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Sell a Business Insights
Controlled Private Short Sale using UCC Article 9: a Winning Alternative to Bankruptcy
May 11, 2020 / in Exit Planning, Sell a Business / by Louis Cionci
As a business sale advisor with Exit Strategies Group, I help business owners obtain the best price and terms available in the market during a sale process. We sometimes encounter situations where the owner would like to sell the business, but the business is in a distressed position with the following characteristics: the fair market value of a business is less than the outstanding debt on the business, the business cash flow does not support …
Exit Strategies Group Advises Health Concerns on Sale to Life Seasons
May 5, 2020 / in News, Sell a Business / by Louis Cionci
Transaction advisory firm Exit Strategies Group served as exclusive M&A advisor to ADG Concerns, Inc. DBA Health Concerns on its successful sale to Life Seasons, Inc. Health Concerns is at the leading edge of research in herbal medicine and is known for bringing the centuries of knowledge amassed in the Chinese herbal tradition to the West. Health Concerns was the first company to manufacture Chinese herbal products in the United States for practitioners. Today Health …
Can you sell a distressed business?
April 22, 2020 / in Exit Planning, Sell a Business / by Adam Wiskind
We’ve been getting this question from more business owners over the last few weeks. As with many important questions, the answer is, “it depends”. Financial distress occurs when a firm can’t generate enough profit to meet its immediate or long-term financial obligations. If your business is consistently accumulating debt, has unseasonable and sustained increase to accounts payable, or is falling behind on payroll taxes, it is likely distressed. Buyer’s Perspective The potential to sell a …
M&A Advisor Tip: You are Not Stuck with Your Business
April 20, 2020 / in Exit Planning, Sell a Business / by Exit Strategies
Worried about a recession? Burned out? No energy to do this all again? You are not stuck. Businesses sell in all market conditions, including in uncertain times like these. Yes, we’re coming off a period of peak demand in M&A. Buyers were lined up for quality opportunities. And they stretched their target parameters in order to find something that would fit. But many of those buyers are still active. There are buyers out there who …
The Seven Stages of Selling Your Business
April 8, 2020 / in Exit Planning, Sell a Business / by Exit Strategies
Smart preparation and planning can help you build a business that’s ready to sell when you are. Ideally, you’ll start preparing for sale early in your business life-cycle. The more you know about what buyers want, and what you can expect from the market, the more options you’ll have to exit your business and maximize value upon exit. Seven Steps in the M&A sale process: 1. Status and strategy: The first step is to check …
M&A Advisor Tip: Organize Your Financials
April 8, 2020 / in Exit Planning, Sell a Business / by Exit Strategies
Buyers that pay top dollar usually expect to see clear, well-organized financial statements prepared according to generally accepted accounting principles (GAAP) and reviewed by a reputable CPA firm. If your business has more than $10 million in revenue, you should probably start investing in annual financial statement reviews at least three years prior to selling. Or, have a transaction-oriented CPA firm complete a “quality of earnings” report prior to going to market. For a referral …
Valuing a Business in Bankruptcy
April 8, 2020 / in Acquire a Business, Business Valuation, Sell a Business / by Exit Strategies
According to data collected by the U.S. Bankruptcy Courts, business bankruptcies declined from 60,750 (or 4% of total filings) in 2009, just after the 2008 financial meltdown to approximately 22,750 in 2019 (or approximately 3%).[1] With overwhelming challenges ahead as a result of the Coronavirus Pandemic, the question is not if these filings will go up over the next 12 months but by how much. Before I dig into valuing a business in bankruptcy, let’s …
Market Pulse: Selling Price vs Asking Price
March 20, 2020 / in Sell a Business / by Exit Strategies
How much do businesses actually sell for as a percentage of asking price? The following chart shows the results of this survey question from the latest Market Pulse Survey. Presented by IBBA and M&A Source in Partnership with Pepperdine University The groupings in the chart are selling price ranges for deals, in US dollars. It should be noted that most $5-50 million enterprise value companies go to market without a price. Each quarter, the M&A …
M&A Advisor Tip: Know when it is time to sell.
March 20, 2020 / in Exit Planning, Sell a Business / by Exit Strategies
When you no longer have the fight, get out of the ring. Burnout is the second leading reason business owners sell, after retirement. Many business owners hold on too long, long after their drive has gone. When that happens, the business stops growing or even starts going backward – and the value of the business declines. The best time to sell is when you’re energized and motivated by your work. If you see burnout on …
Selling Your Business to a Family Office
March 20, 2020 / in Exit Planning, Sell a Business / by Exit Strategies
Business owners looking to sell their business, or attract an investment partner, may want to add family offices to their outreach strategy. These private family firms, established by high net worth families to manage their wealth, can offer unique advantages. While family offices aren’t new, they have become more active in M&A in the last decade. In the past, family offices may have looked to private equity firms as a resource to grow their wealth, …
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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