Request a Strategy Call and we will get in touch with you
Give Yourself the Gift of a Valuation This Holiday Season
December 2, 2024 / in Business Valuation / by Al Statz
As the year winds down, there’s a gift every business owner should consider—a current valuation of your business. While holiday lists often include items like client gifts or end-of-year celebrations, knowing the true value of your business is a gift that keeps on giving. Here’s why it matters now more than ever. Estate Planning: One of the key benefits of a valuation is that it sets the groundwork for smart estate planning. If the unforeseen …
M&A Glossary: No-Shop Clause
December 2, 2024 / in Exit Planning, Sell a Business / by Ignacio Ochoa
Many M&A negotiations include a no-shop clause. This is a period of exclusivity when the seller cannot solicit offers from other parties. The due diligence process is expensive for buyers, so sellers sign these agreements as an act of good faith. Typically, a no-shop clause has a near-term expiration date and is only in effect for a couple of months (45—90 days). Buyers with a lot of leverage, and those working with inexperienced sellers trying …
Scaling for Sale: Growth Strategies that Double as Exit Plans
December 2, 2024 / in Business Strategy, Exit Planning, Sell a Business / by Al Statz
As a business owner, you’re likely consumed with the daily challenges of building and growing your business. The question of selling might seem like a distant concern—something to worry about years down the road. But the reality is that planning your exit and growing your business are two sides of the same coin. We’ve been conditioned to think about entrepreneurship in distinct phases: First, you build; then, you grow; finally, you sell or pass it …
M&A Glossary: Add-backs
December 2, 2024 / in Business Valuation, Exit Planning / by Al Statz
Add-backs are adjustments made to a company’s financial statements to more accurately reflect its true earning potential and normalize its financial performance. These adjustments are typically made to the target company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) to create a metric known as “Adjusted EBITDA” or “Normalized EBITDA.” Add-backs are expenses or income items that are considered non-recurring, one-time, or not essential to the company’s core operations. Common examples of add-backs include: …
Goodwill hunting: How to build and finance this intangible asset
December 2, 2024 / in Business Strategy, Business Valuation, Sell a Business / by Al Statz
When it comes to selling a business, the term “goodwill” often arises. But what exactly is goodwill, and how does it impact the mergers and acquisitions (M&A) process? Goodwill is the value of a business that exceeds its tangible assets. It arises when a company is sold for more than the worth of its physical assets such as equipment, vehicles and inventory. Most successful companies have some level of goodwill, which is tied to cash …
Exit Strategies Group Advises Afineol in Sale to ITS
November 12, 2024 / in News, Sell a Business / by Roy Martinez
Exit Strategies Group recently served as financial advisor to the owners of Afineol IT Consulting, a Sacramento area-based managed IT service provider (MSP), on their sale to Intelligent Technical Solutions (ITS), a Tower Arch Capital portfolio company. The acquisition strengthens ITS’ geographic footprint and technical leadership position in the Sacramento region. Terms of the transaction were not disclosed. Afineol’s founder, Michael Strong, said, “We were looking for a strategic partner to build on Afineol’s decades …
What Does ChatGPT Think?
October 14, 2024 / in Business Strategy, Business Valuation / by Joe Orlando
This October, I will celebrate my 12th year as an Accredited Senior Appraiser (ASA) in Business Valuation with the American Society of Appraisers (also ASA). ASA members meet every year for an International Conference to discuss current topics and to share knowledge and best practices. I attended the most recent Conference in Portland, OR. A presentation entitled “The AI Revolution – Why it Matters to Appraisers & Application Strategies” by Greg Endicott of Strategic Value Group, …
How to Purchase the Company You Work For
October 13, 2024 / in Acquire a Business, Business Valuation / by Exit Strategies
For many C-Suite employees, owning the company they work for would be a dream come true. If you’ve been leading a successful private business or are a seasoned member of its executive team, acquiring that business may be a realistic goal. Secure Funding Typically, the biggest hurdle in buying a business is obtaining the cash/equity and securing the debt financing necessary to close the deal. The good news is that a healthy business is an …
From the M&A Glossary: Search Fund
October 10, 2024 / in Exit Planning, Sell a Business / by Exit Strategies
A search fund is an investment vehicle through which an entrepreneur raises capital from investors to fund the search for and eventually the acquisition of a privately-held company. The search fund model allows the entrepreneur to collect a salary while they search for a suitable target company and negotiate a letter of intent and perform due diligence. Once a target company is acquired, the entrepreneur usually takes an active role in managing and growing the business, …
Equity Rollover Benefits
October 8, 2024 / in Exit Planning, Sell a Business / by Exit Strategies
An equity rollover occurs when a business owner sells their company but chooses to reinvest, or “roll over,” a portion of the proceeds into the newly acquired business. An equity rollover allows a shareholder to benefit from any future growth and value creation. In a bolt-on acquisition or consolidation, the owner would likely receive equity in a larger, more diverse and less risky business enterprise. The benefits of an equity rollover for the shareholder include: …
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.
DRE #01878920
Member of
