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Sell a Business Insights
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 …
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 …
Controlled Private Short Sale using UCC Article 9: a Winning Alternative to Bankruptcy
May 11, 2020 / in Exit Planning, Sell a Business / by Louis Cionci
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 …
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 …
Can you sell a distressed business?
April 22, 2020 / in Exit Planning, Sell a Business / by Adam Wiskind
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 …
M&A Advisor Tip: You are Not Stuck with Your Business
April 20, 2020 / in Exit Planning, Sell a Business / by Exit Strategies
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 …
The Seven Stages of Selling Your Business
April 8, 2020 / in Exit Planning, Sell a Business / by Exit Strategies
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 …
M&A Advisor Tip: Organize Your Financials
April 8, 2020 / in Exit Planning, Sell a Business / by Exit Strategies
Buyers that pay top dollar usually expect to see clear, well-organized financial statements prepared according to generally accepted accounting principles (GAAP) and reviewed by a reputable CPA firm. If your business has more than $10 million in revenue, you should probably start investing in annual financial statement reviews at least three years prior to selling. Or, have a transaction-oriented CPA firm complete a “quality of earnings” report prior to going to market. For a referral …
Valuing a Business in Bankruptcy
April 8, 2020 / in Acquire a Business, Business Valuation, Sell a Business / by Exit Strategies
According to data collected by the U.S. Bankruptcy Courts, business bankruptcies declined from 60,750 (or 4% of total filings) in 2009, just after the 2008 financial meltdown to approximately 22,750 in 2019 (or approximately 3%).[1] With overwhelming challenges ahead as a result of the Coronavirus Pandemic, the question is not if these filings will go up over the next 12 months but by how much. Before I dig into valuing a business in bankruptcy, let’s …