Austin Business Journal’s Post

“New Charter is an IT services platform that we built with the idea that many MSPs have built really great companies, but very few have reached a significant scale without some type of merger and acquisition strategy.” - Peter Melby ChannelE2E has been exploring the rise of platform MSPs amid sector consolidation. These companies are thriving on recurring revenue & high IT solution demand, sparking a buying spree. 📈🔍 Check out New Charter's unique M&A strategy in their latest article: https://lnkd.in/g4AFxGkC

If you are looking to grow and expand you company, mergers and acquisitions are a great strategy to consider. M&A does have its risk, but we can help you navigate the process. Learn more: https://buff.ly/4cylSvS #m&a #mergersandacquisitions #businessowner #businessowners #entrepreneurs #businessgrowth #businessexpansion

☀️2023 may have been a bleak year for investments and acquisitions but 2024 is already off to a brighter start. Check out this article from Business Insider to hear what ID5's Mathieu Roche thinks about the subject> https://ow.ly/IwjH50QuiT0

M&A Does Not Need to Be a Loser’s Game   Most takeovers devour buyers’ wealth. But acquirers who understand they are buying customers can avoid disastrous deals and find ones that work. M&A, like other aspects of running a company, works best when seen to create shareholder value through customers. The Customer-Centric Approach When assessing acquisitions, most companies see the promise of sales and profits going up, without considering what is required to make this happen and then not executing the plan in the market to make it happen. Instead, what is needed is an approach that focuses on the customers. Customer Profitability Matters Some customers are profitable; others are money losers. M&A can only be the answer to growth if value creation through customer analysis is taken into consideration before and after M&A. Cutting costs deeply enough can certainly help solve the problem, but such substantial savings usually do not materialize. Acquirers, caught up in the excitement of the deal, tend to overestimate what is possible. Moreover, corporate headquarters may feel they have little time to analyze where to make cuts, which people to keep, and those that need to move on. As a result, they often harm customer care, service, and top-line growth across the board. The Organizational Challenge Increasing revenue is another way acquirers believe they can make high-priced mergers pay. However, growth does not happen automatically. Often, organizational challenges arise. Product, territory, and functional silos are created, hindering effective integration. The result? The typical acquisition fails, sometimes turning the target company from a big winner into a big loser. In the end, it is all about the customer. Understanding that M&A is about acquiring customers, not just assets, can lead to successful deals that truly create value.

A new era for Partnerships Technologies 👀 I've been a full-time entrepreneur in the Partner-tech space for just a few weeks now. 🤯 My experiences aside which have been incredible and we've met with incredible support and incredible feedback for what we're building. The biggest news in the space hasn't been what I've been up to it's been that two of the leading players in the market decided to come together as one. (even though I wish everybody got as excited about my journey as they did for the merger 👀) The dust is now starting to settle between and I've been thinking about the Reveal & Crossbeam merger and what that will mean for me and the space in general. So what will it mean for us? I choose to be optimistic They've helped pave the way for new technologies in the space, some partner teams finally got their hands on their first dedicated software for partnerships. Sure, it creates a dominant player in account mapping, likely leading to better features and industry standardization and hopefully better results. But there are still concerns. More companies will be able to get better access to better partner intelligence. But that's only a small piece of the puzzle. In my experience, the real challenge is activating, engaging partners, and delivering a stellar partner experience. 🫶🏻 I think that the merger represents more than just a consolidation of market forces - it shows that the market is mature enough to value the ROI of partnerships and finally might take partnership teams seriously. Like I said, I am optimistic about the positive impact this merger will have on businesses, partners, and the broader ecosystem leaving plenty of room for new innovations for existing and future partner-tech providers. Only the future has all of the answers. In the meantime, I shared some more of my thoughts in a blog article. Check it out 👇🏻 https://lnkd.in/d_M6awpB

As you look back on this deal what stands out? In this ExitUp exclusive, editor-in-chief Caleb Edmundson sits down with ZRG Partners, LLC CEO Larry Hartmann to discuss his blockbuster #acquisition of The Registry, a leading interim solutions provider and ZRG’s largest purchase to date. "This deal reminds me that M&A takes patience and a long-term view. The Registry transaction did not happen overnight," said Mr. Hartmann. "It took considerable time for us, as buyers, to get to know the business and for the business to get to know us. In every deal I have been involved in I find that it is critical that the buyer and seller are, first and foremost, aligned strategically. We did that and Hunt Scanlon Ventures played a big role in maneuvering both sides to the middle. We all spent considerable time aligning around the deal structure and that was critical as we tried to meet the unique needs of The Registry’s founders." Read more >> https://lnkd.in/emrz5mMk

I get asked often the lessons we have learned from doing 18 acquisitions in the past 4 years. So here are a couple of the lessons learned: 1. Rebrand Early. Assuming your strategy is to rebrand and integrate the acquisition (if it's not then just disregard this one), it is better to do it early. Inevitably when you get to the integration phase there are going to be changes for the customer. Even if those changes are done with absolute perfection, people still don't like change, simply because it is change. The sooner you rebrand and start transferring brand equity (trust) the better position you will be to weather the storm of change. 2. Be Honest and Inspiring to New Employees. All the new employees from an acquired company are going to have a lot of concerns and worries about how the transaction is going to impact them. It is best to step right into the middle of it and answer every question you can. In our process we developed a long Q&A where we both asked and answered all of the common questions (and if someone asked a question we didn't have on the list, then we added it for the next acquisition so the list got better and longer as we went). And it is 100% ok to say "we don't know" on some of the questions - but still acknowledge it's a serious question and tell everybody when and how you are going to get to the answer. Simultaneously, make sure you are inspiring to the new team members. Continuously and constantly put the vision in front of everyone to get everyone rowing in the same direction. This is one of the reasons we have the 10 minute All Hands Call every Friday - it's a great way to remind everyone who we are and where we are going. 3. Don't be afraid to make hard decisions. My biggest mistake on the first couple of acquisitions was not making the hard decisions. I got talked out of doing some things I knew we needed to do. The reasons were good, but looking back on it, we were just avoiding the short term pain that put us in a worse position long-term. If you are getting into the acquisition game and need some help, I'm always happy to share our experience and help others where I can - just shot me a DM.

