11:28:23 - This week in The Hub - Main Street Weekly
11:28:23 - 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, Growth, and AI …
What's next for OpenAI, ChatGPT, and other AI models
Sam Altman will return as CEO of OpenAI after massive employee pushback on the board's original decision to terminate Altman from his role last week. The whirlwind development only took a few days causing chaos in the board. Questions now arise about the future of OpenAI, its board, and what it can do moving forward with its tech.
Nina Schick, Advisor and Speaker on generative AI, joins Yahoo Finance to give insights into the recent development with Altman and OpenAI and what steps the company can take to capitalize on the success of their AI technology. Read more here…
Three Ways To Set Up Engineering Teams For Success During A Merger And Acquisition
Editors note: Though this article focuses on Engineering teams, you could apply the same to any area of your acquisition or merger that ends up with redundancy.
After a merger and acquisition (M&A) deal closes, everyone takes a deep sigh of relief and reaches for a glass of champagne. It is time to celebrate.
M&As can be difficult. There are so many business challenges leading up to the completion of an acquisition, and the difficulty isn't over once the integration begins. That's why it's unsurprising that many companies often find themselves with two different engineering departments functioning independently under one company umbrella. Sometimes, it is a deliberate strategic decision that's celebrated. Oftentimes, however, it is an unfortunate oversight. Read more here…
Navigating the minefield of M&A risks in the accounting sector
Due diligence in mergers and acquisitions (M&A) is a crucial process, essential for uncovering the financial, operational, and legal facets of a target company. Accountants play a pivotal role in this process, with their expertise directly influencing the outcome of an M&A deal.
There is a significant amount of preparation, documentation and due diligence that goes into the M&A process. At the forefront of this will be the report and accounts; companies contemplating a potential purchase will want to know exactly how healthy the financial position of their future partner or target is. Read more here…
How the rise of administrative generalists has increased demand for automation
Automation is often discussed as heralding a new era in strategic business management. Executive leaders often hear about advancements in areas like quantum computing and deep learning, and their minds start running, eager to rush out the gate solving big-picture problems.
…But it’s just as important to use automation to solve “boring,” everyday problems, and possibly even more so. General and administrative (G&A) roles, like legal, finance, HR, and operations teams, tend to be left behind the door when automation tools are doled out across their organisations, and that can be a terrible mistake. Read more here…
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In the Pods Reviews …
Cash Flows Over Exits: Buying for the Long Term - Mark Olivito Interview | Acquiring Minds
The Hub Short Take:
Mark Alvito shares his journey from working in the food industry to becoming an entrepreneur and buying his first business. Mark also talks about the importance of long-term thinking and the value of compounding investments over time.
Key Takeaways:
Mark bought PaverArt because he saw the potential for growth and the opportunity to create a unique product in the market.
He believes in the value of long-term thinking and compounding investments, and is committed to holding and growing PaverArt for the long term.
Watch: Cash Flows Over Exits: Buying for the Long Term | Mark Olivito Interview
Read: The Long-Term View: Building and Growing a Business
The SBA Changed the Rules Again with Lisa Forrest | John A Martinka
The Hub Short Take:
Lisa Forest, a banking professional at Live Oak Bank, discusses the latest updates to the SBA’s guidance on business acquisition and similar loans.
Key Takeaways:
The SBA now allows partial change of ownership, allowing sellers to retain a minority stake in the company.
Sellers who own less than 20% and are not considered key do not have to personally guarantee the loan.
Equity requirements have changed, with seller notes now able to cover up to 100% of the down payment.
Watch: The SBA Changed the Rules Again with Lisa Forrest
Read: Getting the Deal Done: Navigating the Changing Landscape of Business Acquisition Loans
The Ultimate Guide to Buying and Running Boring Businesses with Codie Sanchez | James Altucher
The Hub Short Take:
Codie Sanchez shares her experience and insights into buying healthy and boring businesses as a path to wealth. She discusses the high failure rate of businesses and the missed opportunity for owners to sell their businesses instead of shutting them down.
Key Takeaways:
Buying healthy and boring businesses is a path to wealth.
Most businesses don’t sell when the owners are done, resulting in missed opportunities for profit.
