How to successfully buy another company

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By Karyne Levy

Friday, October 27, 2023

Welcome to TechCrunch+ Friday

Welcome to TechCrunch+ Friday image

Image Credits: Cunaplus_M.Faba / Getty Images (Image has been modified)

Good morning, and welcome to the end of another week!

In an overall quiet year, the last few months have been pretty spicy when it comes to M&A activity: Atlassian bought Loom; Cisco bought Splunk; and Microsoft finally closed on its bid to buy Activision.

But no matter the size of the deal, there's a playbook that should be followed when acquiring another company, starting with assessing everything from business model to workplace culture. But as Ben Schippers, co-founder and co-CEO of HappyFunCorp, writes, the real work begins after the due diligence phase and when it's time to incorporate the new company.

Thanks for reading!

Karyne

@karynelevy

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Raising without a deck is more common than you think

Raising without a deck is more common than you think image

Image Credits: lerbank / Getty Images

Using a compelling pitch deck to help tell a company's story is the norm. In fact, we have an entire weekly column dedicated to pitch decks, offering advice on how to make them better.

But sometimes success can be found without using a deck at all, which can offer various insights founders might miss if they rely too heavily on visuals in order to tell their story. "People tend to use a deck as an information dump. That is never going to work," said Capstack founder Michal Cieplinski.

Read More

AI is finally resulting in real growth for Big Tech

AI is finally resulting in real growth for Big Tech image

Image Credits: Fink Avenue / Getty Images

Both Alphabet and Microsoft reported earnings this week, and one thing stood out: Solid future revenue growth at both companies is predicated on their AI tools. But not all AI tools are built equally. Alphabet is seeing lots of demand for generative AI and AI-powered services. Microsoft is seeing customer appetite for assistive AI–related tools for developers, as well as for cybersecurity and productivity.

Could this mean that the hype is finally being replaced by real demand?

Read More

The Davis-Bacon Act changes present a chance for startups to disrupt construction tech

The Davis-Bacon Act changes present a chance for startups to disrupt construction tech image

Image Credits: Andrii Yalanskyi / Getty Images

The construction industry isn't readily known as being one to "move fast and break things"; adopting innovative technologies is often slow.

But some recent amendments to the Davis-Bacon Act could open the door for startups to use technology-driven solutions to help legacy construction companies navigate the new rules.

Read More

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Will Dean Phillips stop Trump or help him?

Presented by Meta: POLITICO's must-read briefing on what's driving the afternoon in Washington.
Oct 27, 2023 View in browser
 
Playbook PM

By Eli Okun

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THE TALENTED MR. SANTOS — Rep. GEORGE SANTOS (R-N.Y.) today pleaded not guilty to 10 new federal counts against him, maintaining his innocence in the face of prosecutors’ superseding indictment. His trial on charges of fraud, false statements and other crimes was set for Sept. 9, 2024. At the Long Island hearing today, Santos also decided to stick with his current defense attorney. And the judge agreed to the congressman’s request that he be allowed to contact family members who are witnesses. More from Newsday

Of course, the more immediate political reckoning is expected to come next week, when the House votes on a resolution to expel Santos.

Dean Phillips talks to members of the media on Capitol Hill in Washington.

Rep. Dean Phillips (D-Minn.) sees his presidential bid as the best bet to stop Donald Trump; others worry it could help him. | Jacquelyn Martin/AP Photo

DIVIDE IN CONCORD — Rep. DEAN PHILLIPS (D-Minn.) made it official today in New Hampshire, jumping into the Democratic presidential contest against President JOE BIDEN. He told reporters that he supported New Hampshire’s primary going first in the presidential lineup, and he took some swings at liberal orthodoxies, like saying it’s “inhumane” to call those concerned about border security racist.

Phillips is the subject of a big new Atlantic feature from Tim Alberta, who calls him “someone so earnest as to be utterly suspicious,” a Minnesotan who remains ultra-polite — unless he thinks someone’s lying. Phillips is running out of sincere conviction that Biden’s weakness could get DONALD TRUMP back in the White House, alongside a frustration with a Democratic Party unwilling to acknowledge publicly that Biden is very vulnerable. Just two months ago, Phillips had given up on the idea of a primary challenge — and then Biden’s numbers kept getting worse.

“Phillips no longer wonders if there’s something wrong with him,” Alberta writes. “He believes there’s something wrong with the Democratic Party — a ‘disease’ that discourages competition and shuts down dialogue and crushes dissent,” not unlike how Republicans responded to Trump. Notably, BILLY SHAHEEN — husband of the Democratic senior senator — is helping Phillips in New Hampshire. But, but, but: What if Phillips’ candidacy could have the reverse effect from what he intends, weakening (though not beating) Biden and getting Trump elected? His friends — and other Democrats — worry about that, but Phillips can’t see it.

