Most business acquisitions by private equity firms have been “add-on” deals lately. In private equity jargon, a large company acquisition is usually a platform acquisition, and a smaller company acquistion is most often an add-on (or “bolt-on”, or “tuck-in”) acquisition. Add-on acquisitions are complementary to and synergistic with an existing platform company held by a private equity […]
It’s a very good time to be a seller. According to a report released on October 16, 2014, U.S. small business sale transaction levels are on pace for a record-breaking year. And while the post-recession market has generally favored buyers, a shift appears underway, with sellers now receiving higher selling prices, higher percentage of asking prices […]
In privately-held business acquisition transactions, as soon as a letter of intent or contingent purchase agreement has been negotiated, the buyer’s in-depth due diligence begins. To kick-start this phase of the transaction, the buyer requests from the seller all of the information that they need to conduct their investigations. Once the buyer is satisfied, the […]
The need for business valuation arises in many circumstances ranging from dispute resolution, to estate planning, to the sale of a business to name only a few. As in all professional disciplines, it is important to hire a practitioner who is fully trained, able to discern relevant facts, and abreast of current best practices. Consider […]
One exciting aspect of working in Mergers and Acquisitions is that we are always learning. I had a recent learning experience after a colleague invited me to a meeting of The Association for Corporate Growth (ACG), an organization that provides a networking forum for M&A advisors, corporate growth professionals, private equity, finance, legal, and other […]
Today, just after a gorgeous Labor Day weekend here in Northern California, I thought I would share some encouraging news for U.S. manufacturers and everyone who serves or invests in them … The U.S. Manufacturing Purchasing Managers’ Index (PMI) — which is designed to signal changes in prevailing business conditions in the U.S. manufacturing sector — registered 58.0 in August, up […]
Business “Transaction Escrows” protect the interests of buyers and sellers, and are used extensively by transaction attorneys and brokers in California. Then there is what’s called a “Holdback Escrow” which secures post-closing obligations and adjustments. This blog introduces you to both types of escrows and how they facilitate business deals. What is a Business Transaction Escrow? […]
We are often asked about Employee Stock Ownership Plans (ESOPs) as an exit strategy. For business owners who are curious about the ESOP exit option, here are links to two recent articles that discuss ESOP basics and some of the pro’s and cons of ESOPs. Both articles are from recent issues of MERGERS & ACQUISITIONS magazine, […]
The average person doesn’t realize that selling a company is often the most gut-wrenching transaction of a business owner’s life. They’ve just spent their life building the business, it’s their largest asset, and they have no training or experience in selling a business. With that as a backdrop, here are ten practical directives that will […]
When a business owner decides to sell or transfer ownership, the owner often thinks about achieving the following three post-transaction objectives: 1) being financially independent, 2) taking care of family members, and 3) possibly a donation to a favorite charity. All three of these objectives can sometimes be met by setting up a Charitable Remainder […]
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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