Request a Strategy Call and we will get in touch with you
Exit Planning Insights
When is the Right Time to Sell My Business?
October 11, 2017 / in Exit Planning, Sell a Business / by Al Statz
BOOK REVIEW — I don’t recall the last time I recommended a book, but today I feel compelled to tell business owners about an excellent new book titled, “When is the Right Time to Sell My Business?” This book not only helps you decide when to sell your business, but will also help you understand its value from the perspective of willing buyers, increase its value and marketability, and choose and plan your best exit …
Forbes Article: Which Is Better, A Financial Buyer Or A Strategic Buyer?
October 4, 2017 / in Exit Planning, Sell a Business / by Al Statz
I thought would share this brief Forbes article that came across my transom early this morning. I generally agree with author John Warrillow’s comments on Strategic versus Financial buyers. If your goal is to maximize value and liquidity today, and you’re not looking for an equity partner to help you build longer term enterprise value, a strategic buyer generally produces the best outcome. Having multiple strategic buyers at the negotiating table as a result of …
Exit Planning: Meaning and purpose drives sustainable business growth
September 26, 2017 / in Business Strategy, Exit Planning / by Al Statz
Several years ago I had the opportunity to work on an acquisition assignment for Mitsubishi Electric, one of the multinational business units of the Mitsubishi group of companies. While doing research to better understand my client’s organization, I found an inspiring article that quoted Tachi Kiuchi, Mitsubishi Electric’s managing director at that time… “Are the needs of the corporation and the world in conflict? In the long run, they can’t be. Today, 600 million of the Earth’s …
Preparing to sell? Why clean financial records are important.
September 20, 2017 / in Exit Planning / by Exit Strategies
Most business owners don’t like to spend any more time on financial statements than they have to. Trust me, I was one of them! But, when it comes time to prepare a business for a potential sale, owners need to get serious because having clean financial records is one of the most important factors in concluding a successful business sale or merger. What do I mean by clean financial statements? First, all relevant business transactions …
Is Private Equity the Right Solution for Your Exit?
September 13, 2017 / in Exit Planning, Sell a Business / by Al Statz
Is Private Equity the Right Solution for Your Exit? Private Equity Groups (PEGs) are disciplined buyers of lower middle-market companies. Most have cash funds and lender relationships in place for the right acquisition opportunities. PEGs often recapitalize a company, where they purchase a majority or minority interest. They bring growth capital and business acumen to unleash the company’s full potential. A recapitalization gives the owner substantial liquidity now, and a second hopefully larger bite of …
Six Reasons NOT to Skim
August 9, 2017 / in Business Strategy, Exit Planning, Sell a Business / by Don Ross
Pulling unreported cash receipts out of a business is indefensible and unwise under any circumstances, but particularly if the owner expects to exit in the next 3-5 years. All of us during our childhood were offered the parental edict: “Don’t do it, you are only hurting yourself.” So “why”, you may ask . . . now that you are a grown adult, “should I not skim?” Many reasons immediately come to mind and I am certain …
Buy Low, Sell High
June 13, 2017 / in Exit Planning, Sell a Business / by Exit Strategies
Timing is everything. Almost everyone is familiar with the world’s greatest tip to stock investors, “buy low, sell high.” These simple words of wisdom are equally useful to private business owners; however, sage advice is not always easy to follow in the same moment you’re reaping the benefits of high profitability. With the current bull market in its eighth year, the lower middle market is economically healthy across many industries. I talk to business owners …
Goethe on Exit Planning
June 2, 2017 / in Business Strategy, Exit Planning / by Al Statz
Early this morning at my Rotary meeting I heard a quote that struck a chord with me. Our speaker, Stephan Stubbins, recounted the story of how he co-founded a successful theater company that helped save one of our local state parks. Once Stephan and his partners quit their jobs and fully committed themselves to starting a theater company, things started to happen for them. The quote he shared is by Johann Wolfgang von Goethe ( 1749 – 1832) the prolific German …
Which Business Valuation Will Facilitate Negotiation?
May 22, 2017 / in Business Valuation, Exit Planning / by Exit Strategies
You are getting ready to sell your business so you must ask yourself some questions: When do I want to exit? Who are the most likely buyers? Is my business adequately prepared to sell? How does it compare to other like businesses? And of course, what’s my business worth? All business valuation relies on some prediction of the future. Business appraisers apply a variety of adjustments to financial statements, theoretical constructs and historical data to …
Make No Mistake: The IRS is Serious About Qualified Appraisals and Appraisers
May 3, 2017 / in Business Valuation, Exit Planning / by Al Statz
The IRS and the Tax Courts are serious about requiring taxpayers to properly determine the value of non-cash estate assets, gifts and charitable contributions. To avoid having the value of an inherited, gifted or donated privately-held business interest challenged or rejected by the IRS, obtain a qualified business appraisal (valuation) from a qualified business appraiser. The IRS defines a qualified appraisal as one that: is performed in accordance with generally accepted appraisal standards; meets the relevant requirements of …
Exit Strategies Group, Inc. is a leading provider of business sales and acquisitions, business valuations, and exit planning services for family owned and closely-held companies since 2002.
DRE #01878920
Member of