In a sign of Democrats’ official disdain for Phillips’ challenge, Minnesota Gov. TIM WALZ today sent a Biden fundraising email that says some Minnesotans “make political side shows for themselves,” per The Messenger’s Dan Merica.

X marks the spot: Phillips’ campaign is calling on the social media platform to reinstate his campaign account, which appears to have been deactivated.

Get up to speed: “55 Things You Need to Know About Dean Phillips,” by POLITICO Magazine’s Ian Ward

INFLATION NATION — The latest inflation report today was a mixed bag, showing price increases largely holding steady despite the Fed’s efforts to tamp them down. The Personal Consumption Expenditures report found prices rising 0.4% month over month in September and 3.4% year over year, both unchanged from August. Core inflation, excluding food and energy, was slightly lower, but prices for services were particularly high.

Perhaps more notably, consumer spending stayed robust, beating economists’ expectations. Spending rose 0.7% on the month. That’s just the latest indicator that the economy is remaining fairly strong in the face of interest rate increases, but it also makes the job of getting inflation down to 2% even trickier. Still, the central bank is expected to hold rates steady at its meeting next week. More from the AP

Happy Friday afternoon. Thanks for reading Playbook PM. Drop me a line at eokun@politico.com.

 

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TRUMP CARDS

BACK IN THE SPOTLIGHT — Though IVANKA TRUMP isn’t a defendant anymore in the Trump civil business fraud trial in New York, Judge ARTHUR ENGORON ruled today that she will have to testify, NBC’s Dareh Gregorian and Erica Byfield report. But she can’t be called before the start of November, so that she has space for a potential appeal. The former president’s attorneys had tried to prevent Ivanka from being called to the stand, but AG TISH JAMES’ office argued that she has relevant info.

CONGRESS

A PATH FORWARD FOR KYIV? — Prospects are suddenly looking slightly rosier for Ukraine aid in the Republican-controlled House, thanks to some tempered comments from Speaker MIKE JOHNSON and openness from far-right members to having separate votes on Ukraine and Israel aid, NBC’s Sahil Kapur and Julie Tsirkin report. It’s still far from what the Biden administration, which is seeking to link the issues, or Ukraine’s staunchest allies would like. But there’s “fresh optimism” among them that Republicans might allow stand-alone Ukraine aid to come up for a vote and pass.

THE IMPEACHMENT INQUIRY — Now that they have a speaker again, House Republicans can return to their impeachment investigation into Biden — but it’s unclear where it’ll go now, CNN’s Annie Grayer reports. Not only have they failed so far to turn up any smoking gun showing Biden corruption, but their momentum was sapped by the speakership chaos. Time is running a bit shorter now, and House Judiciary Chair JIM JORDAN (R-Ohio) took a hit by failing to win the election. But Johnson has said he wants the inquiry to proceed apace.

THE WHITE HOUSE

HOT ON THE LEFT — Progressive anger at Biden is reaching perhaps its highest peak of his presidency over his handling of the Israeli-Palestinian conflict, with younger and minority voters in particular weakening their support for him, NYT’s Reid Epstein and Anjali Huynh report. If it holds, that could pose a significant political threat to his reelection chances. (The election is a long way away, but he has little room for error.) “At its heart, the turbulence over Israel is a fundamental disagreement over policy, setting it apart from challenges like voters’ dissatisfaction with the economy.”

“Muslim leaders criticize Biden over his Palestinian death toll remarks in private meeting,” by Holly Otterbein: “They pushed the president to show more empathy toward Palestinians and to support a cease-fire.”

 

CALIFORNIA CLIMATE: Climate change isn’t just about the weather. It's also about how we do business and create new policies, especially in California. So we have something cool for you: A brand-new California Climate newsletter. It's not just climate or science chat, it's your daily cheat sheet to understanding how the legislative landscape around climate change is shaking up industries across the Golden State. Cut through the jargon and get the latest developments in California as lawmakers and industry leaders adapt to the changing climate. Subscribe now to California Climate to keep up with the changes.

 
 

2024 WATCH

WILD WEST — NYT’s Charles Homans has a fun dispatch from the chaotic presidential campaign of CORNEL WEST, which “has fueled suspicions that his bid is an improvisational performance as much as it is a political campaign. Asked about these suspicions, Mr. West emphatically agreed. ‘It’s jazz all the way down, brother,’ he said.” West sees his policy platforms as uniting an array of left-wing concerns across both domestic and international fronts. And he knows running as an independent will be harder than when he was in the Green Party primary: West says he’s aiming to qualify for the ballot in roughly 35 states.

