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Business Strategy Insights
SBA Covers 3 Months of Payments on New Loans
March 4, 2021 / in Business Strategy, Business Valuation, News / by Al Statz
As part of the Economic Aid Act that passed in December, the Small Business Administration will make borrowers’ payments for three months on new SBA 7(a) and 504 real estate and micro-loan programs. These incentives were available last summer under a stimulus program that expired in September 2020. Now the program has been revived and enhanced. The SBA will make the first three months of payments (principal and interest) on new loans approved between Feb. 1 and Sept. 30, 2021. To be clear, these payments …
Six Benefits of Monitoring Company Value
January 4, 2021 / in Business Strategy, Business Valuation / by Al Statz
Even if your business is not for sale, monitoring its market value can be incredibly helpful. This article describes six ways that understanding value over the life of a closely held business benefits shareholders, directors and managers. 1. Value Report Card Like financial statements, an annual independent business valuation is a type of report card on company health. CEO’s can use this report card to educate, align and focus executive teams on maximizing enterprise value. …
Plan Your 2021 Comeback with a Strategic Acquisition
November 3, 2020 / in Acquire a Business, Business Strategy / by Al Statz
Business owners tend to think more seriously about selling when things aren’t as much fun as they used to be. Running a business in the COVID era is anything but fun, and owners are being particularly responsive to acquisition inquiries right now. Proactive Acquisition Searches When growing through acquisition, companies can be reactive or proactive. In a reactive strategy, the buyer takes phone calls and watches open market listings for appropriate opportunities to appear. This …
M&A Advisor Tip: Finish Strong
November 3, 2020 / in Business Strategy, Exit Planning, Sell a Business / by Al Statz
Begin the sale process while your business is on an upward trend. Buyers pay a premium for businesses with well-defined opportunities and a strong growth story. Too many business owners get tired or complacent and psychologically retire early, before the sale. In fact, after retirement, burnout is the number two reason business owners sell. Unfortunately, burnout usually leads to declining revenues and reduced leverage in the sale process. Stay focused until the end and sell …
M&A Advisor Tip: Work Yourself Out of a Job
October 21, 2020 / in Business Strategy, Exit Planning / by Al Statz
The more your business revolves around you, the more risk buyers see. To increase business value and marketability, build a strong management team. Work yourself out of the business by developing an experienced, empowered management team. The less the business is dependent on you and your knowledge or relationships, the less risk buyers face in a transition. And less risk translates to a higher sale price. Also, more buyers will be able to buy your company …
Why Your Business Needs Google Reviews
July 15, 2020 / in Business Strategy / by Exit Strategies
For many businesses today, online reviews are a differentiator. In the past, people asked for references to vet a product or service. Today, they are more likely to conduct their own research and read online reviews. Google reviews can give businesses a credibility boost, for free. Let’s look at some of the key benefits. Increased Credibility & Trust According to statistics, approximately 91% of consumers read reviews to determine credibility of a local business, and …
Use Equity Incentive Plans to Boost Exit Value
July 13, 2020 / in Business Strategy, Exit Planning / by Al Statz
Closely-held business owners often use equity and equity-like programs to attract and retain key employees and incentivize them to boost profits and build enterprise value. These plans provide value to the employees through current profit sharing and/or future equity appreciation. I am a strong proponent of utilizing these types of incentive plans as part of an exit strategy. Let’s break this down. Why profit sharing for key contributors? Sharing company profits with key employees incentivizes …
Hard Times: Great Opportunities
May 30, 2020 / in Business Strategy, News / by Don Ross
The effects of the Covid -19 Pandemic have been real and apparent. GDP in the first quarter declined by 4.8% according to the Bureau of Economic Analysis and economists are predicting the American economy to contract by as much as 30% in fiscal year 2020. Brutal. So what is there to get excited about? Opportunities are laying in the weeds – that’s what. Entrepreneurs of newly acquired businesses are aggressively moving forward in their business …
Valuing a Business in the Time of COVID-19
May 19, 2020 / in Business Strategy, Business Valuation / by Joe Orlando
Business owners and investors alike are asking themselves the same questions in the current COVID-19 environment. Are there opportunities in downturns? If so, when do you know when buy and sell? What are my illiquid assets worth? A former boss and one of the best bond traders I’ve ever met frequently used a popular trader’s phrase that predicting when a market will bottom and turn is “like trying to catch a falling knife.” A recent article revisited …
M&A Advisor Tip: Planning for Death or Disability
May 18, 2020 / in Business Strategy, Exit Planning / by Exit Strategies
The Wall Street Journal recently ran an article about CEOs accelerating succession plans and backup management strategies in the wake of COVID-19. It’s a question every owner should be asking (now and always): What happens if you are unable to manage your company? No one likes to think about all the what-if scenarios in life. Most business owners have no plan for exiting their business at all, much less exiting in the face of conflict …
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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