Request a Strategy Call and we will get in touch with you
Recent News
Lopsided Market Drives M&A Values in Pandemic
October 22, 2020 / in Exit Planning, News, Sell a Business / by Al Statz
With all the upheaval in the world right now, you’d expect M&A deal values to take a dip. But recent market analysis shows that’s anything but the case. According to GF Data [1], companies with an enterprise value of $10 million to $25 million sold at an average multiple of 5.9 times EBITDA in the first two quarters, versus a 5.7 average from 2003 to present. Similarly, business sales with a transaction value of $25 …
Private Equity is Open for Business
September 18, 2020 / in Exit Planning, News, Sell a Business / by Al Statz
We stay in regular contact with private equity groups from around the country to monitor M&A market activity. Currently, the message we are hearing is that these firms are “open for business.” Private equity firms are in the business of buying, building and selling businesses. It’s how they deliver investor returns. They don’t have time to sit back and wait things out. The clock is ticking as they work to meet investor expectations within fund …
Gifting Window for 2020 May Be Closing
September 9, 2020 / in Business Valuation, Exit Planning, News / by Joe Orlando
With a Global pandemic and prospects of a sustained recession with double digit unemployment coupled with West Coast wildfires and East Coast hurricanes, I would say that everyone in these United States is looking forward to ringing in the New Year on January 1st. But before the ball drops on a socially distanced crowd in Time Square, you should think about other changes that may occur as we put 2020 in our rear-view mirrors. Specifically …
Exit Strategies Adds Machinery & Equipment Appraisal Services
August 11, 2020 / in Business Valuation, News / by Joe Orlando
Exit Strategies Group, Inc. (ESGI) is pleased to announce that we are expanding our valuation services offering to include Machinery and Equipment Appraisals, also referred to as asset appraisals. Asset appraisals can be an adjunct to a business valuation, or provided as a stand-alone service. Adam Wiskind, CBI, CMEA will be leading this practice out of our San Francisco Bay Area (Sonoma County) office. Our appraisers are Certified Machinery & Equipment Appraisers (CMEA) through the …
Business Values May Not Decline
June 17, 2020 / in Acquire a Business, News, Sell a Business / by Al Statz
A recent survey of M&A advisors and business brokers showed that of all small and medium businesses on the market at the end of Q1, about 35% had closed (temporarily at least), 40% were operating at partial capacity, 4% had benefited, and 21% remained unaffected by COVID-19. Not surprisingly, advisors indicated that 46% of lower middle market deals were delayed at the end of Q1 and 11% had been cancelled altogether. For deal cancellations, 25% …
M&A Advisor Tip: SBA debt relief incentivizes buyers
June 2, 2020 / in Acquire a Business, News, Sell a Business / by Exit Strategies
SBA debt relief is is a big incentive for buyers to move ahead with small business acquisitions right now. The SBA will pay six months of principal, interest, and any associated fees that borrowers owe for all current … as well as new 7(a), 504, and microloans disbursed prior to September 27, 2020. As an added incentive, SBA lenders have the authority to defer loan payments for six months. That means some buyers could acquire …
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 …
M&A in Pandemic, Not Panic
May 18, 2020 / in News, Sell a Business / by Exit Strategies
Business advisors are digging in right now, trying to figure out how COVID-19 will affect their clients. We’ve been talking with business owners, active buyers, and other advisors around the country. Right now, we know that some M&A deals are getting delayed over routine process points. Certain bank approvals that used to happen in regular in-person review meetings are being held up as discussions take place via email chain instead. Some businesses with real estate …
Market Pulse Survey: Deal Cancellations due to COVID-19
May 18, 2020 / in Acquire a Business, News, Sell a Business / by Exit Strategies
M&A advisors saw many of their business sale/acquisition deals delayed, put on hold or cancelled in March 2020 as a result of the COVID-19 Pandemic. Who was cancelling these deals? The following chart shows the results of this survey question from the latest Market Pulse Survey. Presented by IBBA, M&A Source & in partnership with Pepperdine University “Deal activity is always expected to constrict during times of uncertainty. Both sellers and buyers are being conservative …
Exit Strategies Group Advises Health Concerns on Sale to Life Seasons
May 5, 2020 / in News, Sell a Business / by Louis Cionci
Transaction advisory firm Exit Strategies Group served as exclusive M&A advisor to ADG Concerns, Inc. DBA Health Concerns on its successful sale to Life Seasons, Inc. Health Concerns is at the leading edge of research in herbal medicine and is known for bringing the centuries of knowledge amassed in the Chinese herbal tradition to the West. Health Concerns was the first company to manufacture Chinese herbal products in the United States for practitioners. Today Health …