Nov. 12, 2023

How to Succeed in Using Partial Acquisitions To Build With Deal Maven CEO Raleigh Williams

How to Succeed in Using Partial Acquisitions To Build With Deal Maven CEO Raleigh Williams

Deal Maven CEO Raleigh Williams Discusses the Benefits of Partial Acquisitions - Watch Here

About The Guest(s): Raleigh Williams is the CEO of Deal Maven and has a background in mergers and acquisitions. He has experience in buying and selling businesses and has successfully sold his own company for over $26 million.

Summary: Raleigh Williams shares his journey from being a mergers and acquisitions lawyer to becoming the CEO of Deal Maven. He explains the concept of partial acquisitions and how they can reduce risk and provide opportunities for growth. He also discusses the importance of finding the right business partner and shares his insights on the media acquisition space.

Key Takeaways:

  • Partial acquisitions allow entrepreneurs to buy a stake in a business without taking on all the risk.
  • Finding the right business partner is crucial for a successful acquisition deal.
  • The media acquisition space offers opportunities for growth and audience engagement.

Quotes:

  • "Only do deals that, if you're right, you get rich and if you're wrong, you don't go broke."
  • "Partial acquisitions allow entrepreneurs to buy a stake in a business without taking on all the risk."
  • "The media acquisition space offers opportunities for growth and audience engagement."

Articles:

How to Succeed in Partial Acquisitions: Insights from Raleigh Williams

Note: This article is based on a transcript of an interview with Raleigh Williams, CEO of Deal Maven, on the How2Exit podcast.

Introduction

In the world of mergers and acquisitions (M&A), there is a common belief that you have to buy the entire business to make a significant profit. However, Raleigh Williams, CEO of Deal Maven, challenges this notion by advocating for partial acquisitions. In a recent interview, Williams shared his insights on how partial acquisitions can reduce risk and increase the chances of success in the M&A space.

The Power of Partial Acquisitions

Williams believes that the key to successful acquisitions lies in the principle of only doing deals where, if you're right, you get rich, and if you're wrong, you don't go broke. This means finding opportunities where the potential upside is significant, but the downside is limited. Williams explains, "I look at every deal with that lens. I only want to be in businesses where, if I'm right about the asset, it's going to have a meaningful impact on my personal net worth."

Partial acquisitions offer a way to achieve this balance. By buying a stake in a business rather than the entire company, the acquirer can mitigate risk and align themselves with an operator who has the knowledge and expertise to drive the business forward. Williams emphasizes the importance of finding operators who are still long-term bullish and optimistic about the future prospects of the business. This ensures that the operator is not viewing the acquirer as an escape path but rather as a partner who can provide strategic help and resources to take the business to the next level.

The Challenges of Partial Acquisitions

While partial acquisitions offer many advantages, they also come with their own set of challenges. One of the main challenges is finding the right partner. Williams stresses the importance of thoroughly vetting the operator and ensuring that their vision aligns with the acquirer's goals. He recommends getting to know the operator's spouse, hobbies, and long-term goals to gain a better understanding of their work style and compatibility. Williams also suggests conducting personality tests to assess compatibility and identify any potential red flags.

Another challenge of partial acquisitions is managing the human element. Unlike full acquisitions, where the acquirer takes complete control of the business, partial acquisitions involve bringing in a new partner. This requires building a strong relationship based on trust, open communication, and shared goals. Williams advises being transparent about concerns and expectations from the beginning to avoid any misunderstandings or conflicts down the line.

The Role of Media Acquisitions

In addition to his work with Deal Maven, Williams has also been involved in media acquisitions. He has observed a growing trend among entrepreneurs who are interested in acquiring media assets to scale their businesses. Williams recognized the lack of a centralized marketplace or service provider that focuses specifically on media assets and audience acquisition. To address this gap, he recently acquired a marketplace service called Early Acquire and rebranded it as Media Acquire. The platform is designed to help entrepreneurs acquire media assets and gain control over their audience engagement.

The Future of Partial Acquisitions and AI

Looking ahead, Williams believes that partial acquisitions will continue to play a significant role in the M&A space. He anticipates that AI and automation will disrupt the industry, but he sees it as a tool that will augment human capabilities rather than replace them. Williams envisions AI being used to streamline processes, reduce costs, and increase productivity. However, he emphasizes the importance of human connections and the value of expertise in areas where precision is crucial.

In conclusion, partial acquisitions offer a unique opportunity for entrepreneurs to mitigate risk and increase their chances of success in the M&A space. By focusing on deals where the potential upside is significant and the downside is limited, acquirers can build valuable partnerships and drive growth. As the landscape of media and AI continues to evolve, there will be new opportunities and challenges for entrepreneurs to navigate. By staying adaptable and embracing new technologies, entrepreneurs can position themselves for success in the ever-changing world of acquisitions.

Note: This article is based on a transcript of an interview with Raleigh Williams, CEO of Deal Maven, on the How2Exit podcast.

 

 

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