12:05:23 - 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 M&A News, Growth, and AI …
What’s ahead for mergers and acquisitions in 2024?
Mergers and acquisitions outlooks for 2024 have begun to trickle out from legal and financial firms nationwide, and early reports look positive, especially on the heels of 2023’s total global M&A deal volume through Q3 being almost $1 trillion lower than the same span in 2022. Read more here…
Consider effects on employee retirement plans when planning mergers, acquisitions, expert says
Merger and acquisition activity in senior living and care has been flowing at a record pace throughout this year. But operators should not overlook the effects on employees’ retirement plans when making those deals, according to accounting and consulting firm CliftonLarsonAllen.
Failing to make provisions for transitioned employees can be costly and time-consuming in the end, cautioned Kyle Rose, principal at CLA, in an online post. Read more here…
AP Automation Lets Businesses Trade Paper Envelopes for Digital Efficiencies
“More and more organizations are recognizing the need to update and modernize what has historically been a manual, paper-based process — but one that’s also very mission critical to the business function,” Kat Battle, product manager for Complete AP at Bank of America, told PYMNTS.
She was speaking about accounts payable (AP) automation. Read more here…
Three Tips To Leverage In-House Technology For Business Growth
Implementing technology solutions can add to the bottom line of small businesses and improve customer service. Allowing customers to interact with your business digitally is also becoming the norm. A study conducted by Deloitte revealed small businesses that are digitally advanced “earned two times as much revenue per employee” versus businesses with little digital engagement. Read more here…
Employee Communication Best Practices For Successful Acquisitions
Your deals may not involve hundreds of employees … yet, but that doesn’t mean the employees you do acquire deserve any less regard. Working with the seller, you can put in place a communication strategy to make the post-close environment as smooth as possible. Read on for inspiration:
Failure rates for mergers and acquisitions are high, but beyond the financial risks, there are cultural issues at play. Integrating employees from the acquired company requires planning ahead with a strategic communications plan as well as sustained efforts over the first year or so.
Pre-Deal Communications
The stretch of time between an acquisition announcement and the closing of the deal is a critical phase. Employees of the acquired company will be anxious about what the deal means for their individual roles, how their management might change and what the new culture will be like. Read more here…
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In the Pods Reviews …
E164: The Future of Consumer Products and E-commerce: Insights from Jason Somerville
The Hub Short Take:
Jason Somerville, founding partner at GW Partners, shares his insights on mergers and acquisitions in the consumer products and e-commerce space. Jason also highlights the lessons learned from the rise and fall of Amazon aggregators
Key Takeaways:
The success of an M&A deal depends on the ability to convey a clear vision to potential acquirers.
The valuations of businesses in the consumer products and e-commerce space have decreased by 30-40% from their peak.
Quote: "Buyers often need help in seeing the vision and understanding the potential of a business." - Jason Somerville
Read: The Future of Consumer Products and E-commerce: Insights from Jason Somerville
Watch: E164: The Future of Consumer Products and E-commerce: Insights from Jason Somerville
Lessons From Building a $100m Holding Company (feat. Michael Girdley)
The Hub Short Take:
Michael Girdley, a serial entrepreneur, shares his insights on entrepreneurship and building successful businesses. He also talks about the value of surrounding oneself with a community of like-minded entrepreneurs. He emphasizes the importance of self-awareness and continuous growth in the entrepreneurial journey.
Key Takeaways:
Embracing one’s geekiness can be a superpower in entrepreneurship.
Twitter is a powerful platform for sharing ideas and connecting with like-minded individuals.
Quote: “Most of your regrets are going to come from inaction rather than action.” — Michael Girdley
Read: 🎙️PODCAST REVIEW: Lessons From Building a $100m Holding Company (feat. Michael Girdley)
watch: Lessons From Building a $100m Holding Company (feat. Michael Girdley)
The Basics Of Small Business Valuations
The Hub Short Take:
Eric Grafstrom, co-founder and CEO of Exit Guide, interviews Brian Walters, a valuation expert, about small business valuations. They discuss the importance of business valuations, the information needed for a valuation, the concept of goodwill, and how to increase the value of a business.
Key Takeaways:
Business valuations are important to determine the fair market value of a business.
Financials, including profit and loss statements, balance sheets, and cash flow statements, are essential for a valuation.
Quote: “Valuation is part art and part science.” — Brian Walters
Read: 🎙️PODCAST REVIEW: The Basics Of Small Business Valuations
Watch: The basics of small business valuations
Millions at Stake: M&A Guru Reveals AI Valuation Secrets
The Hub Short Take:
Their title leans a bit clickbait; what actually happened is Victor Basta, founder of DAI Magister, shares his insights on the world of mergers and acquisitions. He discusses the emotional journey that CEOs go through when considering an exit, the messy reality of deal-making, and the importance of confidence and trust in the process. Victor does touch on the different factors that influence business multiples and the current trends in the market, including the high valuations of AI companies.
Key Takeaways:
The process of selling a company is often messier than people think, with multiple buyers and different timelines.
Business multiples can vary widely depending on factors such as growth rate, recurring revenue, and buyer need.
Quote: “The perfect moment to sell is when your proverbial steak is not fully cooked, still sizzling.” — Victor Basta
Read: The Art of Mergers and Acquisitions: Insights from Victor Basta
Watch: Millions at Stake: M&A Guru Reveals AI Valuation Secrets
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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.
This Is the Unseen Advantage Your Small Business Might Need
ETA's If you've been going it alone on your first acquisition and wondering how you would make it work, this article is for you. A primer on strategic alliance and how it can help you achieve your goals.
Strategic alliance is a partnership between two or more companies to achieve mutual benefits and go after specific goals while remaining independent. If you've never thought about it or believe it's only for larger companies — think again. As a small-medium sized business, a strategic partnership can be the perfect opportunity for growth which would have otherwise been financially or strategically not possible. 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.
In the BIG Guys Corner … (middle market and above)
Rover Agrees to be Acquired by Blackstone in $2.3 Billion Transaction
SEATTLE, November 29, 2023 – Rover Group, Inc. (Nasdaq: ROVR) (“Rover” or the “Company”), the world’s largest online marketplace for pet care, today announced that it has entered into a definitive agreement to be acquired by private equity funds managed by Blackstone (“Blackstone”) in an all-cash transaction valued at approximately $2.3 billion. Read more here…
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In the Sosh … who to follow this week
James Altucher
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 hosts two highly ranked podcasts: The James Altucher Show (which include guests such as Mark Cuban, Peter Thiel, and Tony Robbins, etc) and Ask Altucher, in which he answers direct questions from the audience. Collectively the shows have been downloaded 12 million times.
Connect on LinkedIn or his blog.
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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