For What It's Worth: The Exit Strategies Blog

Insights, news and announcements for private business owners and their professional advisors

FOR WHAT IT’S WORTH: The Exit Strategies Blog

Which Business Valuation Will Facilitate Negotiation?

You are getting ready to sell your business so you must ask yourself some questions:  When do you want to exit?  Who is the most likely buyer?  Is the business adequately prepared to sell?  How does it compare to other like businesses?  And of course, what’s it worth? All business valuation relies on some prediction […]

Hidden Problems with the Price Formula in Your Buy-Sell Agreement, and Solutions

It is tempting to select a formula approach to pricing shares when business partners come and go. After all, a formula is easy for everyone to understand, and in theory at least, inexpensive to apply. If you’re satisfied with getting to a price, any price, then congratulations – job done. But the goal is to […]

Why Start-Up when you can Acquire a Business?

The successful start-up entrepreneur has been glamorized in the media through reality shows like Shark Tank and wide spread accounts of people that have become fabulously wealthy growing a business that started with a kernel of an idea. However it’s no secret that the rate of start-up failure is notoriously high, according to the bureau […]

Make No Mistake: The IRS is Serious About Qualified Appraisals and Appraisers

The IRS and the Tax Courts are serious about requiring taxpayers to properly determine the value of non-cash estate assets, gifts and charitable contributions. To avoid having the value of an inherited, gifted or donated privately-held business interest challenged or rejected by the IRS, obtain a qualified business appraisal (valuation) from a qualified business appraiser. The […]

Is 2017 a good year to sell my company?

Sellers often ask us if it is a good time to sell their business. My response is usually, “yes, but it depends”.  The optimum time to sell any particular business depends on a lot of factors. First of all, timing depends on the company: How are its business fundamentals? Is it growing? Flat? Shrinking? Is […]

Exit Strategies helps ProtoFab Expand its Prototyping Capabilities in the Northern California Machining Services Market

Exit Strategies recently advised on the merger of two closely-held Northern California precision machining companies. Founded in 1996 by Grant Kerr, GMAN Precision LLC is a full-service precision machine shop specializing in complex machined parts and services for R&D, prototyping, and preliminary production work. Its markets include aerospace & defense, biotech, electronics, energy, food processing […]

Exit Strategies Advises IRR San Francisco-Sacramento on its Sale to BBG

Exit Strategies, a California based mergers and acquisitions (M&A) brokerage and business valuation firm, recently advised the owners of Integra Realty Resources of San Francisco and Sacramento on the sale of their Northern California commercial real estate valuation company to BBG, Inc. BBG ranks among the largest real estate valuation and assessment firms in the […]

Do investment bankers, M&A advisors, business brokers and transaction intermediaries actually add value? And if so, how?

Sophisticated repeat sellers of businesses such as private equity groups clearly understand the value that an M&A advisor adds, since virtually all of them hire one when selling a portfolio company. On the other hand, business owners who are selling for the first time haven’t experienced the value that a capable intermediary can add, which […]

Selling a Business with Recurring Revenues

What percentage of your company’s revenue is recurring?  Many of my M&A brokerage clients are companies with naturally recurring revenues. Recurring revenue business models are attractive to strategic and financial buyers, for good reason. Recurring revenues are predictable, and require little or no ongoing sales effort. Buyers are interested in purchasing businesses where revenue is predictable, and […]

Do Your Business Emails Convey Professionalism?

Normally we blog about M&A or Business Valuation issues, but this week I want to address email effectiveness, a subject important to all business people considering the tsunami of email messages most of us receive each day (an estimated 121). I recently read an article from the Harvard Business Review that succinctly focused on important do’s […]

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