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Economic Downturn Fueling M&A Opportunities
Positive Outlook for 2nd
Half of ‘08
Bay Capital at Moscone all Month
Venture-backed M&A Deals Down Sharply in First
Quarter Venture-backed
IPOs Slow to Halt in Q1 ‘08 Bay Capital at 3GSM Mobile World Congress,
Barcelona Negotiation Style Middle Market Health
Communicating with Advisors Lakshmi Mittal and David Manning Why Risk It? April 2007, M&A ++ The Internet has impacted many of our daily lives and I believe it’s also changing the nature of mentorship. Wikipedia describes the modern use of the word mentor as, “a trusted friend, counselor or teacher, usually a more experienced person.” The traditional mentor/mentee relationship has revolved around an older friend or family member, a boss, or a teacher. This person, through both goodwill and a desire to see you succeed instilled their wisdom and gave you access to their network of relationships. While this is still very much a common practice today, the proliferation of social networks, blogs, and online communities is adding another layer of seen and unseen mentors to the picture. The American Dream April 2007, M&A ++ “The American Dream is that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement…It is not a dream of motor cars and high wages merely, but a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position.” - James Adams Home Runs and Singles March 2007, M&A ++ "Home runs buy Cadillacs, but singles put gas in it." - Roy Campanella. While this might not be part of your typical VC’s business plan, it might be relevant for many entrepreneurs. Even if your business plan calls for a highly leveraged sales channel with a blowout distributor that is guaranteed to hockey stick you to entrepreneurial heaven, don’t forget to win whatever business you can muster. Even if you ascribe to the 80/20 rule and believe that 80% of your revenue will come from 20% of customers, the remaining 80% of customers out there provide valuable market feedback, guerrilla marketing opportunities, and help to keep the gas in the tank. Corporate Culture March 2007, M&A ++ Corporate culture is discussed a lot in the startup sphere where entrepreneurs embark on the journey to create a better place to work, free from legacy corporate bureaucracy and inefficiencies. In 1999 this discussion often included beanbags, ping pong tables, and catering. Today it is work life balance, flat corporate structures, and remote working environments. The Disclosure Dilemma March 2007, M&A ++ One topic that comes up frequently with entrepreneurs is when and to what extent a company should disclose intellectual property (IP). IP comes in many forms: technology, marketing plans, partnership and alliance strategy, even HR strategies. Often this core information collectively drives a significant portion of the strategic advantage of the business. So what happens when that large, cash rich, market leading competitor decides they are interested in discussing a buyout? Angel Investing Up 10.8% in 2006 March 2007, M&A ++ Alarm:clock is reporting that angel investment dollars were up almost 11% last year. Total startups invested in only rose 3%, which equates to a 7.5% growth in average investment. Healthcare and software were the top two categories invested in. Best Available Athlete March 2007, M&A ++ A discussion of the merits of hiring talent vs. experience in today's fast paced business environment. Negotiation and Creativity March 2007, M&A ++ Another key negotiation fundamental is creativity. Thinking broadly, outside the normal construct of price and predefined terms to expand the number of potential synergies allows for a larger set of positive outcomes. An example of this came out in a recent negotiation on behalf of one of our clients. Without getting into the details, there were significant value drivers for the client that didn’t require a bump in cash compensation to obtain. In fact, they are much more valuable than even the equivalent cash! In Game Advertising - Why So Long? March 2007, M&A ++ It has taken a long time for in game advertising to really take off. It seems like such a clean fit. Advertisers love tracking and in game dynamics should allow reporting that indicates how many hours players were looking directly at your ad, had your ad on their screen, shot your ad, etc. Are advertisers fixated on CPC marketing at the expense of more elegant in game billboard marketing concepts? When to Sell? March 2007, M&A ++ I’m asked at least once a week what the right criteria are for choosing to sell a business. Even within our current client base, which has companies valued all over the map, from $1m to $50m+ there are similar questions and concerns around liquidity and timing. |
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