Many M&A negotiations include a no-shop clause. This is a period of exclusivity when the seller cannot solicit offers from other parties. The due diligence process is expensive for buyers, so sellers sign these agreements as an act of good faith. Typically, a no-shop clause has a near-term expiration date and is only in effect […]
As a business owner, you’re likely consumed with the daily challenges of building and growing your business. The question of selling might seem like a distant concern—something to worry about years down the road. But the reality is that planning your exit and growing your business are two sides of the same coin. We’ve been […]
When it comes to selling a business, the term “goodwill” often arises. But what exactly is goodwill, and how does it impact the mergers and acquisitions (M&A) process? Goodwill is the value of a business that exceeds its tangible assets. It arises when a company is sold for more than the worth of its physical […]
Add-backs are adjustments made to a company’s financial statements to more accurately reflect its true earning potential and “normalize” its financial performance. These adjustments are typically made to the target company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) to create a metric known as “Adjusted” or “Normalized” EBITDA. Add-backs to EBITDA are expenses or […]
Exit Strategies Group is pleased to announce that we recently served as financial advisors to the owners of Custom Ag Formulators (CAF), a North American provider of customized agriculture formulations and products for growers, in the sale of CAF to ICL, a leading global specialty minerals company. Founded in 1998 in Fresno, California, CAF offers […]
I recently surveyed a dozen former business owners—many of whom were my sell-side M&A clients and some who were not. I asked them to share the advice they give to business owners who plan to sell someday and the mistakes they should avoid, and several themes emerged. Here’s what they had to say … Assess […]
Retirement is the number one reason business owners sell, but 40 to 50% of business owners sell for other reasons. For over a decade, the IBBA and M&A Source Market Pulse survey of M&A advisors and business brokers has been tracking what motivates owners to sell their businesses. And the reasons have been fairly consistent […]
Exit Strategies Group recently served as financial advisor to the owners of Kim Controls, a Minneapolis-based provider of industrial automation solutions, on their sale to Flow Control Group, a KKR portfolio company. Effective July 1, 2024, the acquisition adds talent, technical services, and market coverage to FCG’s industrial automation group. Terms of the transaction were […]
What does it feel like when you sell? “Immense satisfaction tinged with loss.” That’s how one business owner described selling his business. After putting years of hard work and sacrifice into building a successful company, many owners have a hard time letting go. Emotions run high, and those emotions can lead to flawed and regrettable […]
Beauty is in the eye of the beholder; and when it comes to selling your business, value is in the eye of interested buyers. As sell-side M&A advisors, we determine and agree on a probable selling price range with our clients, but we generally don’t set an asking price or discuss our clients’ value expectations […]
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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