Roger Aguinaldo, CEO of M&A Advisor and a nationally renowned expert and consultant in Mergers & Acquisitions, brought an audience of entrepreneurs up to speed on the reality of M&A. lt is not what you expect.
The news media may be filled with multi-billion dollar glitzy payouts, but the vast majority of deals are much more modest. While tech still carries upwards of three times the multiples of non-tech, especially in the $500 million plus space, the fact is, most of the newsmaking deals are special cases with valuations based on projections and earnouts.
For the entrepreneur, revenue or in the case of digital media companies, valued eyeballs, matter.
The real news is the M&A starts almost form the beginning when companies structure themselves for measurable revenue and raise money, not from VCs or family, but from their customers, suppliers and even their competitors – each of whom in many cases may also become their acquirer.
It certainly is a different approach from the VC money trail, but fortunately, we will still be offering that on April 26 at our Start-Up event. (Roger’s presentation will soon be available on the iBreakfast website www.ibreakfast.com)