Exit Strategies Sells Advanced Components Technology to Strategic Acquirer

/in /by Al Statz
Exit Strategies is pleased to announce the sale of Redwood City-based Advanced Components Technology, Inc., a contract manufacturer of precision sheet metal enclosures, machined parts and electro-mechanical assemblies to medical equipment, automotive, defense, lighting and instrumentation OEM’s operating in Silicon Valley. ACT has been a preferred supplier to Keysight Technologies, HP and Agilent for many years, and is a Tier 1 supplier to Tesla Motors.  ACT provides quick-turn prototypes, with extensive DFM support, and low to moderate production volumes.
The acquirer,  METALfx, provides precision metal fabrication to a variety of customers and markets from its 125,000 square foot Northern California facility. For METALfx, the acquisition is both synergistic and accretive. Deal terms are confidential.
Exit Strategies Group, Inc. initiated the transaction, served as exclusive M&A advisor to ACT, and negotiated the sale. In our confidential marketing process, we targeted synergistic industry operators desiring to increase market share, add volume or talent, fill capacity, vertically integrate, develop new markets, or diversify products or customer base. This transaction adds to Exit Strategies’ 14-year record of successful M&A deals.
Today’s market for contract manufacturing businesses is robust, driven by economic expansion, abundant buyer capital, low interest rates and market consolidation. Company owners considering a sale in the next few years should start now.
 
Exit Strategies advises business owners through the entire M&A sale process, including valuation, offering memorandum preparation, identifying and contacting target buyers, negotiations, due diligence management and facilitation of tax and legal counsel. If you are considering a sale, merger or acquisition, contact Al Statz at 707-778-2040 to discuss how Exit Strategies can help. As always, our discussion will remain confidential.

Interest Rates Likely to Rise After December FOMC Meeting

/in , /by Louis Cionci

It is widely believed that the Federal Reserve will raise the rate it charges banks for overnight deposit lending, commonly called the federal funds rate at the December 15-16 meeting of the Federal Open Market Committee.

The Federal Reserve controls the three tools of monetary policy–open market operations, the discount rate, and reserve requirements. The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee is responsible for open market operations. Using the three tools, the Federal Reserve influences the demand for, and supply of, balances that depository institutions hold at Federal Reserve Banks and in this way alters the federal funds rate.

Changes in the federal funds rate trigger a chain of events that affect other short-term interest rates, foreign exchange rates, long-term interest rates, the amount of money and credit, and, ultimately, a range of economic variables, including employment, output, and prices of goods and services.[1]

As shown in the graph below, the federal funds rate has been below .25% since 2009, primarily as a result of the 2008 financial crisis and the lingering effects on employment and the economy.

 

More information on the Federal Reserve can be found at their website, https://www.federalreserve.gov/default.htm

[1] https://www.federalreserve.gov/monetarypolicy/fomc.htm

Event: Helping Business Owner Clients Achieve More Valuable Exits

/in , , /by Al Statz
When: September 22, 2015
Where: San Rafael, California
Host: CalCPA San Francisco-Marin Discussion Group
As baby boomer owners and shareholders of privately-held businesses reach retirement age and get serious about exiting ownership, they face many new questions and challenges and turn to their professional advisors, often their CPA, for solutions. Based on his experience helping over 100 companies successfully sell or transfer ownership to partners, management or the next generation, Exit Strategies’ founder Al Statz will discuss the following topics in this presentation to CalCPA members and guests:
  • What exit options do owners have?
  • What factors affect the value of a company?
  • Does the preferred exit option have value implications?
  • What is an exit plan comprised of?
  • Marketability and other considerations
  • Services CPA’s can provide to help clients optimize their exits

