Q: Who is the internal champion on the M&A team? What is their role? A: The internal champion is an important member of your M&A team. Your acquisition team should include people from your own company such as the CEO, CFO, the internal champion, and functional leaders, and external experts such as lawyers, accountants, valuation experts, due diligence experts […]

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When you’re pursuing an acquisition, making meaningful connections with the right people at the right companies can be challenging. Who is the right person to contact? How can you go about contacting them? And once you do get in contact, what do you talk about to capture their interest? These questions are I frequently hear […]

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Time your negotiations by understanding owner psychology. Everyone wants to talk about price in mergers and acquisitions. It’s often the number one focus of buyers and sellers…but for opposite reasons. Both are likely to say they are looking for a “good deal,” but this can have a completely different meaning depending on the perspective. Buyers […]

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“I felt so vulnerable. I didn’t know what to do or what to talk about,” Dan told me. As the CEO of a food manufacturer who was pursuing acquisitions, he had a first meeting with an owner of a packaging facility before he engaged Capstone. When we met he expressed feelings of uncertainty and how […]

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How do you begin your courtship of a not-for-sale company? Sending a letter is fairly common practice for contacting owners, but it’s not the most effective way to communicate. A letter will not attract the owner’s attention and likely will go into the trash without being read. There’s a better way to stand out from the […]

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Successfully executing a deal can be tricky, even if you already know the acquisition prospect. In fact, your existing relationship may complicate the deal. Acquiring a company that you’ve worked with can make it difficult to objectively evaluate the opportunity. Bonnie Ciuffo, President of South Carolina Financial Solutions (SCFS), and John Dearing, Capstone Managing Director, […]

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When do you let an owner of a privately-held not-for-sale company know you are interested in acquisition? While, I’ve mentioned that an owner will not sell their company over the phone, this doesn’t mean you should hide your interest in acquisition. You should introduce acquisition at the beginning of the process. In your first call […]

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Facebook announced it will buy WhatsApp for $19 billion on February 19, 2014. There is no way that I can, in any credible means, justify or explain the purchase price because it’s absurd in my opinion. WhatsApp has no advertising revenues and charges each of its 450 million active users a yearly fee of just […]

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“Hello, I’d like to buy your company.” If this were the way I began my phone calls with owners, none of our deals would be successful. Speaking with owners, particularly of privately held, not-for-sale companies, requires the right strategy and approach. After all, you only have one chance to make a first impression and your goal in […]

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I had the opportunity to speak on building a lasting legacy in the September issue of Washington DC SmartCEO Magazine. The article focuses on how business owners and entrepreneurs can build a lasting legacy for their company. As I said during my interview, Capstone is not just about me, it’s so much bigger than that. […]

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As an M&A consultant, I’m often asked exactly how we persuade the owners of not-for-sale companies to sell.  My years of experience speaking with owners and facilitating acquisitions makes the process easier, but the real secret is understanding owner psychology. In contacting an owner, you can’t lay out a detailed acquisition plan. The key is […]

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Here is a thought that many miss when they embark on an acquisition process: There is an inherent asymmetry in acquisition that puts the buyer and seller on different planes. You can buy companies over and over again, but the owner can sell his company only once. Though you, the buyer, may be taking significant […]

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Making first contact with an owner and important step in the acquisition process. It is your opportunity to get your foot in the door and start a positive relationship that could lead to acquisition. So, how do you go about contacting owners? In my post for the ACG National Capital Blog I outline how to initiate […]

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Personal connection matters, especially when it comes to the first connection with an owner of an acquisition prospect. This first connection is a decisive step.  Handled correctly, it can initiate a positive relationship that may eventually lead to union. Handled poorly, that one phone call can terminate your opportunity to buy. When initiating contact with […]

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I have rarely found an owner who, when asked if he would consider selling his business, immediately says, ‘‘Yes, I want to sell, and I want to sell now.’’ If you did actually get an immediate yes, this might well indicate weakness on the part of the prospect. Most often, though, the responses you will […]

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This post was submitted by Capstone Project Manager Gretchen Johnson: Experts say that the death of a business owner could mean the end of the company without a sound strategy. Rather than a single, dramatic moment, the smooth succession of a business is a series of events. Like a relay race, a company transition should […]

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This post was submitted by Capstone Senior Vice President Wes Teague: Are we living in a period of paradox, or under a new paradigm? Interest rates are at all-time lows (and have been for a sustained period); many corporate coffers are flush with unused (and unearning) cash; trillions of investment dollars are on the sidelines […]

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“The First Date”: Contacting Owners and Successful First Meetings CPE Credit Awarded Thursday, July, 29 2010; 11:00 AM ET Hosted by David Braun, Capstone CEO David Braun, CEO of Washington, DC- based external growth consulting firm Capstone, is hosting a webinar with Capstone Project Manager Gretchen Johnson. Having identified the target companies you would like […]

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Clients always want to know how  we can quickly understand the perspective of the owner of the acquisition target.  Over the past 15 years focusing on the privately-held, not-for-sale space, we have a 98% success rate getting our clients in meaningful conversations and meetings with companies that are deemed to be a strategic fit. The […]

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