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This week on How2Exit:

E169: Bakari Akil: Mastering the Art of Deal Sourcing and Structuring in Mergers and Acquisitions - Watch Here

About The Guest(s):
Bakari Akil is the founder of Graves Hall Capital and an expert in mergers and acquisitions. He has bought several companies, including a burlap bag manufacturing company and an educational technology company. Bakari speaks at the entrepreneurship through acquisition program at Cornell's business school and has a unique background in the field, having dropped out of college and learned about M&A through self-study and attending classes at top business schools.

Summary:
Bakari Akil shares his journey into the world of mergers and acquisitions (M&A) and entrepreneurship through acquisition (ETA). Despite not having a formal business education, Bakari was determined to find a path to success. He discovered the concept of leveraged buyouts and realized that he could buy an existing business and use bank financing to fund the acquisition. Bakari did classes at top business schools and built a network of business brokers and investment bankers to source deals. Bakari's approach to deal structuring and capital sourcing has allowed him to complete transactions without using his own capital.

Key Takeaways:

• Bakari Akil's unconventional path to success in the world of mergers and acquisitions.

• The concept of entrepreneurship through acquisition and the advantages of buying an existing business.

• The importance of deal sourcing and building a network of business brokers and investment bankers.

• The role of independent sponsors in structuring deals and attracting capital.

• The challenges and rewards of completing M&A transactions without using personal capital.

Quotes:

• "I can go and borrow money from the bank for an existing business that's already up and running."

• "I actually don't put up a lot of money. I actually get paid when I buy a company."

• "There's no free lunch. There's no, 'I'm getting it for free.' It's going to cost something."

• "Be willing to go through that toughness and that grind and not expect to be able to get some great business for no money."

• "There's a ton of time and grind and waiting and patience that goes into doing this."

(Note: The quotes provided are direct quotes from the transcript and may not be suitable for social media sharing. Please select appropriate quotes for social media use.)

Article:

Bakari Akil: A Trailblazer in Mergers and Acquisitions

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Growth & Acquisition - News Newsletter

Attention Business Brokers, Advisors, Acquisition Entrepreneurs, and SMB Owners!

Do you want to stay ahead of the game in the SMB M&A market? The Hub is the solution you need! This curated newsletter brings you the best highlights from blogs, podcasts, YouTube, and news sources, all in one place. Growth & Acquisitions

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Thanks to Sweetview Partners, an Acquisitions company looking to buy Texas-based B2B companies in the $1MM - $30MM revenue range. Click on the logo to check them out.

E168: PE Firm Blackbook Investments: Acquiring and Growing Profitable Websites with Mohit Tater - Watch Here

About The Guest(s): Mohit Tater is the founder of Blackbook Investments, a micro-investment fund that specializes in acquiring and managing content websites. He has a background in engineering and has been involved in the online business space for several years.

Summary: Mohit Tater shares his journey from starting out in the online business world to founding Blackbook Investments, a micro-investment fund that focuses on acquiring and managing content websites. He discusses his experience buying and selling websites, the growth of Blackbook Investments, and their current investment criteria. Mohit also emphasizes the importance of human-created content and expertise in certain niches that cannot be replaced by AI.

Key Takeaways:

• Mohit Tater started his journey in the online business world by buying and selling websites.

• Blackbook Investments focuses on acquiring and managing content websites that are monetized through display ads or affiliate income.

• They prefer evergreen niches and look for websites that have a stable history of earnings and traffic.

• Mohit Tater believes that AI will not replace human-created content, especially in areas that require personal experience and expertise.

• Blackbook Investments is also looking to acquire service-based businesses like marketing agencies and SEO agencies.

Quotes:

• "AI is only beating out low-quality content sites. It is not going to replace a human who has actually tested a product and has their own views and opinions." - Mohit Tater

• "We don't sell that often, but for this fund, we had a timeline, so we are going to respect that and sell some of the sites." - Mohit Tater

Artcile:

How AI is Impacting the Content Website Industry: Insights from Mohit Tater

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FROM THE Editor:

Disclaimer: This newsletter is provided for informational & educational purposes only, and should not be relied upon as legal, business, investment, or tax advice. We are not attorneys, tax, or financial advisors and not qualified to give any such advice.  

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From Now Until Jan 1 2024 - Everyone gets the Deep Dive articles.

DEEPER: Year-End Considerations for Business Acquisitions: A Basic Project Plan

As the year draws to a close, many entrepreneurs and investors are eyeing the opportunity to buy a business. While the process might seem daunting, having a basic project plan can streamline your approach and help ensure a successful acquisition. Here’s a guide to the key considerations and steps in acquiring a business as we approach the year’s end.

