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In the book Acquire Before You Exit: A Practical Guide for Strategic Growth, Improved Business Valuation, and Maximizing Your SMB, Ed Gehres Jr. offers invaluable insights into sustaining forward momentum after acquiring companies. Here are 10 thought-provoking quotes from the book.
Even the best plan doesn’t survive first contact with the enemy.
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The biggest issue with a merger is usually ego. One company feels like it MUST take over and control the other
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You need a barrel full of possibilities to score a handful of successes. Not every business you desire will be available, affordable, or a good fit.
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Synergy is when things fit together well and work better together. One part energizes another.
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You need to understand more about the products and services you are offering or could offer or that competitors are already offering. You need to know how other companies handle operations, sales, marketing, branding, customer service, and communications.
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Determine where your company is inefficient and how to fix it.
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The broader your view of what would help you grow your business before you sell it, the more potential targets you’ll be able to find.
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Planning and preparation for due diligence and integration directly lead to an acquired company’s successful integration.
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Remember, the goal is to acquire and build for your exit. If you are taking on a lengthy and complicated integration, it’s the wrong target.
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Having a game plan that provides structure and flexibility ensures that only the best possible deals make it to closing.
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…most entrepreneurs can’t stay away – they’ll start something new soon after they sell ‘their baby’ and will continue to work because they love what they do.
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Seller financing should be one of the first tools out of your finance bag for every company you look to acquire.
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One of the primary objectives of due diligence is avoiding buyer’s remorse.
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Communication during a deal is essential to keep the deal moving and to form the relationships that will make integration smoother.
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Synergy is about finding the combined value that exceeds the sum of the individual parts. —
Net Working Capital is a measure of the company’s short-term financial health and its efficiency.
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…the integration of employees can make or break the acquisition.
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If the target company will result in a challenging, costly, or time-consuming integration process, it’s a ‘no-go.’
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Your internal team should be an empowered bunch who can be respectfully dissident.
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People who succeed have momentum. The more they succeed, the more they want to succeed, and the more they find a way to succeed.
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These quotes offer just a glimpse into the depth of knowledge Ed Gehres Jr. provides. Acquire Before You Exit is packed with essential strategies and practical advice for anyone looking to master the art of business acquisitions.
Citation: Gehres, E., Jr. (2024). Acquire Before You Exit: A Practical Guide for Strategic Growth, Improved Business Valuation, and Maximizing Your SMB’s Exit Price Through Mergers and Acquisitions. BaaS Publications.
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