002: What do Strategic Buyers know about M&A that you don't?

Why is it that some companies are always in the news getting credit for another great purchase? Why can’t you be one of those companies who buys them? In fact, why couldn’t you be one of those entrepreneurs that cashes out for a huge payday? What can you be doing today to increase the value of your company?

As a business owner myself I’ve often wondered about it. So I talked with an Industry Expert, Jeff Hawkes who is part of Ecolab’s (Fortune 500) Merger & Acquisitions team. He shares the inside scoop on how one of the top companies in the world strategically buys companies. (Click Dynasty Leadership Podcast in iTunes or Dynasty Leadership Podcast for Android to find the podcast and subscribe.)

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What were the key takeaways?

[1:35] What’s the difference between a strategic buyers a

nd a financial buyer?

[6:50] What is EBITDA?

[7:40] How much of an impact does the economy have on the

decision-making process?

[9:45] The market is quite hot right now. Jeff believes one o

f the factors to this are the private

equity firms raising capital.

[10:25] What’s Jeff’s investment/buying methodology?

[15:35] How does Jeff and his team perform proper due diligence

on a company?

[16:50] How do you go about measuring company culture?

[19:20] So what drives a purchase price? Jeff lists 3 factors y

ou have to consider.

[22:00] What are some of the things Jeff looks for?

[25:20] How does Jeff react when business owners begin to ho

ld off on key purchases for their

company when they’re getting ready to sell?

[30:20] Jeff does about 6 weeks’ worth of due diligence on a co

mpany.

[35:30] What kind of things should a business owner be doing to inc

rease the value of the sale?

[40:10] Don’t try to hide or shave the numbers down. Be upfro

nt about it.

[43:55] Why do acquisitions fail?

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