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How Well Do You Know Your Exit Options?
July 26, 2015 / in Exit Planning, Sell a Business / by Exit Strategies
You have built a business that provides a strong income and comfortable lifestyle. However, if you are like most business owners you haven’t made the time to know the range of options you have to successfully exit the business and transfer your wealth. The tax, legal, valuation, deal structure, and insurance considerations are many. Even if you had the time, where do you begin? Before you can evaluate any of these options, you must first …
Asset Appraisals May be Needed to Support a Business Valuation
July 26, 2015 / in Business Valuation, Sell a Business / by Jim Leonhard
I recently valued a number businesses that required the appraisal of certain tangible assets, such as real estate and equipment – in one case its was an extensive library of manuals and maintenance specifications for a service business. At what point do we look for a appraisal specialist with particular expertise to value such assets? The simple answer is, it depends on materiality. If it is clear that the business enterprise value is well …
A Pyrrhic Victory
July 4, 2015 / in Sell a Business / by Don Ross
A Pyrrhic Victory is defined as a victory that is offset by staggering losses, to the extent that the victor incurs losses that are equal to or greater than those of the adversary. Its origin dates back to Pyrrhus, the king of Epirus (now part of present day Greece) who defeated Roman armies at Asculum in 280 B.C. and suffered such heavy losses of troops and commanders that he was unable to amass new officers …
Exit Strategies: a Speaking Resource
June 24, 2015 / in News / by Jim Leonhard
Professional Speaker for Your Next Meeting, Conference or Webinar Exit Strategies’ professional advisors regularly present insightful and timely information on business valuation, succession planning, and mergers and acquisitions to business owners and their advisors, including attorneys, CPA’s and wealth managers. For example, Jim Leonhard was invited to give a presentation on July 8th to the California Society of CPA’s – Management of an Accounting Practice (MAP) entitled, “Avoiding Landmines in Buy-Sell Agreements: A Business Valuation …
Exit Strategies Sells ExpressPCB to Strategic Buyer
June 13, 2015 / in News / by Al Statz
Exit Strategies recently sold California-based ExpressPCB, North America’s leading supplier of custom printed circuit boards for prototyping and low volume production. Founded in 1998, ExpressPCB pioneered the market for quick-turn circuit boards using proprietary electronics design software and one-click ordering. For Sunstone Circuits, an Oregon-based printed circuit board fabricator, the acquisition is synergistic and accretive. Deal terms are confidential. Exit Strategies advised ExpressPCB’s owners through the entire M&A process, including valuation, offering memorandum preparation, identifying …
Vaguely Right or Precisely Wrong about Cash Flow
June 3, 2015 / in Business Valuation, Exit Planning / by Al Statz
Warren Buffet once quoted the economist John Maynard Keynes, “I would rather be vaguely right, than precisely wrong,” in describing how he determines the appropriate cash flow measure of a company. Indeed, determining the value of a business is not a precise exercise. However, neither is the process random guesswork. After assessing the facts and circumstances of the business, the appraiser’s goal is to find a value that represents what hypothetical or actual market participants …
Avoid Seller Let Down
May 27, 2015 / in Sell a Business / by Don Ross
The “Let Down” is commonly a reflexive response to imminent success of a stated objective. Recently, in an NBA playoff series between the Los Angeles Clippers and the Houston Rockets , Houston defied the odds by winning the last three games to take the series 4 games to 3. The pivotal game was game 6 when Houston, down by 19 points with 14:30 remaining, outscored Los Angeles 49 – 18. The final and deciding game …
Business Acquisition Financing: What Lenders Want
May 12, 2015 / in Sell a Business / by Al Statz
In 13 years of selling private businesses, financial leverage has been a consistent success factor for us in expanding the pool of buyers and closing deals. Fortunately for business owners, the Small Business Administration’s (SBA’s) loan guaranty program is an excellent funding source for deals up to about $5 million. Today’s interest rates are low, and lenders are lending now. Here are ten things lenders look for when evaluating a loan request for a small …
Business Valuation: Step one in the sale process.
May 5, 2015 / in Business Valuation, Exit Planning, Sell a Business / by Louis Cionci
If you are considering selling your business, I would like to let you in on an M&A (merger and acquisition) professional’s insight. I have been involved in initiating and managing M&A transactions for over 15 years and have handled deals representing over $250 million in transaction value. Those transactions ranged from $2.6 mm to $90 mm. In addition, I was on a team that helped an international client acquire a $2.6 billion industry rival back in …
Pricing Methodologies in Buy-Sell Agreements
April 29, 2015 / in Business Strategy, Buy-Sell Agreements / by Jim Leonhard
When it comes to valuing a business for tax filings, M&A transactions, ESOP’s and most other purposes, business appraisers are usually free to use all of the methodologies in their arsenal. But, when it comes to Buy-Sell Agreements that govern the sale or exchange of interests among closely-held business owners, many of these agreements specify a fixed amount or formula to price equity interests. Recently our firm analyzed the valuation and funding-related provisions used in thirteen buy-sell …
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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