February 2014
In This Issue
Why Deals Fail to Close
Why 2014 might be the year to sell your business
How to start your exit plan
Alliance for Channel Success

 

You're invited to "Accelerate Your Growth through Acquisition"

 

Register Now button from GoToWebinar

 

Presented by Austin Dale Group

Are you looking to take your business to the next level?  Many companies reach a plateau and the strategies that got them there may not be sufficient to get to the next level.  That's why many successful, growing businesses accelerate their growth by acquiring other companies.  A strategic acquisition occurs when one company buys another company that complements its business and the result - if synergy is achieved - is a combination which is greater than the sum of the parts.

In this webinar we'll discuss why growth through strategic acquisitions can complement your organic growth and drive up the value of your business.  We'll also cover the basic steps involved in buying another business and the problems that buyers may encounter and how to overcome them.    This webinar is recommended for owners and executives of privately held technology companies.  

 

Date:   February 12, 2014 

Time: 11 AM Central / 12 PM Eastern  

 

Click below to register, seating is limited:

  

Register Now button from GoToWebinar
 
Why Deals Fail to Close 
  
When deals fail to close, everybody involved with the transaction is disappointed. The issues causing a halt in the closing process may be insurmountable or they may be minor.  If minor, they may be able to be resolved when handled appropriately.

There are dozens, if not hundreds, of reasons why deals do not close. It all starts with the Letter of Intent which transforms the verbal agreements into a written document. However, the devil is in the details. The reps and warranties, the indemnities, employment contracts, non-compete agreements - all are potential deal breakers. In addition, every transaction has a unique mix of personalities and potential conflicts between the attorneys, accountants, the boards of directors (if any), the sellers, and the acquirers.

Business intermediaries can be a big help in keeping the deal moving forward and in smoothing out any disagreements. Intermediaries have experience in dealing with the following.

Acquirers:
  • who lose patience and give up the acquisition search prematurely, maybe under a year's time period.
  • who are not highly focused on their target companies and who have not thought through the real reasons for doing a deal.
  • who are not willing to "pay-up" for a near perfect fit, failing to realize that such circumstances justify a premium price.
  • who are not well-financed or capable of accessing the necessary equity and debt to do the deal .
  • who are inexperienced as buyers yet unwilling to lean heavily on their experienced advisors for proper advice.

Sellers:
  • who have unrealistic expectations for the purchase price.
  • who have second thoughts about selling, commonly known as seller's remorse and most frequently found in family businesses.
  • who insist on all cash at closing and/or are inflexible with other terms of the deal including stringent reps and warranties.
  • who fail to give the intermediaries their undivided attention and cooperation.
  • who allow their company's performance in sales and earnings to deteriorate during the selling process.
 
  
  

Welcome to our February newsletter. Our feature article is about why M&A deals fall apart. We also have a link to a recent article that shows why 2014 may be an excellent year for some owners to sell their business.  Also check our our latest blog about exit planning, and an exciting new program from our colleagues at Alliance for Channel Success. Finally, our next webinar is "Accelerate Your Growth through Acquisition" for tech owners who are thinking about acquiring another business.

 

Austin Dale Group is an M&A advisory firm that specializes in technology companies. We'd love to hear from you.

rjd and jwa signatures 
John Austin & Bob Dale
512-327-0427
two-skiers-header.jpg  
keys_clock.jpg

From entrepreneur.com

 

As we've plunged into 2014, it's clear that large and small companies alike are feeling the optimism that comes with rising asset prices. Private equity spending power has topped $1 trillion, a buyout bubble is possibly on the horizon, and competition is driving valuations and demand. In the entrepreneurial ecosystem, business owners looking for an exit strategy are likely to find 2014 an optimal year for selling.  There are three reasons in particular entrepreneurs might consider this move in 2014: rising stock prices, low interest rates and solid performance the last few years.  [Click here to read the entire article on entrepreneur.com]

How to start your exit plan
What does it take to start making an exit plan? The first step is to set your goals and objectives. Consider these three areas: Professional, Personal, and Financial....[Click to read the entire blog]

 

Alliance for Channel Success

The Alliance For Channel Success is a consortium of the IT industry's most popular speakers and consultants. They cover topics that are critical to helping you grow your business from leading experts in Sales Leadership, Marketing & Social Media, Business Management and Leadership, Mergers & Acquisitions, and Cloud implementation & Mobility Solutions.

 

They want you to not just survive...but to thrive in 2014, that is why they've just launched their new Partner Excellence Learning Center. As a partner, you
will have access to tools and timely information needed to navigate today's changing market.   To get a feel for the Alliance, check out the upcoming webinars at http://allianceforchannelsuccess.com/webinars/#!event-list .

 
Austin Dale Group
Contact us:
 
512-327-0427 
 
Visit us online.


Follow us:
Like us on Facebook    Follow us on Twitter    View our profile on LinkedIn