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M&A Advisor Tip: Niche companies can bring top dollar
August 18, 2022 / in Business Strategy, Sell a Business / by Al Statz
It’s often better to be #1 or #2 in a smaller/narrower market than a minor player in a larger/broader market. By targeting and dominating a distinct segment of a market, you help ensure that potential customers think of you first (brand recognition) and continually choose you, again and again. Dominant players usually have lower cost of customer acquisition, first call/last look with customers, and other advantages that drive profit margins up and accelerate growth. Niche …
Exit Strategies Group Initiates the Acquisition of Ibex Engineering by Motion Solutions
August 12, 2022 / in News, Sell a Business / by Al Statz
Exit Strategies Group has advised Motion Solutions, a leading provider of custom engineered positioning systems and a portfolio company of Frontenac, on the recent acquisition of Ibex Engineering. Based in Newbury Park, CA, Ibex Engineering is a manufacturer of precision linear and rotary positioning systems for original equipment manufacturers. The partnership will give Motion Solutions even greater access to the ultra-precision end of the market and bring advanced automated manufacturing capabilities, and give Ibex more …
M&A Advisor Tip: F-reorganization
July 22, 2022 / in Exit Planning, Sell a Business / by Al Statz
Deal structure can have a big impact on your after-tax proceeds. The right structure can help you retain more of the sale price. For example, an F-reorg is a tax efficient method that allows you (the seller) to rollover equity into the buyer’s new entity without paying taxes on the rollover amount. Without using an F-reorg, you might sell 100% of the company and get taxed on that full amount (ouch!) before reinvesting some of …
Market Pulse – Q4 2021
June 28, 2022 / in Exit Planning, Sell a Business / by Al Statz
Financing Deals in 2021 Presented by IBBA & M&A Source Deal financing has not changed significantly since before the pandemic. On average, sellers continue to receive 80% or more of total consideration as cash at close. (Cash at close includes senior debt and buyer equity.) Seller financing accounts for 15% or less of most deals. For advice on exit planning or selling a business, contact Al Statz, CEO of Exit Strategies Group, Inc., at alstatz@exitstrategiesgroup.com. Exit Strategies …
M&A Advisor Tip: Employee retention adds business value
June 28, 2022 / in Business Strategy, Sell a Business / by Al Statz
“To win in the marketplace, you must first win in the workplace.” Those words of Doug Conant, former CEO of Campbell Soup Company, ring particularly true today. The talent market was tight before the pandemic, but now we’re in a critical state. Finding employees is a challenge for every company. And if you’re selling your business, it might be the buyer’s top concern. Employee issues buyers care about right now: turnover, training, cross-coverage, salary/wage increases, …
Spring Break 2022
June 21, 2022 / in Business Valuation / by Joe Orlando
We all remember the question; what did you do on your spring break? Whether it was the title of a paper you needed to write for 11th grade English class or the topic of discussion at the pub in late April of your senior year of college, it’s a great question whose answer can be as boring as it is exciting. So what did I do on my spring break this year? I’ll tell you… …
Is it the right time to sell your business?
May 6, 2022 / in Exit Planning, Sell a Business / by Adam Wiskind
Business owners often ask, “When is the right time to sell my business?” The answer is some version of “A good time to sell is when there is a seller’s market, and the owner and the business are prepared”. Simple enough, but there is a lot to unpack in this response. Don’t Try to Time the Market A seller’s market exists when, because of economic conditions, demand for viable businesses is higher than the supply …
Market Pulse – Quarter 4, 2021
May 6, 2022 / in Business Strategy, Exit Planning, Sell a Business / by Al Statz
Seller’s Market Presented by IBBA & M&A Source A seller’s market occurs when demand exceeds supply. There are more interested, active buyers than there are quality deals on the market. In a seller’s market, buyer’s compete in order to win deals. This typically translates to increased values and more favorable deal terms for the seller. In Q4 2021, seller market sentiment rebounded, setting a new peak in all but the $5M-$50M sector. “Business confidence, and …
Small business values up in 2021
May 6, 2022 / in Business Strategy, Sell a Business / by Al Statz
Business values increased in 2021, despite ongoing challenges from the pandemic, talent shortages, and supply chain disruption. Deal activity continued at an intense pace, with advisors across the country reporting increases in both incoming deal flow and completed engagements. More advisors characterized this as a seller’s market than nearly any other time in the last decade, according to the year-end Market Pulse report from IBBA and the M&A Source. Buyer confidence is high, as is …
Six Benefits of Monitoring Company Value
April 21, 2022 / in Business Strategy, Business Valuation / by Al Statz
Even if your business is not for sale, monitoring its market value can be incredibly helpful. This article describes six ways that understanding value over the life of a closely held business benefits shareholders, directors and managers. 1. Value Report Card Like financial statements, an annual independent business valuation is a type of report card on company health. CEO’s can use this report card to educate, align and focus executive teams on maximizing enterprise value. …
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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