BIG SPEECH — “Ron DeSantis vows to ‘reorient’ U.S. foreign policy to counter China,” by Florida Politics’ A.G. Gancarski

STRIKING EXCHANGE — NBC’s Jonathan Allen and Allan Smith got their hands on video of VIVEK RAMASWAMY last week challenging Sen. JONI ERNST (R-Iowa) on Israel policy. “You might want to understand my Israel policy before commenting,” Ramaswamy told her during a tense and protracted handshake, after she’d seemingly criticized his comments as “abhorrent.” Ramaswamy has faced criticism from the GOP establishment for his more isolationist and unorthodox foreign policy views.

MORE POLITICS

AFTERNOON READ — “He Threatened to Kill the President. Did He Deserve to Die?” by Rowan Moore Gerety in Provo, Utah, for POLITICO Magazine: “CRAIG ROBERTSON’s killing by the FBI has [b]ecome a [Rorschach] test for America’s political divide.”

BATTLE FOR THE STATES — In the Kentucky gubernatorial race, guns are a significant issue and a personal one, after Democratic incumbent ANDY BESHEAR lost a close friend in a Louisville mass shooting earlier this year, AP’s Bruce Schreiner reports. Beshear and AG DANIEL CAMERON, his GOP challenger, disagree on whether to pass a new “red flag” law. Beshear has to tread carefully on guns in the conservative state, but he’s framed the issue in intimate terms.

Related read: “The killing of Breonna Taylor still reverberates in Kentucky politics,” by the 19th’s Grace Panetta

 

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POLICY CORNER

TACKLING THE HOUSING CRISIS — Multiple federal agencies are taking new steps to try to improve affordable housing supply by turning vacant commercial properties into housing, the Biden administration announced today. That includes new guidance from the Transportation Department, the opening of a HUD program to provide $85 million for conversions and a resource guidebook from the White House, per CNN’s Donald Judd.

THE LOAN LURCH — The CFPB is leading a new investigation of customer service issues at student loan processing companies, WSJ’s Gabriel Rubin scooped. Authorities are probing wait time and guidance from these companies as student loan payments come back online after the pandemic.

VALLEY TALK

MUSK READ — We’re now one year out from ELON MUSK’s acquisition of X (nee Twitter), and it’s been largely a disastrous era for the site, WaPo’s Will Oremus, Elizabeth Dwoskin, Sarah Ellison and Jeremy Merrill report. Musk has succeeded in removing restrictions on speech on the platform and slanting it to the right politically. But the ranks of active tweeters have plunged 30%, and it’s still “hemorrhaging advertisers and revenue.” Its formerly prominent role as a global public square has diminished, and it’s “become a cacophony of misinformation and confusing reports,” new research shows. As the NYT wrote yesterday, X has become precisely the “free-for-all hellscape” Musk said it wouldn’t.

AMERICA AND THE WORLD

KNOWING LYNNE TRACY — “America’s Top Diplomat in Russia Has One of the World’s Toughest Jobs,” by WSJ’s Ann Simmons: “Her outspokenness has ruffled feathers at times. … [T]asks as seemingly mundane as ensuring adequate staffing at the embassy or simply traveling around Russia — the basic mechanics of diplomatic work — are a challenge.”

 

GET READY FOR POLITICO’S DEFENSE SUMMIT ON 11/14: Russia’s war on Ukraine … China’s threats to Taiwan … a war in Gaza. The U.S. is under increasing pressure to deter, defend and fight in more ways — but not everyone agrees how. Join POLITICO's 3rd Annual Defense Summit on November 14 for exclusive interviews and expert discussions on global security and the U.S.'s race to bolster alliances and stay ahead of adversaries. Explore critical topics, including international conflicts, advanced technology, spending priorities and political dynamics shaping global defense strategies. Don’t miss these timely and important discussions. REGISTER HERE.

 
 

PLAYBOOKERS

IN MEMORIAM — “Retired state, federal public servant Linda Combs dies,” by the Winston-Salem Journal’s Richard Craver: She “spent much of her life as a public servant, first for 15 years with various U.S. cabinet-level agency during the Reagan, Bush senior and Bush junior administrations. … Altogether, Combs is the lone woman to have [been] confirmed by the U.S. Senate for five different federal agency management positions.”

