Entries by Al Statz

Burnout drives business owners to sell their companies

Business owners are burned out, worn out, and getting out. More than 1 in 4 business owners who put their business on the market this spring did so because of burnout. That’s according to a first quarter survey of business brokers and M&A advisors conducted by IBBA and M&A Source. Retirement still leads as the […]

M&A Advisor Tip: Be ready when you are ready

When a business owner says it’s time to sell, I ask, “How fast do you want to be out?” The answer I hear most is, “Yesterday.” But sellers underestimate how long the process takes. Once we sign our engagement agreement with the business owner, it takes about 9 to 12 months to sell. After that, […]

Know the 3 types of business buyers and what motivates them

When selling your business, you may receive offers from three kinds of buyers: Individual, financial, and strategic. Here’s a look at the most common buyers and where their motivations lie. Individual buyer: A first time buyer looks at the business to get out of corporate America and control their own destiny. Some of these buyers […]

Seller’s Market Sentiment Back to Pre-Covid Levels

What a difference a year makes! Sellers of $1M+ enterprise value businesses have an advantage, with roughly 2/3 of M&A advisors and business brokers calling it a seller’s market for these larger businesses. Confidence is rising across all sectors. Market Pulse Survey – Quarter 1, 2021 Presented by IBBA & M&A Source Al Statz is […]

M&A Advisor Tip: Expand the moat, reshape the hourglass

Acquisitions work best when they accomplish one of two goals: expand the moat or reshape the hourglass. Expanding the moat means leveraging your core advantage. The more you can strengthen that advantage, the wider the moat around your company, protecting it from competitive forces. As for the hourglass, its narrowest point is your company’s primary […]

Put Time into Planning Sale of Business

Over my 19 year M&A advisory career, I have met many business owners who spent more time planning their children’s wedding, their 50th wedding anniversary, or even their fantasy football draft, than they spent planning for the sale of their business. According to the quarterly Market Pulse Report, we know that when it comes time […]

M&A Advisor Tip: Confidence in Numbers

Most of our clients have CPA Compiled or Reviewed financial statements, and some go a step further with Audited statements. Reviewed financial statements are acceptable, and you can do even better with Audited statements a year or two before you sell. With validated financial accuracy, you increase buyer confidence, shorten due diligence, and help get […]

M&A Advisor Tip: Go ugly early

We have a common saying: “Go ugly early.” When you’re selling a business, put issues on the table right away. Whether you’ve just lost a customer, your backlog isn’t what it was, or you’re operating at capacity—be up front. Providing clarity around your business flaws serves two purposes. First, it makes the whole process more […]

Market Pulse Survey – Why business owners are selling

The following chart shows the reasons business owners decided to sell their businesses in 2020. As in the past, owner retirements led the way. These are the results from the Market Pulse Survey conducted in the 4th quarter of 2020. Each quarter, the M&A Source and IBBA (International Business Brokers Association), in partnership with Pepperdine […]

Spring cleaning is good for business

It’s time for spring cleaning, at home and at work. I only wish my clients did a regular Spring cleaning. It would make due diligence and the whole business sale process a lot smoother. Here’s what I mean: Clean financials: I harp on this a lot. Messy numbers and casual accounting practices create headaches when […]