Video Replay: Ask Anything on Funding and Acquiring a Business
Video Replay: Ask Anything on Funding and Acquiring a Business
As one of the panelists on the recent 12 Mavens “Ask Anything” I had the privilege of sharing my expertise on acquiring a business. The session revolved around the changing landscape of deal sizes and economic influences on businesses. In this blog post, I will review the key points discussed during the panel, shedding light on buying and selling businesses.
4 Key Takeaways
1. Navigating Deal Sizes and Economic Changes:
During the panel, we stressed the importance of recognizing the impact of economic changes on deal sizes. The evolving economic landscape presents both challenges and opportunities. The panelists urged participants to consider acquisitions as a means of expanding their portfolios and growing their companies.
2. Due Diligence in Buy and Sell Sides of Acquisitions:
Given the collective extensive experience in both buying and selling businesses, we had valuable insights to share. We emphasized the significance of due diligence in acquisitions, guiding buyers and sellers on what to be aware of and how to identify red flags.
3. Our Personal Experiences as Entrepreneurs:
Many of us on the panel are entrepreneurs who have acquired, scaled and/or and sold our own businesses, and we shared our unique perspectives from those experiences. We highlighted the opportunities available in the market and the potential for venture capital firms to fund platform businesses. We also stressed the importance of capitalizing on industry trends and staying ahead of the curve.
4. Addressing Cash, Assets, and Employee Considerations:
Participants raised questions about the treatment of cash, assets, and employee obligations during acquisitions. We explained that deals are typically structured to be cash-free and debt-free. However, we emphasized the flexibility of negotiations, mentioning scenarios where substantial cash amounts can be left in the business, potentially impacting the purchase price. We also discussed the significance of addressing employee-related costs, including retention bonuses and employment contracts to secure key personnel.
Watch the Replay Below
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