Earnouts Play an Important Role
The earnout is not a new tool or technique. It is utilized in many M&A transactions wherein one or both of the parties feel the need to mitigate risk. If a buyer believes an attribute of the business is not as strong as the seller believes it is the buyer may convince the seller to […]
Small Business Acquisitions Up over Q1
Per the BizBuySell website small business acquisitions are up over Q1. “Small business acquisitions reached a familiar milestone in the second quarter after growing 5% over the past year and 3% from last quarter, according to BizBuySell’s Insight Data, which tracks and analyzes U.S. business-for-sale transaction and sentiment from business owners, buyers, and brokers. A […]
M&A Activity Q2 2024
Per the Axial.net website “Axial is a private deal network serving professionals who own, advise, and invest in North American lower middle market companies. Axial’s deal-sourcing and deal marketing tools are used to facilitate the discovery and execution of transactions”. They also provide data to deal makers and business owners. Their recent article (published quarterly) […]
Mesa, Phoenix, Gilbert, Chandler recognized as American Boomtowns
Mesa, Arizona leads the list for (#1 Nationally) “Top Large Cities” for its robust economic performance as measured by population growth, GDP, employment rates, trade activity, business license applications and other indicators. Phoenix, Arizona is ranked #3 nationally and Gilbert, Arizona is #1 on the “Top Medium Cities” list. Read more here: America’s Boomtowns: Top […]
Representations & Warranties in Purchase Agreements
In M&A transactions the purchase agreement will almost certainly contain representations & warranties (R&Ws) made by both parties regardless of the type of purchase agreement utilized, asset purchase agreement, stock purchase agreement or merger agreement. This post by no means represents a complete list of all “typical” seller R&Ws found in most purchase agreements. R&Ws […]
Small Business Acquisitions Grow 10% in Q1
Small business acquisitions grew 10% over the previous year and 3% over the previous quarter, according to BizBuySell’s Insight Data, which tracks and analyzes U.S. business-for-sale transactions and sentiment from business owners, buyers, and brokers. A total of 2,384 businesses changed hands in the first quarter, representing an enterprise value of $1.8 billion, which is […]
Size Matters & Industry Matters
Size Matters / The Industry Matters Several months ago, we were working with a client to complete a market value analysis. In addition to the conclusion of value (range), we identified several potential obstacles that if eliminated or mitigated would increase the value significantly. The client, wanting to maximize the price and her proceeds from […]
Know Where You Are At BEFORE Planning Where You Are Going
Analyze your company across the following criteria. You may realize that there are some easily achievable changes that will increase your company’s value. Goodwill – Does your company contain “personal goodwill” or “entity goodwill”? Does the goodwill reside with only you making it more difficult or risky to transfer to a buyer? Does goodwill also […]
Qualities to Consider in a Business Advisor
Being an advisor representing a client’s interests regarding the sale of their business requires many different skills. All of us who call ourselves “advisors” have varying strengths and weaknesses when it comes to these required skills. For example, many advisors have strong sales skills but weak valuation skills. Within any given transaction a successful advisor […]
Our Ugly Secret….80% of businesses on the market DON’T SELL!
We, in the M&A world call it the 80% rule. 80% of buyers never buy anything and 80% of businesses on the market don’t sell. Through my professional experience of 25 years and observations within the industry I must conclude that this rule of thumb is accurate! I believe that there are many factors at […]
