How Key Employees Factor into a Business Sale
One of the negotiations we get involved with as M&A advisors is retention of key employees. Nearly every private business in every industry has a few “indispensable” employees. Before taking a company to market, we work with clients to evaluate key-person dependence and develop strategies for retaining key employees. This article offers help in identifying […]
Secrets to Business Valuation – a Lesson from Curly
Remember that scene from the 1991 movie City Slickers where Curly (Jack Palance) shares the secret to life with Mitch (Billy Crystal) shortly before he dies? Curly holds up his index finger and says to Mitch that the secret to life is to figure out his one thing and then stay with it. Channeling Curly […]
Corporate Social Responsibility in Mergers and Acquisitions
Like it or not, and irrespective of our personal political ideologies, corporate social responsibility has gained in popularity in the past decade. In this article, we’ll discuss what Corporate Social Responsibility (CSR) is and what it means for private business owners from an exit strategy perspective. The Four Pillars of CSR CSR is often thought […]
Consider Your Options When Selling a Business with Real Estate
We often get asked how owning a facility (versus leasing one) affects the sale of a company, so I dug through our 17 years of business sale transactions involving seller-owned real estate to look for patterns. And the archives didn’t disappoint. I found five common deal scenarios that shed light on this question. But first, […]
Exit Strategies Group Joins Cornerstone International Alliance
Exit Strategies is pleased to announce that we have combined resources with some of the best independent M&A firms to deliver more value to lower middle market business owner clients. Cornerstone International Alliance (CIA) is a global alliance of independent M&A firms. Formed in early 2019, it is the world’s only such alliance focused exclusively […]
Why Business Owners Should Prepare to Sell Now
Reason 1: Concentration of Wealth A typical business owner has 70-80% of their wealth tied up in their business. That’s a lot of eggs to carry in one basket. On top of that, private businesses are less liquid and more risky than stocks, bonds and real estate investments. Fortunately owners can control the value and […]
Nine Warning Signs Your Buyer Can’t Close the Deal
The proof is in the pudding. It ain’t over ’til it’s over. Don’t count your chickens before they’ve hatched. Pick your cliché. Just because someone makes an offer to buy your business doesn’t mean they will close the deal. As a seller, you need to look at more than dollar signs on a purchase offer. […]
How are Discounts for Lack of Control Determined?
I recently penned a summary on valuation discounts for lack of marketability. As a follow-up, this post is about discounts for lack of control (DLOC) for the valuation of minority equity interests in operating businesses. In the business valuation context, control refers to the ability to manage or control a business. A controlling shareholder enjoys […]
Failing to Plan Your Exit is Planning to Fail
Ben Franklin is credited with saying, “If you fail to plan, you are planning to fail.” And Warren Buffet once said, “Someone’s sitting in the shade today because someone planted a tree a long time ago.” Both of these sayings are great reminders for business owners looking to exit. For most business owners, their company […]
Opportunity Zones: a Compelling Tax-Advantaged Investment for Business Sellers
Cashing in on the sale of your business is the final reward for many years of dedication and hard work. Then your CPA tells you how much you will owe in taxes. It’s a shock, but there’s a relatively new reinvestment opportunity that may help trim your tax bill … In April 2018, The U.S. […]