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O P I N I O N
I f your A/E firm has any size or resources whatsoever, you could very well have acquisitions in your strategic plan. But saying you want to buy another business is one thing. Actually doing it is another. Saying you want to buy another firm in this business is one thing – actually doing it is another. So you want to buy an A/E firm?
2)Always talk to the top person in the firm. That is either the founder, chairperson, CEO, and/ or majority owner. Do not waste your time with someone who is lower down in the pecking order to make your case for selling to. 3)Timing is everything! You just never know when someone will have a particularly bad day, learn about a new health problem, or suffer some kind of personal setback that makes them decide they would like to sell their business and get out. Start the conversation to learn. And if not now, maybe they will come back to you later. 4)Talk potential deal structure early in the process! If you have a range of value based on a lot of variables you don’t yet know the answer to, tell them that. If you know you don’t have a lot of cash but could pay for the seller’s book value up front because of your ability to borrow on their assets
Some people say they want to do acquisitions but never really try in any meaningful way to do so. That keeps the fantasy of buying another firm alive as it always remains a possibility. I’m personally more inclined to try to do something and possibly fail than I am to never try so I never fail. If you are like me, let me pass on a few tidbits that might help you! 1)If there is a firm you are interested in acquiring, make an inquiry! You don’t have to know they want to sell. You can do it yourself, or if that feels too awkward or you are worried they won’t be honest with you, hire a consultant, investment banker, business broker, or attorney to do it for you. What do you have to lose? The worst that can happen is they say “no” and maybe you will make a new friend you can cooperate with or someone to compare notes on the business with. But maybe they will say “yes,” and you will suddenly have a new growth option to explore.
Mark Zweig
See MARK ZWEIG, page 10
THE ZWEIG LETTER MAY 10, 2021, ISSUE 1391
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