Last week Darden, the owner of The Olive Garden restaurant chain, announced it was acquiring Ruth’s Chris, the legendary steak house, for $715 million, implying a valuation of around one times last year’s annual revenue or about ten times their adjusted EBITDA for 2022.
Last week Tesla announced they were cutting prices on their vehicles and the stock tanked by 10%. LVMH, the owners of premium brands like TAG Heuer and Fendi, saw their market capitalization go the other way. The maker of fancy watches and handbags saw their market capitalization eclipse $500 billion for the first time, while France reported that 3 of 4 of their most valuable companies are luxury brands.
If you don’t have to sell your business, you are in a better negotiating position. However, have you ever considered that an acquirer may also have a BATNA?
A BATNA, or Best Alternative To a Negotiated Agreement, is a plan B if a negotiation to sell your business falls through. While it’s essential for you to have a BATNA when putting your company up for sale, it’s equally important to understand your potential acquirer’s BATNA.
Last week, Ernst & Young cancelled plans to break the firm into two businesses. While the deal is dead, the sordid details of the proposed split provide insight into the inner workings of the usually secretive partnership and provide entrepreneurs with a rare glimpse into the relative value of cash and shares in an M&A transaction.
Last week, Forbes published its list of the world’s richest people and Elon Musk was replaced by LVMH’s Bernard Arnault, the purveyor of $2,000 handbags.
In the same week, The Wall Street Journal published a report showing “patriotism”, “religious faith” and “having children” have all dropped in importance for the average American.
In the world of acquisitions, first impressions can seal your fate.
When Jeremy Parker was raising money for swag.com, he ran into investors who were left with the impression that swag.com was a simple distributor of promotional products. Parker tried to make the case that Swag.com was more than a middleman, but investors weren’t buying it.
If your objective is to use a recurring revenue model to jack up the value of your business, last week’s news about Disney+ is significant.
On March 17th, subscription analytics firm Antenna published a report detailing the effects of Disney’s price increase on its subscriber base since its announcement in December.
If you want to sell your company for a premium price, last week’s Microsoft announcement about incorporating Open AI’s features into Microsoft 365 highlights the benefits of finding a strategic acquirer for your business.
Last week’s collapse of Silicon Valley Bank has led to Jason Calacanis, a start-up investor and author of Angel, recommending that small businesses spread their cash across multiple banks to guard against future bank runs. This extreme example highlights the extent to which some founders will go to reduce their reliance on a single supplier.
As an entrepreneur, you’re optimistic. I know this because if you weren’t optimistic, you would have let doubt and uncertainty creep into your decision to start your business. You’d still be sitting on the sidelines, thinking of everything that could go wrong.
You may have dismissed social media as a marketing channel, but the latest data from The Value Builder System™ shows a clear correlation between the number of followers a business has across all social media channels and the acquisition offers they receive for their company.
On April 18, 1999, Wayne Gretzky, who is widely considered the greatest hockey player of all time, played his last NHL game. The atmosphere at Madison Square Garden was emotionally charged as everyone in the stadium knew they were seeing Gretzky play for the final time.
Last week Darden, the owner of The Olive Garden restaurant chain, announced it was acquiring Ruth’s Chris, the legendary steak house, for $715 million, implying a valuation of around one times last year’s annual revenue or about ten times their adjusted EBITDA for 2022.
Last week Tesla announced they were cutting prices on their vehicles and the stock tanked by 10%. LVMH, the owners of premium brands like TAG Heuer and Fendi, saw their market capitalization go the other way. The maker of fancy watches and handbags saw their market capitalization eclipse $500 billion for the first time, while France reported that 3 of 4 of their most valuable companies are luxury brands.
If you don’t have to sell your business, you are in a better negotiating position. However, have you ever considered that an acquirer may also have a BATNA?
A BATNA, or Best Alternative To a Negotiated Agreement, is a plan B if a negotiation to sell your business falls through. While it’s essential for you to have a BATNA when putting your company up for sale, it’s equally important to understand your potential acquirer’s BATNA.
Last week, Ernst & Young cancelled plans to break the firm into two businesses. While the deal is dead, the sordid details of the proposed split provide insight into the inner workings of the usually secretive partnership and provide entrepreneurs with a rare glimpse into the relative value of cash and shares in an M&A transaction.
Last week, Forbes published its list of the world’s richest people and Elon Musk was replaced by LVMH’s Bernard Arnault, the purveyor of $2,000 handbags.
In the same week, The Wall Street Journal published a report showing “patriotism”, “religious faith” and “having children” have all dropped in importance for the average American.
In the world of acquisitions, first impressions can seal your fate.
When Jeremy Parker was raising money for swag.com, he ran into investors who were left with the impression that swag.com was a simple distributor of promotional products. Parker tried to make the case that Swag.com was more than a middleman, but investors weren’t buying it.
If your objective is to use a recurring revenue model to jack up the value of your business, last week’s news about Disney+ is significant.
On March 17th, subscription analytics firm Antenna published a report detailing the effects of Disney’s price increase on its subscriber base since its announcement in December.
If you want to sell your company for a premium price, last week’s Microsoft announcement about incorporating Open AI’s features into Microsoft 365 highlights the benefits of finding a strategic acquirer for your business.
Last week’s collapse of Silicon Valley Bank has led to Jason Calacanis, a start-up investor and author of Angel, recommending that small businesses spread their cash across multiple banks to guard against future bank runs. This extreme example highlights the extent to which some founders will go to reduce their reliance on a single supplier.
As an entrepreneur, you’re optimistic. I know this because if you weren’t optimistic, you would have let doubt and uncertainty creep into your decision to start your business. You’d still be sitting on the sidelines, thinking of everything that could go wrong.
You may have dismissed social media as a marketing channel, but the latest data from The Value Builder System™ shows a clear correlation between the number of followers a business has across all social media channels and the acquisition offers they receive for their company.
On April 18, 1999, Wayne Gretzky, who is widely considered the greatest hockey player of all time, played his last NHL game. The atmosphere at Madison Square Garden was emotionally charged as everyone in the stadium knew they were seeing Gretzky play for the final time.
