M&A Masters

Samir Shah has a unique pedigree in the M&A world. He was previously an owner whose company was successfully sold. And these days he’s with Silicon Valley-based pre-series A venture capital firm Cervin Ventures, specializing in helping founders in the enterprise technology space.

Based on his experience Samir has come up with eight “one-liners” (i.e. rules or words to live by) that should guide every startup.

The first one is a question every entrepreneur should ask before even thinking about starting a business.

You get all the details, and, along the way, find out…

• How the best product could be ignored without this one element
• Where to find your best customers (you already know, even if you don’t realize it)
• Why you shouldn’t try to “sell” - do this instead
• The mindset shift you need to go from “startup” to “business”
• And much more

Many technology companies are sitting on an untapped resource that could add 5%, 10%, 20%, or more to their company’s value, says Dr. Elvir Causevic, managing director of Houlihan Lokey’s Tech and IP advisory department.

Problem is that if you wait until you have an M&A deal… all that value is lost to you – it automatically goes to the buyer.

Elvir and his colleagues have been innovating a new way to make sure companies, especially those in Silicon Valley, avoid that fate. And we go through that process, step-by-step. It’s actually pretty straightforward once you know the trick.

Check our discussion to find out…

• Why even “unsuccessful” R&D can be valuable
• What your IP department has been missing
• How to avoid the Lucky Buyers Club
• Ways to cash in on patents… without being a “troll”

Hackers, corporate espionage, identity theft, ransomware…

Any company connected to the Internet (and that’s all of them) is vulnerable to these attacks, says Jim Reilly, founder of Stonepine Advisors.

These days, without a cybersecurity strategy, your business’s vital financial data, corporate secrets, and customer information is there for the taking.

Not only can a breach impact profitability… but it can also put a serious damper on any upcoming or ongoing M&A deal.

But we’re not talking simple anti-virus software for your PCs and putting a password on your WiFi.

You have to get hackers working for you, says Jim. And that’s just the first step.

We cover all the ins-and-outs of cybersecurity in 2018, with a focus on how it intersects with M&A, including…

• What cyber due diligence looks like
• Using “pen-tests” to find soft spots in your networks
• What industries need cybersecurity the most
• A specialized insurance covering cyber issues – and who qualifies
• And more

In an era when few companies go IPO and there are even fewer unicorns, M&A is more popular than ever, says Mihir Jobalia, a veteran of KPMG’s Silicon Valley operation.

In fact, among VC-backed companies in the last 10 to 15 years, he estimates that more than 90% exit through M&A. And business in the last few years has been especially good.

We dive deep into what makes the current environment so appealing to M&A, who the big players are, and best practices for companies hoping to exit with this strategy.

Check out the interview to find out…

• The top 3 factors for the current strong M&A market
• Two things founders can do now to attract potential buyers
• Why the Rule of 40 is so important to PE firms – and how to achieve it
• The financial investors want to see before they commit to a deal
• And more

The practice of revesting has radically changed the M&A landscape in recent years, says Michael Frank, partner at Hogan Lovells. It provides advantages to both buyers and owners and founders.

Michael explains why revesting has become so widespread – especially in Silicon Valley – and the best way to approach these types of deals. It’s something you have to keep in mind from the earliest discussions between buyer and seller. He also discusses the tax implications that are important to keep in mind that can guide how such deals are structured.

Listen in to discover…

• The types of companies where revesting is a no-brainer
• Key differences between earn outs and revesting
• How to avoid costly tax issues
• Why revesting makes sense for buyers and sellers
• And more

Where does our food come from? Who makes it… and how? It’s those sorts of questions that guide Stephen Hohenrieder as he invests private equity in all levels of the value chain in the food industry.

There is a sea change in going on in how consumers relate to food, and Stephen, the chief executive and chief investment officer for a single family office, says it’s prime time invest in this trend.

Tune in to find out…

• The differences between strategic investing versus venture capital in this industry
• Why “pre-industrial” food is sweeping the nation
• The role of Big Ag, food companies, small farmers, public policymakers, investors, and more
• How owners and founders can grow while maintaining integrity
• The only way food companies can stay relevant with customers
• And more

One of the biggest sticking points during the negotiations for any M&A deal is indemnification. It’s a problem Nate McKitterick has dealt with for many years as a partner specializing in transactional insurance and indemnification matters at law firm DLA Piper.

Basically, buyers insist that sellers be “on the hook” for any issues that come up post-sale. And sellers are nervous about making the representations required for a deal to go through… when something out of their control could cost them their personal assets.

Nate highlights a specialized type of insurance that transfers all the indemnification risk to a third-party. We get into the nitty-gritty on how these policies work and how to set them up, as well as…

• The level of due diligence insurance underwriters are looking for
• #1 thing owners and founders/sellers must know when negotiating indemnification
• The role of the broker in securing the right transactional insurance
• 6 types of transactional insurance that could be vital to your next deal
• And more

With the oil and gas sector seemingly on the road to recovery, there’s been an uptick in M&A activity, says Jimmy Vallee. As a native Texan and partner in the Houston office of law firm Paul Hastings, Jimmy should know.

He’s got some strategies for taking advantage of this market rise. He also examines the role of private equity in this industry and best practices for mergers and acquisitions in this space – it’s unlike other industries and one “little” mistake could cost you millions.

No matter what industry you’re in, you can learn a lot from Jimmy, including…

• Who to avoid to ensure your M&A deal doesn’t go south
• How to understand the “language” of the energy sector
• The role of private equity in this industry
• Why you need Rep and Warranty insurance to cover your next M&A deal – in any industry
• And more

The decision to buy or sell a business is an important one… and it’s often not a straightforward process, says M&A advisor Arthur Cirulnick of Venable LLP.

You want somebody in your corner who knows what they’re doing. That’s especially true when, as is the case with many companies, this is your first time doing it.

Arthur shares details on the deals he’s seen go very wrong… and how things were patched up. He also highlights the best practices behind what should be in every M&A deal: the due diligence memo.

Listen now to find out…

• Why in-house counsel isn’t the best choice to shepherd your next merger or acquisition
• The 6+ issues a due diligence memo can reveal
• The Green, Yellow, Red System for gauging risk
• How to save money on your R&W insurance premiums
• And more

Healthcare companies are a different animal than businesses in other industries in a lot of ways. And that means you need a different approach when it comes to mergers and acquisitions.

Patrick Krause, a director at investment bank MHT Partners focused on healthcare, has shepherded a lot of deals in this sector. He shares how he helps turn M&A transactions into win-win-win deals, where both buyers and sellers are happy – and patients benefit, too.

Tune in to find out…

• How to bridge the gap between medicine and business
• The extra steps you must take to invest in certain healthcare-related businesses
• The four “sectors” in the healthcare industry – and how to handle each
• Ways to increase profits but also quality of care to patients
• And much more