Exit Strategies: a Speaking Resource

/in /by Jim Leonhard
Professional Speaker for Your Next Meeting, Conference or Webinar
Exit Strategies’ professional advisors regularly present insightful and timely information on business valuation, succession planning, and mergers and acquisitions to business owners and their advisors, including attorneys, CPA’s and wealth managers.
For example, Jim Leonhard was invited to give a presentation on July 8th to the California Society of CPA’s – Management of an Accounting Practice (MAP) entitled, “Avoiding Landmines in Buy-Sell Agreements: A Business Valuation Expert’s Perspective”.
Attendees gain an understanding of potential issues with their clients’ Buy-Sell Agreements (BSA’s) and become better able to spot potential problems and help correct them before a trigger event.  This presentation covers:
  • Brief overview of business valuation concepts
  • Common BSA valuation methodologies and their pros & cons from economic and practical business perspectives
  • A recommended approach to valuation for BSA’s
  • Other hidden problems in BSA’s, and solutions
If you or your organization are looking for a qualified, interesting speaker on business valuation, M&A or exit planning for an upcoming meeting, webinar or industry event, please contact Exit Strategies at info@exitstrategiesgroup.com. We will tailor our comments to your specific audience and needs. For more information about business valuation for Buy-Sell Agreements, contact Jim Leonhard at 916-800-2716 or jhleonhard@exitstrategiesgroup.com. 

Exit Strategies Sells ExpressPCB to Strategic Buyer

/in /by Al Statz

Exit Strategies recently sold California-based ExpressPCB, North America’s leading supplier of custom printed circuit boards for prototyping and low volume production.  Founded in 1998, ExpressPCB pioneered the market for quick-turn circuit boards using proprietary electronics design software and one-click ordering. For Sunstone Circuits, an Oregon-based printed circuit board fabricator, the acquisition is synergistic and accretive. Deal terms are confidential.

Exit Strategies advised ExpressPCB’s owners through the entire M&A process, including valuation, offering memorandum preparation, identifying and contacting target buyers, negotiations, due diligence management and liaising with legal counsel. This transaction adds to Exit Strategies’ record of successful M&A brokerage assignments involving California manufacturing businesses.

Today’s market for electronics manufacturing and related businesses is robust, driven by a growing economy, abundant buyer capital and low interest rates. Company owners considering a sale in the next few years should start now. If you considering a sale, merger or acquisition, call Al Statz at 707-778-2040 to discuss how Exit Strategies can help. Our discussion will remain confidential.

February Seminars: Maximize the Value of Your Business

/in , , /by Al Statz
Now in its 9th year, Exit Strategies’ Maximizing the Value of Your Business seminar delivers essential and practical information to business owners who would like to sell for top dollar in the next 1-5 years.  It is not too early to plan the successful exit you deserve!
In this fast-paced workshop, business owners learn …
  • The elements of an effective exit strategy
  • Types of buyers and what they value
  • Business valuation nuts and bolts
  • How to increase valuable and marketability
  • M&A selling process steps and timeframes
  • Current market conditions
  • Deal structures and tax implications
  • The secret to cashing out
  • What a professional M&A broker brings to the table
  • Answers to your questions and concerns
This seminar is complimentary to owners of $1-30 million revenue businesses
 
Dates: Petaluma – Tuesday, February 10, 2015
Roseville – Tuesday, February 24, 2015
Time: 4:00 to 6:30 pm
Presented by: Exit Strategies senior-level advisors and a guest speaker
Register:
Petaluma:  707-778-2040, info@exitstrategiesgroup.com
Roseville:  916-800-2716, info@exitstrategiesgroup.com
Space is limited. For privacy, we allow just one owner (or set of partners) per business type. When we confirm your registration we will provide the location address. Schedule conflict? Contact us to be notified of future dates.
“Amazing amount of information that I can use immediately. You made a complex topic clear and easy to grasp.”  -KM
“Everything that you said would happen when we sold our business happened, and we were prepared. Thank you.” –TB
Because you only sell your business once!

– See more at: https://web.archive.org/web/20150212225951/https://www.exitstrategiesgroup.com/blog.html#sthash.IDVsikiL.dpuf

Sonoma County Backroad Challenge, May 16, 2015

/in /by Al Statz

The 2015 Sonoma County Backroad Challenge century ride will take place on May 16th in Petaluma, California.

