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Important Soft Skills That Every M&A Advisor Should Have

/in , , /by Al Statz

When business owners evaluate sell-side M&A advisors, most focus on hard skills: financial acumen, deal execution experience, valuation expertise, and a strong buyer network. Those matter. But here’s the truth—hard skills only get you so far. The best advisors also bring soft skills. These interpersonal and leadership traits often determine whether a transaction closes smoothly and maximizes value—or unravels under pressure.

Here are 10 important soft skills that every M&A advisor should bring to the table:

1. Emotional Intelligence. Business owners only sell once. It’s personal, and emotions run high. A skilled advisor can read the room, understand what’s not being said, and respond appropriately. Emotional intelligence helps navigate sensitive family dynamics, founder pride, and the stress of letting go.

2. Communication. Deals die in silence or confusion. Great advisors explain complex concepts in plain English, keep stakeholders informed, and maintain transparency. They know when to pick up the phone instead of sending another email.

3. Active Listening. Some advisors talk more than they listen. The best ones ask smart questions, shut up, and really hear the owners goals, fears, and non-negotiables. They also recognize unspoken buying signals.

4. Negotiation. Negotiation isn’t just about being tough. It’s about balancing firmness with diplomacy. Top advisors push hard on terms that matter and know where to step back.

5. Adaptability. Every deal throws curveballs, and no two deals are the same. Buyers change their approach, markets shift, diligence uncovers surprises. Advisors who can adapt quickly and recalibrate strategy keep deals alive.

6. Problem-Solving. Every deal has sticking points—tax structures, earnouts, environmental issues, you name it. Advisors who thrive under pressure and find creative solutions move deals toward the finish line.

7. Persistent Patience. M&A deals are marathons, not sprints. Buyers and sellers get fatigued, buyers drag their feet, lawyers bicker. Advisors who remain calm and patient but also persistent help everyone push through the rough spots.

8. Conflict Resolution. Deals create friction. Whether it’s between buyer and seller, or among shareholders, an advisor often plays mediator. The ability to de-escalate tensions and find common ground is invaluable.

9. Discretion. Owners need to be able to trust their advisor to behave in such a way as to avoid causing offense, and of course to maintain confidentiality throughout the process.

10. Resilience. Not every deal makes it to closing. Advisors who bounce back, stay positive, and keep moving forward are the ones who ultimately deliver success.

This isn’t a top 10 list, and of course, it isn’t exhaustive. Additional soft skills like having a keen sense of timing, being able to set and manage expectations, keeping ego in check, and building authentic relationships are also critical to success.

Summary

When you sell your company, don’t underestimate the power of soft skills. It’s the soft skills that turn good M&A advisors into great ones. If you’re exploring a sale or ownership transfer, you can reach Exit Strategies Group founder and President Al Statz at alstatz@exitstrategiesgroup.com.

Exit Strategies Group Delivers Successful Sale of In-Position Technologies

/in , /by Al Statz

Exit Strategies Group is proud to announce the successful sale of In-Position Technologies (IP Tech), a premier automation distributor and integrator, to Flow Control Group (FCG), a portfolio company of KKR. The transaction closed on August 22, 2025. Terms were not disclosed.

Founded in 1998 by Neil Jacques and headquartered in Phoenix, Arizona, IP Tech has built a strong reputation for delivering advanced discrete automation solutions across a wide range of industrial applications. Their capabilities include turnkey Autonomous Mobile Robot (AMR) systems and modular automation platforms for OEM applications.

Exit Strategies Group advised IP Tech every step of the way — from preparing the business for market, to positioning its unique capabilities, to running a competitive process that attracted multiple strategic buyers. Ultimately, Flow Control Group emerged as the right partner, bringing not only a strong valuation, but also resources, scale, and a commitment to advancing IP Tech’s agenda. For Flow Control Group, this deal strengthens their industrial automation group with deep technical expertise and proven integration capabilities.

“The Exit Strategies team was invaluable throughout this process. They understood our goals and our business, guided us through complex decisions, and ultimately delivered a great outcome for our company, our people, and our customers.”
— Neil Jacques, Founder, In-Position Technologies

This transaction reflects our core mission: helping private business owners maximize value and achieve successful outcomes when it’s time to transition. Since 2002, we’ve advised on well over 100 M&A transactions. Our automation focus encompasses value-added distribution, control systems integration, manufacturers and custom machine builders.

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For 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.

