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M&A Advisor Tip: The Case of the Missing Successor
December 22, 2021 / in Exit Planning, Sell a Business / by Al Statz
Businesses are facing talent shortages at all levels – at the front lines and in the C-suite. In some industries, like construction, talent issues can complicate exit plans. At some point, there may not be enough leaders left to take over for all the owners who want to exit. Now more than ever, succession planning can protect your business value. Buyers are looking for companies with a strong management team ready to lead. If you’re …
How 100 minus 90 equals 20
December 7, 2021 / in Exit Planning, Sell a Business / by Al Statz
Here’s a story of how 100 – 90 = 20. We recently represented some owners who had lots of options when it came to selling their business. They had a high demand manufacturing operation, and buyers wanted in – offering everything from minority or majority investments to full exit options. At first, the sellers thought they wanted a full exit, all cash at close. If they were going to give up control, they figured it …
M&A Advisor Tip: Make contracts assignable
December 7, 2021 / in Exit Planning, Sell a Business / by Al Statz
One key factor that significantly impacts the value of any contract is whether it’s assignable. Don’t put yourself in a position of negotiating assignability at time of sale. It eliminates confidentiality and opens the door for customers to highjack your deal. Knowing your company is for sale—and that the sale is dependent on their contract—shrewd customers will ask for lower prices or more favorable terms, knowing you’ll likely agree to anything reasonable. You and your …
Entrepreneurs really do think of business as their baby
November 23, 2021 / in Exit Planning, Sell a Business / by Al Statz
Many business owners say selling their business feels like giving a child up for adoption. As it turns out, that’s not just a metaphor. Research shows entrepreneurs really do think of their business as a kid. Researchers found parallel brain activity between owners thinking about their business and parents thinking about their kids. In either case, similar areas of the brain lit up, including areas associated with parenting, pleasant sensations, and rewards. Researchers say the …
M&A Advisor Tip: Don’t sell if not ‘In Like’ with business partner
November 23, 2021 / in Sell a Business / by Al Statz
We were managing a sale and had a strong offer on the table. But as we did our research, we found out the buyer had just parted ways with another business and hadn’t left on good terms. And we learned he didn’t treat employees the way our client would want. Even though the offer made financial sense, our client decided to pass. The buyer was upset, but at the end of the day we did …
Exit Strategies Group Announces Successful Acquisition of Exoskeleton Maker suitX
November 9, 2021 / in News, Sell a Business / by Al Statz
(Berkeley, CA) – Exit Strategies Group, Inc. is pleased to announce that it recently served as exclusive M&A advisor to the shareholders of US Bionics, Inc., dba suitX, on their successful acquisition by Ottobock. SuitX is a VC, industry and government funded company spun out of the Robotics and Human Engineering Lab at the University of California, Berkeley that produces advanced accessible exoskeletons for industrial and medical markets. Germany-based Ottobock is a global innovator of …
Buyer’s top focus is employee team
November 2, 2021 / in Business Strategy, Exit Planning, Sell a Business / by Al Statz
Employees. Finding them. Keeping them. It’s on everyone’s mind right now. And for the company or person who buys your business, it just may be their number one concern. In the latest IBBA and M&A Source Market Pulse Report, a quarterly survey of M&A advisors, respondents indicated that employees were buyers number one due diligence concern so far this year. Employee issues, specifically longevity, loyalty and work ethic, ranked ahead of other due diligence priorities …
M&A Advisor Tip: Buy your buddy a beer, not experience
November 2, 2021 / in Exit Planning, Sell a Business / by Al Statz
I’m all for friendships, but I wouldn’t risk my financial future on one. Unfortunately, many business owners do just that. If you’re like me, many of your professional advisors have become your friends, and you want to honor those relationships. But M&A is a specialist’s world. If you engage your usual advisor (e.g., attorney) to conduct a business sale and they are not a specialist in M&A transactions, you could be risking everything you worked so hard for. Think of this as brain surgery. You wouldn’t use your general doctor who has done …
Exit Strategies Group Announces Successful Acquisition of Tri-Phase Automation
October 27, 2021 / in News, Sell a Business / by Al Statz
(Milwaukee, WI) – Exit Strategies Group, Inc. is pleased to announce that it recently served as exclusive M&A advisor to the shareholders of Tri-Phase Automation, IMAC Motion Control and i-Tech (“Tri-Phase”) on their successful sale to Flow Control Group (FCG), a portfolio company of KKR & Co. Tri-Phase is a leading regional automation solutions provider in the upper Midwest. The acquisition expands FCG’s geographic footprint and custom control panel capabilities in the industrial automation segment …
Employee Retention Raises Business Value, Especially Now
October 26, 2021 / in Exit Planning, Sell a Business / by Al Statz
“To win in the marketplace, you must first win in the workplace.” Those words of Doug Conant, business leader and 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, and keeping them, is a challenge for everyone. And if you’re selling your business, it just might be the buyer’s number one concern. In the latest IBBA and …
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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