2018 Top 10 Disruptive Trends: Data Science Monetization
| In the past, data science has focused on reducing costs, dropping unproductive business segments, promoting top performers and otherwise increasing efficiency. The companies that were using data science as a way to improve themselves are now turning it into other ways to make more money.
The... Click here to read more
2018 Top 10 Disruptive Trends: AI Enablement
| Since 2012, over 250 companies involved in artificial intelligence have been acquired. Over half of these have been in the last two years - with the vast majority engaged in some aspect of machine learning.
Efficient independent learning, machine or human, employs a feedback loop to generate... Click here to read more
2018 Top 10 Disruptive Trends: Smart Logistics Delivers the Goods
| Logistics is a huge part of the world economy - $1.6T seen annually in the US and more than $8T globally, with the latter figure expected to top $15T by 2023. This industry is responsible for getting goods and services from those that produce them (suppliers and manufacturers) to those that sell... Click here to read more
Trust the Process, Not the Tools: What the Delaware Supreme Court Just Said About M&A Valuation
| What’s my company worth? As the global leader in private technology company M&A, we get this question more than any other. (Probably more than all other questions combined). Traditional investment banking dogma views valuation as a spreadsheet problem – a question of calculation, usually... Click here to read more
Tips for Presenting to Acquirers: Map to your Executive Summary
| As we discussed in a recent webcast, the Executive Summary is possibly the most important document you will ever craft in business. You and your adviser need to write a concise, clear Executive Summary that crystalizes the unique opportunity your company presents to buyers. This document should... Click here to read more
The importance of knowing why you're selling
| It is still with some surprise that despite talking to many CEOs about their plans to sell their companies, when it comes down to it, a lack of clarity as to “why” sometimes still exists. The initial conversations are usually carried out in a confident tone and manner. Listening to the journey they... Click here to read more
Tips for Presenting to Acquirers: Limit participation to critical team members
| As anyone who has been involved with an exit can tell you, presenting to potential acquirers demands a clear, concise, and most importantly, uniform presentation. You may feel like the power-move would be to bring your entire team into meetings, but that would do more harm than good. With so many... Click here to read more
Common M&A Misconception: I don’t want to go to market too early
| Nathan Rothschild famously said, “I made my fortune by selling too early”.
We get it. You believe in your company, your business and your market. You have to have this belief or you (and your company) wouldn’t have gotten this far. This is a good thing, not a bad thing.
At the same time,... Click here to read more
Metrics to keep you up at night
| I'm very pleased to have joined the Editorial Board Advisory Board for the newly launched Software Business Magazine. This new publication, built on decades of experience at sister publication Channel Executive Magazine (formerly Business Solutions), fills a vital niche for the software and... Click here to read more
Common M&A Misconception: Preparation starts when you decide to sell
| When should you start preparing to sell your company?
It’s a common question, but one that has major implications on the future of your business and success of an exit. If you’re at the point where an exit seems like the next logical step, you shouldn’t wait any longer to start with the... Click here to read more
Common M&A Misconception: I already know my buyer
| In today’s highly competitive market, it is easy to envision a future in which a large competitor comes knocking on your door, aggressively pursuing an acquisition of your company. As we’ve said before, however, this never leads to an optimal outcome. The buyer that you think would make a perfect... Click here to read more
Common M&A Misconception: We’re not SaaS, so buyers won’t bite
| Today’s M&A market is full of companies in various sectors. With a constant flow of technological innovation, players in the tech industry will continue to be in high demand by strategic buyers and private equity firms alike. As disruptive trends continue to change the M&A landscape, one... Click here to read more
The reverse Amazon: What brick-and-mortar retailers need to know in light of Amazon's acquisition of Whole Foods
| The business world was turned upside down last week by Amazon’s announcement of its $13.4 billion acquisition of Whole Foods. Supermarket stocks plummeted on the news with uber-analyst Jim Cramer predicting that Amazon will dominate the US grocery market within the next two years. Is the end truly... Click here to read more
Common M&A Misconception: “We should raise a round before selling” (Part 1)
| Having a strong balance sheet prior to entering the market for an M&A event is important. You want to ensure that your cash position is strong and will remain healthy as you are out in the market selling your company and growing your business.
The need to raise another round of funding prior... Click here to read more
| Yesterday’s close of Verizon’s Yahoo acquisition is being hailed as the end of an era—but it is also the end of a long, thorough, and painstaking M&A process by Yahoo and their investment bankers. Joel did a good job a couple months ago of outlining the story of the sale, and all its twists and... Click here to read more
Escrow Provisions in M&A Transactions, Part 2
| As described in the previous post, escrow accounts are funds carved out of the seller’s proceeds for the benefit of buyers in order to secure indemnification obligations under M&A transactions. However, there are a couple of additional points that the parties may wish to consider.
The first... Click here to read more
Escrow provisions in M&A Transactions, Part 1
| While parties to an M&A transaction do not expect to encounter major post-closing liability issues, transactions involving privately held sellers tend to contain escrow provisions to address buyer concerns over the seller’s financial ability to satisfy indemnification provisions contained in... Click here to read more