#PoisedforExit had the privilege of speaking today with an M&A leader and adviser with True North M & A who specializes in transactions for the Technology and IT Services industries. Ed Gehres, a senior adviser, joined us from his office in Las Vegas, NV today to talk about the nuances relating to these industries in merger and acquisition situations. Whether the company plans to grow organically, by acquisition or with outside capital, there are things taken into account that may not apply to other industries. For example, if a firm is growing organically, it can get bogged down with developing stuff that supports their core competencies, which can end up sucking up resources that they can’t afford to give up. Growth via outside Capital can go awry as well, if the owners don’t share their growth strategies up front. What if the Venture Capital firm has different ideas about how to grow the company? If those ideas are laid out ahead of time, the founders will have better success in finding right-fit investors who align with their strategies. The same can be held for acquisitions of other firms when strategies are misaligned between the companies; integrations tend to fail or take far too long to complete.
Having an M&A strategy that is specific to the Tech and IT industry is essential for short and long term success. Ed said that strategy can’t be determined and planned out once, but should be constantly updated. Like any strategic plan, if it’s not changing, you’re not working it. If you’re not working it, then why have one?
Now is the time to prepare and be strategic about your growth plans. Ed said that 2023 will be somewhat challenging for companies in these industries, but as with every recession, the birth of new technology companies will emerge from corporate downsizing. For more of Ed’s wisdom, listen to the episode here
It’s never too early to start planning.
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Sunbelt Business Advisors is a proud sponsor of the Poised for Exit Podcast. The Poised for Exit podcast seeks to help entrepreneurs improve, grow – and successfully exit – their businesses.
Julie Keyes, a life-time entrepreneur and founder of KeyeStrategies, understands what keeps an owner up at night and the balancing act required to work both ‘in’ and ‘on’ the business. The firm’s mission is to help business owners increase enterprise value and prepare for a future exit.
Julie believes in providing outside perspective and mentoring, which made all the difference for her while spending years growing and improving her companies before selling and becoming a business adviser in 2011.