Exit Strategies Group Advises Tek-Matic in Strategic Sale

/in , /by Al Statz

We are pleased to announce that Exit Strategies Group recently advised the owners and management of Tek-Matic, Inc., a leading lab automation solutions provider, in a structured sale process that resulted in a sale to Flow Control Group, a KKR portfolio company. Terms of the transaction were not disclosed.

Tek-Matic, founded in 1983 and based in Rockford, Illinois, is a national lab automation and engineered systems provider serving the biotech, pharmaceutical, diagnostics and advanced manufacturing sectors. The company supplies thermal cyclers, precision dispensing platforms, software, robotics and precision motion components, along with enclosures, conveyors, and liquid handling systems. Tek-Matic supplies a broad lineup of lab automation technologies from leading manufacturers, and supports customers with systems integration, installation and startup assistance, training, and technical support.

The company supports both off-the-shelf and custom-configured solutions for applications such as PCR preparation, diagnostics, and high-throughput screening. Its engineering team brings deep experience in configuring modular systems that combine robotics and control, tailored to meet the specific requirements of laboratory and R&D environments.

Exit Strategies Group initiated this transaction and acted as exclusive financial advisor to Tek-Matic. Tek-Matic owner/CEO Chris Muldowney shared, “Several years ago, Al and his team conducted a thorough valuation of our business and gave us clear strategies to increase value prior to a sale. Two years after following their road map, we engaged them to run a sale process that produced outstanding results. We can’t say enough about the value Exit Strategies Group provides, and we wholly recommend them as an M&A partner to sell a company.”

This deal demonstrates Exit Strategies Group’s ongoing commitment to providing quality M&A advice and execution and valuation services to automation technology companies.  We work with product manufacturers, value-added distributors, systems integrators and machine builders. Since our founding in 2002, we have advised on well over 100 M&A transactions.

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For 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.

Exit Strategies Group Advises Starr Property Management in Sale

/in , /by Mark Harter

Exit Strategies Group recently served as the M&A advisor to the owners of Starr Property Management, a leading Central California property management company, on their sale to Galaxy Holdings, Inc., a recently formed private equity fund. Mark Harter led the sale process for Exit Strategies Group. The transaction represents Galaxy’s entrance into the national property management industry. Terms of the transaction were not disclosed.

Starr, founded in 1998 and based in Sacramento, CA, is a residential property management company, with clients in Sacramento, Stockton and the California Central Valley.  Starr manages residential properties, including single family homes, condominiums, duplex / fourplex and apartment buildings.  Starr’s clients range from owners of one property to real estate investors with ten or more properties.

Its property management team brings deep experience in providing lean, low-cost management services based on years of streamlining operations and using technology enabled solutions to manage its property portfolio.

Exit Strategies Group initiated this transaction and served as exclusive M&A advisor to Starr Property Management. This deal demonstrates Exit Strategies Group’s continued commitment to providing sell-side M&A advisory and business valuation services to Western US real estate services companies.  Our real estate business expertise includes property management, valuation, brokerage, inspection, environmental consulting, building and landscape maintenance, construction services, reserve study preparation, and more. Since our founding in 2002, we have advised on well over 100 M&A transactions.

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For information about Exit Strategies Group’s M&A advisory or business valuation services, please contact us.

Exit Strategies Group Advises Burns Controls Company in Sale

/in , /by Al Statz

Exit Strategies Group has advised the owners of industrial automation solutions provider Burns Controls Company on their sale to Valin Corporation, a subsidiary of Graybar. Effective July 1, 2025, this acquisition adds market coverage and technical services to Valin’s growing industrial automation group. Transaction terms will not be disclosed.

Founded in 1971, Burns Controls is an industrial automation distributor based in Dallas, Texas. The company supplies electrical controls, fluid power, motion controls, sensors and modular aluminum framing systems to manufacturers across various industries, and offers technical support, light systems integration and contract manufacturing services.

“This acquisition is transformative for our team,” said Burns Controls President Pat Burns Jr. “With Valin’s enhanced resources and support, we can boost our ability to provide innovative solutions to our customers and enhance our legacy of providing unmatched service.”

This transaction underscores Exit Strategies Group’s long-standing commitment to providing M&A advice and execution to closely held North American industrial technology companies.  Our automation industry experience includes product manufacturers, value-added distributors, control system integrators, custom machine builders, and repair service providers. Since our founding in 2002, we have advised on well over 100 M&A transactions.

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For questions or information about Exit Strategies Group’s sell-side M&A, business valuation or strategic exit planning services, contact Al Statz at 707-781-8580 or alstatz@exitstrategiesgroup.com.

