Exit Strategies Group Advises Leap Solutions Group on their Sale to George Petersen Insurance Agency

/in , /by Roy Martinez

Exit Strategies Group, Inc., a California based mergers and acquisitions (M&A) brokerage and business valuation firm, recently advised the owners of Leap Solutions Group, Inc. of Santa Rosa on the sale of their business to George Petersen Insurance Agency.

Leap Solutions Group is a business management consulting firm specializing in organizational development, human resources, executive search, and recruitment.

Scott Ormerod, Leap Solutions co-owner, said, “Roy Martinez of Exit Strategies was our guide through this process, netting us a great outcome.” Chuck McPherson, Leap Solutions other co-owner added, “We are grateful to you and Exit Strategies for all of your valuation work – it was the foundation of the transaction.”

George Petersen Insurance Agency, headquartered in Santa Rosa, CA, is a trusted leader in the insurance industry with 90 years of dedicated service. Their commitment to excellence and client satisfaction aligns seamlessly with our mission. Together, we are poised to provide integrated solutions that exceed expectations.

Terms of the acquisition were not disclosed.

 

This sale is an example of Exit Strategies’ M&A brokerage experience and valuation expertise in the business-to-business services sector. Exit Strategies has appraised and brokered hundreds of service businesses. If you are looking to sell, merge or acquire, we would be interested in hearing from you. Roy Martinez can be reached at 707-781-8583 or jroymartinez@exitstrategiesgroup.com.

Exit Strategies Group Advises California Caster in Strategic Sale

/in , /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 are located all over the world and include many of the world’s largest enterprises. Greg Williams, the owner of the Company since 2010, was looking to spend more time with his family and to reduce his workload as he owns several businesses.

“Exit Strategies Group guided us through a process that was new to us and positioned us to achieve a very successful transaction,” stated Greg Williams, owner of California Caster. “We absolutely could not have achieved the same results without their steady support and expert counsel.”

California Caster was advised by an Exit Strategies Group team led by Al Statz and Mark Harter. Michael Dalton of Donahue Fitzgerald LLP provided legal counsel and Paul Batrude of Batrude and Jones CPAs tax advice.

This transaction illustrates Exit Strategies Group’s expertise in lower middle market transactions and continued commitment to providing strategic valuation and M&A advisory services to North American industrial design, technology, distribution and service companies.

If you have questions or want information about Exit Strategies Group’s M&A advisory or business valuation services, please contact Al Statz at 707-781-8580 or alstatz@exitstrategiesgroup.com. Deal terms will not be disclosed.

Exit Strategies Group Welcomes Matthew Gutowsky

/in /by Al Statz

Exit Strategies Group, Inc. is pleased to introduce Matthew (Matt) Gutowsky as the newest member of our growing team. Matt recently joined us as Investment Banking Analyst, where he supports client engagements with research, financial modeling, and valuation analysis.

Matt recently graduated from Michigan State University where he earned a bachelor’s degree in finance, with a minor in Insurance and risk management. While in school, Matt interned with a financial consulting firm and a diversified energy company where he gained valuable experience building analytical models and providing operations data to upper management.

Exit Strategies Group Advises Shepherd Controls in Sale

/in , /by Al Statz

May 2023 – Exit Strategies Group is pleased to announce that it represented Shepherd Controls & Associates, a leading regional supplier of industrial automation products, in a recent sale to Flow Control Group, a portfolio company of KKR.

Shepherd Controls & Associates, founded in 1985 by Ron Shepherd and Bill Benko, is headquartered in Allen, Texas. The Company has branch offices in El Paso and Houston and serves the Gulf states and Mexico. It offers a broad portfolio of innovative industrial automation products including robotics, pneumatics, motion controls, sensors, safety, vision, machine framing and material handling technologies. Value-added services include technical support, vision system and robotic proof of concept, custom mixed technology systems design-build, panel building, kitting and sub-assembly production.

“Exit Strategies Group took the time to thoroughly understand our business and positioned us to achieve a very successful transaction,” stated Ron Shepherd, cofounder of Shepherd Controls. “They brought several candidates to the table who saw the value of our company, and their guidance throughout the process was spot on,” added cofounder Bill Benko.

