Bill Canady explains why acquiring small companies becomes a nightmare after closing. Small firms lack middle management, and their owners typically hire divorce lawyers and tax accountants as advisors, leaving buyers to handle integration alone.
You're probably underestimating the fact that there is no middle management enough in small companies in order to lead the integration, and that makes it bloody complex. And that actually was true. The biggest one, okay, fine, the ticket was much more, much bigger, but in the end, much easier to put in the company.
That is so true. You know, it's funny, I'll go do a small deal. We like buying products and things, you know about that. And so the person you're going to buy it from, we'll just say the guy, so you meet his attorney, it's his divorce attorney, you meet his accountant, it's the guy that does his taxes. So no one has any deal experience and you wind up finding that you have to close their books for them in many cases.