1. Reassess Your Goals and Resources

With the year ending, it’s the perfect time to reflect on your goals. Why do you want to acquire a business? Are you looking to expand into new markets, acquire new technologies, or gain a competitive edge? Equally important is assessing your financial resources. Ensure you have the necessary funds or access to financing to make a successful purchase.

2. Market Research and Target Identification

Analyze the current market trends as they can significantly impact your acquisition. Look for industries that are thriving or have the potential to grow in the coming year. Create a list of potential targets that align with your strategic goals and begin a preliminary assessment.

3. Initial Contact and Non-Disclosure Agreements

Once you have identified potential targets, make initial contact to express your interest. This stage often involves signing Non-Disclosure Agreements (NDAs) to protect both parties' confidential information.

4. Conduct Due Diligence

This is perhaps the most critical step. Due diligence involves a thorough investigation of the target company. Examine financial records, legal issues, operational processes, and market position. The end of the year can be an ideal time for this, as companies will have recent annual data available.

5. Valuation and Negotiation

Based on your due diligence findings, determine the value of the business. Use this valuation as a basis for negotiation. Remember, the end of the year can sometimes pressure sellers to close deals, which might work in your favor.

6. Closing the Deal

Prepare and finalize the purchase agreements. This stage will also involve securing financing if necessary. It’s essential to have legal and financial advisors to navigate this process smoothly.

7. Plan for Integration

After closing the deal, focus on the integration of the acquired business into your existing operations. Consider aspects like company culture, employee integration, and aligning business processes.

8. Post-Acquisition Review

Finally, conduct a review of the acquisition process and the early stages of integration. Identify what went well and areas for improvement. This step is crucial for learning and preparing for future acquisitions.

Conclusion

Buying a business is a significant venture, especially towards the year's end. However, with a solid plan in place, you can navigate this process with confidence. Remember, thorough preparation, due diligence, and strategic planning are key to a successful acquisition. As you step into this venture, consider these steps as your roadmap to acquiring a business that aligns with your goals and promises a prosperous new year.

Want a more detailed plan, I asked our custom-trained AI for ideas to include in a project plan for business acquisitions - here is the response.

Ideas to add to your Project Plan for Acquiring Businesses

Phase 1: Preparation and Strategy Development

1. Define Objectives and Criteria:

   • Clarify acquisition goals (e.g., growth, diversification, market entry).

   • Establish key criteria for target businesses (e.g., size, industry, location).

2. Assemble Acquisition Team:

   • Form a team with expertise in finance, law, due diligence, and industry knowledge.

   • Consider external advisors or consultants as needed.

3. Market Research and Target Identification:

   • Conduct industry analysis to identify potential acquisition targets.

   • Develop a long-list of potential targets based on defined criteria.

Phase 2: Initial Evaluation and Contact

4. Preliminary Assessment:

   • Evaluate potential targets based on publicly available information.

   • Rank targets according to strategic fit and value potential.

5. Initial Contact and Expression of Interest:

   • Approach selected targets discreetly to gauge interest.

   • Sign Non-Disclosure Agreements (NDAs) where applicable.

Phase 3: Due Diligence and Valuation

6. Detailed Due Diligence:

   • Conduct comprehensive due diligence (financial, legal, operational).

   • Focus on key areas of risk and opportunity.

7. Business Valuation:

   • Determine the value of the target business using various valuation methods.

   • Assess synergies and potential post-acquisition benefits.

Phase 4: Acquisition Proposal and Negotiation

8. Proposal and Letter of Intent (LOI):

   • Draft and submit a non-binding offer or LOI.

   • Outline key terms including price, structure, and conditions.

9. Negotiation:

   • Engage in negotiations with the seller to finalize deal terms.

   • Resolve any issues arising from due diligence findings.

Phase 5: Finalization and Closing

10. Final Agreements and Financing:

    • Draft and execute definitive purchase agreements.

    • Secure financing (debt, equity, or a combination).

11. Regulatory Approvals and Closing Process:

    • Obtain necessary regulatory approvals.

    • Finalize the closing process and transfer of ownership.

Phase 6: Post-Acquisition Integration

12. Integration Planning:

    • Develop a detailed integration plan prior to closing.

    • Identify key integration areas (systems, processes, culture).

13. Execution of Integration Plan:

    • Implement the integration process.

    • Monitor progress against defined milestones and objectives.

14. Post-Merger Review:

    • Conduct a post-acquisition review to assess the success of the integration.

    • Identify lessons learned and best practices for future acquisitions.

Key Considerations:

• Risk Management: Throughout the process, identify and mitigate risks.

• Stakeholder Communication: Maintain clear communication with internal and external stakeholders.

• Flexibility: Be prepared to adapt the plan as new information and circumstances arise.

• Confidentiality: Ensure confidentiality is maintained to protect the interests of all parties involved.