DCA Partners Ron Crane talks Mergers and Acquisitions
Ron Crane, Managing Director at DCA Partners based in Roseville, CA, joined me on Money 2.0 to discuss the work they do at DCA and about being an entrepreneur.
Ron begins the discussion talking about the charity Shoulder to Shoulder he is involved with. Shoulder to Shoulder seeks to mentor fatherless boys in Del Paso Heights, where 70% of the boys in that community are fatherless. Ron says the program is all about supporting these young boys and breaking the cycle of fatherlessness. The program started about 7 years ago and includes other supplemental programs, such as the Moms Helping Moms program, that supports single mothers and further helps encourage their young boys to join Shoulder to Shoulder. Ron notes that they could use a lot more mentors as they move more towards a Big Brothers Big Sisters one-on-one mentoring format.
Ron goes on to talk about his background and his family’s history of being an entrepreneur. He says he currently works almost exclusively in representing companies that want to be sold or companies that want to expand through acquisition. We talk a bit about the takeover model rampant in the Silicon Valley. Ron says typically the larger technology companies grow by buying out smaller companies’ innovations.
Ron talks about who their typical customers are. He says primarily the businesses involved are between $5-50 million. He says they limit the number of clients the partners have at DCA because these sells can take up to a year and requires in depth analysis and thorough understanding of the company and industry involved before the sell goes to market. Often during this process suggestions for change and implementation of changes is a part of the process to make the sell more valuable.
Ron closes our interview with a bit of discussion on how bad 2009 and 2010 were for the managed acquisitions industry. He says 2012 and 2013 have been much better and it appears the economy is picking up a bit.
If you would like to hear my conversation with Ron Crane, you are welcome to listen by clicking here.