Lessons on Purpose September series #9: Interests before Options In 90% of the 50+ acquisitions I have led, aligning the parties interests has been the key to success. Often folks believe that negotiations should be positional: you ask 100, I bid 50 and we agree on 75. The most value actually gets created when the parties align on interests, and potential ‘deal killers’ before discussing price. A few examples from deals I have led: - Haagen-Dazs and Ben & Jerry’s, arch enemies with the consumer, found a common interest in Haagen-Dazs taking over distribution - and we split $15M in annual cost savings as a result - In several cases we found win/win deals where instead of one party buying another, we created a JV together and then took share from another company in the same industry - When buying a technology company, we uncovered that the ownership group valued stable employment vs cash value, so traded lower enterprise value (helping the buyer) and delivered employment for the seller - I have terminated more than a dozen deals when we identified, early one, an issue neither party could agree to, well before we got into the expensive legal and due diligence process My suggestion - spend 5X the time aligning on interests prior to negotiating price, or deal structure.
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Have you bought a business? In the next few weeks, we close the doors to the next intake of Inner Circle. Tomorrow, Friday, 19th April at 12.30 pm UK time, I will host a special information webinar on Zoom to explain why Inner Circle is always oversubscribed and how you can apply. Inner Circle is our high-level group for experienced dealmakers who have already bought at least one business. With the deadline approaching, I have received lots of questions about Inner Circle and the eligibility criteria. If you have bought a business and are ready to take your dealmaking to the next level, our Inner Circle group could be for you. Webinar link in the comments #mergersandacquisitions #business #businessbuying
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At Stage Left Partners Ltd., we've learned that timing is everything when it comes to M&A. Be prepared to strike while the iron is hot, keep your operations in top shape, and stay ready for the unexpected. Trust experienced advisors to guide you toward seizing the best opportunities. #mergersandacquisitions #timingiscritical
Timing is Critical in Mergers and Acquisitions - Stage Left Partners
https://stageleftpartners.com
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