In the latest episode of the Fueling Deals podcast, I interviewed David DeVoe about the ins and outs of different types of deals and how each one has its advantages and disadvantages.
David’s work with DeVoe & Company makes him a true expert on the pros and cons of deals. Through the extraordinary depth and breadth of experience his team brings to their clients, they work to smooth the process and transition of deals and to maximize the benefits their clients reap.
On this episode of Fueling Deals, David and I discuss services his company provides; everything from succession planning to governance, investment banking, and valuation services. One particular and interesting area of David’s work is in serving as an objective third party to help companies facilitate their deals in a way that benefits everyone involved – the buyer, seller, clients and employees. Listen to our conversation and learn from David’s impressive insights.
Telling the Right Story
As David explains, it is critical to have all of your ducks in a row when courting buyers. This means identifying areas where you are weak, cleaning up your records, making sure contracts are signed with all your clients, and doing the necessary background work to tell the right story.
If you are a seller, look at things from the buyer’s perspective. And tell the right story. Be clear and communicative, respond to requests for information, and be honest. Trust is a big component in any deal, and so it is important to take steps to foster trust with your prospective buyers.
Buy, Sell or Merge?
As a buyer, it is vitally important to understand the needs and capabilities of your organization. One of the functions DeVoe & Company serves for their clients is to help identify if an organization is even in a strong enough position to consider buying another firm. You need to make sure you have enough capital to complete the deal you’re looking for, and you need to be certain the seller will be a good fit for your organization.
Additionally, it’s important to be sure you’re buying another firm for the right reasons. Does the acquisition address a specific need or problem, or would you be better served by merging with another firm? Or would you possibly even be better off selling? Maybe the problems you’re trying to address can be taken care of through other strategies rather than a merger or acquisition? These questions are important, and David and his team at DeVoe & Company help their clients find the answers they need.
Listen to the full interview in David’s episode on the podcast, Greasing the Wheels of Deals.