Dagens PS and News55 plan to join forces! Yesterday, it was publicly announced that the NGM listed media company News55 declares intent to acquire Dagens PS, with payment in newly emitted shares. "I am thrilled that we have found each other. The merger gives us an opportunity to be proactive in a media climate where everyone is playing defensively," says Fredrik Lundberg. Fredrik will remain as CEO after the merger. "We have had a growth of active readers of over 500% since when we initiated our data-driven methodology, translating into approximately 700,000 unique readers each week and ranking us as Sweden's second largest news channel in economics and business. We have shown "proof of concept" and the merger with N55 is the first step towards creating a dynamic growth platform for business and financial media with associated services." says Mikael Gullström, who will pivot into the roles of Editor-in-Chief and Head of Business- and Technology Development. EB Invest who recently increased their ownership of Dagens PS will remain as share holders through the merger and Max Donatello (EB Invest) who currently sits as Chairman of Dagens PS will remain with a seat at the board in the new constellation. "As part of the vision that Mikael Gullström painted for us when we made our first investment in Dagens PS, we as owners have continued to look for structural synergies that continue to build them and their excellent development. We see this acquisition, with Dagens PS as a base, as a natural step in the ambition to create a dominant player in business press and other markets where relevance management, first-party data and skillful management become crucial factors in creating customer satisfaction and commercial success. Through our ownership, after the acquisition, we look forward to continuing to follow the development of Dagens PS and the new group." says Max Donatello Read more: https://lnkd.in/gEXgvdfn https://lnkd.in/gR2pd4CC https://lnkd.in/g9vE3Cdr https://lnkd.in/gzRcbqBE

🚀 Dive Into AAM Issue 25: M&A Strategies for Today's Economy! Exciting news from the world of Mergers and Acquisitions! Issue 25 of Acquisition Aficionado Magazine has just landed, and it's brimming with insights, strategies, and expert advice tailored for today's complex business environment. 🌟 What's Inside Issue 25: - M&A Spotlight on Dee Ludlow: Discover how Dee Ludlow, co-founder of Van De Wolfe, architects deals across diverse sectors, focusing on businesses within the $2-5 million EV range. - Neil Twa Interviews Roland Frasier: Dive into a captivating conversation about growing businesses with minimal capital, emphasizing the strategic use of knowledge and avoiding common pitfalls. - Nick Ayala's Guide to Deal Sourcing: Learn how to build a deal flow engine that consistently delivers profitable acquisition opportunities, even in a crowded market. - Thriving in Uncertain Times: Gia Cilento reveals how patience, strategic planning, and resilience can turn economic uncertainties into lucrative opportunities. - Arturo Henriquez on Business Evaluation: Gain real-world insights on evaluating potential business acquisitions to ensure they align with your goals. - Asset vs. Stock Sale Insights with Della Kirkman: Navigate the complexities of acquisition structures and understand the implications of choosing between an asset sale and a stock sale. - Maximizing Exit Price through Public Relations: Jeremy Knauff shares key strategies to enhance your industry authority, attract more clients, and ultimately boost your exit price. - Allen T. Gregory on Post-Sale Preparation: Explore the critical aspect of personal planning in the exit strategy process with insights from a seasoned M&A and Exit Planning Advisor. - Digital Automations and AI in M&A with Elvis Paul: Discover how cutting-edge technologies like digital automations and AI are reshaping the art of business acquisitions. - Edgar Fernandez on Navigating Recessions: Prepare for potential economic downturns with insights into lower-middle-market M&A dynamics and strategies to thrive. 📱 Experience AAM Anywhere: Whether you're on the move or at your desk, AAM is accessible on your iPad, Android tablet, or desktop computer. This issue is a goldmine of knowledge for anyone looking to navigate the intricacies of M&A with confidence and expertise. Don't miss out on the opportunity to elevate your acquisition strategies and thrive in any economic landscape. Visit our website to download your free copy now - https://lnkd.in/g6Eg4usi #entrepreneurship #businessowners #acquisition #privateequity #mergersandacquisitions #businesstips #smallbusinessbigdreams

A recent LinkedIn post inspired me to revisit a notable lecture by Aswath Damodaran, Professor of Finance at NYU's Stern School of Business, on the subject of acquisitions. Here are seven key takeaways for your consideration: 📝 Acquisitions as an Addiction: Companies often become addicted to acquisitions, which typically result in continuous value erosion. 📝 Value Destruction: Empirical evidence consistently shows that acquisitions are among the most value-destructive actions a company can undertake. 📝 Effective Growth Strategies: Superior growth strategies include developing new products, expanding into new markets, and maintaining market share in expanding markets. 📝 The Synergy Fallacy: Although synergy is frequently cited in mergers, it is seldom realised, with reverse synergy being more common. 📝 Overpayment Issue: Acquiring companies tend to overpay, resulting in substantial value destruction. 📝 High Failure Rate: A significant proportion of mergers fail to deliver expected returns and are often reversed within a decade. 📝 Investment Implications: Damodaran advocates avoiding investments in companies that pursue large acquisitions due to the high risk of failure. Read the full article: https://lnkd.in/gSvRuymb Watch the lecture recordings: https://lnkd.in/gnKfpKhv #Finance #MergersAndAcquisitions #BusinessGrowth #InvestmentStrategies