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Biz Tek Today: The Value of Human Capital

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At the top of most seller’s list of important items (after purchase price) is how a transaction will impact the seller’s employees. After all, ownership aside, the employees are generally one of the major drivers of business success (see the article below on the combination of Amazon and Whole Foods). Yet it is the employees, HR and business integration (or lack thereof) that many times spell disaster for a business acquisition. Why? Many times too many efforts during a transaction focus on business, numbers and finances. Not enough time is spent at the front end understanding the interaction between the business and its people and how to integrate the same with the buyer and its business. I’ve handled many business combinations over the years. I’ve only encountered one instance where a buyer initiated its integration plan along side of its acquisition plan so that while the parties were working through the purchase and sale, the buyer was likewise working through integration matters. Something to consider when the human capital of business is so valuable.


Entrepreneurship

Top 5 books all budding entrepreneurs must read
Tech Juice
Being an entrepreneur is a constant learning process. If you happen to be a young person who thinks they’ve landed on the greatest idea of their life, the next thing you want to do is turn it into a business. But how do you turn it into a viable business…READ MORE

Entrepreneurs, you’ve got to play it safe as you plan ahead
USA Today
I always say that being an entrepreneur is not enough. Yes, entrepreneurs are typically a fun, hearty, confident, enthusiastic bunch. That’s great, but not enough to sustain you in business. You have to be a businessperson, too. By that I mean, not only do you need the aforementioned traits, but you need to have (or develop) business skills like money management, leadership and so on…READ MORE

Starting A Small Business Without A Loan
Forbes
What do the founders of Tito’s Vodka, Google, and my business Vallorani Estates have in common? While I am a huge fan of Tito’s Vodka and Google pays my business to place their ads on our websites, that’s not it. As startups, each of us bypassed the system and received funding for our businesses from the same unlikely source….READ MORE

16 Percent of Small Businesses Rely on a Single Customer
Small Business Trends
New research shows some U.S. small businesses walking a tightrope by relying on one customer for half or more of their revenue. However, the ninth annual DNA of an entrepreneur report from Hiscox (LON:HSX) is mostly good news…READ MORE

 

Technology

How AI Tech Is Changing Small Business Marketing And Customer Service
Forbes
Whether you realize it or not, artificial intelligence has become a ubiquitous part of our lives. Companies large and small are embracing the opportunity to achieve more and set bigger goals by using AI. Solid proof of this embrace can be seen in CRM giant…READ MORE

11 ridiculously effective tools to help you automate your small business
TNW
As a small business owner, you have a lot of responsibilities on your plate. From finding the best employees to ensuring that your customers stay happy, one thing is certain: you have no trouble staying busy. Of course, staying busy doesn’t necessarily mean that you’re being productive…READ MORE

5 Technologies That Are Currently Changing Business Transactions
HuffPost
Today, thanks to technology, our world has become smaller and there are no physical boundaries or time zones to limit our business transactions. Instead there are new and faster ways of doing business with each other, distance notwithstanding. It’s not news anymore to say that technology serves to reduce the cost of operating and managing business…READ MORE

Top Five Ways Technology Will Challenge Companies In The Connected Era
Forbes
Technology continues to play a critical role in the evolution of society, including the upheaval of consumer-facing industries. For example, artificial intelligence opened the door to merchants and brands creating more personalized experiences to better meet the needs of today’s consumers…READ MORE

Transaction

Things To Consider When You Want To Sell Your Business
B2C
At some point, as a budding entrepreneur, you are going to want to move on to the next thing. Whether that’s moving on to a new business idea or taking time out to enjoy the life you’ve worked hard to create for yourself. But that leaves you with the burning question of what to do with the business you’ve spent years and sweat blood over…READ MORE

How 2 young guys went from the brink of bankruptcy to selling their ‘Shark Tank’ business for $300 million
CNBC
In the summer of 2011, after graduating from Harvard Business School and finishing active duty with the Marine Corps, Nick Taranto got a job at Goldman Sachs. “I was miserable working on Wall Street, and I was gone within seven months,” Taranto tells CNBC Make It. He left in January 2012 to start his own business….READ MORE

Why Amazon’s Acquisition of Whole Foods Is a Lesson in Committing to Employees
Entrepreneur
In the year’s growing list of mergers and acquisitions, Amazon’s purchase of Whole Foods has dominated media attention. However, while news outlets have been quick to hypothesize what the purchase means for both brick-and-mortar and online grocery, it’s worth stepping back to think through an overlooked part of the acquisition — employees…READ MORE

5 ways small businesses can become more attractive to buyers
The Business Journals
Entrepreneurs who have built businesses with years of blood and toil often find that selling to a good firm doesn’t happen overnight. Indeed, it takes three to five years of careful preparation, including doing such things as maximizing cash flow and putting in place the next generation of leaders…READ MORE

 

 

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Biz Tek Today (BTT), is an online resource for entrepreneurs. BTT recognizes that you are a busy leader in business and that finding time to identify and read relevant news for your business is challenging. BTT seeks to lessen this burden by regularly gathering the best of the best news articles from a host of national media and industry sources and delivering them to you in one convenient email.

 

Michael N. Mercurio, Chair Business Law and Transactions
mmercurio@offitkurman.com | 301.575.0332
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