Many small businesses have closed, severely reduced output, or are slowly reopening during the COVID-19 pandemic. So why would a business buyer consider moving forward with a transaction in such a dismal environment? This is why: Business Owners are Motivated to Sell A large percentage of small business owners are Baby Boomers that have survived 9/11 and the Great Recession. These owners are near retirement, yet they have been on the fence about selling and have had a difficult time walking away from the steady profits they have received from the recent strong economy. Now, COVID-19 is changing their outlook and many are ready [...]
About Sarah PinkowskiThis author has not yet filled in any details.
So far Sarah Pinkowski has created 37 blog entries.
Alex Mazer is a Vice President with Big Shoulders Capital and its affiliate, PPL Group, a private firm that provides liquidity solutions for commercial and industrial companies in turnaround/transition. Primary services include industrial asset disposition/liquidations, quick and creative asset-based debt refinancing, and equity investments in small and middle-market operating companies. Prior to joining them, Alex founded and managed The BirdDog Group, a national liquidation firm specializing in asset disposition of consumer goods and retail inventories for lenders, manufacturers, and importers. Outside of the U.S., Alex has lived and worked in Hong Kong and Beijing. He completed his MBA at Northwestern’s [...]
Most people engaged in the business of mergers & acquisitions were flush with deal flow and new business opportunities prior to the COVID-19 shutdown. However, as the pandemic struck, the switch was turned off and M&A activity went dark virtually overnight. It’s no secret that M&A is cyclical. But, unlike prior economic downturns that have affected M&A, there were no underlying market conditions facilitating this slowdown. The switch was turned off as the result of a global health crisis. So, what happens next? Will the post-pandemic M&A markets revert to pre-pandemic activity levels? Will companies continue to be bought and [...]
In our previous article, we broke down one of the most considerably penetrating compliance changes in over a decade (Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09)) and its significant impact on private equity groups. Between May 2014 and today, amendments and implementation guidance for both companies and practitioners have been released; meaning, PEGs should prepare to be well versed on the standard and how it will impact portfolio companies, recent acquisitions, acquisition targets, and even exit strategies. The following is part two in a two-part article series. PRE-TRANSACTION CONSIDERATIONS Are you currently evaluating potential [...]
Doing business with a single-family office (SFO) is not an easy proposition, even finding contact information for an office principal can be a daunting feat. There is a tension in how you think about family offices. Like Willie Sutton remarked about banks, you cannot disregard them entirely simply because “that's where the money is.” But at the same time, their reclusive and nebulous nature makes dealing with them even more challenging. What I would like to do today is review the family office marketplace in aggregate, and then offer you a framework for how to think about the various types [...]
Back in May of 2014, FASB issued one of the most considerably penetrating compliance changes in over a decade (Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09)). Between May 2014 and today, amendments and implementation guidance for both companies and practitioners have been released with Topic 606 effective for private companies beginning on or after January 1, 2019, trailing public companies by a year. Before your eyes glaze over from the technical talk, you may be wondering why an accounting standard update from almost six years ago is relevant to your private equity firm. As [...]
Pat McDonald, CBI, M&AMI, FMAS, FIBBA, CM&AP, is a principal of Walden Businesses, Inc. – an M&A acquisitions company located in Atlanta, Georgia. Pat has been an Intermediary since 1989 and a member of the M&A Source and International Business Brokers Association since 1990. Pat received the CBI designation in 1992 and was awarded the Fellow of the IBBA (2002) and Fellow of the M&A Source (2014), the highest honors bestowed for members who have made sustained and significant contributions to the Associations. In 2005 she earned the M&AMI certification (Merger & Acquisition Master Intermediary), an elite certification in the [...]
When it comes to acquisitions, the “closing date” is often seen as the crescendo of a purchase. But for buyers, the attention shifts quickly to assessing the organizational health of the acquisition, the technology it possesses, and the financial controls in place to develop an integration plan. With pitfalls identified and areas of focus in mind, how do you draft an integration plan? First of all, the plan should be collaborative – involve people from both sides of the table, as well as outside advisors. A collaborative approach allows leaders to give input, which often translates to their “buy-in.” The plan should follow a [...]
Growth by acquisition can be a risky proposition, but it carries less risk when compared with organic growth. In theory, you are paying market value for a book of business that will immediately begin generating cash flow. If the valuation is reasonable, then the deal should be appealing to shareholders. In contrast, organic growth or investment in new growth areas doesn’t always materialize. Acquisitions are the preferred choice for many companies looking to grow on a retracted timetable, and the process is an exciting one. When it comes to acquisitions, the “closing date” is often seen as the crescendo of a [...]
Though search funds still make up a relatively small percentage of lower middle market investors, this investment model continues to gain prominence. In December 2019, I had the pleasure of attending the HBS Entrepreneurship Through Acquisition (ETA) conference for my third consecutive year. It’s been incredible to see firsthand the search fund community gaining prominence. I’d like to sincerely thank Harvard Business School and the ETA Club at HBS for producing the incredible event. For those unfamiliar with ETA, it is a career path in which professionals (often after an MBA program) acquire a profitable lower middle market business and assume [...]