Book description
Every company faces the inevitable challenge: stagnate or grow. One of the fastest ways for small- and mid-size companies to expand is through acquisition. Purchasing another company can seem daunting—but when done right, it can deliver outstanding rewards. Successful Acquisitions supplies the key information that business leaders need to know about finding and buying companies. Written by an M&A expert with more than $1 billion in transactions under his belt, the book’s practical and comprehensive approach integrates all the moving pieces into a logical step-by-step process that covers: • The art and science of researching companies • Building and balancing an acquisition team • Valuation tips that look beyond the obvious • The importance of “the seller’s equation” • Developing a negotiation platform • How to be tough and still protect the buyer-seller relationship • Guidelines for structuring an airtight deal • The letter of intent, due diligence, purchase agreement, funding, and other essentials • Bringing the deal to a timely close • A 100-day plan for making integration a success It’s all here. From building the foundation to growing the relationships to cementing the deal, Successful Acquisitions is a complete roadmap to buying companies and achieving proactive strategic growth.Table of contents
- Cover
- Title
- Copyright
- Contents
- Introduction: From Beginning to Beginning
-
Part 1: Build the Foundations
- Chapter 1: Know Thyself
-
Chapter 2: Pathways to Growth
- GROWTH AS A TOOL FOR CALIBRATION
- THE “FIVE FORCES” MODEL OF COMPANY GROWTH
- THE FIVE PATHWAYS TO GROWTH
- Grow Organically
- Exit the Market
- Be the Low-Cost Provider
- Do Nothing
- Pursue External Growth
- THE NINE PATHWAYS OF EXTERNAL GROWTH
- Strategic Alliance
- Joint Venture
- Licensing
- Toll Manufacturing
- Greenfielding
- Franchising
- Import/Export
- Minority Interest
- Acquisition
- Chapter 3: Prepare to Buy
- Chapter 4: Assembling Your A-Team
-
Chapter 5: Researching and Selecting a Market
- GUIDING PRINCIPLES
- THE OPPORTUNITY MATRIX
- BUILDING YOUR CRITERIA
- COMMON CRITERIA
- Market Size and Segmentation
- Market Growth Rate
- Major Players
- Customer Profile
- Other Criteria
- THE MARKET CRITERIA MATRIX
- CONDUCTING EFFECTIVE RESEARCH
- ENGAGING A THIRD PARTY TO CONDUCT RESEARCH
- SHIFTING FOCUS FROM MARKETS TO PROSPECTS
- PREPARING FOR THE NEXT STAGE
-
Part 2: Build the Relationships
- Chapter 6: The Prospect Funnel
- Chapter 7: Making the First Contact
- Chapter 8: Face-to-Face with Opportunity
-
Chapter 9: First Assessments
- EVALUATION VS. VALUATION
- EVALUATION: DATA VS. INTUITION
- VALUATION: AN ART, NOT A SCIENCE
- VALUE VS. PRICE
- CONVENTIONAL VALUATION
- THE BUYER’S EQUATION
- THE MULTIDIMENSIONAL APPROACH TO VALUATION
- Method 1: Discounted Cash Flow
- Method 2: Liquidation Value
- Method 3: Completed Transaction Comparables
- RULES OF THUMB
- ON TO DEEPER NEGOTIATION
- Chapter 10: Negotiating with Prospects
-
Part 3: Build the Deal
-
Chapter 11: The LOI: A Gentleman’s Agreement
- A KEY MILESTONE
- THE PRE-LOI PRESENTATION
- THE OPENING PARAGRAPHS
- A NARROW PRICE RANGE
- BUYING WHAT YOU THINK YOU’RE BUYING
- STOCK DEAL VS. ASSET DEAL
- BINDING TERMS AND CONFIDENTIALITY
- TIMETABLE UNTIL CLOSING
- NO-SHOP VS. GO-SHOP
- ALWAYS, SOMETIMES, NEVER
- Always
- Sometimes
- Never
- THE LOI SIGNATURE: A MILESTONE
-
Chapter 12: Getting Down to Business
- DUE DILIGENCE: CONVENTIONAL THINKING VS. NEW THINKING
- The Three Buckets of Critical Information
- Who Does Due Diligence?
- Extracting the Best Information
- Negotiating the Red Bucket Items
- Financial Due Diligence
- What to Do with the Lawyers
- FINAL VALUATION
- DRAFTING THE DEAL STRUCTURE DOCUMENT AND PURCHASE AGREEMENT
- CLOSING THE DEAL
- Chapter 13: Integration: An End and a New Beginning
-
Chapter 11: The LOI: A Gentleman’s Agreement
- Executive Summary: The Top Ten Lessons
- Glossary
- Resources
- Appendix: Sample Letter of Intent
- Index
Product information
- Title: Successful Acquisitions
- Author(s):
- Release date: April 2013
- Publisher(s): AMACOM
- ISBN: 9780814432662
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