Will appear on Seller pages – RECENT SELLER ARTICLES

Can I sell my California construction contracting business?

/in , /by Roy Martinez

Every owner of a construction contractor believes that their business is valuable. And…indeed it is, to them…if the business is compensating them well through excess salary, bonus, perks, and distributions. But, when the owner retires, can the business be sold?

It depends.

1) Size matters. It is easiest to sell construction companies with more than $10 million in revenue that are growing faster than inflation.

2) Profitability is key. Your business should be consistently profitable. No volatile ups and downs. Especially no losses. Ideally EBITDA margin is 10% or higher. It is best if profits grow with revenue and even better if EBITDA margin improves with growth.

Ideally your business revenue and profitability look like the graph below:

    • Revenue growing consistently, faster than inflation
    • Profits growing with revenue, even better if faster as a % of revenue.

3) Revenue type matters. In general buyers prefer recurring revenue – like contracted maintenance revenue. One-time revenue, like construction revenue, is less attractive. Repeat revenue, like annual inspections or maintenance is somewhere in-between.

4) Customer mix is important. Private equity-backed firms tend to prefer contractors that serve commercial customers rather than residential customers. Commercial projects tend to be bigger. They often include recurring revenue through maintenance contracts or at least repeat revenue. Operations are more professional. And customers pay on time and rarely default.

Where does your construction business fit in this 2X2 matrix?

5) What is the plan for the contractor’s license? The California CSLB (contractors state license board) requires that all contractors have a contractor’s license. For most contractors, the license is held by the business owner, the RMO (responsible managing owner). If the business sale is financed with an SBA loan, the former owner cannot stay on as RMO or RME (responsible managing employee). Many construction business owners don’t know this.

6) Do you know the buyer? If you are selling to a family member or a trusted employee in an MBO (management buy-out), it is likely that they won’t have sufficient funds and may not qualify for a loan. This means that the Seller may have to finance the transaction.

Many small-to-medium-sized construction contractors simply wither away. Some get passed to the next generation. The best ones get sold.

Often I hear, I have been in business for 20 years…I have lots of goodwill in the community. Remember, there are two types of goodwill, financial goodwill and community goodwill. Financial goodwill is driven by revenue and profits. Community goodwill is basically reputation. While community goodwill is important, only financial goodwill truly matters when selling your business.

If you plan to sell your contracting business when you retire, start planning now. Start working with a strategic business consultant, a CEPA (certified exit planning advisor), or a CExP (Certified Exit Planner) now. Groom your business to be sold. Don’t wait until the last minute, only to learn that your contracting business is not attractive to strategic and financial buyers.

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Roy Martinez is an m&a business intermediary at Exit Strategies Group, Inc. in Sonoma County, CA. He helps owners of businesses with $5-50 million in sales sell their business. He recently helped a construction contractor complete an MBO. Roy can be reached at m 707-849-5040 and jroymartinez@exitstrategiesgroup.com.

Note: I am not a strategic business consultant, a CEPA, or a CExP. But, I would be happy to connect you with one.

 

Why Hire an M&A Advisor, and Why one with Industry Expertise

/in , /by Al Statz

Selling a business is likely the most significant financial event of a lower middle market company owner’s life, yet most owners do it only once. That mismatch — high stakes, zero experience — is the core reason to hire a professional M&A advisor, regardless of whether that advisor is a generalist or a specialist in your industry.

Why Hire an M&A Advisor at All

A good advisor does four things an owner, or their CPA or attorney, usually can’t do alone.

First, they build a competitive process. Owners who sell without representation typically negotiate with one buyer at a time, which weakens leverage; advisors run a structured process that reaches many qualified buyers at once, and that competition drives up price and improves terms.

Second, they protect confidentiality. A leak to employees, customers, or competitors that a sale is underway can damage the business overnight, and an advisor controls who sees what, and when.

Third, they let the owner keep running the company. A sale process is a demanding, months-long distraction, buyers watch performance closely throughout diligence, and a business that slips during the process can lose value or kill the deal — an advisor absorbs that workload.

Fourth, they bring deal experience the owner doesn’t have: valuation, deal structure, negotiating around reps and warranties, earnouts, and working capital adjustments, and knowing which issues are routine versus dealbreakers. Attorneys and CPAs are essential members of the deal team, but they aren’t built to run a sale process or negotiate value — that’s the M&A advisor’s job.

Why an Industry Specialist vs. a Generalist

Once an owner decides to hire an M&A advisor, the choice between a specialist and a generalist matters more than it might seem. A specialist who is genuinely “in the flow” of a given industry brings advantages a generalist can’t easily replicate.

They already know the buyers: the strategics actively acquiring, the private equity firms deploying capital in the space, and who actually closes deals versus who wastes an owner’s time. Building that buyer list from scratch and getting those buyers’ attention, as a generalist must, can take months.