OUT AND ABOUT — SPOTTED Tuesday night at a celebration for Kountoupes Denham Carr & Reid’s 16th anniversary: Sens. John Barrasso (R-Wyo.), Maggie Hassan (D-N.H.), Ben Ray Luján (D-N.M.), Cynthia Lummis (R-Wyo.), Ed Markey (D-Mass.) and Debbie Stabenow (D-Mich.), Reps. Frank Pallone (D-N.J.), Debbie Dingell (D-Mich.), John Joyce (R-Pa.), Annie Kuster (D-N.H.), Grace Meng (D-N.Y.), Scott Peters (D-Calif.) and Marilyn Strickland (D-Wash.), Mike Boots, Bruce Andrews, Laura McPherson, Shannon Penberthy and Austen Jensen.

SPOTTED last night at the George H.W. Bush Points of Light Gala at the Ronald Reagan International Trade Center honoring Condoleezza Rice, Robert Smith and Mike and Jacquelyne Love: Sen. Dan Sullivan (R-Alaska), Rep. Darrell Issa (R-Calif.), Neil Bush, Doro Bush Koch, Lauren Bush, Jean Becker, Steve Benjamin, Arthur Blank, Christian Bray, Nick Calio, Nikki Clifton, Matthew Cutts, Chris Fetzer, Alan Fleischmann, Robert Grady, Stephanie Hall, Emily Jacobs, Ron Kaufman, Sam LeBlond, Richard Marx, Gregg Petersmeyer, James Richardson, Jennifer Sirangelo, John Stamos, Eric Tanenblatt, Dafna Tapiero, Andy and Marie Unanue, Justin Vail, Lynda Webster and Rob Wooley.

— SPOTTED at Blue Star Families’ annual celebration event last night at the U.S. Chamber of Commerce, where chefs created dishes to honor each branch of the armed forces and the history of women in the military in a culinary competition: Rep. Don Bacon (R-Neb.), Craig Newmark, Brianna Keilar, retired Maj. Gen. Charles Bolden Jr., Penny Bolden, Sheila Casey, Sheila Stevens, Lt. Gen. Telita Crosland, Jenn Crovato, Sgt. Darnell Morris and David McIntyre Jr.

WHITE HOUSE DEPARTURE LOUNGE — Lucas Acosta is leaving his role as director of broadcast media at the White House, The Messenger’s Amie Parnes scooped.

TRANSITIONS — Frank Eaton is now senior adviser for TV creative at BerlinRosen. He previously was SVP at Putnam Partners and is a longtime Democratic admaker. … Ella Wiley will be a voting rights comms strategist at the American Civil Liberties Union. She previously was a senior comms associate at the Legal Defense Fund.

BONUS BIRTHDAY: John Seibels of the House Natural Resources GOP

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California Today: San Francisco has a new slogan, and not everyone is a fan

A $4 million ad campaign with the motto "It All Starts Here" aims to repair the city's battered image.

It's Friday. Can marketing help turn a city around? Plus, an R.V. relocation order.

A view of San Francisco from the Pyramid tower.Jim Wilson/The New York Times

Walking around my San Francisco neighborhood of Glen Park the other afternoon, I saw them everywhere. New signs with the logo "It All Starts Here" hang in most windows — at the corner cafe, the bar, the bakery, the hardware store and the hair salon.

The placards, with the motto depicted like two street signs crossing at an intersection, are all part of a $4 million advertising campaign funded by the city's business leaders to try to lure new business to San Francisco and repair the city's beleaguered image.

Not everybody gets it.

"I have no idea what it's about," said Evan Ryan, a bartender at Glen Park Station. He was just happy that his bar was full Monday night as 49ers fans awaited the game before drowning their sorrows hours later after the team's shocking second straight loss.

Eric Whittington, owner of Bird and Beckett, a bookstore that hosts live jazz shows, said people behind the campaign brought signs by, but he declined to hang one. He wanted to save precious window space for advertisements about books and music.

"What does it mean?" he asked of the motto. "I'm glad it starts here, but I don't even know what it is."

I went to the source to find out.

Rich Silverstein of the San Francisco ad agency Goodby, Silverstein & Partners said leaders of Advance SF, a pro-business group, approached him in January about designing its new campaign.

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"My wife said: 'Don't do it. Marketing can't save the city,'" recalled Silverstein, 74, who's lived in San Francisco for 53 years. "I said: 'I know that. I don't believe it can. But you have to start somewhere.'"

He said he was frustrated that San Francisco's leaders can't get a handle on dirty streets, homelessness and prolific public drug use. But Silverstein, a native New Yorker, also madly loves his adopted city, bicycling every day to the Golden Gate Bridge to soak up the beauty.

