Read an Excerpt
WHY THIS BOOK IS NEEDED
I am making one simple assumption in this book—that you want to
grow your business. But what happens when growth hits a ceiling?
When current markets are saturated? When existing product lines
are exhausted? When there just seems no way to expand, however
hard you push? My purpose in these pages is to give you a break-
through solution—a complete roadmap to successful expansion
through acquiring other companies.
Beyond that, I want to help you expand your understanding
of mergers and acquisitions, of how they unfold in the real world,
especially for the mid-market player.
For most people, M&A has a peculiar aura. On the one hand,
there’s an unmistakable fascination in the spectacle of massive
corporations eating each other alive. On the other hand, most M&A
literature comes in the form of heavy academic tomes, packed with
legalese and financial equations of little use to the average business-
person.It seems the subject is simultaneously glamorous and impen-
etrably dull. In this book, I will show you a world of M&A that is
both fascinating and accessible.
First, a reality check. Most acquisitions are not multi-billiondollar
takeovers. According to Bloomberg’s M&A Advisory League
Tables (April 2, 2012), 97 percent of all M&A transactions are below
$500 million in value. That means that every year, hundreds of amicable
transactions are consummated between modest-sized companies,
the majority of which are privately owned. You rarely read
about these deals in the business press, and by definition, a private
transaction yields less public information. Yet this activity is absolutely
essential to a healthy economy.
This book is different from most others on mergers and acquisitions,
because it is focused exclusively on the small to mid-market
sector, where most M&A activity actually occurs. And it is entirely
concerned with the art of buying. Most important, what you will
find here is a practical step-by-step plan for acquisition based on
fundamental principles. Every detail of the plan has been tested and
proven through decades of overseeing successful acquisitions.
As you will discover, the true function of an acquisition is not
just growth but recalibration. Buying another company will change
yours for better or worse, depending on how strategically you
approach the deal. By the same token, M&A activity as a whole
serves to recalibrate entire industries. It is one of the market’s most
effective mechanisms for self-correction and positive evolution.
The better you understand acquisitions, the better you understand