Request a Strategy Call and we will get in touch with you
Exit Planning Insights
M&A Advisor Tip: Be ready when you are ready
July 22, 2021 / in Exit Planning, Sell a Business / by Al Statz
When a business owner says it’s time to sell, I ask, “How fast do you want to be out?” The answer I hear most is, “Yesterday.” But sellers underestimate how long the process takes. Once we sign our engagement agreement with the business owner, it takes about 9 to 12 months to sell. After that, expect a six-month to one-year transition. In an ideal world, you’d be working with an advisor 2-3 years before you …
Seller’s Market Sentiment Back to Pre-Covid Levels
July 6, 2021 / in Exit Planning, Sell a Business / by Al Statz
What a difference a year makes! Sellers of $1M+ enterprise value businesses have an advantage, with roughly 2/3 of M&A advisors and business brokers calling it a seller’s market for these larger businesses. Confidence is rising across all sectors. Market Pulse Survey – Quarter 1, 2021 Presented by IBBA & M&A Source Al Statz is the CEO of Exit Strategies Group. For more information on exit planning or to discuss a potential M&A or business …
Put Time into Planning Sale of Business
June 2, 2021 / in Exit Planning, Sell a Business / by Al Statz
Over my 19 year M&A advisory career, I have met many business owners who spent more time planning their children’s wedding, their 50th wedding anniversary, or even their fantasy football draft, than they spent planning for the sale of their business. According to the quarterly Market Pulse Report, we know that when it comes time to sell their business, less than half of all business owners plan ahead. That means that most owners wait for …
M&A Advisor Tip: Confidence in Numbers
June 2, 2021 / in Exit Planning, Sell a Business / by Al Statz
Most of our clients have CPA Compiled or Reviewed financial statements, and some go a step further with Audited statements. Reviewed financial statements are acceptable, and you can do even better with Audited statements a year or two before you sell. With validated financial accuracy, you increase buyer confidence, shorten due diligence, and help get your company sold. We’ve had buyers tell us they’ll bid a quarter to a half to a full turn more …
Exit Planning Pitfalls for Property Managers [#1 of the series]
May 12, 2021 / in Exit Planning / by Exit Strategies
Everyone knows the three most important things in real estate are location, location, and location. For property managers, it’s documentation, documentation, and documentation. Experienced property managers are all accustomed to continually documenting the relationship with tenants. Where they sometimes fall short is in maintaining their formal contractual relationship with property owners. That can become a problem when it’s time to transfer control of the business. As a former corporate lawyer, I feel compelled to give …
Ten Commandments of Successful Business Exits
May 10, 2021 / in Exit Planning, Sell a Business / by Louis Cionci
Business owners contemplating a sale may be asking the question: What are the most important principles to achieve a successful business exit? Listed below are ten practical directives to help you make better exit planning decisions and achieve a successful sale. I. I shall plan ahead. II. I shall not depend on miracles III. I shall prepare my business IV. I shall not wait for perfect timing V. I shall help buyers buy VI. I …
Market Pulse Survey – Why business owners are selling
May 4, 2021 / in Exit Planning, Sell a Business / by Al Statz
The following chart shows the reasons business owners decided to sell their businesses in 2020. As in the past, owner retirements led the way. These are the results from the Market Pulse Survey conducted in the 4th quarter of 2020. Each quarter, the M&A Source and IBBA (International Business Brokers Association), in partnership with Pepperdine University’s Private Capital Markets Project, publish the results of a survey of North American lower middle market M&A advisors and …
Spring cleaning is good for business
May 4, 2021 / in Exit Planning, Sell a Business / by Al Statz
It’s time for spring cleaning, at home and at work. I only wish my clients did a regular Spring cleaning. It would make due diligence and the whole business sale process a lot smoother. Here’s what I mean: Clean financials: I harp on this a lot. Messy numbers and casual accounting practices create headaches when it comes time to sell. Audited financials, on the other hand, can actually increase a buyer’s offer. Hopefully, you have …
Avoid the Mistake of Selling on Your Own
April 16, 2021 / in Exit Planning, Sell a Business / by Al Statz
One of our former clients, Joe, reflecting on the sale of his company said, “only those of us that have toiled at it know what it really takes to succeed in this business.” How true. Until we risk our own capital and spend years building a team, perfecting products and processes and managing through multiple business cycles, we can’t fully appreciate what it takes to succeed in a given business. Similarly, its hard for business owners, …
8 Situations in Which Setting an Asking Price for Your Business Makes Sense
March 15, 2021 / in Exit Planning, Sell a Business / by Al Statz
As M&A advisors, our objective in most sale processes involving a privately held lower middle market business is to help our client obtain the best price and terms available in the marketplace. In many of our sale engagements, we go to market without an asking price and use a broad or targeted auction format to elicit the best price and terms from multiple suitors. When buyers feel competitive pressure, they are more likely to make …