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8 Situations in Which Setting an Asking Price for Your Business Makes Sense
March 15, 2021 / in Exit Planning, Sell a Business / by Al Statz
As M&A advisors, our objective in most sale processes involving a privately held lower middle market business is to help our client obtain the best price and terms available in the marketplace. In many of our sale engagements, we go to market without an asking price and use a broad or targeted auction format to elicit the best price and terms from multiple suitors. When buyers feel competitive pressure, they are more likely to make …
Exit Strategies Advises Vege-Kurl on Sale to Private Equity group
March 12, 2021 / in News, Sell a Business / by Al Statz
Exit Strategies Group is pleased to announce that its client Vege-Kurl, Inc., a manufacturer of high-quality personal care products, has been acquired by private equity group Hemingway Capital. Founded in 1959, Vege-Kurl Inc. and its subsidiary Joar Labs is a private label contract manufacturing partner and formulator of high quality organically certified efficacious cosmetic, cosmeceutical, health & beauty, and household products. The company provides a wide variety of products such as shampoos, conditioners, hairsprays, serums, …
SBA Covers 3 Months of Payments on New Loans
March 4, 2021 / in Business Strategy, Business Valuation, News / by Al Statz
As part of the Economic Aid Act that passed in December, the Small Business Administration will make borrowers’ payments for three months on new SBA 7(a) and 504 real estate and micro-loan programs. These incentives were available last summer under a stimulus program that expired in September 2020. Now the program has been revived and enhanced. The SBA will make the first three months of payments (principal and interest) on new loans approved between Feb. 1 and Sept. 30, 2021. To be clear, these payments …
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 …
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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