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Top 8 Reasons why Buyers Walk Away from an Acquisition
September 19, 2023 / in Exit Planning, Sell a Business / by Exit Strategies
Deciding to pursue a merger or acquisition can be a complicated process fraught with risk. Even when the financials look good and the potential rewards seem great, there are several reasons why a buyer might decide to walk away from a deal. Understanding these reasons can help sellers prepare for negotiations and improve the likelihood of a successful outcome. Here are eight common reasons why M&A buyers might decide not to proceed with a deal: …
Exit Strategies Group Advises California Caster in Strategic Sale
September 5, 2023 / in News, Sell a Business / by Exit Strategies
California Caster, a respected and long-established industrial hardware design and distribution company located in Oakland, CA, was recently acquired by OneMonroe, an international industrial hardware manufacturing and distribution company. Exit Strategies Group, Inc. advised the seller in the transaction. Terms of the transaction are confidential. California Caster was founded in San Francisco more than 70 years ago. Company services include the design and distribution of casters, hand trucks and other industrial hardware solutions. Customers …
Buy-Sell Agreement Valuation Resources
August 28, 2023 / in Business Valuation, Buy-Sell Agreements / by Al Statz
Every business with two or more shareholders should have a buy-sell agreement. A buy-sell agreement is a legally binding contract that restricts and governs how shares are priced and transferred between shareholders or partners of closely-held businesses when certain trigger events occur. Arguably, valuation is the most important (and argued over) aspect of buy-sell transactions. A good one-third of our business valuation work relates to internal equity transactions, and because this is an area of …
Strong Business Acquisition Prices so far in 2023
July 25, 2023 / in Sell a Business / by Exit Strategies
Valuations on deals completed in the first quarter of 2023 averaged 8.0x Trailing Twelve Months (TTM) adjusted EBITDA, rebounding from the 6.9x average recorded in 4Q 2022 and in line with the 8.2x average set in the third quarter. In Q1 2023, M&A transaction multiples experienced a rebound, indicating increased valuation levels compared to the previous quarter. This rebound despite increasing price of debt demonstrates a positive sign for sellers. For transactions between $10M-$50M, multiples …
A Student of Business
July 18, 2023 / in Business Strategy, Business Valuation / by Joe Orlando
20 Exit Planning Questions that Every Business Owner Should Ask Themselves
July 17, 2023 / in Exit Planning, Sell a Business / by Al Statz
Eventually every business owner will hand over the keys, and in my experience, the further that the owners plan ahead the happier they’ll be with their exit. While there are many things to consider when planning an exit, particularly for owner-operators of businesses, here is a list of questions that every business owner should be able to answer with clarity and confidence. Twenty Questions that Every Business Owner Should Ask When do I want …
M&A Glossary: Virtual Deal Room
June 29, 2023 / in Exit Planning / by Exit Strategies
A deal room is a secure, virtual space where buyers and sellers can share and exchange confidential information related to a potential transaction. Information is typically stored and accessed through a secure online platform that allows users to view, download, and upload documents and other information as needed. The use of a deal room is essential in M&A transactions because it allows buyers to perform their due diligence in a secure and confidential manner. …
Questions to ask when hiring an M&A advisor
June 29, 2023 / in Exit Planning, Sell a Business / by Exit Strategies
When it comes time to sell your company, the right M&A firm or investment bank can make all the difference. From preparing a stellar offering memorandum, to running a well-organized process, to generating multiple offers, to negotiating the best possible deal for you, your advisor needs to bring the right mix of transactional skill, processes, resources, and chemistry to the table. This article presents several questions that you should be asking as you search for …
Market Pulse – Seller Market Sentiment
June 29, 2023 / in Exit Planning, Sell a Business / by Exit Strategies
Lower middle market M&A is experiencing a dip in seller market sentiment, marking the lowest levels seen since early in the pandemic and resembling figures observed during the recovery from the Great Recession. In a seller’s market, buyers typically compete for deals, leading to increased values and more favorable deal terms for sellers. However, this recent slide in sentiment signifies a change in market dynamics, where sellers may still receive strong valuations, but buyers may …
How ASC 842 (the lease reporting standard) Can Impact the Sale of Your Business
June 14, 2023 / in Sell a Business / by Adam Wiskind
What is ASC 842? The Accounting Standards Update (ASU) 2016-02, commonly known as ASC 842, requires that all companies large and small that issue GAAP-based financials account for leases on their financial statements. It was issued by the Financial Accounting Standards Board (FASB) in February 2016 and was effective January 1, 2022. ASC 842 significantly changes how companies account for leases on their financial statements and may impact the sale of your small business. ASC …
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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