Shepherd was advised by an Exit Strategies Group team led by founder and M&A advisor Al Statz. “We are delighted to have partnered with Ron and Bill and their leadership team. We were seeking an acquirer who recognized the value that the Shepherd team had created, would nourish Shepherd’s culture and provide opportunities for its employees, had a track record of successful acquisitions, and had a clear strategy for expanding the business further. FCG checked all of those boxes,” said Al.

This transaction demonstrates Exit Strategies Group’s expertise in lower middle market transactions and continued commitment to providing strategic valuation and M&A advisory services to North American industrial automation technology companies.  Our expertise spans all areas of automation, including custom machine building, product manufacturing and distribution, control system integration and repair services.

If you have questions or want information about Exit Strategies Group’s M&A advisory or business valuation services, please contact Al Statz at 707-781-8580 or alstatz@exitstrategiesgroup.com. Deal terms will not be disclosed.

Adam Wiskind and Roy Martinez Complete Certified M&A Professional Program

/in /by Al Statz

Exit Strategies Group is pleased to announce that Senior M&A Advisors Adam Wiskind and Roy Martinez are now two of more than three hundred M&A intermediaries and professionals with the CM&AP designation.

The Certified M&A Professional Program is offered by the Coles College of Business at Kennesaw State University in conjunction with The M&A Source. The Certified Mergers & Acquisitions Professional (CM&AP) Program provides participants with the analytical and business tools needed to manage successful M&A transactions from strategy assessment to valuation, diligence, negotiations, and execution.  Roy and Adam completed the coursework in April 2023.

“Continuing education is crucial to success in M&A. This training expanded my technical knowledge and execution skills so I can better help business owners navigate the sale process and achieve optimal results,” said Adam Wiskind.

“Though Adam and I have been advising on M&A transactions for years, there is always more to learn, and we will never stop sharpening our skills and expanding our knowledge base,” said Roy Martinez.

Exit Strategies Group specializes in managing the sale process for family and closely-held lower middle-market businesses up to $100 million in revenue.

Exit Strategies Advises IRR Los Angeles & Orange County on their Sale to CBRE

/in , /by Roy Martinez

Exit Strategies, a California based mergers and acquisitions (M&A) brokerage and business valuation firm, recently advised the owners of Integra Realty Resources of Los Angeles and Orange County on the sale of their Southern California commercial property and right-of-way appraisal business to CBRE Group, Inc.

IRR Los Angeles co-owner, John Ellis, said, “Roy Martinez of Exit Strategies helped us understand the value of our business and introduced us to resources needed to complete the transaction. We could not have done it without him.”

IRR is a network of commercial real estate valuation, counseling and advisory firms in the United States.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm.

Terms of the acquisition were not disclosed.

This sale is an example of Exit Strategies’ M&A brokerage experience and valuation expertise in the business-to-business services sector. Exit Strategies has appraised and brokered hundreds of service businesses. If you are looking to sell, merge or acquire, we would be interested in hearing from you. Roy Martinez can be reached at 707-781-8583 or jroymartinez@exitstrategiesgroup.com.

Cornerstone International Alliance sets new record: $1.3 billion in business transactions

/in , /by Al Statz

Exit Strategies Group is a partner in the Cornerstone International Alliance

After a record setting year in 2021, Cornerstone International Alliance members, a consortium of industry-leading lower middle market mergers and acquisitions (M&A) and investment banking firms, shattered that record in 2022, completing 169 deals with an enterprise value of more than $1.3 billion.

“2021 was a milestone year with $1.1 billion in deals closed for the first time. So to have another record year in 2022 is evidence of the strength of the Alliance and its members,” said Nick Olsen, Managing Director of Cornerstone International Alliance. “Notably, this past year was unique with so much uncertainty in the global market. The way our group made it a successful one, speaks volumes to their experience, focus and drive to do what is best for their clients. Even more encouraging is the outlook for 2023 is also very promising.”

