The IT infrastructure of a business isn't usually what gets entrepreneurs jazzed up, however it can have an outsized impact on the risk of a company as well as a company's ability to scale. This episode is a crash course in how to manage, grow and update your IT infrastructure so it's a valuation enhancer, instead of a detractor. If you're not willing to invest in your IT infrastructure, you're asking your potential buyer to do so. How do you think that's going to affect your deal?
It is incredibly important to understand the role IT infrastructure plays in mergers and acquisitions — whether you're on the sell side or the buy side. Our guest today not only sold the IT company he started after 27 years, he also handled the six-company integration afterwards. Jake knows a thing or two about IT infrastructure and integration. Listen in as he takes us through the reasons why you should be doing technology-fueled mergers and acquisitions.
What You Will Learn In Today's Podcast Interview
The value of technology-fueled mergers and acquisitions
How IT is viewed by the buyer and seller during due diligence
Why cutting corners on your IT infrastructure could detract from the value of your business and increase risk
Ways to think about your IT if you're looking to sell in the near future
The impact acquiring a company has on your IT's infrastructure and how to plan for the extra capacity
How a company's IT fits into post-transaction integration
Why saying ‘no’ to upgrade requests from your IT person can hurt the value of your company
The value of technology-fueled mergers and acquisitions
What a security fortress is and why you need one
How to determine if your IT vendors are truly partners contributing to your long-term goals or simply selling you products and services to make bank
The benefit of having an infrastructure and application technology road map
How much IT integration costs, including the impact it has on your team
When to replace your IT person and how to evaluate their impact
Why your current IT infrastructure is holding you back and what you can do to fix that
How to avoid security threats in the modern technology market and mitigate IT costs
It’s not just data you’re protecting, it’s your entire livelihood
Are You Growing The Value of Your Business
Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board.
Are your company's current initiatives intentionally designed to increase the value of the business?
Do you know what you want from your business long term and why?
Do you know what your company is worth?
Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers?
Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?
About the Guest:
Jake Kent is a Navy veteran, entrepreneur, and founder and CEO of two fast-growing information technology companies, JCMR Technologies and Chief Acquisition Lifeguard. In 2000, he sold JCMR after 27 years and helped with the six-company integration that followed. Jake has also previously started a bank, which gave him more insight on the IT securities market. Jake made it his mission to help CEOs view technology as a core feature of successful acquisition strategies by teaching them how to build a technology-fueled M&A plan. He is also committed to the community and has participated in many charitable events. He is a founder of the Matthews-Mint Hill Optimist Club and a Board Membe