Episode 55 - Navigating Mergers and Acquisitions: Insights from an Experienced Attorney - Garth Stevens

The Andrew Holland Podcast

Garth Stevens, an M&A attorney, shares his background and journey to becoming an attorney specializing in mergers and acquisitions. He discusses the characteristics of successful entrepreneurs and the emotional aspect of selling a company. In this conversation with Andrew, Garth shares insights and advice on the due diligence process, reasons for walking away from a deal, dealing with difficult lawyers, the importance of having a good lawyer, and the impact of a successful deal. He emphasizes the importance of commitment and consistency in entrepreneurship and shares success stories and lessons learned. Andrew and Garth's conversation also explores various aspects of M&A deals, including the mix of buy side and sell side transactions, the decision to start from scratch or buy an existing company, the role of private equity in the market, and the challenges and frustrations of selling to private equity firms. The conversation also touches on the importance of due diligence, the value of patents in M&A deals, and the considerations for equity distribution. Lastly, the conversation highlights the post-sale experiences of sellers and the importance of information flow and trust in M&A deals.
Chapter Marker:
00:00 Introduction and Background
04:09 Becoming an Attorney and Choosing M&A
27:37 Characteristics of Successful Entrepreneurs
31:26 Emotional Aspect of Selling a Company
52:46 Dealing with Difficult Lawyers
50:47 Importance of Having a Good Lawyer
56:03 The Impact of a Successful Deal
00:58:26 Advice for Business Owners
01:00:34 Raising Capital and Securities Laws
01:06:13 Business Partnerships and Family Businesses
01:10:13 Starting a Business and Taking Time to Think
01:13:51 Commitment and Consistency in Entrepreneurship
01:17:24 Success Stories and Lessons Learned
01:26:33 Serial Acquirers and Industries
01:28:24 Private Equity vs. Strategic Buyers
01:32:06 Methods Used by Private Equity to Triple Company Value
01:37:46 Challenges and Frustrations of Selling to Private Equity
01:42:12 Impact of Private Equity on Business Operations
01:51:22 The Value of Patents in M&A Deals
01:55:11 Unique Business Models and Operational Strategies
02:04:17 Considerations for Equity Distribution
02:06:07 Factors Affecting Legal Fees in M&A Deals
02:09:12 Importance of Information Flow and Trust in M&A Deals
Takeaways:

• Due diligence is crucial in discovering the true health of a business before making a deal.
• Having a good lawyer who is experienced in deal-making is essential for a successful transaction.
• Entrepreneurs should take the time to think and plan before starting a business, and consider scalability and industry opportunities.
• Commitment and consistency are key traits for success in entrepreneurship. Consider the mix of buy side and sell side transactions in M&A deals.
• Evaluate the advantages and disadvantages of starting from scratch or buying an existing company.
• Understand the role of private equity firms in the market and their impact on business operations.
• Conduct thorough due diligence and maintain accurate financial records.
• Recognize the value of patents in M&A deals and the importance of equity distribution.
• Be prepared for the challenges and frustrations of selling to private equity firms.
• Consider the post-sale experiences of sellers and the importance of information flow and trust in M&A deals.

@AHollandPodcast
Article Link: Preparing A Private Company For Sale by Garth Stevens https://drive.google.com/file/d/1jorouRiuTZjI1FlPfslXbxLcaQHz5UFi/view?usp=sharing

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