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Business Strategy Insights
Begin with the Knowns and Unknowns
April 20, 2020 / in Business Strategy, News / by Exit Strategies
The world feels like it’s turned on its head right now. People are anxious, with good right to be. There’s so much we can’t predict about the weeks and months ahead. When planning your response, begin with what you know and what you don’t know. What we know: We’re in a pandemic, and social distancing can flatten the curve, meaning slow the rate by which the illness spreads. And, at this point, we can probably …
COVID-19 Exit Planning Insight: Keep a Journal
April 13, 2020 / in Business Strategy, Exit Planning, News / by Al Statz
There’s no shortage of information out there right now on how company owners and CEO’s are responding to COVID-19. [By now, leaders have taken steps to survive and fight another day. Most now understand what business will look like for them until restrictions are lifted, and they’re formulating plans to thrive again post-pandemic.] With few companies going to market during this crisis, our insights will focus on exit planning, acquisition opportunities and non-elective sales for …
COVID-19 M&A Update: Survival Mode
April 6, 2020 / in Business Strategy, News / by Al Statz
As of 4/6/2020 The fact is, no one knows when this public health crisis will be resolved or when commerce will return to normal. The fact is, most businesses are struggling. They have scaled back or stopped operating. Leaders have taken quick decisive action to stem losses and preserve cash. They are taking advantage of government assistance. Luckier ones are less affected; some are thriving. Indeed, these are unprecedented times. Affected company leaders are taking …
Three Questions to Ask for Growth
February 19, 2020 / in Business Strategy / by Exit Strategies
This is the time of year when business leaders make resolutions, update strategic plans, and generally take stock of their organization. I’m planning to do a similar assessment, but this year I’m going to look in the mirror. I’m going to reach out to 15 to 20 people and ask these three questions: What two things should I continue to do? What two things should I start doing? What two things should I stop doing? …
Building Value Means Building Leaders
February 1, 2020 / in Business Strategy, Sell a Business / by Exit Strategies
It’s the New Year, that time when many business owners make a fresh resolve to develop their business. For some, that means updating equipment and driving sales. But others will focus on something more personal and possibly more pivotal: developing their leaders. GF Data shows that a solid management team will increase the valuation multiple. For smaller businesses, the quality of your management team can be an even bigger factor, influencing whether your business sells …
5 Ways to Make Your Business More Sellable, Right Now
January 22, 2020 / in Business Strategy, Exit Planning / by Al Statz
It was time. After 30 years running their small 25-employee company, Frank and Martha were ready to retire to the Oregon Coast. To their surprise, after a 12-month listing with a business broker, there were just a few interested parties and no offers. Instead of enjoying retirement, Frank and Martha are now a year older and no closer to retirement. For them, preparing to sell was an after-thought. Regretfully, this scenario plays out often. Many …
Corporate Social Responsibility in Mergers and Acquisitions
January 2, 2020 / in Business Strategy, Exit Planning, Sell a Business / by Al Statz
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 of as having four pillars: the community, the environment, the marketplace and the workplace. Community. This pillar refers to the …
M&A Advisor Tip: What Buy-and-Build Means for You
December 4, 2019 / in Acquire a Business, Business Strategy / by Exit Strategies
Private equity firms have increased their use of buy-and-build investment strategies. A buy-and-build strategy involves bolting together several smaller companies into a larger business enterprise that will likely sell at a higher multiple. See our post on the size effect. This trend is affecting many industries, from healthcare clinics to niche business service companies. The uptick in buy-and-build acquisitions could mean more buyers and more competition for your business than you expect. Contact Al Statz …
Business Interruption 101
October 31, 2019 / in Business Strategy, Business Valuation / by Exit Strategies
If you are reading this blog post from the Left Coast today, you know all too well the front page pictures and stories on the wildfires affecting Northern and Southern California in the past few weeks. The devastation is unimaginable. As I write this, the Kincade Fire in Sonoma County (just north of our Petaluma office) is 60% contained and 76,825 acres have burned. In local terms, that is about the size of San Francisco …
Profit from Intangible Assets in a Business Sale
August 10, 2019 / in Business Strategy, Exit Planning, Sell a Business / by Al Statz
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 or schematic) and, most importantly, transfer. Intellectual property is an example of an intangible asset. The Financial Accounting Standards Board …