Review from the Summit: Should You Acquire or Be Acquired? (Part 2)

Now I am going to continue to summarize Hobson Hogan’s presentation on whether you should consider being acquired or whether you should acquire another company from Day 1 of the Summit. If you have not read part 1 please do so first.

Let’s pick it up with your selling/liquidity options:

  • Majority/controlling interest sale: To competitor or investment firm/private buyer
  • Internal sales/transfers to next generation of management: Multi-year S-Corporation/LLC sale programs, management buyouts
  • ESOP (Employee Stock Ownership Plan)
  • Selling significant minority stakes with eventual control sale: Can solve difficult situations where buy-sell agreement undervalues firm, gives owner a ready buyer in cases of illness or death, transaction(s) completed at a discount

Next he discussed the key points to consider before making a corporate acquisition:

  • All starts with strong business plan and big dose of humility
  • Be honest about risks – most are related to executive hubris not quantitative failures of the CFO
  • Plan early and implement slowly
  • Maintain a strong balance sheet
  • Manage assumed liabilities
  • Manage risk as well as return
  • Keep your hand in project selection/pricing
  • Manage personal guarantees
  • Just because you can borrow money does not mean you should
  • Acquisitions should enhance or implement new strategy
  • Acquisitions for acquisition sake will only distract management from its most important activities
  • Acquisitions should support your marketing plan, enhance strengths, mitigate weaknesses, reduce threats

Before you jump into the acquisition plan you need to work on the business plan – and this entails:

  • SWOT analysis
  • Market strategies
  • Product/service strategies
  • Operational plans
  • Management succession plans
  • Financial projections
  • Operating budget
  • Projected earnings
  • Cash flow and CAPEX budget

In the next posting I will finish the summary of Hobson Hogan’s presentation.

I want to thank the entire team at Dave Yoho Associates for meeting with our Canvassing Managers last week. The knowledge we learned in only one day was invaluable.

Jason Hollister, Proximity Marketing Manager
RbA Southard Corporation

Our remodeling business had annual sales of under $9 million when we became contract clients of Dave Yoho Associates. Due to their training and systems, our revenue soared – – we are headed for over $35 million this year.

Vince Nardo, President
Reborn Cabinets

Dave Yoho Associates produced amazing results for us! Every percentage point of improvement in our lead issue rate translated to an additional $500,000 in business.

Brian Leader, Founder
Improveit! Home Remodeling

I would like to thank Dave Yoho Associates for their consulting services. For me, the meaning of ‘value’ is getting more than what you paid for, and their services truly exemplify this.

Aaron Heth, Director of Sales
Freedom-Solar

The advice we received from Dave Yoho Associates enabled us to increase our volume with 19% less leads in the first year alone!

Joe Francis, President
Shiner Roofing, Siding and Windows

I’ve had the privilege of using Dave Yoho Associates consulting services for the last three years. It’s by far the best single business decision I’ve made. Their structure, training, and business coaching are second to none.

Michael James, CEO
Classic Exteriors

We have been working a long time to reach a “million-dollar month”, and this September we finally accomplished our goal! The Dave Yoho Associates model and training tools are without a doubt the keys to our success.

Chuck Cometti, General Manager
RbA of Central New York

Immediately after your training, I ran my first solo appointment and got the order for $16,088! I beat out a reputable local remodeling company whose bid was $4000 less and was referred to by the customer as a slightly ‘better’ product.

Sara Zarndt-Brickey, Operations
Re-Bath of Illinois

I learned an abundance from your canvassing training. Thank you so much for helping us revise our methodology!

Lynann Everett, Interactive Marketing Manager
RbA of Northeast PA

We’ve used the consulting services of Dave Yoho Associates for several years now. Much of our success can be attributed to following their systematic teachings and practices.

Michael Hoy, President
Great Day Improvements

OUR PARTNERS

Get a FREE 30 Minute Consultation A FREE GIFT
Call Us Now