Exit Strategies Insights

Industry insights, knowledge base and announcements for business owners and professional advisors

Sell a Business Insights

Methods of Selling Distressed Business Assets

Occasionally businesses find themselves in financial distress and the owners want to sell and move on. Fortunately there is an active market for distressed businesses. For the right types of buyers, a distressed business can be attractive acquisition target. And sellers can often optimize outcomes through a competitive M&A sale process. Financial distress is a term in corporate finance used to indicate a condition when promises to creditors of a company are broken or honored …

Read more »

Business Values May Not Decline

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% …

Read more »

M&A Advisor Tip: SBA debt relief incentivizes buyers

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 …

Read more »

M&A in Pandemic, Not Panic

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 …

Read more »

Market Pulse Survey: Deal Cancellations due to COVID-19

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 …

Read more »

Controlled Private Short Sale using UCC Article 9: a Winning Alternative to Bankruptcy Sale

As a business sale advisor with Exit Strategies Group, I help business owners obtain the best price and terms available in the market during a sale process. We sometimes encounter situations where the owner would like to sell the business, but the business is in a distressed position with the following characteristics: the fair market value of a business is less than the outstanding debt on the business, the business cash flow does not support …

Read more »

Exit Strategies Group Advises Health Concerns on Sale to Life Seasons

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 …

Read more »

Can you sell a distressed business?

We’ve been getting this question from more business owners over the last few weeks. As with many important questions, the answer is, “it depends”. Financial distress occurs when a firm can’t generate enough profit to meet its immediate or long-term financial obligations. If your business is consistently accumulating debt, has unseasonable and sustained increase to accounts payable, or is falling behind on payroll taxes, it is likely distressed. Buyer’s Perspective The potential to sell a …

Read more »

M&A Advisor Tip: You are Not Stuck with Your Business

Worried about a recession? Burned out? No energy to do this all again? You are not stuck. Businesses sell in all market conditions, including in uncertain times like these. Yes, we’re coming off a period of peak demand in M&A. Buyers were lined up for quality opportunities. And they stretched their target parameters in order to find something that would fit. But many of those buyers are still active. There are buyers out there who …

Read more »

The Seven Stages of Selling Your Business

Smart preparation and planning can help you build a business that’s ready to sell when you are. Ideally, you’ll start preparing for sale early in your business life-cycle. The more you know about what buyers want, and what you can expect from the market, the more options you’ll have to exit your business and maximize value upon exit. Seven Steps in the M&A sale process: 1. Status and strategy:  The first step is to check …

Read more »

Request a Call
close slider
Request a Call and we will get in touch with you
  • This field is for validation purposes and should be left unchanged.