At Generational Equity, we find it fascinating to discuss with buyers post acquisition the reasons they acquired one of our clients. Here, we highlight the key factors behind mergers and acquisitions transactions closing during 2016.
The request in the Deloitte 2016 M&A Trends survey was a good one:
Please rank your top 3 M&A objectives, in order of their importance, with respect to your company’s M&A strategy for the next 12 months.
And so were the responses:
(You can read the rest of the survey here)
If you look closely at this list, the top three responses this year all dealt with expansion of customer base, expansion of products/services, and the pursuit of greater efficiencies. Technology and obtaining cheap assets were both scored low by the respondents.
Remember that this survey was comprised of results from 2,292 executives with corporations and private equity firms in the U.S. So the survey results are very reflective of the goals and motivations of M&A events this year.
Far too often business owners wonder, Why would anyone want to acquire my company? What does the business have to offer to professional buyers, the type that will pay top dollar?
The reality is this: If you properly package, promote, and market your acquisition opportunity, the odds are good that you could attract one of these buyer types based on the tangible (and often intangible) assets your business possesses.
It is fascinating to talk to buyers post acquisition and learn why they acquired one of our clients. Quite frequently the areas of the business that attract them are not what the business owner contemplates when they first engage us. Our role as professional deal makers is to help the business owner to think outside of the box in its truest form. Because only then can we determine the types of synergies in product, location, customer base, and dozens of other categories that will attract the optimal buyer mix for our clients. This is what a few of our clients say about our marketing skills:
The common theme you will hear throughout all of our testimonials is this: I probably could have found a buyer on my own; however, it would not have been an optimal buyer and the deal structure would have not been as favorable.
Clearly your business will have some intrinsic interest to professional buyers if you are able to explain why. And that is where the real strength in the Generational Group is found: Our deal makers have ages of experience in explaining to skeptical buyers why our clients are good matches. We understand not only what motivates buyers but we also are clearly able to explain why our specific client is a good match for each individual buyer. This is a skill set that takes years of deal making experience to develop. Our team is second to none in the lower middle-market:
If you are interested in finding out if our services are a good match for your business, please call me at 972-232-1125 or email me at email@example.com and we can start a dialogue about what we can do for you.
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2016 Generational Equity, LLC. All Rights Reserved.
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
By submitting my name electronically and clicking the “submit” button, I understand that I am providing Generational Group, Inc., Generational Equity, LLC, Generational Capital Markets, LLC, DealForce LLC, their affiliates, representatives, contractors, etc. (“Generational Group”) my telephone number, which may include a number that is wireless and/or a number that is on a national, state, or other Do Not Call registry or list. I hereby consent and agree to receive telephone calls including any autodialed and/or pre-recorded telemarketing calls and/or text messages (telemarketing) from or on behalf of Generational Group at the telephone number provided. I further consent and agree that telephone calls may be made using automated technology such as an automatic telephone dialing system, artificial or prerecorded voice, or SMS text messaging. Consent is not a condition of purchase. I further warrant and represent that any telephone number provided is not on any state or national Do Not Call Registry and that by agreeing to these terms and conditions that if any number provided is on any such registry, I hereby consent and agree to receive telemarking calls and/or communications including any phone calls, text messages, URLs, links, emails, etc. to the telephone number(s) and/or any e-mail addresses provided. I understand that by entering my name in the electronic form provided, that I am signing my name as equally as if it was my handwritten signature and that it is my intent to provide an “electronic signature” as that term is defined in state and federal law, as well as industry practices for e-commerce.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Group.
Success, you have been added to our list.
it all started with a conference.
start your story today,
speak directly with one of our senior advisors +1-972-232-1121