Over the last two decades, technology has propelled several cutting-edge procedures across multiple industries. Hence, technology’s place in the business sector will only grow as it develops further. On this episode of The Roadmap, host Lee Heisman sits down with Tony Tran, CEO of TranUSA, to explore how technology impacts the buy/sell market.
After spending 20 years in the information technology, IT, industry, Tran felt it was time for a change. He went from a career solely focused on IT to integrating technology into the mergers and acquisitions (M&A) space. In 2018, Tran founded TranUSA, a technology consulting firm based in Atlanta, Georgia.
Key Takeaways:
1. In the beginning, half of TranUSA’s initial business provided IT support to other companies. However, currently, the other 50% of his business concentrates on the M&A industry.
2. Every business, regardless of industry, deals with technology, which makes it essential in the IT side of the M&A process, particularly with IT due diligence. Therefore, Trans believes that entrepreneurs must understand what they are getting themselves into.
3. Suppose businesses need more capital investments to integrate an existing portfolio as a private equity, or they want to purchase a stand-alone firm. In that case, they need to understand how you will be able to maximize capital while maintaining lower marginal costs.
4. TranUSA collaborates with businesses’ buy/sell side, which uses a similar approach. On the sell side, firms are assisted in obtaining the maximum possible evaluations. But from the buying side, it helps sellers identify gaps in their company.
5. “For me, I try to understand the investment thesis of the buyer first to help understand and present opportunities that fit their investment thesis,” asserts Tran. However, what I would recommend for the seller is:
- Have a clear, transparent statement as to why you’re looking to sell.
- Work with an M&A consulting firm; they will help answer your uncertainties.
- Start adapting and executing an M&A playbook. A playbook helps buyers understand why they should buy a seller’s company.
6. Ultimately, Tran asserts, “Vendors need to take a step back, assess their current technology, and determine whether their current offering is compelling enough for interested parties to buy.”
“Every entrepreneur needs to grasp the importance of timing in business because timing is everything.” – Tony Tran
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