Wine Industry Insights: Exploring a Different Kind of Exit

/in , /by Joe Orlando

The M&A market is in the midst of an extended “time out.” According to a Reuters article in May 2025, “the number of M&A contracts announced across the world – an indicator of global economic health – fell in April to the lowest level in more than 20 years, according to data compiled by Dealogic for Reuters.”[1]

This fact is striking when you consider that over the last 20 years, the global economy has endured significant disruptions, including the Great Recession, the COVID-19 Pandemic, global Inflation, a Regional Banking Crisis, two wars, and overall instability in the Middle East. Yet, from our current vantage point, the M&A market is at its lowest during the last two decades.

Veterans of the wine industry may recall the story of Inglenook and the Coppola Family’s stewardship of the Inglenook brand and the vineyard over the last 50 years.[2] To the right is a timeline of the winery’s and wine brand’s history.[3] I believe that this story is a perfect example of a “soft exit” for wineries looking to sell in a market with no buyers.

What is a “soft exit” in 2025?

If you are a willing seller in this market but struggle to find willing buyers (or at least those who aren’t seeking a discount on the adjusted value of your assets and no value for your intangible assets), what is the alternative? How about a “soft exit” where you retain key intangible assets? Unlike a hard exit, which typically involves a full, immediate sale of ownership with the seller stepping away completely, a soft exit allows for phased transitions and often retains the original owner’s involvement in some capacity for a negotiated time.[4]

Fundamentally, I see the vast majority of the value of a traditional winery business, encompassing operations and vineyards, in three key areas.

  1. Inventory – Bottled and bulk wine.
  2. Fixed Assets – Land, buildings, equipment.
  3. Intangible Assets – Primarily, brand, customer relationships in the form of wine club and mailing lists.

With this framework in mind, we consider a soft exit as the sale of assets in each bucket separately over an undetermined timeline.

Similar to Inglenook, when the business declined under corporate ownership, the brand and the estate were separated and not “restored” for another 36 years. While this example tells the story from a buyer’s perspective, we believe that a simple approach to this type of exit mirrors the Inglenook story.

  1. Inventory – Starting with the assumption that a buyer of this asset in its entirety is willing to pay a net present value equivalent to what they believe the individual assets will sell for over time, at a required rate of return, we suggest an alternative to simply keeping the business running until all the inventory is sold to your core customers.

This approach can help maximize the return for this asset by putting your wine in the hands of your best customers over the next two years; you can make this wind-down a celebration of the brand rather than a death march. Halting production and focusing on selling your existing inventory can be a more profitable alternative to accepting a discounted bulk sale. Consider the income from this wind-down as an “earn-out,” where, unlike the traditional deal structure, you can control everything from timing to risk.

  1. Fixed Assets – The key question here concerns the “value in use.” While the financial definition deals with the net present value of the cash flows[5], the range of value in a singular asset depends on how it is intended to be used. Simply ask yourself whether the vineyard is more valuable as a source of grapes for a specific brand or as a stand-alone vineyard based on its location, AVA, age of the vines, and the quality of its fruit. We suggest that there is value in choice, and limiting the use of the asset to a source of grapes for a specific brand’s estate bottle limits its value.

Also, as I learned from a prior experience, the value of a vineyard in a highly sought-after residential area may not be the highest and best use of the vineyard land. Treating the asset separately will allow for the flexibility to attract a buyer who sees the highest value for their particular use.

  1. Intangible Asset Value as an Option – While the current value of your brand remains on your label, all future use of that brand would remain in “hibernation” as you consider your next move or wait for the opportunity to see the brand resurrected by you or another buyer. Otherwise, you risk giving the brand away to a buyer who claims that a non-profitable brand holds no value. Consider this approach similar to the investment in an option. The value can go down to $0, but you aren’t giving away the upside. If you consider your brand to have value as a stand-alone asset, don’t include it in the sale of your operations unless the buyer is willing to pay a premium for it.

I use this approach all the time when a client tells me that an asset is worthless. My response is to make an offer of $1 for the asset, which yields an infinitesimal return on the worthless asset. Whether it is a floor or value that considers the avoidable cost of filing for the trademark protection or the future upside of applying a royalty rate to every dollar of revenue associated with the brand, these assets are usually worth something.

Takeaways:

  1. If you can’t find a buyer for everything today, consider looking at the business as a collection of assets that can be sold separately, ideally to those who value the assets the most.
  2. Your brand, customer relationships, and other intangible assets may hold hidden or future value.

