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Exit Strategies Group Announces the Sale of Catalyst UX
October 31, 2022 / in News, Sell a Business / by Roy Martinez
September 30, 2022 (Silicon Valley, CA) Exit Strategies Group advised Catalyst UX, a leading provider of User Experience design and development, on its recent sale to Unosquare. Headquartered in Portland, Oregon with offices in the USA, Mexico, and the UK, Unosquare builds custom software – and the required engineering teams – for cancer diagnostics technology, healthcare, fintech, and high-tech companies. Unosquare uses a proven model to provide fully Agile software engineering teams, BI, staff augmentation, …
Why 75% of Small Businesses Won’t Sell
October 12, 2022 / in Exit Planning, Sell a Business / by Al Statz
Tom West is considered by many to be the founder of modern-day business brokerage. A few years back, he calculated the percent of small businesses on the market that actually sell. For small businesses, those with sales of $10 million or less, he figured fewer than 25% actually transition to a new owner. That failure rate is shocking, and all too accurate. A lot of factors drive down the 25% success rate, but here are …
Deal Killers: The I-Do-Everything Seller
October 12, 2022 / in Exit Planning, Sell a Business / by Al Statz
Some sellers come down with a dangerous case of “Look how great I am” when they meet potential buyers. They say things like, “I did this. That was my idea. I’m in charge of that. Or, I’m the one driving growth.” And if you have a valuable business that’s attracting buyers – you built something great! But… When it comes time to sell your business, you should be the least important part of the equation. …
Exit Strategies Group Advises on Successful Sale of Walker Industrial
September 1, 2022 / in News, Sell a Business / by Al Statz
Exit Strategies Group, Inc. is pleased to announce that it recently served as exclusive M&A advisor to the owners of Walker Industrial in their successful sale to Graybar. Deal terms were not disclosed. Founded in Newtown, Connecticut in 1977, Walker Industrial is a value-added distributor of industrial automation products in New England and online. Founder Jack Ryan says this of his experience working with Exit Strategies Group, “Their understanding of our industry and our business …
Why boomer business owners should watch M&A cycles
August 18, 2022 / in Business Strategy, Exit Planning, Sell a Business / by Al Statz
Approximately 20% of private business owners are over the age of 65. Another 30% are between the ages of 55 and 64, according to estimates from the Census Bureau Annual Business Survey. If we’re going by age trends alone, that suggests roughly half of America’s businesses will transition ownership in the next five to 10 years. This will be the largest transfer of wealth the nation has ever seen in such a short period of …
M&A Advisor Tip: Niche companies can bring top dollar
August 18, 2022 / in Business Strategy, Sell a Business / by Al Statz
It’s often better to be #1 or #2 in a smaller/narrower market than a minor player in a larger/broader market. By targeting and dominating a distinct segment of a market, you help ensure that potential customers think of you first (brand recognition) and continually choose you, again and again. Dominant players usually have lower cost of customer acquisition, first call/last look with customers, and other advantages that drive profit margins up and accelerate growth. Niche …
Exit Strategies Group Initiates the Acquisition of Ibex Engineering by Motion Solutions
August 12, 2022 / in News, Sell a Business / by Al Statz
Exit Strategies Group has advised Motion Solutions, a leading provider of custom engineered positioning systems and a portfolio company of Frontenac, on the recent acquisition of Ibex Engineering. Based in Newbury Park, CA, Ibex Engineering is a manufacturer of precision linear and rotary positioning systems for original equipment manufacturers. The partnership will give Motion Solutions even greater access to the ultra-precision end of the market and bring advanced automated manufacturing capabilities, and give Ibex more …
M&A Advisor Tip: F-reorganization
July 22, 2022 / in Exit Planning, Sell a Business / by Al Statz
Deal structure can have a big impact on your after-tax proceeds. The right structure can help you retain more of the sale price. For example, an F-reorg is a tax efficient method that allows you (the seller) to rollover equity into the buyer’s new entity without paying taxes on the rollover amount. Without using an F-reorg, you might sell 100% of the company and get taxed on that full amount (ouch!) before reinvesting some of …
Market Pulse – Q4 2021
June 28, 2022 / in Exit Planning, Sell a Business / by Al Statz
Financing Deals in 2021 Presented by IBBA & M&A Source Deal financing has not changed significantly since before the pandemic. On average, sellers continue to receive 80% or more of total consideration as cash at close. (Cash at close includes senior debt and buyer equity.) Seller financing accounts for 15% or less of most deals. For advice on exit planning or selling a business, contact Al Statz, CEO of Exit Strategies Group, Inc., at alstatz@exitstrategiesgroup.com. Exit Strategies …
M&A Advisor Tip: Employee retention adds business value
June 28, 2022 / in Business Strategy, Sell a Business / by Al Statz
“To win in the marketplace, you must first win in the workplace.” Those words of Doug Conant, former CEO of Campbell Soup Company, ring particularly true today. The talent market was tight before the pandemic, but now we’re in a critical state. Finding employees is a challenge for every company. And if you’re selling your business, it might be the buyer’s top concern. Employee issues buyers care about right now: turnover, training, cross-coverage, salary/wage increases, …