Huxley Nixon - Wednesday, September 28, 2011
"When buying a new car do you pay the “Suggested Retail Price” of the dealer? If so, you NEED to read the actual case study for my new business – the M&A MARKETPLACE by CHC℠ or you may pay 10 to 30 percent more than you should." " ..... WHY do so many business owners of private companies end up selling to a “friendly competitor” or a financial buyer in a “negotiated” transaction?"
Huxley Nixon, founder of the M&A MARKETPLACE by CHC, relates the actual events surrounding the efforts of Bob (not his real name) to sell a majority stake in his company, remain as CEO and buy his largest competitor. Bob's company was a very profitable $220 million revenue value add distributor but he refused overtures from numerous investment bankers to help.
Bob had elected to control this process internally and signed an LOI ("Letter of Intent") with a strategic buyer for $100 million but realized quickly that there was not a culture fit and he was NOT going to be a "partner" with the new owner, rather an "employee". Next, Bob agreed to a term sheet from a well known private equity firm offering a price of $115 million. Unfortunately, they were unsuccessful in raising their latest fund and could not perform. Click here to for the rest of the story....
Huxley Nixon - Wednesday, September 28, 2011
Recent study of Private Equity by the international strategic consulting firm, BBK dispels many misconceptions held by business owners.
The days of using high leverage and “buy and flip” are over! According to David Knill, lead managing director of BBK's Private Equity Practice, it's a good time for many companies to consider the substantial investment and savvy management resources PE firms can provide. “….BBK has determined that many PE investment firms are stable, long-term owners that quietly introduce efficiencies to improve a company's performance and help it expand.” To read recent Marketwatch article Click Here.
Huxley Nixon - Tuesday, September 20, 2011
Excellent article by John Warrillow on why NOW may be the time to consider a sale if you are on the fence. Click here to view John's article.
This message is critical for business owners to read who might be remotely considering a sale of part or all of their company in the next decade. I have been singing this tune for a while (see Huxley's Blog of July 27, 2011"When is the Best Time to SELL?" - click here to view).
Huxley Nixon - Monday, September 19, 2011
Congress and the President just kicked the can down the road and many feel the signs are mounting we are slipping into a Double-Dip recession. Read more about this in Huxley's blog.
Huxley Nixon - Monday, September 19, 2011
Recent report by IBISWorld identifies the top TEN DYING Industries and the factors that place them in this category. Toon van Beek, Senior Analyst reveals some obvious and not-so-obvious sectors as well as some surprises as to major investors that have large positions in them.
Click here to see the report.