Review from the Summit: Should You Acquire or Be Acquired? (Part 3)

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 or part 2 please do so first.

The next topic discussed was the value drivers that affect the outcome of an acquisition (which we also call the “6P Framework”). These include:

  • Personnel
  • Product
  • Process
  • Profit
  • Pricing of Debt/Equity
  • Projections

This is a two-sided framework and the top three elements are on the company side (qualitative) and the bottom three elements are on the numbers side (quantitative). The company side contains qualitative attributes that will bias a value up or down, while the numbers side contains a quantitative measure of the culmination of company attributes and its relationship in its market.

The market outlook was then presented and while Mr. Hogan stated that the market should recover, it will likely not approach 2007 peak levels within the next five years. The recovery will be asymmetric with certain geographies recovering more quickly than others.

He wrapped up his presentation by discussing the financial market factors that affect value. These include:

  • Bank lending standards significantly tightened
  • Use of debt in transactions significantly curtailed
  • Equity out refinancing and home equity loans greatly curtailed

To learn more on how FMI can help you acquire a company or sell your business you can contact Hobson Hogan at hhogan@fminet.com.

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

It was an honor for us to have Dave Yoho Associates hold a sales meeting for our team. Everyone was enthralled by the powerful content that we are already implementing throughout our business.

Rick Otto, VP of Sales
Coach House Garages

Your consultant introduced many thought-provoking, exciting concepts that were implemented and drove our net profit. We look forward to a long and prosperous relationship with Dave Yoho Associates!

Mark Watson, Owner
Exterior Medics

Dave Yoho Associates provided guidance, advice, best practices, and support to our entire staff. Our company has improved across every level after working with them.

Cris Keeter, Owner
All-States Exteriors

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

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 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

Recently, Dave Yoho Associates performed ‘role-play’ scenarios for three hours with our salespeople. The eye-rolling is gone and their confidence has grown substantially. Can’t wait for your visit next month!

Jason Phillips, CEO
Phillips Home Improvements

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

One of the primary takeaways from your most recent visit to our company was that the words, promises, and tone of our call center reps need to speak directly to the prospect’s needs, followed by a professional, systematic sales presentation which builds immediate rapport and trust.

Dave Cerrone, President
Fitch Construction

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