K&A Blog: News You Need To Know

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Why One Entrepreneur Isn’t Taking the Bait When It Comes to ABC’s Shark Tank

Sam Hogg, a venture capital investor with Open Prairie Ventures, takes issue with the popular venture-backing TV show. From the February 2015 issue of Entrepreneur: ****************************** Why One Entrepreneur Isn’t Taking the Bait When It Comes to ABC’s Shark Tank I teach a business class at a university here in Michigan, and it pains me to discuss ABC’s Shark Tank with ...

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Investment Bankers Don’t Have Magic Words

Not only is it not voodoo, it’s also not rocket science.  Experience goes a long way to navigating the selling process. From Divestopedia: *********************************************** Investment Bankers Don’t Have Magic Words By Bill Snow Takeaway: Investment bankers do not have magic words that they whisper in the ears of buyers to get them to pay more for a ...

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Did You Just Call My Baby Ugly?

Tips for handling the emotional aspects of a business sale.  While the discounted cash flow model described in strategy #2 isn’t completely relevant in the markets we serve, pay attention to strategy #3. From Inc.com: ***************************************** Did You Just Call My Baby Ugly? It’s easy for negotiations to get unnecessarily ugly. Here’s how to better ...

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Believe it or Not, One State is Almost Entirely Responsible for All Net Job Growth Since 2007

Key Quote: “…job creation in just one state – Texas – is solely responsible for the 1.169 million net increase in total US employment.” From IJReview: ***************************************** Believe it or Not, One State is Almost Entirely Responsible for All Net Job Growth Since 2007 BY MIKE MILLER President Obama has touted job growth under his administration during ...

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M&A Advisers Proven to Improve Valuations

Not news to us, of course, but now an academic study validates our long-held claim:  K&A is able to sell a company in a shorter period of time, in a more confidential manner and under more favorable terms than business owners can on their own. From Axial Forum: ************************************************** M&A Advisers Proven to Improve Valuations ...

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Texas Is Pretty Much The Most Productive Place In America

This article from the Huffington Post echoes a sentiment we hear from private equity groups across the country — they want to find businesses to buy in Texas to take advantage of the state’s economic opportunities. ******************************************************** Texas Is Pretty Much The Most Productive Place In America The Huffington Post  |  By Suzy Strutner When ...

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Market Update: Selling to a Competitor

The press release announcing the sale of Harvest Supply Company to BWI describes a recent successful K&A transaction between two direct competitors.  I wanted to highlight this transaction, because I believe it serves as an example for other business owners considering the sale of their companies. In some cases the most likely buyer candidate for a ...

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Harvest Supply Company Sold to BWI

BWI Companies, Inc. of Nash, Texas has acquired substantially all the assets of Fort Worth, Texas-based Harvest Supply Company. Harvest’s storied history dates back to 1939 when brothers William P. Cranz and Gus E. Cranz founded Harvest Seed Company, a retail store offering seeds, grains and gardening products on 7th Street west of downtown Fort ...

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7 Pitfalls to Avoid Between LOI and Deal Close

Excellent advice for business owners once they’ve signed a Letter of Intent with a buyer and are working hand-in-hand toward closing.  Time kills deals, and several of these pitfalls cause unnecessary delays that undermine a seller’s negotiating position and jeopardize a successful closing. From Axial Forum: ************************************** 7 Pitfalls to Avoid Between LOI and Deal ...

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Beyond EBIT-DA: 5 Other Factors That Affect How Private Equity Buyers Value Companies

Prospect Partners is long-time, well-respected middle market private equity firm in Chicago.  Since 1998 they’ve invested in over 110 companies, so the following article is valuable for business owners for the insight it provides into the mind of an experienced private equity investor as they communicate to investment bankers the way buyers determine a company’s ...