David C Barnett Small Business and Deal Making M&A SMB LIVE- Dustin Williamson Regrets in mergers and acquisitions
Apr 21, 2025
Dustin Williamson, Managing Director at VCFO, brings years of financial expertise to the discussion on regrets in mergers and acquisitions. He shares insights on the emotional complexities that affect seller satisfaction and highlights the significant impact of cyclical markets, particularly in the oil and gas sector. Dustin emphasizes the importance of strategic planning and traditional valuation metrics to avoid common pitfalls. Additionally, he discusses the unique challenges faced by fractional CFOs and the need for thorough preparation in successful deal-making.
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Unique Oil & Gas Cycles
- Oil and gas operates on a distinct five-year boom-bust cycle unlike most industries.
- Managing cash flow rapidly through these cycles is critical for survival in this sector.
Spotting Market Cycles
- Watch for signs like "this time is different" to recognize market bubbles.
- Use these cues to start pulling back or exiting to avoid overvaluation traps.
Subprime Crisis Anecdote
- Dustin recounts buying subprime mortgages linked to Mexican real estate pre-financial crisis.
- Overconfidence bias misled them until the market collapsed, teaching a hard lesson.