Echoing Olsen’s sentiment is Craig Castelli, found and CEO of Caber Hill Advisors, an Alliance member headquartered in Chicago. “Congratulations to Cornerstone International Alliance and its member firms for another fantastic year,” said Castelli. “It’s a testament to the disciplined focus on only accepting best-in-class firms into the network. It’s an honor to be considered worthy of membership. I’d like to personally thank my team at Caber Hill and all of our clients and partners as we celebrate a great 2022 and a strong start this year. We couldn’t have done any of this without you and the Alliance.”

Alliance members typically work with business owners whose companies have $500,000 to $15 million in EBITDA or $5 million to $150 million in revenue. The members’ primary services provided include business sales, acquisitions, and valuations. Since its founding in 2018, the Alliance has selectively grown its membership and now has 27 members on four continents, creating a global network that opens doors to transactions being completed worldwide along with access to industry experts and an array of tools to best service their clients.

The organization’s most recent international member is Netherlands-based, Florijnz Corporate Finance.

“At the same time we’re celebrating our 10-year anniversary in 2022, we’re also celebrating a significant growth in business, leading us to hire additional staff and move to a new office location,” explained Hans Minnaar, Florijnz founder and director. “Last year we served 20 Dutch businesses in national and cross-border transactions and we’re on track to beat that this year. A part of that success is derived from our membership with the Alliance, the global connections it creates and the ability to share experiences and expertise that can’t be found anywhere else.”

The Alliance’s diverse membership creates a global footprint that is unmatched in the lower middle market. That, combined with members’ experience, resources and collaborative efforts are the driving force behind this continued level of success. To date, members have completed more than 3,750 business transactions.

CIA members are high performers with high integrity. Together we are working to set the standard for M&A excellence in the lower middle market.

Al Statz, CEO of Exit Strategies Group, Inc., alstatz@exitstrategiesgroup.com.

New law exempting M&A Advisors from SEC registration is welcomed by small businesses and those who depend on them

/in , /by Al Statz

The Consolidated Appropriations Act, 2023 (H.R. 2617), signed into law by President Biden on December 29, 2022, includes a provision exempting brokers that facilitate small business M&A (Mergers and Acquisitions) from federal broker-dealer registration. The section on “Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification” amends the Securities Exchange Act of 1934, effectively codifying the SEC’s sweeping 2014 M&A Broker No Action Letter. It benefits businesses who work with M&A advisors because advisors will no longer have the increased transaction cost and complexity of working under a broker-dealer who adds no real value to a transaction except to ensure compliance. The new exemption will go into effect at the end of March 2023.

The Securities Act amendment responds to the growing demand for M&A activities in the small business sector, which has increased in recent years. This exemption is expected to make it easier for small privately held companies to access M&A services and, by eliminating regulatory burden, reduce transaction costs for those looking to sell, merge or acquire other companies. Small businesses are defined in the law as those with up to $250 million revenue or $25 million EBITDA, which covers more than 99% of all privately held companies in the U.S.
The new law should bolster the overall economy as small businesses contribute significantly to job creation and economic growth.

The exemption applies to change-of-control transactions only, not equity securities offerings (i.e., capital raising). To qualify as a control transaction, the acquirer must end up with a 25% or greater interest in the acquired company and participate directly or indirectly in its management (e.g., board representation or executive management). The limits on the exemption easily cover all of Exit Strategies Group’s M&A activities.

In conclusion, this new law exempts M&A brokers from federal broker-dealer registration and right-sizes federal regulation of small business transactions while preserving important investor protections. It is a welcome change for small privately held companies and their stakeholders, those who advise them, and the broader economy.

For further information on this topic contact Al Statz. And don’t hesitate to reach out to a member of our team with any M&A or business valuation questions, needs or referrals.

Exit Strategies Group Advises Parasound Products in Successful Sale

/in , /by Al Statz

Exit Strategies Group, Inc. is pleased to announce that it recently served as exclusive M&A Advisor to San Francisco based high end audio manufacturer Parasound Products, Inc. on their successful acquisition by StarWarriors IV, a company controlled by David Sheriff, a serial entrepreneur with in manufacturing and supply chain management. Deal terms were not disclosed.

