Entries by Exit Strategies

Exiting Without a Plan

Even though retirement is far and away the biggest reason that business owners sell, many owners are doing little to no exit planning before going to market. The above chart shows that the smaller the business, the less likely owners are to plan. Of those owners who did plan, most started less than a year […]

M&A Glossary: Multiple

A multiple is a way to measure how much a company is worth. If a company has $2 million in EBITDA and it sells for $10 million, we say it sold at a “5 multiple.” Multiples are used as a valuation tool by analyzing the multiple similar companies obtained in a sale. For example, if […]

M&A Glossary: Indication of Interest (IOI)

An IOI is a non-binding letter used to express interest in acquiring a business. The IOI will typically include a value range, due diligence plans, a high-level proposal for deal structure, and expectations for seller transition. An IOI and an LOI are not the same thing. An IOI is like asking someone on a date, […]

Address Culture Conflict Before a Sale

As an owner, one way to maximize value in your business is to demonstrate that you’re not the smartest person in the room. In an ideal state, you work yourself out of a job, moving on to an advisory role while your management team runs day-to-day operations. With that said, it’s equally important that your […]

Exit Strategies Group Advises California Caster in Strategic Sale

California Caster, a respected and long-established industrial hardware design and distribution company located in Oakland, CA, was recently acquired by OneMonroe, an international industrial hardware manufacturing and distribution company.  Exit Strategies Group, Inc. advised the seller in the transaction. Terms of the transaction are confidential.   California Caster was founded in San Francisco more than […]

Strong Business Acquisition Prices so far in 2023

Valuations on deals completed in the first quarter of 2023 averaged 8.0x Trailing Twelve Months (TTM) adjusted EBITDA, rebounding from the 6.9x average recorded in 4Q 2022 and in line with the 8.2x average set in the third quarter. In Q1 2023, M&A transaction multiples experienced a rebound, indicating increased valuation levels compared to the […]

M&A Glossary: Virtual Deal Room

A deal room is a secure, virtual space where buyers and sellers can share and exchange confidential information related to a potential transaction. Information is typically stored and accessed through a secure online platform that allows users to view, download, and upload documents and other information as needed.     The use of a deal room […]