Accurate accounting doubled business value

You made it. You’ve paid back your business loans and can run your company with just a line of credit. You’re profitable. You’re comfortable. And you don’t have to pay such rigorous attention to things like accounts receivable turnover and your particular accounting methods. Many of the business owners I work with have reached this …

Make Sure Attorney is a Deal Maker

Reps and warrants are one of the top five negotiated items in a business sale. These tie back to legal and ethical issues like whether the business is yours to sell and that you stand behind your record keeping. Negotiations here can center around language like “absolutely true” versus “to the best of my knowledge.” …

One large customer, one big problem

We have a client in the machining industry with a customer concentration issue. Their big customer is a blue-chip manufacturer, a well-respected brand any company would want to work with, but they account for more than 65 percent of our client’s revenue. We found our client several buyers, but over the months it took to …

Gas in the Tank

In the lower middle market, most buyers want some gas left in the tank. They’re looking for a normal level of working capital, which would typically include inventory and receivables, minus accounts payable, averaged over 12 months. Problems occur when business owners get lax on working capital. They pay bills immediately while letting customers delay …

The Role of an M&A Advisor

Selling your business without assistance from a skilled M&A advisor is almost always a bad idea. The skill and experience of an advisor whose business it is to sell companies ensures that owners don’t go into the process poorly prepared or naive. Every sales process brings rough patches and challenges. A skilled advisor helps you …

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 …