Request a Strategy Call and we will get in touch with you
Exit Planning Insights
Understanding the Value of Intangible Assets
September 6, 2019 / in Business Valuation, Exit Planning / by Joe Orlando
As a follow-up to our recent post on profiting from intangible assets in a business sale, this post introduces intangible asset valuation. As our last post outlined, “intangible assets are identifiable, non-physical in nature. They are something you can describe, document … and, most importantly, transfer.” Once identified, there are several ways to value intangible assets. I’ll discuss a common approach called the “with and without” method, using a simple and recognizable case study. Let’s …
Exit Strategies Advises Olympus Controls on Sale to Applied
August 26, 2019 / in Exit Planning, News, Sell a Business / by Al Statz
PORTLAND, OR (August 22, 2019) — Exit Strategies Group, Inc. is pleased to announce that Olympus Controls Corp. has been acquired by Applied Industrial Technologies. We represented Olympus and its shareholders as their exclusive M&A advisor. Established in 1998, Olympus Controls is a leading distributor of world-class machine automation products focused on assemblies and engineered solutions. Olympus specializes in motion control, robotics, machine vision, sensor and IIOT technologies, and is one of the largest and …
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 …
Phase I Environmental Assessment in M&A Transactions
August 6, 2019 / in Exit Planning, Sell a Business / by Al Statz
A Phase I environmental site assessment is commonly required by buyers and lenders in merger and acquisition transactions that include commercial real estate. One may even be called for when the target company (seller) uses or stores hazardous materials at a leased facility. Sellers are generally rewarded for conducting a Phase I assessment before taking a deal to the marketplace. Understanding environmental risk allows sellers to argue for a higher price and increases the likelihood …
Roundup of Recent Sale Transactions
July 19, 2019 / in Exit Planning, News, Sell a Business / by Al Statz
Sitting down and writing quality articles on business valuation, exit planning, mergers and acquisition strategy has taken a back seat this year, thanks to a strong M&A market. In this post I will recap many of the transactions for which Exit Strategies (ESGI) provided sell-side advisory services during the first half of 2019. I haven’t included deals that we were asked not to announce. Nor have I included the internal buy-sell transactions, management buyouts and …
Steps in a Management Buyout
May 2, 2019 / in Exit Planning, Sell a Business / by Al Statz
As a friend of Exit Strategies you know us as M&A brokers and appraisers, but you may not know that we advise on management buyouts. By management buyout (MBO) I mean selling a company or business unit to managers and key employees using a combination of equity and debt. The assets and cash flows of the company are used to finance most of the purchase price, with the equity portion supplied by management or a …
Financial exit planning, Is your business ready?
March 13, 2019 / in Business Valuation, Exit Planning, Sell a Business / by Exit Strategies
I recently had a client looking to sell their medical supply business and retire. I worked with management to pull together all the documentation and financials needed, and conducted conduct a probable selling price analysis. With report in hand I met with our clients to review the results and plan a go-to-market strategy. Unfortunately, the probable selling price fell slightly short of what the client needed to retire (after taxes). We identified excessive inventory as one …
Manage Working Capital to Increase Business Value
February 8, 2019 / in Business Valuation, Exit Planning / by Jim Leonhard
As you likely know, working capital equals current assets minus current liabilities. Companies that have a high level of cash tied up in current assets (primarily cash, accounts receivable, and inventory) without similar levels of current liabilities are not as attractive as those who tightly manage their working capital. Buyers are often leery of businesses that require high working capital to sales ratios because as sales grow the company must continually invest more cash in …
Business sale planning: Three lessons from Shark Tank
February 1, 2019 / in Exit Planning, Sell a Business / by Louis Cionci
As an M&A advisor having participated in the sale of businesses ranging in price from $500 thousand to $100 million, I enjoy watching ABC’s Shark Tank. On the show, entrepreneurs pitch their businesses to a panel of five investors (“sharks”) who then decide whether or not to invest. Today I want to pass along three key takeaways from Shark Tank for every business owner who plans to sell their business some day. 1. The business valuation …
How to Build a Sellable Construction Business
December 19, 2018 / in Exit Planning / by Adam Wiskind
With the San Francisco Bay Area building industry booming I am regularly approached by the owners of construction companies with requests to help them to sell their companies. As interest rates are low (but creeping up) and investors are still in the market for solid businesses, some construction company owners with strong financial histories and future growth prospects are looking to cash out. However, even in the best of times construction companies are notoriously difficult …
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
