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Sell a Business Insights
M&A ADVISOR TIP: What happens to employees after I sell?
March 4, 2021 / in Exit Planning, Sell a Business / by Al Statz
Business owners often come to us concerned about employee jobs and retention issues after a sale. They worry that selling their business will lead to job losses if certain positions become redundant. However, buyers today are often just as focused on retention issues. Your experienced talent can be a key driver of enterprise value, and buyers want to make sure these people stick around. Your management team is the highest priority retention target, and deal …
March 2021 – Now may be the time to sell your business
March 4, 2021 / in Exit Planning, News, Sell a Business / by Roy Martinez
It typically takes 6-12 months (or more) to sell a business. So… if you want to sell your business in 2021, you really need to start now. Selling a business has many steps: 1. Assess the business to establish probable selling price and validate your decision to sell 2. Create a plan 3. Build a business sale team – intermediary (Exit Strategies), attorney, CPA, others 4. Develop market materials – NDA, Executive Summary, CIM (confidential …
M&A Financing During the Pandemic
February 16, 2021 / in Acquire a Business, News, Sell a Business / by Al Statz
The pandemic has put lower middle market business sales and acquisitions on somewhat of a roller coaster ride. Deal volume declined sharply in Q2-Q3 and came back strong in Q4. Valuations have remained strong throughout the pandemic, at least for COVID-resistant businesses. Though there was a slight Covid-effect in Q2-3. In terms of M&A financing, capital structures shifted to slightly more less debt during 2020, before edging back up to pre-pandemic levels in Q4. To …
Market Pulse Survey: Still a Seller’s Market
February 16, 2021 / in Acquire a Business, News, Sell a Business / by Al Statz
Despite the effects of the pandemic, we continued to experience a seller’s market in the fourth quarter of 2020, for businesses with enterprise values over $2 million. Presented by IBBA & M&A Source For further information on M&A market conditions, or to discuss a current business sale, acquisition or valuation need, contact Al Statz, 707-781-8580 or alstatz@exitstrategiesgroup.com.
M&A ADVISOR TIP: Cybersecurity is a Buyer Priority
February 16, 2021 / in Acquire a Business, News, Sell a Business / by Al Statz
New research from Datasite reveals that cybersecurity is the #1 cause of buyers withdrawing from a merger or acquisition during due diligence. Deal makers said about 1 in 10 deals fell through during due diligence. Cybersecurity issues was the cause in 36% of these failed deals, followed by financial weakness, excessive valuation, financial irregularities, and leadership issues. To ensure that your data security practices will not be a concern for prospective buyers of your company, …
Exit Strategies Group Advises on the Sale of Poly Seal Industries
January 28, 2021 / in News, Sell a Business / by Al Statz
Exit Strategies Group recently advised the owner of Poly Seal Industries on a sale to Goodyear Rubber Company. Founded in 1974, Poly Seal Industries is a Berkeley, California based manufacturer of molded rubber products for customers in the biopharmaceutical, water & wastewater treatment, chemical, healthcare, food & beverage, and consumer electronics industries. In addition to producing quality custom products, Poly Seal helps customers succeed by providing manufacturing engineering and material science expertise. Goodyear Rubber Company …
Tax changes could accelerate business sales in 2021
January 22, 2021 / in Exit Planning, Sell a Business / by Al Statz
To complete deals in 2021, ahead of possible tax changes, owners and deal teams need to act fast. With the Democrats in the White House and having the tie-breaking vote in the senate, it is likely that taxes on corporations and wealthy individuals will increase during this administration. When and how much are unknown. With COVID recovery as the administration’s immediate priority, many think we will have until 2022. Biden has proposed raising long-term capital …
M&A Advisor Tip: ESG Diligence on the Rise in M&A
January 22, 2021 / in Acquire a Business, Exit Planning, Sell a Business / by Al Statz
Companies that are able to showcase their Environmental, Social and corporate Governance (ESG) capabilities stand to gain a competitive advantage and make themselves more attractive to potential acquirers. ESG issues cover a wide range of corporate practices that could include everything from environmental stewardship, health and safety policies, employee well-being, community support, to corporate culture issues. In recent research from Datasite, 84% of dealmakers rated ESG as an “important/very important” M&A due diligence consideration. And 78% …
Exit Strategies Group Represents Shareholders in the Sale of Gibson Engineering
January 6, 2021 / in News, Sell a Business / by Al Statz
Exit Strategies Group is pleased to announce that Applied Industrial Technologies has acquired Gibson Engineering Company, a value-added distributor and system integrator of industrial automation technologies. Exit Strategies Group served as the exclusive M&A advisor to Gibson shareholders. Gibson Engineering, based in Norwood, MA, distributes advanced robotics, vision systems, sensors, motion and machine controls, material handling and other industrial automation products, and integrates mixed technology systems. For over 40 years, Gibson has been a trusted …
Key Deal Terms – Fall 2020
December 18, 2020 / in Acquire a Business, Sell a Business / by Al Statz
GF Data collects and publishes proprietary business valuation, volume, leverage and key deal term data contributed by over 200 lower-middle market private equity groups and other M&A deal sponsors. Two of the acquisition deal terms that they monitor are the survival period¹ on general reps and warranties and the cap on indemnification² against breaches of general reps and warranties. The following table shows these limits for deals in the $10 million to $25 million enterprise …