• Date: Wednesday, August 3, 2011 
• Guest:  Huxley Nixon, founder of Concord Hill Capital
• Listen to show. 

Today’s guest is Huxley Nixon who has over 28 years in the financial services business.  We’ll talk about mergers and acquisitions, and the best time to consider selling your business.  Before we join our guest, since there’s so much activity in Washington, we’ll forgo the Tip of the Week today and just get to the The Good – The Bad – The Ugly 

The Good 

1. Debt extension passed – relieving markets of short terms panic or pressure.
2. Tone in Washington different:
   1.  Maneuvering around cuts or decelerating spending increases
   2. Sharp and hysterical reaction to challenge of over-spending – signals friction, fear and anger at slowing down growth of government.
   3. Tea Party (independent mainstream America) has found its voice and having an impact.
   4.  World will take its eye off short term “default” talk.

The Bad 

1.  Did not cut any spending this year – only $21 billion in 2012, $42 billion is 2013.  Insignificant – equivalent of 2-3 days borrowing.
2. Put the defense department in play – if no resolution in congressional committees (1/2 of all cuts automatically come from defense; other half from discretionary spending).  Could damage our defenses and encourage enemies.
3. Postponed dealing with overspending until after next election.  Two years or $2.4 trillion in new debt.  New president will come into office with $17 trillion in debt.  Interest payments alone will be formidable.  If interest rates rise (inflation – downgrade U.S. bonds).  Big % of GDP – debt service.
4. Did not change or address two budget busters (social security and Medicare) 

The Ugly 

1. Economy weak and appears to be getting weaker.
2. Sell off in stocks a real possibility
   1.  Summer doldrums
   2. Bad economic news on economy
   3. GDP growth slowing
   4. Europe still uncertain with its debt
   5. Dollar declining in value (inflation)
   6. Possibility of debt downgrade – raise interest rates
   7.  No movement in unemployment numbers
   8. Continued anti-business activity in Washington.
      1.  Regulation proliferation
      2. Union Interference
      3. Over reaching regulators attacking business
      4. Dodd-Frank impact on NYSE competitiveness with other financial markets. 

Huxley Nixon, founder of Concord Hill Capital, is a seasoned executive with over twenty-eight years in financial services. Concord Hill Capital, founded in 1989 is a successful boutique Investment Banking firm in Atlanta, GA targeting early stage and middle market companies.  You can view Huxley’s entire bio here.

1. Talk about your expertise and background in mergers and acquisitions. 
2. How does one recognize if the company ready to be sold? 
3. When is the best time for an owner to sell? 
4. How will the sales process affect normal business operations? 
5. When is the right time for a business owner to tell employees, customers, vendors of plans to sell? 
6. How can a business owner attract multiple buyers? 
7. How does an owners’s desire for control limit their ability to maximize wealth creation? 
8. Tell us about M&A marketplace and its value proposition