If you are looking to capitalize on the ever-evolving landscape of the digital marketing industry, mergers & acquisitions offer your business the opportunity to benefit from synergistic efforts and establish a greater competitive edge.
This means clients can be sold additional services and improve revenue potential significantly. How can you make this possible for your business?
✔️ Use a lot of creative financing structures when you look at buying a potential company.
When encountering a potential business where a single client provides 60% of your revenue, an inventive option is to create an arrangement where you earn in rather than earn out. This allows you to leverage your agency's strengths and sell to this client further. Doing so would enhance the value of the acquisition considerably.
✔️ Talent acquisitions in the marketing space
We are focusing our M&A efforts in the digital space by building and expanding teams and directly reaching out to agency owners. Our aim is not to have the owners completely leave the business but to provide them with a larger vision and help them to make more money in the future.
✔️ The true ability to say no to a deal is the greatest negotiating strength that you can ever have.
If you are confident in the value of your business to the extent of still wanting to keep a stake in it, many options are open. When negotiating, stand in your conviction and set your own terms further down the line.
✔️ Improve your profits & your bottom line.
When it comes to operating a business, there are two primary courses of action to consider, particularly working on the possibility of being acquired:
🔵 Growth mode
🔵 Acquisition mode
Which approach do you employ in running your company?
Learn more in this new episode of 𝙒𝙚𝙚𝙠𝙨 𝙒𝙚𝙚𝙠𝙡𝙮 — Media, Marketing, and M&As with Josh Hoffman.
Key moments:
[00:00:01] Introduction: Welcome to Weeks Weekly
[02:25] Our guest, M&A Pioneer Josh Hoffman, talks about how moving from the sales world into the M&A world gets easier and requires the same skill set
[11:59] Ed covers how to use a lot of creative financing structures when you look at buying a potential company
[19:31] Josh explains why we need brokers. Small and medium-sized businesses need more resources even to explore the idea of being acquired because it's a full-time job.
[23:31] Understand why the true ability to say no to a deal is the greatest negotiating strength that you can ever have
[00:26:51] Ed on his goal of helping businesses continue growing and becoming all exit ready.
[32:16] Josh reminds biz owners that if they're looking to sell in 1 to 3 years, it's just going to be more of a headache to fix your financials later than it would be now
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Josh Hoffman has a wealth of work experience in various roles: sales, business development, and M&A pioneer.
In 2015, Josh founded and became CEO of GamePlan. In 2020, he cofounded and became Head of Sales & BD at QueryStax, which was acquired by Moonshot Brands in 2021. In 2021, he became the Owner of Redner Consulting, and in 2022, he became a Business Development Executive at Moonshot Brands.
He currently hosts The Masters of Marketing Agency Podcast, featuring veteran marketing agency owners who share their experiences, mistakes, and successes along their journey.
If you want to acquire or sell your company or would love an introduction, reach out to Josh on LinkedIn. https://www.linkedin.com/in/jhoffman610/
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