Exit Strategy News & Insights

Insights, knowledge base and announcements for business owners and professional advisors

Exit Strategies Grows Up!

January 16, 2017 / in News / by Al Statz

Time flies when you’re having fun selling and appraising businesses. 2017 marks our 15th anniversary. I founded the firm in January 2002, in the wake of 9/11, coming off a 15-year management career in the industrial automation technology industry. Relying on my corporate merger and acquisition experience, financial training, and a passion for strategic deal-making; the founding was a classic case of spotting an under-served market and filling the needs in a better way. In the early years, we were primarily …

Early-Stage Tech Company Exits

January 11, 2017 / in Exit Planning, Sell a Business / by Exit Strategies

You’ve built a world-class software solution, delivered to customers as a SaaS application or web service. You’ve recruited a team and created intellectual property. Customer retention is strong and the buzz is growing in your vertical market. Each new customer acquisition represents incremental recurring revenue that falls directly to your bottom line – and the company is closing in on cash flow positive territory. Could this be the right time to sell the company? You may be thinking, I’ve barely …

U.S. Manufacturing Gears Up

January 4, 2017 / in News / by Al Statz

Here is some good news to start your year. The Institute for Supply Management announced yesterday that its PMI national manufacturing index came in at 54.7 for December 2016, which is up from 53.2 in November and is the highest monthly reading of 2016. (Any reading over 50 signals growth.) This latest Manufacturing ISM® Report On Business® shows new orders, production and employment growing, inventories contracting, and supplier deliveries slowing. The PMI is based on data compiled from …

Ten Exit Planning Benefits

December 28, 2016 / in Exit Planning / by Al Statz

Someone’s sitting in the shade today because someone planted a tree a long time ago. — Warren Buffett Few would argue that a successful retirement takes more planning for a business owner than it does for other people. Whether you intend to transfer your business to family, management or a third party, an exit plan is usually intended to produce a more successful exit and retirement. Here at Exit Strategies, an “Exit Plan” (or succession plan) …

Rising Interest Rates and Investment

December 21, 2016 / in Business Strategy, Business Valuation, News / by Exit Strategies

Since July, the benchmark interest rate, the US 10-year treasury bond, has risen from 1.35% to over 2.55%. That’s a very big move in a short-period. Post-election day the rising rate trend accelerated. We saw a similar spike in 2013, only to see rates retreat. Is it different this time? Valuation Building Block Markets seem to believe that current rates are sustainable and can keep rising given the lower tax and infrastructure spending pronouncements coming …

Exit Strategies Sells Aldetec, Inc. to Private Equity Backed Strategic Buyer

December 10, 2016 / in Exit Planning, News / by Jim Leonhard

Sacramento, California – Exit Strategies is pleased to announce the acquisition of microwave electronics manufacturer Aldetec, Inc. by U.S. Technologies, a portfolio company of Cornerstone Capital Holdings. Sold To: Aldetec, Inc. designs and manufactures integrated microwave assemblies and RF amplifiers for the commercial, military and space flight industry sectors. US Technologies (UST), of Fair Lawn, New Jersey, provides quality electronics design, manufacturing, engineering, testing, repair and refurbishment services, from complete finished units down to the …

E-commerce Business SocksRock.com Sold to Strategic Buyer

December 7, 2016 / in News / by Al Statz

San Francisco, CA – Exit Strategies is pleased to report the sale of E-commerce company SocksRock LLC to a strategic buyer. Sold To: SocksRock, LLC established in 2008, is an e-commerce business selling customized athletic gear to sports teams and to corporations for identity programs. It has a track record of revenue growth, a website with intuitive product configuration and dynamic imaging capability, and superb customer satisfaction. SZ Ventures is a Texas-based aggregator and operator …

Don’t Forget the Net Investment Income Tax when Selling a Business

November 30, 2016 / in Exit Planning, Sell a Business / by Al Statz

The Net Investment Income Tax, which our friends at the IRS put into effect in 2013, takes an extra toll on business owners who sell their businesses; and for that matter, on most higher income taxpayers and any moderate income taxpayer whose income increases suddenly in a given tax year. What is the Net Investment Income Tax? The Net Investment Income Tax (“NIIT”) is a 3.8 percent federal tax on certain income of individuals, estates …

The Best Financial Decision I Ever Made

November 3, 2016 / in Acquire a Business / by Exit Strategies

In 2007 I found myself at a crossroads. After almost twenty years on a steady career path, I felt it was time for a change. The problem was that I didn’t know what I wanted to do next. I considered going into consulting, did the mandatory networking with old contacts, and even gave serious thought about doing a start-up. But I didn’t have that one great “do what you love” or “change the world” idea. …

Exit Strategies Advises Redwood Reporting on its Sale to Litigation Services

October 19, 2016 / in News / by Al Statz

Exit Strategies, a leading California based mergers and acquisitions brokerage and business valuation firm, recently advised the owners of Redwood Reporting & Videoconferencing, LLC on the sale of their company to Litigation Services, LLC. Transaction price and terms are private. Sold to Redwood Reporting, with 13 seasoned court reporters and 4 support staff at the time of the sale, has provided professional court reporting services since 1987, and offers exceptionally strong experience with large construction defect litigation projects. Litigation …