A specialist knows current market pricing and terms. Because valuation and deal structures move with conditions in each sector, only an advisor closing deals there regularly can tell an owner, with confidence, what the business is worth today and what terms are market.

They know how to position the business, since every industry has its own key metrics, value drivers and red flags — much more nuanced than M&A basics like customer concentration, recurring revenue, and key-person dependence — and a specialist knows how to best present the story and get ahead of buyer concerns before they surface.

Finally, industry specialists carry credibility with buyers: when a known sector specialist brings a deal to market, buyers take the process seriously and move faster, because they trust the vetting behind it.

The bottom line:

Hiring any competent and seasoned M&A advisor beats going it alone or relying solely on a CPA and attorney. But hiring one with deep, current industry relationships and market knowledge — one truly in the deal flow — typically results in a faster process, a stronger buyer pool, a higher valuation, more favorable terms, and a greater chance of a successful closing.

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

Exit Strategies Group Advises SmartClinic Urgent Cares in Sale

/in , /by Exit Strategies

Exit Strategies Group is pleased to announce the successful sale of SmartClinic Urgent Cares to Dr. George Sedrakyan. The transaction closed on August 7, 2026, and included the sale of the medical practice along with a deferred sale of the associated real estate. Terms of the transaction were not disclosed.

 

 

SmartClinic Urgent Cares has been serving patients in Los Angeles County for nearly two decades. The company operates two urgent care clinics and has established a longstanding presence in the local healthcare community.

Exit Strategies Group represented the sellers throughout the transaction, providing M&A advisory services and guiding the ownership transition through closing. The transaction structure addressed both the operating business and the sellers’ real estate interests, providing for the deferred sale of the real estate as part of the overall agreement.

The sale represents a successful transition for SmartClinic’s owners while positioning the practice for its next chapter under the ownership of Dr. George Sedrakyan. Exit Strategies Group congratulates both parties on the successful completion of the transaction.

This transaction reflects Exit Strategies Group’s continued commitment to helping private business owners maximize value and achieve successful ownership succession outcomes. Since its founding in 2002, the firm has advised business owners across a broad range of industries on mergers and acquisitions, business valuations, and exit planning.

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For information about Exit Strategies Group’s sell-side M&A, business valuation, or strategic exit planning services, or to discuss a potential need, contact Tony Westfall at (707) 981-0444 or tony@exitstrategiesgroup.com.

Exit Strategies Group Advises Ralph W. Earl Company in Sale

/in , /by Al Statz

Exit Strategies Group recently guided the owners of industrial automation solutions provider Ralph W. Earl Company through a structured sale process that resulted in an acquisition by SunSource. This acquisition expands SunSource’s automation and motion control capabilities and market coverage in the Northeast. Transaction terms will not be disclosed.

 

 

With a legacy spanning more than 70 years, Ralph W. Earl Company is a value-added distributor and technical solutions provider based in Syracuse, New York. The company supplies industrial automation, motion control, pneumatics, hydraulics and collaborative robots to manufacturers in New York and beyond. They offer their clients comprehensive engineering support, custom systems design, assembly and fabrication, testing and certified robotics training services.

“Joining forces with SunSource is an exciting new chapter for our Team and Legacy,” said Ralph W. Earl Company President Bill Gerbig. “Exit Strategies Group was instrumental in guiding us through the process and helping us connect with a partner that met our primary objectives.  Al Statz and the rest of the team at Exit Strategies Group provided much-needed expertise and support.  Their familiarity with our industry was a plus.”

“Bill and the owners of RW Earl are great people who built a quality business, and we are honored to have supported them and their team in this part of their journey,” said Exit Strategies Group’s CEO Al Statz. “This transaction underscores our long-standing commitment to serving closely held industrial automation technology companies.  Our automation M&A experience includes component manufacturers, value-added distributors, system integrators, custom machine builders, and field service providers.”

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

Beyond Price: Understanding a Buyer’s Integration Philosophy

/in , /by Al Statz

When evaluating acquisition offers, most business owners focus on valuation, deal structure, and the amount of cash they will receive at closing. While those factors are important, they are only part of the decision. Equally important is understanding what happens to your company’s brand, culture, employees, and autonomy after the sale. For many founders, the future of the business they spent decades building matters just as much as the purchase price.

In consolidating industries like industrial distribution and industrial services, acquirers generally follow one of two branding and integration models.

The Unified Brand Model

Some acquirers combine companies into a single corporate identity. Local brands disappear and customers see one unified company. The obvious advantages are stronger national brand recognition and more consistent customer experience. More importantly, branding is often a visible indicator of a buyer’s broader integration philosophy. Buyers pursuing a unified brand strategy often seek deeper operational integration and standardization, and centralized decision-making.

Example acquirers include Motion Industries, Applied Industrial Technologies, and The Home Depot Pro.