The moral of the Inglenook story is that the Coppola Family paid more to purchase a dormant Inglenook brand than they did for the land associated with the winery in the heart of Napa Valley.

Exit Strategies has certified appraisers business from all industries with a strong expertise in the valuation of wineries and craft beverage companies, for tax, financial reporting, and strategic purposes. If you’re exploring your options or need a valuation to support a potential exit, contact Joe Orlando at 503-925-5510 or jorlando@exitstrategiesgroup.com. We’re here to help.

References: 

[1] https://www.reuters.com/business/ma-deal-signing-hits-20-year-low-after-trumps-liberation-day-2025-05-06/

[2] https://www.winebusiness.com/news/article/298241

[3]  https://www.guildsomm.com/public_content/features/articles/b/stamp/posts/inglenook

[4] https://www.linkedin.com/pulse/gradual-transition-exit-strategy-benefits-from-sellers-v4fpe/

[5] https://www.divestopedia.com/definition/5084/value-in-use

Exit Strategies Group Advises on Ruland Manufacturing’s Acquisition of RoCom Couplings Corp.

/in , /by Al Statz

We are pleased to announce that our client Ruland Manufacturing recently acquired Santa Maria, California-based RoCom Couplings Corp., a company with deep expertise in the design and manufacturing of flexible shaft couplings used in aerospace, medical devices, robotic systems, automated conveyors and all types of industrial machinery.  


By integrating RoCom’s expertise with Ruland’s manufacturing processes and resources, both Ruland and RoCom customers will be able to select from a broader range of beam couplings and custom spring solutions for prototype and large-scale production. 

 

Established in 1937, Ruland Manufacturing is a quality designer and manufacturer of high performing shaft collars and couplings. All products are carefully manufactured in its Marlborough, Massachusetts factory under strict controls using proprietary processes. 

 

Exit Strategies Group served as M&A advisor to Ruland. “Ruland is a world-class design, manufacturing and sales organization and RoCom adds unique capabilities that will benefit greatly from Ruland’s leadership and support. Forging win-win strategic acquisitions like this is one of the best parts of an investment banker’s job,” said Al Statz, President and founder of Exit Strategies Group. 

 

For further information or to discuss a potential business sale, merger or acquisition need, contact Al Statz at 707-781-8580 or alstatz@exitstrategiesgroup.com. Deal terms will not be disclosed. 

Exit Strategies Group Advises Clayton Controls in Sale

/in , /by Al Statz

Exit Strategies Group recently served as financial advisor to the owners of industrial automation solutions provider Clayton Controls, on their sale to KKR portfolio company Flow Control Group. Effective February 3, 2025, this acquisition adds market coverage, talent and technical services to FCG’s growing industrial automation group. Transaction terms will not be disclosed.

Founded in 1967, Clayton Controls is an automation solutions provider serving California, Nevada and Arizona manufacturing clients in several industries. ISO-9001 registered Clayton Controls designs and builds UL 508A custom control panels and other engineered solutions and offers a range of other engineering and logistics services to address clients’ unique industrial automation needs. Technologies offered include machine control, robotics, motion controls, machine vision, sensors, safety, pneumatics, vacuum and others, from leading global manufacturers.

Chris Brown, President and owner of Clayton Controls said, “The automation industry knowledge and M&A experience of Exit Strategies Group’s team was invaluable to us. First, they advised us on preparing and positioning our company for an acquisition. Then they generated interest and produced attractive offers from multiple qualified candidates, and their counsel during the LOI negotiation, due diligence and closing phases helped us navigate complications and resolve challenges that arose along the way.  We could not be happier with their advice and services and the results that they helped us achieve.”

Exit Strategies Group initiated this transaction and served as M&A advisor to Clayton Controls. “Clayton Controls is a quality organization with unique control system design and production capabilities. We were pleased to achieve a win-win deal with the right partner to help them continue to grow and prosper in the West Coast industrial automation market,” said Al Statz, President of Exit Strategies Group.

“This transaction highlights our abiding commitment to serving closely-held North American industrial technology companies.  Our automation industry experience includes technology suppliers, value-added distributors, control system integrators, custom machine builders, and repair service providers. Since our founding in 2002, we have advised on well over 100 M&A transactions.”

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For questions or information about Exit Strategies Group’s sell-side M&A, business valuation or strategic exit planning services, contact Al Statz at 707-781-8580 or alstatz@exitstrategiesgroup.com.

What is the purpose of a letter of intent (LOI) in a business sale?