Founded in 1980, Parasound has a long history of designing, producing and selling exceptional-value high-end home audio components to the critical listener. Products include stereo and mono amplifiers, preamplifiers with DACs, integrated amplifiers with DACs, multi-channel amplifiers, and phono preamplifiers. Products are sold in more than 60 countries through a network of quality audio/video retailers and select custom installation specialists. Customers are home audio enthusiasts, residential and commercial custom installers, renowned recording-mixing and mastering engineers. Parasound has an undisputed reputation for sound performance, reliable craftsmanship, honesty, and extraordinary customer support. Its products win best-in-class awards in the most influential audiophile publications year after year.

StarWarriors IV, LLC is Limited Liability Company formed by serial entrepreneur David Sheriff to own and operate Parasound. David has extensive experience with supply chain management and automation implementation, along with a deep understanding of business finance and logistics. He has developed this expertise of fifteen years while serving as the head of a dynamic virtual company, where here worked with thousands of businesses on manufacturing and distribution implementations.

“Exit Strategies is incredibly pleased to have partnered with Richard and Jeanie Schram, owners of Parasound. Our process generated strong interest from multiple strategic acquirers and equity partners, and StarWarriors IV, LLC ultimately provided the best combination of economic terms and cultural and strategic fit” said Al Statz, President of Exit Strategies Group. “We are thrilled with the outcome for the Schrams and their team as they continue building on their success and drive this segment of the high end audio amplifier market forward. This acquisition illustrates Exit Strategies’ continued commitment to providing strategic valuation and M&A advisory services to U.S. audio manufacturers and audio technology companies.”

About Exit Strategies Group

Exit Strategies is a leading provider of strategic merger and acquisition advice/execution and business valuation services. Founded in 2002, with offices in San Francisco CA and Portland OR, the firm has advised on well over 100 M&A transactions. Exit Strategies represents closely-held and family-owned companies and helps them optimize results in a strategic sale or recapitalization. Its industry expertise spans all areas of industrial automation products and services and advanced manufacturing. For more information visit www.exitstrategiesgroup.com.

Al Statz is the founder and president of Exit Strategies Group. To discuss a potential business sale, merger or acquisition, confidentially, Al can be reached at 707-781-8580 or alstatz@exitstrategiesgroup.com.

Exit Strategies Group Advises on Successful Sale of MSM Inc.

/in , /by Louis Cionci

Exit Strategies Group, Inc. is pleased to announce that it recently served as exclusive M&A advisor to the owners of Maintenance Supplies and Marketing, Inc. (MSM), a facilities maintenance supplies distributor serving Northern California, on their successful sale to BradyIFS, a leading distributor of foodservice disposables and janitorial/sanitation (“JanSan”) products. Deal terms were not disclosed.

MSM owners Len and Lisa Polito along with Leigh Polito, Vice President of Operations expressed appreciation for the sale representation effort: “We couldn’t have done it without Louis and Exit Strategies. Louis found us the perfect buyer and managed the process as the link between seller and buyer. Louis was extremely knowledgeable, professional and an integral part of the entire process from start to finish “.

About MSM

MSM was established in 1982 in San Rafael, CA. Over the years, the company has diversified its offering by adding additional facilities maintenance and JanSan products. MSM provides quality products and high touch customer service to a broad range of institutional customers. To learn more, please visit http://www.msminc1.net.

About BradyIFS

With headquarters in Bell, CA, and Las Vegas NV, BradyIFS is one of the largest and most integrated foodservice and JanSan platforms in North America. The company sources, manages and distributes a broad range of products for thousands of customers in segments including education, healthcare, hospitality, restaurants, building service and more. Our consultative solution selling, strong manufacturer relationships and buying power, robust digital capabilities and service minded logistics enables our customers to succeed. For more information, please visit www.bradyifs.com.

About Exit Strategies Group

Exit Strategies is a leading provider of strategic merger and acquisition advice/execution and business valuation services. Founded in 2002, with offices in San Francisco CA and Portland OR, the firm has advised on well over 100 M&A transactions. Exit Strategies represents closely-held and family-owned companies and helps them optimize results in a strategic sale or recapitalization. Its industry expertise spans all areas of industrial automation products and services and advanced manufacturing. For more information visit www.exitstrategiesgroup.com.

For more information on business valuations or exit planning, contact Louis Cionci at LCionci@exitstrategiesgroup.com, or call 707-781-8582.