I Gotta Do Something | Traps to Avoid | Smart Tax Reduction | Deal Structures
July 2016
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Joe Lindsey, M&AMI, CM&AP, CBI
Chairman: The M&A Source Board of Directors

I am a strong advocate for continuing education even though I came to that conclusion when I was in my forties, and eventually graduated with a Bachelor's Degree (Finance Major) when I was 46. Unfortunately, it took most of the next decade before I discovered educational opportunities that aligned with my interests.
Gary Miller
Managing Director, Consulting Division
SDR Ventures

Bill had been thinking about selling his company for a couple of years. He and his wife, Carol, wanted to spend more time with their grandchildren and travel together to make up for all those years when they couldn't.

One day Bill received a call from George, a friend and business competitor, who wanted to discuss a deal.

Joan M. Gruber Ridley, CFP™, CEPA, CBI
President, Business Wealth Solutions

Like most business owners you have probably developed your own tax reduction strategies and your CPA has gone along, even if he or she did not entirely agree with your aggressive approach. Legitimate tax reduction strategies are a good thing, but not at the expense of creating value.

John Carvalho, President and founder of Stone Oak Capital Inc.
Reprinted courtesy of Divestopedia

Takeaway: Sellers tend to have no idea how a buyer has financed an acquisition, but a look inside shows that goodwill is costly and that completing a deal is expensive for both sides.

Working on the buy-side  means that I not only get to negotiate a deal, but that I also have to put together a realistic financing structure that will get that deal done . That isn't always true for sellers. In fact, in many cases, the sellers of a business (and even their intermediaries) will have no idea how the buyer has financed the acquisition.

Yiannis Empeoglou, CBI

Expenses 1+1 <  2  Þ Profits 1+1 > 2
 
Synergies are more than an integral part in any M&A transaction. Most likely they are the driving source and the key determinant of the price a buyer is willing to pay. Calculating a "Synergistic Price" is one thing. Actually getting paid for it is much trickier.

Synergies always exist when the Buyer has a strategic interest in the business. It is our job, as consultants/intermediaries, to identify them and quantify them. Let's start by identifying Strategic Buyers. Before we get into the Mathemagical world of Synergies, we need simple Math to identify Strategic Buyers. Strategic Buyers:

Charles Milam, CBI, M&AMI

Improve the return-on-investment for your marketing campaigns
 
Every business will eventually change ownership and the decision to sell a company can either be viewed by the owner as the most agonizing event or the most liberating. Some owners are ill prepared for a business transition and are caught off guard by deteriorating health, unanticipated financial calamities, divorce, or personal stress. These owners are forced to sell without proper planning and often receive less than optimal remuneration for their company. Other owners recognize that in order to maximize the business value, similar strategic planning done during the years the company was being built is also required prior to selling the enterprise.

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