|Product dimensions:||6.10(w) x 9.10(h) x 1.00(d)|
|Age Range:||18 Years|
About the Author
Read an Excerpt
WHY THIS BOOK IS NEEDED a 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 a especially for the mid-market player.
For most people, M&A has a peculiar aura. On the one hand a 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 a 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 a 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 business itself.
Table of Contents
Introduction: From Beginning to Beginning 1
PART 1: BUILD THE FOUNDATIONS
Chapter 1: Know Thyself 19
Chapter 2: Pathways to Growth 37
Chapter 3: Prepare to Buy 57
Chapter 4: Assembling Your A-Team 71
Chapter 5: Researching and Selecting a Market 83
PART 2: BUILD THE RELATIONSHIPS
Chapter 6: The Prospect Funnel 105
Chapter 7: Making the First Contact 121
Chapter 8: Face-to-Face with Opportunity 133
Chapter 9: First Assessments 145
Chapter 10: Negotiating with Prospects 163
PART 3: BUILD THE DEAL
Chapter 11: The LOI: A Gentleman’s Agreement 177
Chapter 12: Getting Down to Business 191
Chapter 13: Integration: An End and a New Beginning 207
Executive Summary: The Top Ten Lessons 221
Appendix: Sample Letter of Intent 235