Key Takeaways

  1. Strategic Planning: Importance of having a clear business strategy for growth and exit.

  2. Investment Savvy: Learning from investment experiences, including high-profile events like Fyre Festival.

  3. Networking: The role of networking with influential figures and A-list celebrities in business success.

The Short Take:

Ben Rizzo’s journey as a first-time business buyer who successfully acquired, turned around, and exited an elevator servicing business in distress. Rizzo shares insights from transitioning from a chemical engineer to an entrepreneur, leveraging his engineering background and business school knowledge to navigate the challenges of reviving a struggling family-owned business.

Key Takeaways

  1. Strategic Acquisition: Ben leveraged his background in engineering and business to identify a distressed business with inherent value.

  2. Operational Optimization: He focused on restructuring operations, eliminating inefficient practices, and leveraging the business’s existing strengths.

The Short Take:

The podcast “Selling Strategically: Unleashing Maximum Value in Your Business Exit” features Channing Hamlet, Managing Director of Objective Capital Partners, discussing key strategies for business owners looking to sell. The conversation covers the importance of early valuation for personal financial planning, identifying and leveraging business value drivers, and the necessity of understanding one’s business worth for a successful exit. Hamlet emphasizes the crucial role of preparing both personally and business-wise for sale, highlighting how strategic planning and understanding market dynamics can significantly enhance the sale outcome.

Key Takeaways

  1. Valuation and Personal Financial Planning: It’s crucial for business owners to understand the value of their company and how it aligns with their personal financial goals, especially post-sale.

  2. Identifying Value Drivers: Early identification and enhancement of key value drivers within a business can significantly increase its sale value. Engaging in strategic planning and financial analysis to improve these areas is essential.

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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.

Capital One announced last week a plan to acquire Discover in a $35.3 billion all-stock deal, CNBC reported. If it goes through, the acquisition would combine two of the biggest credit card companies in the world, combining over 70,000 employees into one massive new org chart. The impact of such a large merger could result in company culture clashes and reduction in workforces, according to Investopedia, that HR leaders will have to navigate. Read more here…

How can I ensure my team members are honest and transparent with me?" As leadership coaches and mentors, we frequently encounter this question. Addressing this lack of honesty and transparency is indeed crucial. The success of a team heavily depends on the level of honesty and transparency among its members. 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) 

JPMorgan Chase CEO Jamie Dimon isn’t worried about the added competition from a bulked-up Capital One if its $35.3 billion takeover of Discover Financial gets approved. “My view is, let them compete,” Dimon said. “Let them try, and if we think it’s unfair, we’ll complain about that.” Read more here…

Chevron (CVX) shares fell 2% in intraday trading Tuesday after the energy giant warned its planned $53 billion purchase of Hess (HES) could be jeopardized by a challenge from ExxonMobil (XOM) and China National Offshore Oil Corporation (CNOOC). Read more here…

The Federal Trade Commission (FTC) and a coalition of nine state attorneys general (AG) filed a lawsuit on February 26, in the U.S. District Court for the District of Oregon seeking a preliminary injunction to stall Kroger Company’s (Kroger) proposed $24.6 billion acquisition of Albertsons Companies (Albertsons), citing concerns that the proposed deal would eliminate competition among the supermarket giants, leading to higher grocery prices for millions of Americans. FTC commissioners voted unanimously to authorize the lawsuit, which was joined by AGs from Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming. Simultaneously, the FTC filed an administrative complaint against Kroger and Albertsons to block the proposed transaction. Read more here…

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In the Sosh … who to follow this week

Born in Moldova, a small Eastern European country, Igor embarked on a journey that spans three countries, pushing himself beyond limits. He secured admission to one of the world's top educational institutions, earning a merit scholarship and graduating with distinction from the MSc Finance program at the London School of Economics.

Besides hard work, education, and resilience, this requires a special mindset – an inevitable winner's mindset. And that's where Igor comes in – to guide you in cultivating that mindset. Join him on this journey, and grow personally and financially beyond limits.

Connect with him on 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...

This prestigious annual M&A conference assembles corporate development leaders, in-house M&A counsel, and private equity investors to discuss current challenges impacting complex transactions and learn about innovative methods to improve deal performance. Check it out…

At DealMAX (formerly InterGrowth), the entire middle market community converges under one roof for three days of efficient dealmaking, idea-sharing, and maximizing the growth potential of their networks and M&A success. Check it out…

Presented by MASource.org. 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…

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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