Exit Strategies Insights

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

Sell a Business Insights

When is the Right Time to Sell My Business?

BOOK REVIEW — I don’t recall the last time I recommended a book, but today I feel compelled to tell business owners about an excellent new book titled, “When is the Right Time to Sell My Business?” This book not only helps you decide when to sell your business, but will also help you understand its value from the perspective of willing buyers, increase its value and marketability, and choose and plan your best exit …

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Forbes Article: Which Is Better, A Financial Buyer Or A Strategic Buyer?

I thought would share this brief Forbes article that came across my transom early this morning. I generally agree with author John Warrillow’s comments on Strategic versus Financial buyers. If your goal is to maximize value and liquidity today, and you’re not looking for an equity partner to help you build longer term enterprise value, a strategic buyer generally produces the best outcome. Having multiple strategic buyers at the negotiating table as a result of …

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Is Private Equity the Right Solution for Your Exit?

Is Private Equity the Right Solution for Your Exit? Private Equity Groups (PEGs) are disciplined buyers of lower middle-market companies. Most have cash funds and lender relationships in place for the right acquisition opportunities. PEGs often recapitalize a company, where they purchase a majority or minority interest. They bring growth capital and business acumen to unleash the company’s full potential. A recapitalization gives the owner substantial liquidity now, and a second hopefully larger bite of …

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Targeting Strategic Buyers for Your Company

One aspect that separates M&A advisors from business brokers is the approach used to identify and target buyer candidates. The typical business brokerage approach is largely advertising based. They place a description of the seller’s business on several websites (BizBuySell and others) and then simply await inquiries. Business listing websites are effective for “main street” businesses (restaurants and auto repair shops) where the buyers are individuals and ad-hoc partnerships. However, in the lower-middle market, specialized corporate …

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Six Reasons NOT to Skim

Pulling unreported cash receipts out of a business is indefensible and unwise under any circumstances, but particularly if the owner expects to exit in the next 3-5 years. All of us during our childhood were offered the parental edict: “Don’t do it, you are only hurting yourself.” So “why”, you may ask . . . now that you are a grown adult, “should I not skim?” Many reasons immediately come to mind and I am certain …

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Exit Strategies Advises RST in Strategic Sale to Subsite Electronics

Exit Strategies Group, Inc. (ESGI) is pleased to announce the acquisition of its client, robotic inspection equipment manufacturer RS Technical Services, Inc. (RST), by Subsite Electronics, a Charles Machine Works company. Exit Strategies served as exclusive M&A advisor to RST. Acquired by: Since 1984, R.S. Technical Services, Inc. (rstechserv.com) has been a leader in the design and manufacture of robotic video inspection equipment used to monitor and repair municipal water and wastewater collection and conveyance …

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Buy Low, Sell High

Timing is everything. Almost everyone is familiar with the world’s greatest tip to stock investors, “buy low, sell high.” These simple words of wisdom are equally useful to private business owners; however, sage advice is not always easy to follow in the same moment you’re reaping the benefits of high profitability. With the current bull market in its eighth year, the lower middle market is economically healthy across many industries. I talk to business owners …

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Is 2017 a good year to sell my company?

Sellers often ask us if it is a good time to sell their business. My response is usually, “yes, but it depends”.  The optimum time to sell a particular business depends on many factors, and this article discusses some of them. First of all, timing depends on the company: How are its business fundamentals? Is it growing? Flat? Shrinking? Is it profitable? How is the quality of earnings? What is the outlook for the business …

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Exit Strategies helps ProtoFab Expand its Prototyping Capabilities in the Northern California Machining Services Market

Exit Strategies recently advised on the merger of two closely-held Northern California precision machining companies. Founded in 1996 by Grant Kerr, GMAN Precision LLC is a full-service precision machine shop specializing in complex machined parts and services for R&D, prototyping, and preliminary production work. Its markets include aerospace & defense, biotech, electronics, energy, food processing equipment, medical device, and others. ProtoFab, Inc., based in Petaluma, California, is an ISO9001:2008 certified Northern California manufacturer of precision-machined components for …

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Do investment bankers, M&A advisors, business brokers and transaction intermediaries actually add value? And if so, how?

Sophisticated repeat sellers of businesses such as private equity groups clearly understand the value that an M&A advisor adds, since virtually all of them hire one when selling a portfolio company. On the other hand, business owners who are selling for the first time haven’t experienced the value that a capable intermediary can add, which puts them at a disadvantage. Fortunately a recent survey of business sellers by Fairfield University professor Dr. Michael McDonald provides …

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