Author: coreykupfer

As you know, not every deal is a good deal. Some deals fall apart during the negotiating process, while others go through but bring problems and challenges you weren’t expecting. How do you know which deals are worth doing for your business, and which you should avoid? How do you ensure that your company benefits from the deal without unexpected side effects?

On the most recent episode of the Fueling Deals podcast, my guest was Chris Wilkerson. Chris is the Founder and CEO of High Bar Capital, a group which specializes in funding, acquisition and management of high-quality businesses in niche markets. Their stated goal is to grow businesses while increasing their value. Chris has extensive experience with deals, having previously worked in business development at Ventro, a B2B marketplace. Throughout his career, Chris has seen and experienced both good deals and bad deals, and his firsthand experience has given him some valuable insights.

During our conversation, Chris shared his work at High Bar Capital and discussed how they typically control a majority stake in between three and five businesses at any given time, and he shared the important criteria he uses to evaluate a deal. He offered examples of some of the deals that didn’t go the way he wanted them to, and he highlighted the important lessons he learned along the way.

Understanding Your Deal Partner

One of the stories Chris shared during our conversation was about a deal that he had sunk plenty of time, attention and work into, only to have it fall apart and his deal partner walk away from the table. As it turns out, Chris didn’t understand his deal partner as well as he thought. He didn’t know who the actual decision-makers at the other company were and didn’t know what they ultimately hoped to gain from the deal, and as a result they backed out. It took months for Chris to repair the relationship and try again.

The lesson here is that it is important to understand who you are dealing with and what they are expecting from you. Chris learned this lesson, and it helped him in future deals. Do your research, make sure the person or people you are dealing with are empowered to make decisions on the other company’s behalf, and take the time to ask questions and truly understand what they hope to achieve from their deal with you. That way, you can offer products or services that are core to their operations and you can ensure that your offer proves irresistible, without any unexpected surprises.

White Label Deals

There are countless types of deals you can do with another company to inorganically fuel your growth, but during our conversation Chris brought up “white label” deals. These deals, also called “private label” deals, are when you offer a product or service to another company but allow them to package or rebrand it as their own work, and they can be beneficial for both parties.

You know how most grocery stores sell their own store brand of common products like peanut butter or soft drinks? These are private label deals in action. The grocery store chain probably isn’t in the business of manufacturing their own products, so they have worked out a deal with another company to manufacture products that the grocery store chain can sell under their own label. Often, the manufacturer of that rebranded product already has a product under their own name on the shelf right next to it, selling at a higher price point. These kinds of deals benefit both companies; the manufacturing company is selling a large quantity of product, and the other company is able to offer an “in house” brand option without having to go to the expense of setting up a manufacturing facility.

This is a great example of just one of the many types of deals you can use to fuel the growth of your business. The world of deals goes far beyond just mergers and acquisitions, as you can see, and I hope it opens your eyes to the limitless possibilities deals can bring your company. For more informative episodes of Fueling Deals like this one, please visit www.fuelingdeals.com.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

For this episode of the Fueling Deals podcast, I wanted to discuss a subject that has been on my mind a lot recently. The recent college admissions scandal that has involved several prominent celebrities and been in the news so much really got me thinking about the importance of character. Character means sticking to your morals and values, doing the honest thing even if it is the hard thing, and sometimes sacrificing what is profitable in favor of what is right.

I know this subject is outside of the normal scope of my Fueling Deals topics, but I do think there is a business-related value to be derived from maintaining alignment with your character. In this “solocast” episode, I share a few of the stories that have been on my mind recently, both on a personal level and from newsworthy events. I discuss how character can be a guiding principle that helps you avoid deals you shouldn’t get caught up in, and I share why there can be a tangible, valuable benefit to making the hard choices.

A Public Conversation About Character

The celebrity college admission scandal, in particular, has sparked a national conversation about character, morals, and values. On social media, people are calling out the people involved in the scandal for their actions, as well as defending their behavior. The story has brought about a great deal of discussion of what is and is not acceptable behavior for people trying to give themselves an advantage, and I think this conversation is an important one that our society needs to have. Whether it’s the world of business, celebrity or politics, it seems that scandals are appearing in the news more and more these days.

In some regards, I feel that the importance of character has taken a backseat in our society. People are doing morally questionable things today without social repercussions, things that would have been considered dishonest in times past. When an athlete gets bumped and “oversells” being injured to score a penalty against their opponent, we shrug our shoulders. We tell ourselves, “that’s just how the game is played.” In some ways, society has become too accepting of people doing whatever it takes to get an advantage. But at what cost?

Standing Up for What’s Right

I believe that we would all be better off if we collectively held ourselves to a higher moral standard. Sometimes, that little advantage isn’t worth the cost it takes on our character. Maybe a shady deal would be profitable, but if our values don’t align with our deal partner it can also have negative repercussions on our trustworthiness and business reputation. Doing the right thing and doing the easy thing aren’t always the same, and sacrificing your character for the sake of taking a shortcut or avoiding the hard work seldom pays off.

Conversely, maintaining alignment with your character and sticking to your values can build social currency that can be worth more than money. Doing your due diligence and vetting a deal partner can help ensure that you will be happy with the non-monetary outcomes of the deal. Or, it will warn you of potential dangers you might not have considered and may warn you away from the deal entirely. As much as I advocate for the power of inorganic growth through deals, there’s a reason for all those cautionary tales about making deals with the Devil. Sometimes, the best outcome is to just get up and walk away from the table.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

Mergers & Acquisitions

The great thing about M&A deals is the opportunity they present to combine two talented, experienced teams of professionals into one group. The danger of mergers and acquisitions comes from combining two teams with differing cultures, attitudes, goals and egos into one group. Just as the right mix of people can be an explosive catalyst for your business, the wrong mix can see everything blow up in your face.

Not long ago, I invited David Shriner-Cahn to join me on the Fueling Deals podcast. David is the host of Smashing the Plateau, a highly regarded podcast with more than 400 episodes of wisdom that entrepreneurs and business professionals can draw from to help their business break through to the next level of success. David’s podcast has been featured in Forbes Magazine’s “Three Podcasts to Power Up Your Ultra-Lean Business,” and has appeared on the list of Inc. Magazine’s “5 Entrepreneurs That Will Change the Way You Communicate.”

During our discussion, David and I talk about the important things to keep in mind before a merger or acquisition, and the key steps that need to be taken after the deal is complete. There are a lot of critical considerations to keep in mind when trying to successfully integrate two established teams, and David offers guidance to help you navigate the delicate period of time after a merger or acquisition has been completed.

Before You Sign

As you know, the purpose of this podcast is to help you expand your business with inorganic growth through deals. But this kind of growth comes with its own challenges for which you need to prepare well in advance. It’s important to know what you’re getting into and ensure that your company culture and that of your merger or acquisition partner will integrate smoothly.

You also need to go into the deal with a game plan to address communication needs, help your two teams get to know and trust each other, and establish a clear hierarchy of roles within the new post-merge organization. If you take the time to prepare in advance of the deal, you can help guarantee a much smoother transition once the deal is complete.

After You Merge

The biggest difficulties you’ll face once the deal is complete stems from fear. Mergers can be disrupting and chaotic and, if your team is afraid of the future, it makes things so much more challenging. Addressing those fears with clarity and sincerity is key.

One-on-one conversations, open and frequent lines of communication, and trust and interaction between the C-suite and the ground-level employees is vital. By recognizing, addressing, and alleviating fears on a continual basis, you can accelerate the integration of your teams and strengthen the resulting culture after the merger or acquisition.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!