Smart Business Magazine, December 2018

8 Smart Business Cleveland December 2018 FROM THE CEO FRED KOURY Get in the game Dealmaking should be a strategic priority for business owners in 2019 Through the first nine months of 2018 nearly 33 trillion was spent on global M A activity a record total that was up 39 percent over the same period in 2017 according to the Financial Times Private equity firms still have more than 1 trillion of dry powder just waiting to be invested While deals such as Takeda Pharmaceutical Co s 62 billion acquisition of Shire Plc or Cigna Corp s 54 billion purchase of Express Scripts Holding Co tend to grab the headlines transactions are getting done across all sectors including the middle market M A can be an important means for building scale improving a targets performance or removing excess industry capacity and can fuel long term profitable growth states a report from the Deloitte M A Institute M As numerous potential benefits dictate that it be viewed as an important arrow in the corporate quiver ready to be loosed when needed However companies should not wait until an attractive target is in view to sharpen their M A capabilities Proactive planning can improve the odds of hitting a strategic bullseye This is good advice even if youre not the head of a 5 billion company like Frank C Sullivan who has made more than 100 acquisitions since becoming CEO at RPM International Inc in 2002 Dealmaking is a byproduct of a comprehensive growth strategy that empowers your team to play a key role in the deals you pursue Once the right team is in place and negotiations begin Sullivan says its natural to want to close every deal That doesnt always happen however Deals are going to fall through whether youre a big company or a business trying to boost its standing in the middle market His advice for any business leader is to stand your ground My father taught me to not seek the lowest price possible but to offer a fair price the highest price RPM could afford If that amount isnt acceptable to the seller then we walk away from the deal Sullivan says You cant be clouded by emotion This approach has enabled us to win many deals over the years and has saved us from some potentially bad ones as well Sullivan also believes strongly in using advisers who have specific M A experience While legal and accounting advisers can provide critical counsel in their areas of expertise dealmaking requires a unique approach Bringing this knowledge into the equation can help you make a better deal or walk away from one that isnt right for you Bottom line theres never been a better time to get in the game and become a dealmaker Just make sure you have the right strategy to do it well Dealmaking has become a way of life and an essential skill for successful business owners Even if youre not actively looking to sell your company raise capital or make an acquisition you cant afford to stay on the sidelines while others negotiate deals that can reshape the future of their business FRED KOURY President and CEO Smart Business Network Inc Fred is committed to focusing on relationships not transactions in everything he does 800 988 4726 fkoury@ sbnonline com www sbnonline com