Stories

Never do business with this person

Of course I keep a list of the shady people I have met in the 20+ years I have been doing mergers and acquisitions in the Internet industry. The reason I maintain this “Never do business with this person” list is obvious, but there are other aspects of the list that are valuable yet maybe…
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The difficulties of selling a 50/50 equity partnership

When business partnerships are formed the obvious benefits and concerns are addressed. How do each partner’s strengths and weaknesses complement each other? How much capital will each partner contribute to get the business going, and to keep it going until it reaches cash flow break even? How long will they grow the business until they…
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Internet M&A: The perfect number and blend of MSP services to offer

There are over 50 individual services a “Managed Service Provider” can offer customers. Many CEOs have asked me … in order to maximize their company valuation and liquidity is it better to specialize in 3-5 services or try to offer as many services as possible … and which combination of these services is best. In my…
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First discuss the geographic layout of an Internet service business with its owner.

In the first hour with a prospective sellside client I need to learn a lot about the company and about the seller’s style … so I need to listen way more than I talk, respect the story teller, ask the right questions, and manage the time we have. The way NOT to spend this first…
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The startup strategy “pivot” … there is a hidden cost

The business strategy “pivot” is common with tech startups. Typically the startup’s founder/CEO implements a “pivot” when the initial strategy of the startup isn’t working out … so a different strategy is pursued. This short article is not referring to the scenario where a software development company is working on 5 projects then decides to…
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2 Types of business sellers: Greedy & Desperate

This is a short writing for newer business buyers as opposed to the old veterans of the deal trail. After working M&A in the Internet service sector for over 20 years I have learned to respect the differences between all of the types of sellers that are out there. This writing is about two of…
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Fast Track to Financial Stability

Congratulations! You have made the single most important step in the entire process – searching out how to become financially stable. In my 20’s and early 30’s, I made tons of mistakes.  I overspent, mis-used credit, and basically lived a “Rock star” lifestyle- without any care in the world.  The problem is, I’m here to…
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7 things to do 13 months prior to selling your Internet service business

1) Organize the Profit & Loss Statements: Don’t make the buyer’s job of learning about the company difficult. 13 months out from selling your business is the perfect time to organize the P&L’s, so in 13 months you can have a much improved “Trailing 12 Months P&L’s” for buyers to look at. Buyers want to…
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There is a better question to ask the business owner than, “Why do you want to sell your company?”

When business buyers have initial conversations with business owners who wish to sell their companies, one of the first questions is “Why do you want to sell your company”. Over the years I have asked this question 100’s of times. It just seems like a natural conversation starter, which it is. However I came to…
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5 Tips to Sell your Home For the Highest Price

Table of Contents 1. Choosing When To Sell:2.  How to Calculate the Best Pricing:3. Gathering Information4. Preparing Your Home For Sale5. Why do I need a Realtor®? Selling your home it can be very lucrative, here are some tips to optimize the process and increasing your chance of getting a better price. 1. Choosing When To Sell:…
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