/in , /by Al Statz

A Letter of Intent (LOI) in a business acquisition serves as a blueprint for the deal by establishing key terms, as well as process and timeline, before moving into due diligence and final agreements. It signals serious intent, based on what is known today, without final commitment. It helps both parties align their expectations and minimize wasted time and costs.

Key Purposes of an LOI in Business Acquisitions

1. Establishes Key Deal Terms

  • Defines the purchase price and deal structure (e.g., asset vs. stock sale, earnouts, seller financing).
  • Clarifies terms around payment, contingencies, and liabilities.
  • Helps both parties determine if they are aligned before investing in full due diligence and legal work.

2. Creates a Framework for Due Diligence

  • Allows the buyer to dig deeper into financials, operations, and risks before committing.
  • Gives the seller an idea of what information will be required and what potential hurdles may arise.

3. Includes Exclusivity to Prevent Shopping the Deal

  • Most LOIs include a “no-shop” clause, preventing the seller from negotiating with other buyers for a set period.
  • This protects the buyer from wasting time and money only for the seller to accept a better offer elsewhere.

4. Signals Serious Intent Without Full Commitment

  • While mostly non-binding, an LOI shows that both parties are serious about making a deal.
  • Some provisions, such as confidentiality, exclusivity, and break-up fees, may be binding.

5. Reduces the Risk of Late-Stage Surprises

  • A well-structured LOI helps avoid major renegotiations when drafting the final purchase agreement.
  • The clearer the LOI, the less room for misunderstandings later.

Why LOIs Matter

The LOI may be the most important document in a business sale process. A well written LOI reduces misunderstandings and renegotiations, and increases the probability of a successful closing. A weak or vague LOI often leads to delays, disputes, cost overruns, and failed deals.

Are you working on an LOI right now or planning to sell a lower middle market business? Contact Al Statz with any questions, or for information on our highly successful structured sale process.

Beyond price: What matters most when selling your company

/in , /by Al Statz

Most of our seller clients go into a sale thinking their highest priority is getting top dollar. And sure, price matters—it’s your financial reward for years of hard work. But many clients learn along the way, that other factors often carry just as much weight—sometimes more. If you want a successful and satisfying sale, look beyond the headline sale price.

Strategic Fit: Will the Buyer Honor Your Legacy?

The right buyer isn’t just the one offering the most money—it’s the one who sees value in what you’ve built. Many owners care deeply about their company’s culture, employees, and future direction. A buyer who shares your vision and wants to grow what you started may be worth more than a higher offer from someone looking to wring maximum profit out of your business.

Deal Structure: Terms Matter More Than Price

A higher price isn’t always the best deal. The structure—earn-outs, seller financing, holdbacks, rep and warranty insurance—can make a big difference. A slightly lower offer with favorable terms can often put more money in your pocket in the long run than a big number with strings attached.

Taxes: It’s Not What You Make, It’s What You Keep

How a deal is structured—stock sale vs. asset sale, purchase price allocation, installment payments vs. lump sum—can dramatically impact your tax bill. A “higher” price can shrink fast after taxes if the deal isn’t structured wisely. Smart sellers work with advisors to maximize after-tax proceeds, not just the headline number.

Legacy and Employees: What Happens After You Leave?

Many owners care deeply about their employees and the legacy they’re leaving behind. If keeping your team or family employed, maintaining company values, or ensuring community involvement matters to you, it may be better to select a buyer who aligns with that vision. It’s not just about money—it’s also about what happens when you’re gone.

Your Role Post-Sale: Are You In or Out?

Do you want a clean break, or are you open to staying involved? Some buyers need sellers to stick around for a transition—or retain partial ownership. Others can offer a full and quick exit. Know what you want and make sure the deal matches your expectations.

Speed and Certainty: A Fast Close Can Be Worth More

A higher offer isn’t worth much if it drags out for months or falls apart at the last minute. Buyers with secure financing and a smooth path to closing can be more attractive than those offering more money but bringing uncertainty. Time kills deals—certainty has value.

The Bottom Line

Yes, price matters, and we’re all about helping our seller clients maximize value. But a successful and satisfying sale is about more than that. Strategic and cultural fit, deal terms, taxes, legacy, and closing certainty all play a role in selecting a buyer and optimizing sale outcomes. Sellers learn that the best deal isn’t always the highest price—it’s the one that checks the most boxes for achieving their financial and personal goals.

For further information on this topic or to discuss a potential M&A advisory or exit planning need, please contact Al Statz.