For sellers, this approach means your local identity eventually disappears.

The Independent Brand Model

Other consolidators take the opposite approach. They acquire strong regional distributors while preserving local brands, leadership teams, customer relationships, and market identities.

Examples acquirers include: Singer Industrial, Distribution Solutions Group and Flow Control Group

The philosophy is simple: local relationships and market reputation create value. Rather than replacing those assets, these acquirers seek to preserve them while providing the benefits of a larger organization. Buyers that preserve brands frequently allow greater local decision-making authority, specialization, and autonomy.

What Sellers Should Consider

Neither model is inherently better. Both seek to retain key employees and customer relationships, and most vendor relationships, and both will leverage synergies (e.g. cross-selling opportunities) and bring resources to make strategic investments.

Owners seeking maximum integration or national account relationships may find the unified brand model more attractive. Owners who value preserving their company’s unique identity, culture, and autonomy may prefer a buyer that maintains independent brands.

Before signing a letter of intent, sellers should ask:

  • Will our brand remain in the market? For how long?
  • How much autonomy will my management team retain?
  • What has the buyer done with previous acquisitions?

For many business owners, a successful exit isn’t measured solely by purchase price. It’s also about what happens to the company, employees, customers, and legacy after closing. The best buyer is not always the highest bidder—it’s the one whose vision for the future of the business aligns most closely with your own.

A good sell-side M&A advisor helps owners evaluate not only valuation and deal terms, but also the buyer’s integration philosophy, ensuring the chosen partner is aligned with the seller’s legacy objectives and long-term goals for the business.

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To learn more or to discuss your company’s exit strategy, reach out to Al Statz, CEO of Exit Strategies Group, Inc., at alstatz@exitstrategiesgroup.com.

Exit Strategies Group Advises Teknikor on Strategic Investment by Rhino Tool House / Blue Sea Capital

/in , /by Al Statz

Exit Strategies Group is pleased to announce the successful sale of Teknikor to Rhino Tool House, a portfolio company of Blue Sea Capital. Terms of the transaction were not disclosed. 

Founded in 1966 and headquartered in Fall River, Massachusetts, Teknikor is a national provider of automated industrial equipment installation and modernization services. The company delivers a broad range of solutions including plant relocation, machinery installation, automation controls integration, custom machine design, refurbishing, precision alignment, maintenance services, and 24/7 emergency support. 

Teknikor is one of the few providers in the United States capable of delivering turnkey equipment relocation, installation and start-up services from a single source and holds a leading position serving the wire and cable manufacturing industry. Over nearly six decades, the company has built a strong reputation for executing complex industrial projects safely, efficiently, and with deep technical expertise. 

The transaction represents a strategic partnership designed to support Teknikor’s next phase of growth. Rhino provides value-added distribution, automation services, and customized material handling solutions to OEM customers nationwide. By combining Rhino’s national sales platform and customer relationships with Teknikor’s installation and automation controls capabilities, the platform can now support customers across a wider range of industrial production lines. 

Teknikor’s owners  will remain in their leadership roles and retain an ownership stake, partnering with Blue Sea Capital and Rhino Tool House to continue building the company. 

Exit Strategies Group advised Teknikor throughout the transaction — preparing the business for market, positioning its unique capabilities, and managing a competitive process that attracted strong interest from strategic and financial investors. Blue Sea Capital and Rhino Tool House ultimately emerged as the right partner, offering both an attractive valuation and a shared strategic vision for the company. 

“Exit Strategies Group did a tremendous job introducing buyers and guiding us through this process,” said Phil Pelletier, CEO of Teknikor. “Their M&A knowledge, industry experience, professionalism, and steady guidance helped us achieve a great outcome and find the right partner for the future of our company.” 

This transaction reflects Exit Strategies Group’s mission of helping private business owners maximize value and achieve successful ownership succession outcomes. Since 2002, the firm has advised on more than 100 private company mergers and acquisitions across industrial services, trade contractors, automation distributors and system integrators, and specialty manufacturing support businesses. 

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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 Gasket Specialties Inc. in Sale

/in , /by Al Statz

Exit Strategies Group recently served as the M&A advisor to the owner of Gasket Specialties Inc, a leading West Coast manufacturer of gaskets and seals, on their sale to Tipco Technologies, a national provider of fluid conveyance and sealing solutions focused on hose assemblies and custom gaskets. Tipco is a portfolio company of Platte River Equity. Effective November 03, 2025, the acquisition enhances TIPCO’s existing capabilities and expands its reach throughout California and the Pacific Northwest.  With the addition of GSI, TIPCO’s footprint now spans 46 locations across 17 states. Terms of the transaction were not disclosed. 

