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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.

Atlasview Equity
Jul 26, 2023
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Most Common M&A Mistake

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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

Make sure to subscribe and if you enjoy the content, we'd appreciate you sharing it with your network.

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Atlasview Insights <> Deal Bridge Media

This newsletter was powered by the team at Deal Bridge builds newsletters for M&A firms to help them generate more inbound deal flow.

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Let’s Get In Touch

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

Mostly metrics
Stop calling your GMV Revenue
The only thing that grinds my gears more than someone calling themselves a “Polymath” is a company calling their GMV “Revenue”. Shower thought: If a Polymath is a Vegan, what do they tell you about firs…
Read more
2 months ago · 31 likes · 7 comments · CJ Gustafson
OnlyCFO's Software World
Big Movers - Public Software Trends
Looking at the relative revenue multiple changes for public software companies can show some interesting insights and trends. Below is a list of the top 5 and bottom 5 revenue multiples changes over the past year for public software companies. It shows how many spots a company moved up/down relative to other cloud companies over the past year in regards to their revenue multiple (i.e. how richly valued a company is compared to its revenue…
Read more
2 months ago · 25 likes · 3 comments · OnlyCFO

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!

Contact 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.

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Most Common M&A Mistake

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