Request a Strategy Call and we will get in touch with you
Exit Planning Insights
M&A Tip: Navigating the Sale of Your Founder-Owned Enterprise
October 8, 2024 / in Exit Planning, Sell a Business / by Exit Strategies
For founder- and family-owned businesses, deciding to sell is much more than a financial decision. Its a pivotal moment that marks the culmination of years, often decades, of dedication and hard work. The timing decision involves personal and market factors that can significantly influence the outcome of a sale. Understanding the right moment to sell requires an appreciation of the market environment, the business’s lifecycle, and the personal readiness of the owners. Market Conditions The …
Equity Rollover Benefits
October 8, 2024 / in Exit Planning, Sell a Business / by Exit Strategies
An equity rollover occurs when a business owner sells their company but chooses to reinvest, or “roll over,” a portion of the proceeds into the newly acquired business. An equity rollover allows a shareholder to benefit from any future growth and value creation. In a bolt-on acquisition or consolidation, the owner would likely receive equity in a larger, more diverse and less risky business enterprise. The benefits of an equity rollover for the shareholder include: …
M&A Tip: Add-ons
October 7, 2024 / in Exit Planning, Sell a Business / by Exit Strategies
PE firms are increasingly using add-ons to consolidate fragmented industries, particularly in sectors like healthcare and business services, where operational efficiencies and market share gains are achievable. This approach allows firms to create more valuable and competitive entities. With high interest rates making large, leveraged buyouts less attractive, add-ons offer a way to grow portfolios with relatively lower financial risk. These transactions often involve less capital outlay and can be financed through existing cash flows …
Business Sale Advice: 15 Insights from Past Sellers
August 13, 2024 / in Exit Planning, Sell a Business / by Al Statz
I recently surveyed a dozen former business owners—many of whom were my sell-side M&A clients and some who were not. I asked them to share the advice they give to business owners who plan to sell someday and the mistakes they should avoid, and several themes emerged. Here’s what they had to say … Assess Earlier. Many sellers wished they had commissioned a comprehensive business Assessment a year or two earlier. A proactive pre-sale evaluation …
M&A Advisor Tip: Don’t Let Your Emotions Get the Best of You
June 19, 2024 / in Exit Planning, Sell a Business / by Al Statz
What does it feel like when you sell? “Immense satisfaction tinged with loss.” That’s how one business owner described selling his business. After putting years of hard work and sacrifice into building a successful company, many owners have a hard time letting go. Emotions run high, and those emotions can lead to flawed and regrettable decisions. As M&A advisors, part of our role is to bring specialized expertise and objectivity to help you make sound …
Exit Strategies Group Advises Dynamic Solutions in Sale
May 15, 2024 / in Exit Planning, Sell a Business / by Al Statz
Exit Strategies Group has advised the owners of Dynamic Solutions, a California-based provider of industrial automation solutions, on their recent sale to Valin Corporation, a subsidiary of Graybar. Effective May 1, 2024, the acquisition significantly expands and adds technical capabilities to Valin’s automation and robotics group. Established in 1998, Dynamic Solutions specializes in precision motion control, machine vision, and collaborative robotics. Their team has over 120 years of combined experience in the industry. Dynamic Solutions …
It’s About Deal Structure in M&A
April 17, 2024 / in Exit Planning, Sell a Business / by Exit Strategies
Sometimes we work on the buy-side, helping strategic buyers and financial sponsors find and execute acquisitions. For one buy-side client, we approached a seller with what we thought was a fair offer, but the seller wanted more. We talked it over with our client and decided we could come close to the seller’s number, provided we got a specific deal structure. We arranged the deal with about 60 percent cash at close and 20 percent …
M&A Advisor Tip: Have the Discipline to Diversify
April 17, 2024 / in Business Strategy, Exit Planning, Sell a Business / by Exit Strategies
As a general rule, no single customer should account for more than 20-25% of your company’s revenue. While having major customers can be great for your bottom line, it represents substantial risk to you and the next owner. As you build your business, pay attention to what potential buyers will want. They’ll be looking for well-diversified customer base where the loss of one account won’t have a major impact on earnings. Do the hard work …
Is a Quality of Earnings (QoE) Analysis the Same as an Audit?
March 17, 2024 / in Acquire a Business, Exit Planning, Sell a Business / by Al Statz
Not exactly. A Quality of Earnings (commonly called a “QoE”) analysis used in mergers and acquisitions due diligence and a financial Audit serve distinct purposes. Here’s how they differ in terms of purpose, scope of work, timing and reporting: Purpose: QoE: The primary purpose of a QoE analysis is to assess the sustainability and reliability of a company’s earnings and cash flows. It aims to identify potential risks and irregularities in a company’s earnings that …
What’s behind the door for M&A in 2024?
March 14, 2024 / in Exit Planning, Sell a Business / by Exit Strategies
We’re coming off a recalibration year for M&A. While 2021 and 2022 saw record activity, the first half of 2023 was marked by significant declines. Inflation, interest rates, increased capital costs, and geopolitical uncertainty all made buyers wary, and the global market held back on deal making. Now we’re anticipating an uptick in 2024. This resurgence will be fueled by the continued presence of cash in the marketplace, corporate growth demands, and Baby Boomer …
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.
DRE #01878920
Member of
