Most Common M&A Mistake
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Most Common M&A Mistake
Atlasview Insights -- bite-sized weekly insights that are relevant to all business owners, dealmakers, and investors.
Happy Wednesday folks!
Thanks for joining us for another edition of Atlasview Insights. We’re back with another week of sharing bite-sized insights that are relevant to small business owners, dealmakers, and investors.
If you are not familiar with Atlasview Equity, we are a private equity firm specializing in software and tech-enabled businesses. You can learn more about our team and investment criteria: here.
In this newsletter, we cover:
Most Common M&A Mistake
Our Favorite Reads
Insights From Our Team
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We look for the following characteristics in our partner companies:
Industry: Software and tech-enabled businesses
Business Profile: Sticky B2B customer base
Size: Minimum $1m EBITDA or $5m ARR
Geography: The US & Canada
Whether you’re a business owner interested in working with us, or an intermediary with a deal to share, always feel free to reach out and get in touch with us!
Most Common M&A Mistake
This week we wanted to share an interview exerpt from Magnus Söderlind, CEO of Bergman & Beving (a Swedish serial acquirer):
Customer (and or supplier) concentration is a common deal killer for us. No matter how long the relationship is or how confident the seller is about the relationship – it’s never a good idea to have a single factor that can anihilate the busienss.
We’ve seen many (small) businesses land a large Fortune 500 customer, and then that customer grows into the majority of their revenue. On one hand, it’s nice to see a strong/stable customer. But on the other hand, the business is at the mercy of that customer.
We generally pass whenever there is a high degree of customer/supplier concentration. It’s just not worth the risk. It’s nice to see that an experienced M&A exec come to the same conclusion.
Click here to read the full transcript of the interview.
Our Favorite Reads
Insights from our Team
Operations
Investing
Atlasview’s Investment Criteria
We look for the following characteristics in our partner companies:
Industry: Software and tech-enabled businesses
Business Profile: Sticky B2B customer base
Size: Minimum $1m EBITDA or $5m ARR
Geography: The US & Canada preferred
Whether you’re a business owner interested in working with us, or an intermediary with a deal to share, always feel free to reach out and get in touch with us!
About Us
Atlasview Equity is a private equity firm specializing in software and tech-enabled businesses. We combine patient capital with proven operational strategies to deliver predictable results for our stakeholders.