Two partners, Bob and Tom, were getting tired. They had met years ago while both employed by the same company and together had developed a better mousetrap. Now it was 18 years later and they were looking for a way out.
The business they co-owned did alright and had provided well for their families but would best be described as a life-style business. Continue reading “The last mile is the hardest”
Tom was a proud father. After ten years in lesser positions at his business, his two children (Sara and Jim) were to begin higher level participation. Tom did have a lot to be proud about – his mom and pop shop had grown into a multi-million dollar enterprise that was a significant employer in an out-state town and his children had completed college and had chosen to be part of the family business. Continue reading “The hidden cost of acquisition”
After years of growing a profitable business in the northern suburbs, Marvin woke up one morning and knew that it was time to get out. Now, it just might’ve had something to do with a very cold temperature and continued frozen forecast. But for whatever reason, Marvin’s brain flipped a switch and retiring and moving south were all he thought about.
Well, as luck would have it, a fellow Rotary member named Alan, expressed an interest. They sketched out an agreement then had Al’s lawyer put it in legalese. Inside of thirty days, Marvin had put his house on the market and moved to Florida.
It was everything Marvin had dreamed about: moderate temperatures, relaxed schedule, and the beginnings of a social life.
Three months into retirement all was going well. His Minnesota house had sold. Alan’s business purchase payments were coming in steadily.
Six months into retirement he couldn’t believe he hadn’t done this sooner. But Alan’s payments were starting to be late…
My Best acquisition search experience was a 24% return on a direct mail piece I did for a client some years ago in the temporary help field. Out of about 100 searches I have never seen anything like it. Hundreds of candidates and most of them qualified (stunning success). Continue reading “Share Your Best Or Worst Acquisition Search Experience”
Acquirers often fail to take advantage of effective systems & people of purchased entities.
Never before has finding a very large number of qualified candidates in a specific industry been easier. With the tools available today, finding just the right people in just the right companies is now an affordable undertaking. Continue reading “The New Science of Search; Finding Buyer/Partner Candidates Without Brokers”
Studies at Harvard, Deloitte, Wharton and other credible organizations show that more than half of acquisitions destroy value, and that only 25% of transactions create sustainable ongoing value (these numbers don’t reflect acquisition efforts that fail to be completed).
How to become part of the 25% that create sustainable ongoing value? Continue reading “Beyond Acquisition”
“Don’t ask the barber if you need a haircut”, doesn’t sound like the deep philosophical guidance that could account for why only 17% of acquisitions add value, unless of course that wisdom were coming from Warren Buffett.
Don’t ask the broker if you should do the deal. Players don’t get paid if you don’t do that deal. Of course you should do that deal. Continue reading “Warren Buffett Let’s Cat Out Of Bag”