earnouts

The table on "Earnouts" will be moderated by Lise Lotte Hjerrild from Copenhagen, Denmark, Ariella Dreyfuss from Tel Aviv, Israel, and Richard Burrows, from London, U.K. With Ariella and Lise Lotte Martin Schirmbacher speaks on legal issues to have in mind when it comes to agreeing to earnouts in transactions in the technology sector. We especially touch upon the issues lawyers should have in mind when drafting earnout clauses from both the sellers’ as well as the buyers’ perspective. Further we discuss why earnout clauses are especially equipped to bridge the gap between seller's and buyer's ideas on evaluation especially in med tech companies and start-ups that have not yet proofed that the market is ready or their product.

@SaeedJoulaei talks about his experience #buyingabusiness and the big move from being an #employee to a #businessowner.

It's a very topical discussion. If you've ever thought about becoming a business owner you have two main alternatives. 

Start your own or buy an existing #smallbusiness.  Saeed has now done both and can talk about the pro's and con's of both.

He grew up in a little town in North of #Iran above his dad's little grocery shop and was a very young employee! After finishing an electrical engineering degree he co-founded his first business which for the first time brought the internet to his small hometown.  As a #startup he did a lot of all-nighters to get things moving. He still draws on those experiences today. An opportunity came up to move to Australia in 2008. He gave himself  time to get to know the culture and the environment. He worked as an employee before buying @CentrelineEngineering in 2019. 

In our discussion Saeed shares his personal experiences and tips on buying a business - we cover;

• the online search process he used to find businesses for sale
• the filters e.g. industry, geography he used to help sort through the thousands for sale
• how the maths he did on starting his own business (i.e. how long it would take to be viable, the risks etc) led him to buying an established business
• remembering the feeling the moment he came to realise "you don't have to build it from scratch" - and the relief that he felt with that
• the different risks you can or can't take at different ages
• dealing with #businessbrokers
• feeling unprepared for the buying process, stopping for a while to educate himself with any book or other material he could find to just filter through all the jargon, what the numbers mean,  and how they've come up with the number they've come up.
• how long the process took
• treating the search as a hobby while working as an employee
• the ideal time to get professionals involved
• the importance of understanding the reason why an owner is selling
• why it's not  always about the dollar - the business has often been someone's baby and you need to factor that in
• multiples and  well-understood approaches for valuing businesses
• #earnouts
• Centreline today - designing and #manufacturing the best #IndustrialAutomationMachinery for #Food and #Pharmaceutical Industries.
• #localmanufacturing
• the challenges in finding a #skilledworkforce
• the need to do a lot of work on yourself if you're moving from being an employee to owning a business
• the upside of tapping into your community
• having your stakeholders 'in the loop' - communicating with your partner, your family and making sure they understand the implications - that's very important to help get through the hard times later down the track

@kerrcapital

 

Thanks for listening.  Visit the Small Business Banter website to subscribe, listen back, or check out any resources or information mentioned on the show.

 

Search @SmallBusinessBanter on your favorite podcast player to subscribe and listen to the episodes.

 

Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.

 

michael.kerr@kerrcapital.com.au

 

www.smallbusinessbanter.com.au

 

@SaeedJoulaei talks about his experience #buyingabusiness and the big move from being an #employee to a #businessowner.

It's a very topical discussion. If you've ever thought about becoming a business owner you have two main alternatives. 

Start your own or buy an existing #smallbusiness.  Saeed has now done both and can talk about the pro's and con's of both.

He grew up in a little town in North of #Iran above his dad's little grocery shop and was a very young employee! After finishing an electrical engineering degree he co-founded his first business which for the first time brought the internet to his small hometown.  As a #startup he did a lot of all-nighters to get things moving. He still draws on those experiences today. An opportunity came up to move to Australia in 2008. He gave himself  time to get to know the culture and the environment. He worked as an employee before buying @CentrelineEngineering in 2019. 

In our discussion Saeed shares his personal experiences and tips on buying a business - we cover;

• the online search process he used to find businesses for sale
• the filters e.g. industry, geography he used to help sort through the thousands for sale
• how the maths he did on starting his own business (i.e. how long it would take to be viable, the risks etc) led him to buying an established business
• remembering the feeling the moment he came to realise "you don't have to build it from scratch" - and the relief that he felt with that
• the different risks you can or can't take at different ages
• dealing with #businessbrokers
• feeling unprepared for the buying process, stopping for a while to educate himself with any book or other material he could find to just filter through all the jargon, what the numbers mean,  and how they've come up with the number they've come up.
• how long the process took
• treating the search as a hobby while working as an employee
• the ideal time to get professionals involved
• the importance of understanding the reason why an owner is selling
• why it's not  always about the dollar - the business has often been someone's baby and you need to factor that in
• multiples and  well-understood approaches for valuing businesses
• #earnouts
• Centreline today - designing and #manufacturing the best #IndustrialAutomationMachinery for #Food and #Pharmaceutical Industries.
• #localmanufacturing
• the challenges in finding a #skilledworkforce
• the need to do a lot of work on yourself if you're moving from being an employee to owning a business
• the upside of tapping into your community
• having your stakeholders 'in the loop' - communicating with your partner, your family and making sure they understand the implications - that's very important to help get through the hard times later down the track

@kerrcapital

 

Thanks for listening.  Visit the Small Business Banter website to subscribe, listen back, or check out any resources or information mentioned on the show.

 

Search @SmallBusinessBanter on your favorite podcast player to subscribe and listen to the episodes.

 

Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.

 

michael.kerr@kerrcapital.com.au

 

www.smallbusinessbanter.com.au

 

On this episode of M&A Science, Kison interviews Christina Ungaro, Head of Corporate Development at JLL, about how to structure a talent focused acquisition. Christina breaks down what a talent focused acquisition truly is, how to make that kind of acquisition successful, and all the necessary components your team needs to consider when executing this specific transaction.

This podcast is brought to you by DealRoom, an M&A lifecycle management software. Learn more about M&A Science and join a network of leading practitioners sharing lessons learned over the years at mascience.com.