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🧐What I Learned Last Week 5.5.23
Curating the best M&A, SMB, and EtA-related content.
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Atlasview Equity talks about the importance of purchasing businesses (assets) that are protected from inflation.
Attributes to look for:
Low ongoing capital expenditures
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Forbes published an interesting article looking at Japan’s M&A market and a key player in this space.
Shunsaku Sagami, the 32-year-old founder and CEO of M&A Research Institute Holdings, a mergers and acquisitions brokerage, is Japan’s newest billionaire. Shares of the company, which specializes in M&As of small and medium-size firms, have skyrocketed and are up more than 340% since its listing last June. Sagami’s 73% stake in the firm is now worth just over $1 billion, based on Friday’s closing price of ¥10,090 ($74.36).
M&A activity has been soaring in Japan, hitting a record high of 4,304 transactions in 2022, according to Recof, a Japanese firm that tracks the M&A market. These range from big-ticket deals to the modest size transactions that Sagami targets. Last year, U.S. investment firm KKR privatized Japan’s Hitachi Transport System in a deal valued at $5.2 billion. M&A Research Institute’s past deals include the sale of a ¥200 million (revenue) IT firm with no successor to a ¥1.5 billion (revenue) rival looking for expansion.
🧵 Best of Twitter
Tax advantages of business ownership…
The basics of cash management…
It’s a marathon, not a sprint…
Great summary of accounting basics…
Self-funded vs. traditional search…
Tips on setting CEO compensation…
PE funds may have bought high and are now forced to sell low…
Great perspective on loan activity in the SMB space…
Keep this in mind when analyzing your next acquisition target…
QofE is the most requested type of project at DueDilio. Knowing how to interpret one is important…
🤔 Thoughts, Events, Other
Molson Hart runs a large e-commerce business in the kid’s toys niche and shares some observations on his blog. In his latest blog post, he argues that Amazon's pricing policies contribute to price inflation for the end consumer. A really interesting read for those in the ecom space.
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⚒️ Tools & Resources
I want to share some tools & resources that I have found helpful. Please note that some of these may contain affiliate links. This means that I may receive compensation if you sign-up and use them.
DueDilio - #1 marketplace to hire highly vetted M&A due diligence service providers. Your source for finance, legal, tech, and other key areas of due diligence. Submit your project, review proposals, and hire.
PrivSource - PrivSource helps you source deals and connect with transaction partners without ever paying a success fee.
BizNexus - Marketplace + off-market origination in one platform. The marketplace averages about 10k active listings & pre-CIM opportunities, and the off-market origination focuses on data & multi-channel. Local Boston company and I consider the founder (Adam Ray) a friend.
X5 Deals - Proprietary deal sourcing. They do the outreach and send you relevant, actionable deals directly into your inbox.
Import Dojo - a newsletter that sends eCommerce and Amazon FBA businesses for sale to your email inbox. They send deals each Wednesday at 9:00 AM CST.
Scott Oldford - If you're interested in gaining insight into the process of building, scaling, acquiring, and selling online businesses, Scott Oldford can help.
Deal Flow Scout - Peer-to-peer deal flow exchange. Free, open, transparent.
Deal Sourcing Guide - A directory I put together of online marketplaces, brokers, DFY deal flow, and more.
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