Jeff Hawkes is the manager of corporate development at Ecolab. He and his team evaluate, analyze, and perform due-diligence as well as offer post-merger integration planning for global M&A transactions. Jeff discusses in this episode his investment methodology, due-diligence procedures, and other key factors towards purchasing a business. Get a behind-the-scenes look on what an M&A manager looks for in a business and how you can set your business up for success.
Key Takeaways:
[1:35] What's the difference between a strategic buyers and a financial buyer?
[6:50] What is EBITDA?
[7:40] How much of an impact does the economy have on the decision-making process?
[9:45] The market is quite hot right now. Jeff believes one of the factors to this are the private equity firms raising capital.
[10:25] What's Jeff's investment/buying methodology?
[15:35] How does Jeff and his team perform proper due diligence on a company?
[16:50] How do you go about measuring company culture?
[19:20] So what drives a purchase price? Jeff lists 3 factors you have to consider.
[22:00] What are some of the things Jeff looks for?
[25:20] How does Jeff react when business owners begin to hold off on key purchases for their company when they're getting ready to sell?
[30:20] Jeff does about 6 weeks' worth of due diligence on a company.
[35:30] What kind of things should a business owner be doing to increase the value of the sale?
[40:10] Don't try to hide or shave the numbers down. Be upfront about it.
[43:55] Why do acquisitions fail?
Mentioned in This Episode: