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Exiting Without a Plan
February 2, 2024 / in Exit Planning, Sell a Business / by Exit Strategies
Even though retirement is far and away the biggest reason that business owners sell, many owners are doing little to no exit planning before going to market. The above chart shows that the smaller the business, the less likely owners are to plan. Of those owners who did plan, most started less than a year before putting their business on the market. Follow these links for more information on Exit Planning Benefits, common Exit Options, and …
Seller Sentiment Declined in 2023
January 17, 2024 / in Acquire a Business, Exit Planning, Sell a Business / by Exit Strategies
A seller’s market is when sellers feel they have an advantage or it’s a good time to sell, for instance when demand exceeds supply and there are more interested, active buyers than there are quality deals on the market. In a seller’s market, buyers compete in order to win deals. This typically translates to increased values and more favorable deal terms for the seller. The results of the latest Market Pulse Survey (Q3 2023) show …
Expect M&A to Recover in 2024
December 19, 2023 / in Exit Planning, Sell a Business / by Al Statz
Global M&A deal value nearly reached a 10-year low in Q3 2023 (Q2 2020 excepted). Deal count and total deal values both declined, as shown in this graph produced by Pitchbook. And these declines were evident across almost all most industry sectors and among all types of acquirers and sellers. However, several factors are pointing to a recovery in M&A activity in 2024. The global total of $1.4 trillion in unspent PE dry powder is …
North American M&A Activity
December 15, 2023 / in Exit Planning, Sell a Business / by Ignacio Ochoa
As business owners continue to toggle with the idea of selling their business, they often ask us, when is the perfect time to sell? Are current market conditions going to give me the return I am looking for? The graphic above shows M&A activity over the past decade. As you can see, the amount of deals performed each year have remained flat for most of this time period. Instead of attempting to time the market …
M&A Glossary: Multiple
December 15, 2023 / in Exit Planning, Sell a Business / by Exit Strategies
A multiple is a way to measure how much a company is worth. If a company has $2 million in EBITDA and it sells for $10 million, we say it sold at a “5 multiple.” Multiples are used as a valuation tool by analyzing the multiple similar companies obtained in a sale. For example, if a similar business sold in your industry for 6x EBITDA, valuation analysts will use that as an indicator in predicting …
How to avoid being surprised by your business valuation
December 11, 2023 / in Business Valuation, Exit Planning / by Exit Strategies
A significant number of business owners do not know how much their business is worth. That can be a source of conflict in the face of unfortunate events such as a divorce or a partnership separation. But it can be even more painful when the business owner plans to retire, only to find out the business isn’t worth as much as they expected. These owners may have harbored lofty expectations based on personal attachment, …
M&A Glossary: Indication of Interest (IOI)
December 11, 2023 / in Sell a Business / by Exit Strategies
An IOI is a non-binding letter used to express interest in acquiring a business. The IOI will typically include a value range, due diligence plans, a high-level proposal for deal structure, and expectations for seller transition. An IOI and an LOI are not the same thing. An IOI is like asking someone on a date, while an LOI is closer to an engagement ring. For advice on exit planning or selling a business, contact Al …
Address Culture Conflict Before a Sale
October 26, 2023 / in Exit Planning, Sell a Business / by Exit Strategies
As an owner, one way to maximize value in your business is to demonstrate that you’re not the smartest person in the room. In an ideal state, you work yourself out of a job, moving on to an advisory role while your management team runs day-to-day operations. With that said, it’s equally important that your goals and values are in sync with your managers’. When selling a business, you want to show buyers a positive …
Are You an Expert at What You Do?
October 16, 2023 / in Business Strategy, Business Valuation / by Joe Orlando
So what is an expert and, more importantly, are you one? The term “expert” has many definitions. For anyone who has written a wedding toast or sat through a valedictorian’s speech you know how the next sentence starts…Webster defines an Expert as “one with a special skill or knowledge representing mastery of a particular subject.” If you click through the link you will notice an obsolete definition for the adjective: experienced. This distinction is important …
Selling Your Business to an Existing ESOP is a Win-Win
October 5, 2023 / in Exit Planning, Sell a Business / by Adam Wiskind
While selling your business to a newly formed Employee Stock Ownership Plan (ESOP) is an intriguing and rewarding exit path, forming an ESOP can be complex and expensive, and is not appropriate for all businesses. But, what if you could sell your business to an existing ESOP company, allowing you to secure your financial future, secure the future success and legacy of your company, and benefit your employees? This is a real possibility for many …
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.
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