If you’re an owner that is not ready to retire but wants to realize a portion of the value of your firm that you have worked so hard to build, then maybe you should consider selling a portion of the business. Or as we say in the trade “Take Money Off the Table.” Fortunately, the private [...]
By Jeff Swiggett, CBI, M&AMI In my years of M&A Advisory work I have been involved with many transactions where the buyers, who are often Private Equity Groups, contract with an accounting firm as a part of the due diligence process to generate a Quality Earnings (QE) Report for the acquisition. As a seller, it [...]
The Market Pulse is a quarterly report based on survey results jointly released by M&A Source and the International Business Brokers Association. View or download the full report here. The second quarter report for 2018 boasted: "It's a remarkable time to sell a business. Roughly 21% of advisors say 2018 is the best year [...]
Manufacturing companies have become attractive acquisitions for both strategic and financial buyers. Many buyers view the sector as one where the U.S. is undergoing a renaissance and the long-term trends bode well for it. Any manufacturing company therefore attracts a good deal of interest when it comes on the market. Despite all of this though, [...]
By Jeff Swiggett, CBI, M&AMI Whether or not a company owner is ready to sell, I always recommend that they seek an Opinion of Value (OPV). It serves as a useful benchmark for their businesses and is the first step in developing an exit strategy. A firm like ours, routinely provides OPVs at no charge. [...]
We've been forecasting a wave of business sales to hit the market as Baby Boomers move to retirement for some time now - and now it's here. The market has never been hotter with the business sales breaking records, quarter after quarter. Baby Boomer retirements and a strong economy with rising business revenues have been [...]
The process of selling a business is complex and the potential for mis-understandings is great. One way to minimize these is to craft a detailed offer that addresses key issues. Beyond a simple term sheet which spells out the structure of an offer in a vague way, it is important to further define key [...]
In this third part of our series on Private Equity Groups (PEGs), we will examine how PEGs perceive value. But first, we must define what it is that PEGs are valuing. In almost all cases, when a PEG makes an offer for a company it is based on the Enterprise Value of the firm. [...]
In this second part of our series explaining the role Private Equity Groups (PEGs) play in the lower middle transaction market, we review how PEGs structure investments in companies. Generally, PEGs seek to make investments as one of two types; a platform investment where the company exists as a stand-alone entity that is [...]
When M&A advisory firms such as ours engage with owners to sell their business, one of the first steps of the process is to identify what type of buyer would be interested in the acquisition. In general, there are always three types of buyers; financial buyers interested solely in the returns of the opportunity, [...]