Watch: The Ultimate Guide to Buying and Running Boring Businesses with Codie Sanchez
Read: The Power of Buying Healthy and Boring Businesses
Reconciled CEO, Michael Ly Shares Lessons Learned from Acquiring Accounting Firms | How2Exit E162
The Hub Short Take:
Michael Ly, CEO of Reconciled, shares his journey in the accounting industry and how he built his company through mergers and acquisitions. He discusses the challenges and lessons learned from acquiring other firms and offers advice for business owners looking to buy or sell a business.
Key Takeaways:
Building a successful accounting firm requires providing affordable, accessible, and predictable bookkeeping services to small business owners.
Acquiring other firms can be a strategic way to grow and expand your business, but it requires careful planning and integration.
Watch: E162: Reconciled CEO, Michael Ly Shares Lessons Learned from Acquiring Accounting Firms
Read: How to Successfully Navigate Mergers and Acquisitions in the Accounting Industry
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Founding Member Shout-Out
Shout out to our new 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.
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In the Knowledge
The information in the following articles is important for any business but particularly for new acquisitions. Add them to your Knowledge Bank.
Six effective ways to automate and grow your business
Business process automation has become popular due to the rise of the IT sector and the incorporation of more extensive technology. This is evident in the fact that the global rate of industrial automation is predicted to increase by 9% between 2020 and 2025.
Businesses are embracing it to dramatically enhance their operations, from using automated mailers to employing mechanical alternatives for tedious tasks. This article highlights ways to automate and grow your business. Read more here…
Writing a Business Growth Plan
When you run a business, it’s easy to get caught in the moment and focus only on the day in front of you. However, to be truly successful, you must look ahead and plan for growth. Many business owners create a business growth plan to map out the next one or two years and pinpoint how and when revenues will increase.
We’ll explain more about business growth plans and share strategies for writing a business growth plan that can set you on a path to success. Learn 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.
In the BIG Guys Corner … (middle market and above)
Broadcom closes $69 billion VMware deal after China approval
Nov 22 (Reuters) - Broadcom (AVGO.O) on Wednesday closed its $69 billion acquisition of cloud-computing firm VMware (VMW.N) after receiving regulatory approval in last major market China and ending a months-long saga.
The deal, one of the biggest globally when announced in May 2022, was the latest in CEO Hock Tan's efforts to boost the chipmaker's software business.
However, the transaction faced tough regulatory scrutiny across the world and the companies had delayed the closing date three times. Read more here…
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In the Sosh … who to follow this week
Grant Cardone
CEO, Cardone Capital, Over $4 Billion in assets under management.
Author of eight business books, thirteen best-selling business programs, and CEO or partner in seven privately held companies.
Forbes listed him as one of the top social media business influencers in the world. Cardone travels the world consulting Fortune 500 companies, small business owners, startups and governments on business expansion.
Follow him on LinkedIn or grantcardone.com.
Connect on LinkedIn.
In the calendar …
SMB Acquisitions Entrepreneurs Bi-Monthly Networking
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 Art of Buying and Selling a Business - December 14, 2023 - 9:00 - 10:30 a.m. CST
Join merger and acquisition experts Sam Thompson & John Thwing as they present critical factors you need to know prior to buying or selling a business. (Virtual Event)
How to properly evaluate a company you want to purchase
How to prepare to sell your company
What you can do to pay a reasonable price for another company or get top dollar for your company
John Thwing will provide an overview of business acquisition financing.
This presentation will provide valuable information for business owners, strategic and owner-operator buyers, bankers, attorneys, CPA's, and business coaches. Check it out…
M&A South 2024 - February 5 - 7, 2024 - Alpharetta, GA
M&A SOUTH is the premier networking event in the South for participants in all facets of corporate growth and Middle Market deal-making.
This LIVE event presents the opportunity for intermediaries, corporate development officers, accountants, lawyers, senior lenders, and other deal makers to meet and greet with top private equity and mezzanine capital providers. Check it out…
2024 Spring Conference & Deal Market - MAY 13 - 15, 2024 - Louisville KY
Presented by MASource.org. Check it out.
Stanford Graduate School of Business Executive Education 14 – 19 Jul 2024 - Stanford, CA
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…
Capital Camp - May 21-23, 2024 - Columbia, MO
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…
2024 WOMEN IN M&A SUMMIT - OCTOBER 7-8, 2024 - BOSTON, MA
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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