Long hours and a heavy workload seem to be the norm in professional service firms, that may not change anytime soon, but what does appear to be changing is that increased flexibility toward staff is now becoming the norm.
The global M&A Market in the first half of 2023 saw deal values drift lower especially in Q2, while the number of announced completed deals saw near record highs. So, deal volume was up whilst overall transaction values are down.
With all the talk of interest rates and a possible slow-down, we thought it was about time we looked at where the potential for exciting growth is happening. If you regularly read our content, you will know how we love research and the insights it can unlock. We also think it’s the basis for sound decision-making and frequently utilise it in our strategy work with clients.
In just a couple of years, Generation Z will make up around a quarter of the workforce. This will have a significant impact on our working lives, and business owners will need to enter their world to understand what they want and how they communicate.
New AI phenomenon ChatGPT has the potential to be a big disruptor. For business owners, it highlights just how the best laid plans can come undone, and there is no perfect time to sell.
Following on from “How to go about Finding the Right Buyer for my Business” we turn to the subject of size! Does it matter?
Size is one part of a buyer’s criteria; the short answer is that it depends on what they are looking for.
Having established that the odds are not great; that the potential buyer that knocks on a seller’s door is the most strategic acquirer for the business (Lesson #1). And that in any event, getting in the ring with a large corporate, without a clear strategy and some input is not optimal (Lesson #2). The question then becomes, if there are many more sellers than buyers in the Australian market in the next decade (Lesson #3), how do you find genuine strategic interest?
The market is fluid and is moving constantly, never more so than now. The big end of town appears busy with deals galore, to quote James Thomson in the AFR on August 26th “M&A is back in a big way.”
We established in lesson #2 that if a business is approached by a potential buyer (Gorilla) that the interest must be qualified and handled efficiently leading to an early indicative offer in writing, based upon the provision of adequate but limited information. We also determined that such a buyer, having knocked on your door is likely to have knocked on quite a few other doors, and is probably running a broader process.
We established in my last blog that selling your business is likely to involve a major mismatch in terms of the scale and size of the likely buyer and that getting in the ring with them by yourself and without a clear strategy might not work out so well.
The shareholders of established private companies in Australia, many of whom will be seeking an exit in the next ten years, ought to be aware of certain realities around deal doing and the market, I am going to unpack some of these over the next series of posts, which I hope people might find helpful.
According to the recent Dealmakers report the global trend in M&A is down, by number of deals -15% and by value -18%. This is driven by the “fears of recession, rising interest rates and geopolitical uncertainties.”
There’s always something!
I’m sure everyone has felt it – that gentle squeeze on our purses and wallets. Whether it is at the supermarket or the petrol pump, the café or the corner store, inflation seems to be hitting our hip-pocket nerve once more.
Valuations for tech start-ups have fallen. Why? What does it mean?
Five months ago, the market sell-off smashed valuations in the tech. sector. Angel funds felt the brunt of the lower valuations and lower multiples. Many start-ups have lost out.
There's a “burgeoning body of evidence” that social media harms young people’s mental health and continuing to use it unjustifiable.
This issue affects us all – what is reasonable usage and how much is too much?
Following the gradual recovery in global M&A markets through 2024, the outlook for 2025 suggests solid grounds for optimism. According to Goldman Sachs' Investment Banking Outlook, the recent reductions of interest rates and improved market conditions as well as the greater certainty resulting from the determination of the US election is expected to support increased deal activity, particularly in the middle market segment.
When you think of entrepreneurial success, you might picture a lone wolf conquering the corporate world. But what if the secret to success is collaboration? Kelly Jamieson, co-founder of Edible Blooms, sat down with Mike for the Troubleshooters Podcast over a year ago to share her inspiring journey of building a thriving business with her sister. A year on, I have been reflecting on the invaluable insights she shared.