On January 1st many people make New Years’ resolutions to lose weight, exercise regularly, or save money. Unfortunately, many abandon these resolutions shortly after making them. We stop going to the gym and end up blowing our budget on a shiny new widget. The new year is also a time when companies set their own […]

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Some may be afraid to try new strategies for growth, but you must take chances to succeed. Although embarking on the unknown can be frightening, in a way, not taking any action is a choice that can come with equally scary consequences: losing out to competitors, failing to fulfill members’ needs, or becoming obsolete. Fortunately, […]

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When you acquire a company, the biggest risk you face in the unknown. You put a potentially large sum of money down for results that are not guaranteed. Whether you are acquiring a company for a new technological capability, to expand your geographic footprint, or for its complementary product line – there’s always the possibility […]

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During formal due diligence, which typically begins after signing the letter of intent, you gain access to in-depth information and begin taking a closer look at the acquisition target. Traditionally the primary purpose of this stage of the M&A is to identify significant risks that could impact the terms of the deal or put it […]

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Acquisitions are one of the fastest ways to grow, but they do come with their own set of risks. Industry numbers show that about 70% of acquisitions fail, so executives are highly motivated to mitigate their risks when purchasing a company. This can be done in a number of ways. Usually we think about hiring […]

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For the last couple of years, corporate America seems to have been playing it safe when it comes to growth. Currently U.S. corporations are holding on to a record $1.65 trillion in cash. Are you in a similar position, perhaps? Cash may not be your “security” blanket but you may be unwilling to take the risks […]

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In performing due diligence, I recommend you look not only for risks but also for opportunities. That’s how I approach due diligence for our Capstone clients.  As we examine the seller’s operations and books, we place every new discovery in one of three color-coded “buckets:” Red Bucket: Deal Changers. This is information that materially alters […]

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During due diligence, you may uncover deal-changing issues, or what I like to call “red bucket items.” Identifying these risks doesn’t necessarily mean you walk away from a deal, but you will need to negotiate new terms with the seller. Among the ways to protect yourself as the buyer when you find major issues: 1. […]

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As you go through the M&A process, you may find that advisors are both necessary and helpful to assist you. However, you must maintain your leadership role. I find that particularly toward the end of the acquisition process, executives imagine that they should hand the reins to a more “experienced” professional. This would be unwise. […]

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When you think about your company’s growth, ask yourself, “What is our risk tolerance?” The answer is key to formulating your strategy.  You cannot succeed with a plan for growth that pushes too far beyond the level of risk that is acceptable in your company. If you are the sole owner, the level of risk […]

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