 

 

Gasket Specialties is a family-owned manufacturer, distributor and servicer of gaskets, seals and related industrial products serving a diverse customer base. Founded in 1925, the company has three west coast locations in Richmond, CA, Rancho Cucamonga, CA, and Portland OR. The company has deep historical knowledge in producing a wide array of gaskets, seals, and related products, with a breadth of manufacturing capabilities that made the company an attractive strategic acquisition candidate. 

Exit Strategies Group initiated this transaction and acted as exclusive financial advisor to Gasket Specialties.  Al Statz and Mark Harter led the sales process for Exit Strategies Group.

“Mark and Al did a fantastic job working us on the sale of our company,” said Anita Gutierrez, owner of GSI.  “They walked us through every step of an unfamiliar process, exposed our company to a national audience of credible buyers, and procured an exceptional acquisition price for our business – twice the amount of the appraised value.  I would recommend Exit Strategies without hesitation to any owner interested in selling a business.” 

This deal demonstrates Exit Strategies Group’s strong commitment to providing sell-side M&A advisory services to lower middle market manufacturing companies. 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.

Technical Equipment Sales and Airflotek acquired by Cleanova

/in , /by Roy Martinez

Exit Strategies Group recently served as M&A advisor to the owners of Airflotek and TES Clean Air Systems on their strategic sale to Cleanova, a PX3 portfolio company. Together Airflotek & TES manufacture and distribute custom fan filter units (“FFUs”) and other technologies for state-of-the-art cleanroom environments worldwide, serving industries with exceptionally stringent air-quality requirements, including semiconductor, pharmaceutical, and biotechnology manufacturing. Terms of the transaction were not disclosed.

 

Founded in 1993, Airflotek designs and manufactures custom FFUs and stocks a range of high-purity replacement filter media at its state-of-the-art assembly and warehouse facility in Georgia. Founded in 1986, TES-Clean Air Systems is the California-based exclusive distributor of Airflotek FFU products for the semiconductor equipment industry. TES brings decades of cleanroom and semiconductor application expertise, supporting a global customer base.

Alan Schlesinger, president and owner of Airflotek said, “TES and Airflotek were two separate, closely-held companies that belonged together. Exit Strategies helped us navigate the challenges of consolidating, presenting and selling TES and Airflotek together as one business. Airflotek’s Georgia team is excited about their future with Cleanova.”

Jim Harris, owner of California-based TES said, “Exit Strategies’ transaction process attracted several strong strategic and financial investors and ultimately helped us select a great value-added industrial filtration partner in Cleanova. Joining Cleanova is a good outcome for our team, our customers, our suppliers, and all of our stakeholders.”

Exit Strategies Group initiated this transaction and acted as exclusive M&A advisor to Airflotek and TES. This transaction demonstrates Exit Strategies Group’s strong commitment to providing sell-side M&A advisory and business valuation services to North American industrial technology, manufacturing and distribution companies.  Since its founding in 2002, Exit Strategies has advised on over 200 M&A transactions.

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For information about Exit Strategies Group’s M&A advisory or business valuation services, please contact Roy Martinez at 707-781-8583 or jroymartinez@exitstrategiesgroup.com.

Exit Strategies Group Advises Gasket Specialties Inc. in Sale

/in , /by Al Statz

Exit Strategies Group recently served as the M&A advisor to the owner of Gasket Specialties Inc, a leading West Coast manufacturer of gaskets and seals, on their sale to Tipco Technologies, a national provider of fluid conveyance and sealing solutions focused on hose assemblies and custom gaskets. Tipco is a portfolio company of Platte River Equity. Effective November 03, 2025, the acquisition enhances TIPCO’s existing capabilities and expands its reach throughout California and the Pacific Northwest.  With the addition of GSI, TIPCO’s footprint now spans 46 locations across 17 states. Terms of the transaction were not disclosed. 

 

 

Gasket Specialties is a family-owned manufacturer, distributor and servicer of gaskets, seals and related industrial products serving a diverse customer base. Founded in 1925, the company has three west coast locations in Richmond, CA, Rancho Cucamonga, CA, and Portland OR. The company has deep historical knowledge in producing a wide array of gaskets, seals, and related products, with a breadth of manufacturing capabilities that made the company an attractive strategic acquisition candidate. 

Exit Strategies Group initiated this transaction and acted as exclusive financial advisor to Gasket Specialties.  Al Statz and Mark Harter led the sales process for Exit Strategies Group.

“Mark and Al did a fantastic job working us on the sale of our company,” said Anita Gutierrez, owner of GSI.  “They walked us through every step of an unfamiliar process, exposed our company to a national audience of credible buyers, and procured an exceptional acquisition price for our business – twice the amount of the appraised value.  I would recommend Exit Strategies without hesitation to any owner interested in selling a business.” 

This deal demonstrates Exit Strategies Group’s strong commitment to providing sell-side M&A advisory services to lower middle market manufacturing companies. 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 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.