The more your business revolves around you, the more risk buyers see. To increase business value and marketability, build a strong management team. Work yourself out of the business by developing an experienced, empowered management team. The less the business is dependent on you and your knowledge or relationships, the less risk buyers face in a […]
When it’s time to sell your business, you will likely have multiple buyer types to choose from. You could receive offers from strategic, financial, and individual buyers. As you start thinking about selling your business, think about what’s most important to you in a sale. Different buyer groups tend to operate by different playbooks. Understanding […]
Ready to sell? Talk to your spouse and trusted tax, financial and legal advisors. Beyond that, keep it a secret. Confidentiality is extremely important in almost any business sale, merger or acquisition. When stakeholders think your business is for sale, it creates dangerous uncertainty. Valuable employees start looking for other jobs, vendors tighten credit terms, […]
We stay in regular contact with private equity groups from around the country to monitor M&A market activity. Currently, the message we are hearing is that these firms are “open for business.” Private equity firms are in the business of buying, building and selling businesses. It’s how they deliver investor returns. They don’t have time […]
When the goal of a financially distressed business owner is to sell with minimum publicity, free of unsecured debt and potential liability for directors and management, the most advantageous exit path may be an Assignment for the Benefit of Creditors (ABC). Most buyers won’t acquire the assets of an insolvent entity unless the assets are […]
M&A buyers are still active in the midst of this uncertain business environment. However, they are mindful of added risks caused by COVID-19. These are some financial questions that are likely to come up in future due diligence in light of COVID-19: Did the business utilize any government relief, debt deferrals, or rent reductions? In […]
When we talk about recapitalization, we’re talking about a partial sale of a company that allows the owner to liquidate some of the value they have in their business. Typically, this involves selling a part of your equity (usually 70-80%) to a third-party, however some business owners do sell just a minority stake. Recapitalizations are […]
M&A buyers are still active in the midst of this uncertain business environment. However, they are mindful of added risks caused by COVID-19. These are some contract-related questions that are likely to come up in future due diligence in light of COVID-19: Did the business default on any third-party agreements? What are the termination rights […]
M&A buyers are still active in the midst of our uncertain environment. However, they are mindful of added risks caused by COVID-19. These are some technology-related questions that are likely to come up in future due diligence due to COVID-19: Do employees have the ability to work remotely – without frustrating workarounds? Does the IT […]
M&A buyers are still active in the midst of uncertainty. However, as you would expect, they are mindful of added risks caused by COVID-19. Talent-related questions that may come up in future due diligence due to COVID-19: Did layoffs or other cuts impact the business’s ability to retain key employees? Did the business comply with […]
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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