California’s AB5 Law May Impact Small Business Values
Assembly Bill 5 (AB5), signed into law last month by governor Gavin Newsom, will impact the valuation of many small businesses in California that have grown to depend on independent contractors. For impacted owners intending to sell in the near term, this new law may require a change of plan. The new law, which goes into […]
Ten Factors that Affect the Cost of a Business Valuation
In the world of pricing, there are simple models (e.g. cost plus a profit markup) and complex models (e.g. dynamic pricing algorithms based on real time supply and demand). Anyone who has ever purchased an airline ticket online knows that flight pricing is impossible to decipher. Fortunately, we can offer greater transparency and consistency on […]
Why business transactions don’t close: Signs of a flaky Buyer/Seller
Selling or buying a business is time consuming, emotional and stressful, and having a deal fall through can be demoralizing. But the reality is that only a fraction of potential business acquisitions actually close. Many deals never really get off the ground. Even deals that make it to the letter of intent (LOI) phase often […]
Understanding the Value of Intangible Assets
As a follow-up to our recent post on profiting from intangible assets in a business sale, this post introduces intangible asset valuation. As our last post outlined, “intangible assets are identifiable, non-physical in nature. They are something you can describe, document … and, most importantly, transfer.” Once identified, there are several ways to value intangible […]
Exit Strategies Advises Olympus Controls on Sale to Applied
PORTLAND, OR (August 22, 2019) — Exit Strategies Group, Inc. is pleased to announce that Olympus Controls Corp. has been acquired by Applied Industrial Technologies. We represented Olympus and its shareholders as their exclusive M&A advisor. Established in 1998, Olympus Controls is a leading distributor of world-class machine automation products focused on assemblies and engineered […]
Profit from Intangible Assets in a Business Sale
The sale of a business includes intangible assets. This article explains what intangible assets are and how articulating, supporting and protecting them enhances business sale outcomes. Let’s get started. What is an Intangible Asset? Intangible assets are things that are non-physical in nature that you can identify, describe, document (e.g. a contract, list, logo, drawing […]
Phase I Environmental Assessment in M&A Transactions
A Phase I environmental site assessment is commonly required by buyers and lenders in merger and acquisition transactions that include commercial real estate. One may even be called for when the target company (seller) uses or stores hazardous materials at a leased facility. Sellers are generally rewarded for conducting a Phase I assessment before taking […]
Roundup of Recent Sale Transactions
Sitting down and writing quality articles on business valuation, exit planning, mergers and acquisition strategy has taken a back seat this year, thanks to a strong M&A market. In this post I will recap many of the transactions for which Exit Strategies (ESGI) provided sell-side advisory services during the first half of 2019. I haven’t […]
How a Discount for Lack of Marketability (DLOM) is Determined
In a prior chapter of my professional career, I focused on equity security valuations for tax and financial reporting purposes. I led a team of valuation experts who determined the strike price of options granted to employees of up and coming technology companies on their way to IPO. For most, that strike price represents the […]
The Sale of a Business May Actually Excite Employees
Many sellers worry that employees might “hit the panic button” when they learn that a business is up for sale. Yet, in a recent article from mergers and acquisitions specialist Barbara Taylor entitled, “Selling Your Business? 3 Reasons Why Your Employees Will Be Thrilled,” Taylor brings up some thought-provoking points on why employees might actually […]