Know Your Buyer

Using the Market Pulse Survey results, we can identify common buyer personas for each industry segment. $5MM – $50MM Buyers in this segment are split between existing businesses (strategic buyers) and private equity firms. These buyers target businesses that represent strong investment opportunities and/or strategic growth opportunities through vertical or horizontal add-ons. Most of these …

Unsolicited offer? Get a boxing coach

The M&A marketplace is very strong, and, according to the Small Business Growth Index from Capital One, small business optimism is the highest it’s been since spring of 2012. So it’s not surprising that many business owners are getting phone calls and letters saying, “I want to buy your business,” or “I have a buyer …

Seller May Earn Back Stay Bonus

We’re selling a business right now in which several members of the management team hold minority shares in the company, with some holding less than one percent of the business. Management salaries are below market, but their compensation plan includes a percentage of the profits. As business sales continue to grow, their compensation has increased …

Ways to Cash Out of Your Business

It’s not easy to sell a business, but many owners have more options than they realize. The wrong approach to cashing out can have serious consequences. So evaluate the pros and cons of each option. An outright sale is the simplest exit strategy. This can work well when your family doesn’t want to take over …

It’s wise to know your buyer type

The Pepperdine Private Capital Markets Project and the Graziado School of Business partners with the IBBA and M&A Source to conduct a quarterly survey of business brokers and advisors. With four years of data in the books, we’ve see some trends move around (hot industries, market confidence) while other metrics (reason for sale) remain fairly …

One family business heeds advice

A CNBC succession planning survey reports 78 percent of small business owners plan to sell their business to fund their retirement, and they’ll need 60 to 100 percent of those proceeds to cover their needs. Yet according to M&A Market Pulse data just released by Pepperdine University, IBBA, and M&A Source, of the small and …

8 Strategies for Successful M&A Negotiations

Buyers and sellers tend to see their interests as opposing. But both share one critical goal: closing the deal. Skillful negotiations can help both sides feel like they’ve gotten a good deal. This process demands time and talent. A few simple tactics can help any buyer or seller achieve success at the negotiation table. Price …

Sharing is tricky, but silence can be trouble

We’re working on getting a manufacturing business sold here in the upper Midwest. The owner has been part of the company for over 35 years and is looking to enjoy life a bit more. He plans to stay and help the new owners, but he wants to be on the shop floor, troubleshooting projects, quoting …

Sell to the kids, without discord and risk?

We’re working with one of our buy-side clients and have identified a company they’re interested in. We’ve talked to the owner and he’s considering, but he’s just not sure. The sticking point? He has two sons and he might want to pass the business on to them. I’ve been in this industry for two decades …

What You Need to Know About a Letter of Intent (LOI)

In mergers and acquisitions, a letter of intent often signals the transition from casual discussions to serious deal negotiations. A letter of intent (LOI) by no means that the deal is finished. But it does lend a tone of seriousness to the deal, and can help both parties negotiate in a more constructive fashion. Before …