Merging Two Private Companies – Why, How and Benefits
It’s tough scaling a private company. Organic growth can take decades to achieve critical mass. Say you get to $5m in sales and you can produce a compound annual growth of 10%. It takes 10 years to get to $13m. Is $13m critical mass in an industry? Probably not,...
Private Companies Make Great Acquirers
At least in theory, it is my belief that many mid-market private companies (say companies with headcount numbers in the 80 to 500 bracket) would make great acquirers. I’ll lay my thesis out in a minute. First, let’s be carful about perceived wisdom....
Automating M&A – Allows Time for Humanity
For decades M&A was managed the old way – pen, paper, landlines, spreadsheets, word docs, fax machines, face to face meetings – and it worked (at least the deal got done) all be it, in a terribly inefficient way. Enter the brave new connected economy,...
Earnouts – What You Need To Know
The Philosophy of Earn-Out deals The concept is quite simple. The buyer’s perception of value is lower than the seller’s aspiration on price. This gap is usually fueled by differing views on the potential growth of the target company. The acquirer may be...
A Cautionary Tale for Would Be Acquirers
This is a cautionary tale for companies on the acquisition trail. As a tactic to achieve your strategic objectives, acquisitions are a powerful tool. Of course executed poorly, and it can result in disaster. In the case of SDL, a former player in the customer...Operational Excellence For Exits
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