Cyclists of all levels enjoy spectacular

Sonoma County scenery on one of three fully-supported rides (100 miles, 100 Km and 50 Km) ranging from leisurely to grueling. The acclaimed Backroad Fest takes place after the ride, with local cuisine, cold brews, live music, fun and fellowship until 6 pm.

Registration is open:  www.backroadchallenge.com

The Backroad Challenge is a fundraiser for the Petaluma Sunrise Rotary Foundation. All proceeds support worthy local and international charitable projects. Every day, Rotary members throughout the world are working to combat hunger, eradicate polio, improve health and sanitation, provide education and job training, and promote goodwill and peace. Please join Exit Strategies in supporting Rotary International and the 2015 Sonoma County Backroad Challenge.

Upcoming Event: Valuing a Business for Estate Purposes

/in , /by Al Statz
Society of California Accountants North Bay Chapter Annual Estate & Trust Update
At the Sheraton Sonoma County
 
My background as a business valuation expert, M&A advisor, corporate development executive and business owner allows me to bring a wealth of knowledge and first-hand experience to closely held and family business owners as they consider their exit options and plan successful ownership transfers. I enjoy educating business owners  on these topics, and sharing my expertise with accountants, attorneys, lenders and wealth management professionals. And with baby boomer retirements on the rise, industry groups  are increasingly looking for experts to educate their members. 
 
If you want to explore booking me to speak to your group or association, Email or call me at 707-778-2040. 

Networking for Introverts!

/in /by Al Statz
One exciting aspect of working in Mergers and Acquisitions is that we are always learning. I had a recent learning experience after a colleague invited me to a meeting of The Association for Corporate Growth (ACG), an organization that provides a networking forum for M&A advisors, corporate growth professionals, private equity, finance, legal, and other professional service providers. Over the course of this particular meeting, I met and had interesting conversations with at least a dozen professionals, and agreed to follow up with several of them. Afterward, my host commented to me, “You are so comfortable introducing yourself and making friends with new people; I wish I was an extrovert.”
I was dumbfounded because I have always seen myself as an introvert. I wrote off his observation until I spotted this article last week in Fast Company magazine on the subject of introversion and networking — HOW INTROVERTS CAN NETWORK WITHOUT LOSING THEIR MINDS, a survival guide for making the most of a networking event, or everyday opportunities, as someone who’d rather run the other way.
My main takeaway from the article was  that “introvert” and “extrovert” ARE NOT necessarily synonymous with “shy” and “outgoing.” According to the author, shyness is a fear of negative judgment, while introversion is simply a preference for quiet, minimally stimulating environments. Extroverts, on the other hand, recharge their batteries by interacting with other people in highly social environments. Read the entire Fast Company article here.
Now I place myself at the center of the introvert-extrovert continuum. When I’m not working I like my solitude, and spending time with family and close friends. In my work I thoroughly enjoy connecting with people one on one and making new friends. I love hearing their stories, learning about their services and the types of projects they are involved in, and understanding their perspectives. I  also like to connect people and help out where I can.
Networking is an essential proclivity for M&A brokers. My bigger challenge, like a lot of busy professionals, is serving clients AND finding time to network. Now back to work!

– See more at: https://web.archive.org/web/20141119222839/https://www.exitstrategiesgroup.com/blog.html?bpid=4189#sthash.vCfSExdT.dpuf

U.S. Manufacturing Purchasing Managers’ Index rises to highest level since April 2010

/in /by Al Statz
Today, just after a gorgeous Labor Day weekend here in Northern California, I thought I would share some encouraging news for U.S. manufacturers and everyone who serves or invests in them …
The U.S. Manufacturing Purchasing Managers’ Index (PMI) — which is designed to signal changes in prevailing business conditions in the U.S. manufacturing sector — registered 58.0 in August, up sharply from 55.8 in July and the highest reading for over four years. All five components of the Manufacturing PMI had a more positive influence on the headline index than in July, led by a robust and accelerated increase in employment.