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Sell a Business Insights
2016 Promises to be a Banner Year for Mergers and Acquisitions
December 14, 2015 / in Sell a Business / by Al Statz
Deciding how and when to retire is one of the toughest decisions in a business owner’s life. Selling to a strategic buyer, investment group or management team represents the culmination of years of hard work and investment. Going to market when the owner is personally prepared, and the business is ready, and market conditions are conducive offers the best opportunity to maximize results. M&A activity in 2015 has been strong and 2016 market conditions look …
Defending Your Price
November 15, 2015 / in Sell a Business / by Don Ross
A critical component in any business transaction, whether it be a simple sale of a used car or a complex transfer of ownership of a business, is usually PRICE. The art of “the deal” is dependent upon the two parties arriving at a price they can both live with. In both cases, each party must persuasively defend their price. Market valuations are often based upon a multiple of past and future earnings. Multiples usually fall …
Where’s the Seller Tsunami?
October 27, 2015 / in Exit Planning, Sell a Business / by Al Statz
The Wall Street Journal published an article this month titled “The Missing Boom in Small-Business Sales — An expected rush in sales of small firms by the baby boomer generation has yet to materialize.” The article points out that despite predictions that a flood of private businesses would be coming up for sale as baby boomers reach retirement age, many of these owners are holding on longer than expected. We’re seeing the same thing here at Exit Strategies. …
The Significance of Disclosure in a Business Transaction
October 9, 2015 / in Acquire a Business, Sell a Business / by Don Ross
Full disclosure by buyer and seller is a vital component in any successful business sale/purchase transaction. In a small business transaction, buyer and seller disclosure statements are customarily exchanged and reviewed before or during the due diligence process. Hopefully there are no significant surprises at that point and the transaction proceeds smoothly. When the buyer is an individual, the buyer’s disclosure statement generally focuses on the buyer’s personal, professional, and financial background and reorganization plans. …
SBA Loans: Capital for Small Business Acquisitions
September 23, 2015 / in Acquire a Business, Sell a Business / by Bob Altieri
So you’re thinking of selling your business and prefer to be cashed out rather than be paid in installments over time. Uncle Sam wants to see your business continue as a job creator, and hence, works with lenders to make attractive loan terms available to business buyers, on loans up to $5 million. US Small Business Administration (SBA) loans come in two types: business loans – type 7(a), and real estate loans – type 504. According to Bob Porter of …
Event: Helping Business Owner Clients Achieve More Valuable Exits
September 16, 2015 / in Exit Planning, News, Sell a Business / by Al Statz
When: September 22, 2015 Where: San Rafael, California Host: CalCPA San Francisco-Marin Discussion Group As baby boomer owners and shareholders of privately-held businesses reach retirement age and get serious about exiting ownership, they face many new questions and challenges and turn to their professional advisors, often their CPA, for solutions. Based on his experience helping over 100 companies successfully sell or transfer ownership to partners, management or the next generation, Exit Strategies’ founder Al Statz will …
Why use a professional M&A advisor when selling your business?
September 9, 2015 / in Sell a Business / by Louis Cionci
Business owners contemplating a sale of their business sometimes wonder why they should use a professional M&A advisor. Owners may ask themselves: Why do I need an M&A advisor to sell my business? Can’t I just do it myself and save a significant amount of money in fees? Owners can frame the decision to use a professional M&A advisor in terms of a cost-benefit analysis. What are the benefits to me? What are the costs …
Marketing a Business: The Need for Confidentiality
August 20, 2015 / in Acquire a Business, Sell a Business / by Don Ross
Maintaining confidentiality during the M&A sale process is a critical factor in successful business transactions. At the onset, during the marketing phase of a business sale, you are walking a tightrope between those you want to inform and those you don’t. Confidential information is shared only with qualified buyers who have evidenced professional and financial capacity. Information is withheld from those, who by virtue of their relationship with the seller’s business, could prove detrimental …
What is a Recapitalization Exit Strategy?
August 14, 2015 / in Exit Planning, Sell a Business / by Al Statz
One of the exit strategies available to company owners is called a recapitalization, or “recap”. In a recapitalization, an investor (usually a private equity firm) purchases an equity interest in your company using a combination of cash and debt financing. They expect to grow the company and earn an attractive return on their cash investment when they sell the company at a higher price in 3-7 years. Their value creation strategy usually involves initiatives to …
How Well Do You Know Your Exit Options?
July 26, 2015 / in Exit Planning, Sell a Business / by Exit Strategies
You have built a business that provides a strong income and comfortable lifestyle. However, if you are like most business owners you haven’t made the time to know the range of options you have to successfully exit the business and transfer your wealth. The tax, legal, valuation, deal structure, and insurance considerations are many. Even if you had the time, where do you begin? Before you can evaluate any of these options, you must first …
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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