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 …

Are You on the Trigger Plan?

When it came time to sell their business, less than half (43%) of all business owners planned ahead. What that means is that most business owners wait for some kind of trigger before they go to market. Those triggers are often negative in nature, stemming from a family health issue, conflict, or (most commonly) burnout. …

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 …

Who you need on your Mergers & Acquisitions roster

With the start of the National Football League season right around the corner, I thought now would be a good time to come up with a roster of mergers & acquisitions teammates that business owners should draft to assist in their exit planning. Put some time and effort into drafting your M&A team, you’ll be …

Ready and Growing

We’re ready to sell a business that isn’t going to the market. Why? The owners asked us to create a contingency plan in case: a) something unforeseen happened to the CEO or b) the business was approached by an unsolicited buyer They want a plan in place, ready to execute, should the need arise. Why …

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 …

Seller and Advisor relationship – creating a transformation

Ryan Hauber of Honkamp Krueger recently wrote a feature article in Forbes that highlights the relationship between business sellers and their advisors. He provides some great insight into why started transactions fail, and how to better prepare for a sale. Nicely written article that points out that the importance of understanding that these relationships are …

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 …

Get an Annual Estimate of Value

Most small business owners (78%) plan to sell their business to fund their retirement, and they need that sale to cover 60 to 100% of their retirement income. Yet, when it comes time to sell their business, less than half (43%) of all business owners plan ahead. Imagine you worked in corporate America but waited …