Articles

In 2018, we conducted dozens of customer due diligence engagements on behalf of private equity and strategic buyers. While all of these engagements were designed to mitigate customer concentration risk and provide insights to accelerate post-close value creation, roughly half included additional objectives to determine the impact that tariffs may have on a deal. Based on thousands of in-depth interviews with B2B decision makers, we have observed five ways that tariffs are impacting M&A deals and portfolio management strategies.

In the October MidMarket Talk article, we dealt with Dealmakers Planning for a Successful Merger or Acquisition: Aligning the Rest of the Total Organization) and discussed letting all of staff know of the directions and focus of the new organization. Everyone needs to be clear on the reasons for the merger or acquisition. Additionally, as Carleton and Lineberry point out, staff needs to know “the direction of the new organization and the changes that are required for its success.

Going into a deal — especially when starting to build a new platform — it is imperative for acquirers to gain a deep understanding of a category. Commercial due diligence is effective at helping acquirers familiarize themselves with a category at a high level. However, a broad understanding of a category may not always be enough to validate investment theses and develop value creation playbooks for a specific target company.

Last month In MidMarket Talk, we dealt with Dealmakers Planning for a Successful Merger or Acquisition: Aligning the Management Group (Part 2) and discussed the criticality of aligning the Management Group.  We focused on how to facilitate the All Managers Session and what to do with what comes out of the sessions for management to act upon for the accomplishment of the strategic intent of the merger or acquisition.  

Last month In MidMarket Talk, we dealt with Dealmakers Planning for a Successful Merger or Acquisition: Aligning the Management Group (Part 1).  We also proposed the idea that if Dealmakers are true advisors, they need to advise their client on the criticality of aligning the Management Group.  We focused on how to facilitate the All Managers Session and now will show what to do with what comes out of the sessions for management to act upon for the accomplishment of the strategic intent of the merger or acquisition.  As promised, we will discuss what happens after the All Managers Sessions regarding the values and practices, accountabilities, communicating the results of the sessions, developing feedback surveys to gauge perceptions of the manager’s behavior in the new way and creating development plans for staff and action plans for the managers. 

In selling your business, you can structure the deal as a stock sale or an asset sale. Most sellers prefer stock sales and most buyers prefer to buy assets.

Thinking of your exit strategy? Find out why today is the most optimal time to sell.

Last month In MidMarket Talk, we took a step back and described essential steps in identifying and retaining key talent for the new organization. The Executive Group made several critical decisions on moving forward with the new organization. This month we move forward to discuss the alignment of the Management Group; this follows the alignment of the Executive Group. If Dealmakers are true advisors, they need to advise their client on the criticality of aligning the Management Group. This article on Aligning the Management Group will be in two parts. This first part will focus on the All Managers Session and how to facilitate those sessions. Part 2 (next month) will show what to do with what comes out of the sessions for management to act for the accomplishment of the strategic intent of the merger or acquisition.  

When you run a business, you're tied to it both financially and personally. The financial side is obvious: Your company's success or failure ultimately rides on your shoulders, affecting not just your personal livelihood but that of your employees. The emotional aspect of being a CEO is something that's not discussed very much. When you devote yourself to your company's success over a period of years, working long hours and thinking about it even in your downtime, it affects how you view yourself.

 

Minnesota’s mergers and acquisitions (M&A) market has been strong the past few years, but can this trend continue in 2018?  Will buyers continue to be willing and able to pay the high valuations we’ve seen recently?  How will the recent tax changes impact the M&A market?  Based on national historical trends and expert predictions for 2018, following are some predictions about what this means for Minnesota companies.