He said the slogan "It All Starts Here" nods to the city's fascinating history, its track record of innovation and the fact that bringing San Francisco back to its full glory has to start somewhere. He said the street sign shape alludes to the famous intersection at Haight and Ashbury Streets.

Not every advertising executive in the city is convinced. Kyle Rios-Merwin, who co-founded the branding agency Born & Bred five years ago, said that most people already knew creative companies have started in San Francisco, and that he would have liked to have seen a focus on people's compassion in trying to solve the city's problems.

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"Maybe the tone of the campaign could have done more to highlight how some of these issues are being solved rather than reminding people that their favorite ride-sharing app or coffee company came from San Francisco," he said.

Kevin Gammon, founder of the San Francisco branding agency Teak, said that Silverstein's firm was "legendary," but that he felt the new campaign was too corporate and lacked heart. He said he was also not clear whom it's targeting.

His company was hired a few years ago by the local visitors' bureau to come up with a similar campaign and landed on: "Never the same. Always San Francisco."

"Even though it's always changing and always different, there's that soul that feels consistent," Gammon explained.

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Back in Glen Park, Paul Park, owner of Buddies Market, said he hung the sign because he liked the look of it, even if he didn't know what it means. What he's really worried about is rising rents and a shrinking customer base.

He recently scaled back his store's hours because there's less foot traffic than there was before the pandemic.

"After 8 p.m., nobody is here," he said. "How can you survive that?"

He said he welcomed any bit of help — even in the form of a window sign.

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Gov. Gavin Newsom speaking during the Great Wall Climate Dialogue in Beijing on Wednesday. Newsom is on a weeklong tour of China to push for climate cooperation.Ng Han Guan/Associated Press

The rest of the news

  • China's environment minister, Huang Runqiu, said his country wanted to strengthen cooperation with the U.S. to combat climate change, as he met in Beijing with Gov. Gavin Newsom, The Associated Press reports.
  • A United Nations report warns that there are multiple global "tipping points," including issues that are confronting California, that could lead to irreversible instability or the collapse of ecological and institutional systems, The Los Angeles Times reports.

Southern California

Central California

Northern California

  • More than 100 recreational vehicles parked along Lake Merced must be relocated by December when San Francisco's transit agency will start limiting parking there to four hours, The San Francisco Examiner reports.
Two people kayak in Morro Bay this month.Nic Coury for The New York Times

Where we're traveling

Today's tip comes from Deborah Buck, who recommends a visit to the Central Coast:

"My husband and I just came back from a trip to Morro Bay. It was exciting and fun and delicious given the restaurants in that area like the Galley for dinner and the Blue Sky Bistro for lunch, both with outstanding views of Morro Rock. We stayed in the state park at the Inn at Morro Bay, with the golf course right across the street, which my husband loved. So many wonderful trails to take in the park and a small Museum of Natural History that I always enjoy visiting.

Morro Bay is close to the Avila Hot Springs, the El Chorro Country Park and San Luis Obispo Botanical Gardens. The Discovery Trail in the park takes you into the hills with wonderful views of Hollister Peak and Morro Rock beyond. You can also easily drive to Cambria."

Tell us about your favorite places to visit in California. Email your suggestions to CAtoday@nytimes.com. We'll be sharing more in upcoming editions of the newsletter.

Tell us

Today we're asking about love: not whom you love but what you love about your corner of California.

Email us a love letter to your California city, neighborhood or region — or to the Golden State as a whole — and we may share it in an upcoming newsletter. You can reach the team at CAtoday@nytimes.com.

A person taking a hike at Bolsa Chica Ecological Reserve in Huntington Beach earlier this year.Allen J. Schaben/Los Angeles Times, via Getty Images

And before you go, some good news

Beyond the bustle of Downtown Los Angeles and the glamour of Hollywood studios, the heart of Southern California may lie in its network of scenic trails and astounding natural landscapes.

But many of the region's hikes, walks and trails, though beautiful, are inaccessible to those with limited mobility, be it people who use wheelchairs, those with physical disabilities, young children or older adults.

A new guide published this summer by The Los Angeles Times outlines eight fully accessible trails all around or within an hour's drive of L.A. Check out the best accessible trails near you, including a tree-lined path up to the Mount Wilson Observatory and a wetland walk around the Bolsa Chica Ecological Reserve in Huntington Beach.

Thanks for reading. We'll be back on Monday. Enjoy your weekend.

Soumya Karlamangla, Maia Coleman and Briana Scalia contributed to California Today. You can reach the team at CAtoday@nytimes.com.

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