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Don’t Forget the Net Investment Income Tax when Selling a Business
November 30, 2016 / in Exit Planning, Sell a Business / by Al Statz
The Net Investment Income Tax, which our friends at the IRS put into effect in 2013, takes an extra toll on business owners who sell their businesses; and for that matter, on most higher income taxpayers and any moderate income taxpayer whose income increases suddenly in a given tax year. What is the Net Investment Income Tax? The Net Investment Income Tax (“NIIT”) is a 3.8 percent federal tax on certain income of individuals, estates …
The Best Financial Decision I Ever Made
November 3, 2016 / in Acquire a Business / by Exit Strategies
In 2007 I found myself at a crossroads. After almost twenty years on a steady career path, I felt it was time for a change. The problem was that I didn’t know what I wanted to do next. I considered going into consulting, did the mandatory networking with old contacts, and even gave serious thought about doing a start-up. But I didn’t have that one great “do what you love” or “change the world” idea. …
Exit Strategies Advises Redwood Reporting on its Sale to Litigation Services
October 19, 2016 / in News / by Al Statz
Exit Strategies, a leading California based mergers and acquisitions brokerage and business valuation firm, recently advised the owners of Redwood Reporting & Videoconferencing, LLC on the sale of their company to Litigation Services, LLC. Transaction price and terms are private. Sold to Redwood Reporting, with 13 seasoned court reporters and 4 support staff at the time of the sale, has provided professional court reporting services since 1987, and offers exceptionally strong experience with large construction defect litigation projects. Litigation …
Selling an Ecommerce Business in the Lower Middle Market
October 10, 2016 / in Exit Planning, Sell a Business / by Exit Strategies
With continuing growth in consumer online spending and many high-profile public acquisitions this year, it seems like a great time to sell your online retail business. But things are never quite as simple as they appear. Over the past few months, several impressive acquisitions have been announced in the public markets. Walmart has purchased Jet.com at a jaw dropping $3.3 billion; a move that is presumably Walmart’s effort to narrow Amazon’s ever-increasing dominance. Consumer brands company, …
Recent Trends in the M&A Market
October 5, 2016 / in Acquire a Business, News, Sell a Business / by Jim Leonhard
Pepperdine University, of Malibu, California, in conjunction with the International Business Brokers Association and M&A Source, publishes a quarterly Market Pulse Survey of business brokers that provides useful information concerning the market for Main Street ($0-$2M sales price) and lower middle market ($2-$50M sales price) businesses. Highlights from their most recent report for Q1 2016, include: 50% of all business sell Retirement is still the prime motivating factor for sellers followed by burnout. The strongest growth …
Why is That Information Needed?!?
September 28, 2016 / in Business Valuation, Exit Planning / by Exit Strategies
When we begin a business valuation project the first thing we do is provide an extensive document request list. A week or two into the analysis, we send a customized questionnaire to help us understand the business in appropriate depth. Our questions are designed to understand the facts and circumstances of your business well enough to develop a reliable opinion of value. To the extent we can, we try to streamline and tailor our requests so as not to …
The Zen Art of Cooperative Negotiation
September 21, 2016 / in Exit Planning / by Don Ross
The common image of an M&A negotiation between a buyer and a seller is that of a rugby scrum: two masses of interlocked muscled bodies scheming and bulldozing their collective strengths in opposing directions in an effort to secure the prize without compromise and ultimately yield one winner and one loser. In contrast, what I call the “Zen Art of Cooperative Negotiation” is a playing field where the players (the principals and their attorney, M&A broker, and …
Fair Market Value — is it really fair?
September 14, 2016 / in Business Valuation / by Bob Altieri
In the business valuation profession, one determines Fair Market Value through analysis of the company and its management structure, the industry in which it participates, economic conditions and trends present in the industry, competitive environment, and any other factors that help to define the risk of investing in the enterprise. This analysis of risk is what many in the appraisal profession term as the subjective part of the valuation analysis, or “the art” of appraisal analysis. …
Indigo Piping Systems Sold to Strategic Acquirer
September 9, 2016 / in News / by Al Statz
Exit Strategies is pleased to announce the strategic acquisition of California-based construction materials distribution company Indigo Piping Systems, by Dateline Exports, Inc. of Portland, Oregon. Founded in 1990 in Berkeley, California, Indigo offers a range of American brands of piping, valves and mechanical products for water infrastructure, fire protection and mechanical construction projects around the world. Indigo offers a complete supply service from expert product selection assistance to accurate on-time delivery to the international job site or port …
Using Retention Bonuses to Enable an M&A Transaction
September 7, 2016 / in Exit Planning, Sell a Business / by Al Statz
Assurance of business continuity is essential to most business acquisitions, and for small to mid-size companies, this often translates to retaining key employees. This blog looks at using a simple tool, called a stay bonus or retention bonus, to keep your key people on board through a sale or merger of your company. Bonuses are commonly used in business to reward employees for performance, such as hitting a sales target, implementing a new system, or boosting manufacturing productivity. …
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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