Blogs

Business Values May Not Decline

Posted on June 13th, 2020

According to the Q1 2020 Market Pulse Report published by the International Business Brokers Association, M&A Source, and the Pepperdine Private Capital Market Project, advisors reported that of the small and medium businesses currently for sale, about 35% had closed, 40% were operating at partial capacity, 4% had benefited, and 21% remained unaffected by COVID-19.

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No Set Asking Price

Posted on June 4th, 2020

You want to know you’re getting fair market value for your business. The best way to do that is to create a structured transaction process.

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COVID-19 M&A: Buying a Business in Uncertain Times

Posted on April 18th, 2020

The market doesn’t like uncertainty. Certain buyers are retreating into wait and see mode, waiting to see how long the lockdowns will stay in place, how supply-demand issues will shake out, and whether we’ll hit a full-blown recession. But opportunities happen when others retreat. That’s why the coronavirus pandemic could be the best opportunity we’ve seen to buy a business in the last five years.

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Using Downtime During COVID-19 to Add Value to Your Business

Posted on April 13th, 2020

As business owners are working to process the impact of COVID-19, we’re looking at how it will affect M&A. In the short term, some companies will slow the pace of acquisitions. That’s natural in uncertain times.

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‘NO SHOP’ Protects Buyers Investment in M&A

Posted on January 19th, 2020

A no shop provision is an important part of M&A transactions. Also known as an exclusivity clause, a no shop clause prohibits the seller from sharing information or negotiating with other would-be buyers for a specified timeframe.

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EARNOUTS: Breaking The M&A Deadlock

Posted on January 19th, 2020

Earnouts are used to bridge a valuation gap between a buyer and a seller. It’s a compromise, of sorts, to break a purchase-price deadlock when the seller wants more than the buyer is willing (or able) to pay.

 

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Platform Businesses the Belle of the Ball

Posted on January 5th, 2020

Business owners thinking about exiting their business may be hearing the terms “platform” and “add-on” acquisitions. Understanding these terms, and knowing which category you might belong to, can help you prepare your business for a competitive, higher value sale.

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Can’t Stop, Won’t Stop

Posted on December 31st, 2019

Your business is on the market and you’re looking forward to that glorious day when you can let go of the pressure and responsibilities of ownership. But don’t let those future plans distract you from what’s going on today.

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You Are the Least Valuable Part of Your Business

Posted on November 3rd, 2019

You don’t want to hear this. You might even be a little offended. But when it comes time to sell your business, you are the least valuable part of the equation. Unless you’re sticking around with an ownership stake or long-term employment contract, your experience means very little to a buyer.

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Earnouts Don’t Deserve A Bad Reputation

Posted on September 29th, 2019

Even if you stay on with the business, you don’t have complete control over how new ownership runs the company. If the business does well, you get paid. If business drops, you don’t.

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