Case Studies

Introduction and Background: The cannabis industry has arguably been one of the most talked about, but turbulent and testing markets in recent times. Despite a scattering of activity throughout the rest of the world, particularly in Germany and Uruguay -- Canada and the U.S. are where the bulk of the business buzz has been centered.   Cannabis in Current United States: Divided opinions, politics and unknown health and societal implications have created much debate as to whether the drug should remain classified as a Schedule I Controlled Substance. According to Business Insider, as of June 2019, just 11 states and Washington, [...]

Even at “hello” I could feel the tension. Four of them, one of me. I was feeling some heat as they stared at me, looking for answers. There were two representatives from each company. Their desire to merge was borne from a conversation between the two owners at a wedding three months earlier. It was fitting that they had this conversation at a wedding, because that’s the kind of relationship they were now talking about structuring. Or maybe best to call it an arranged marriage. The two companies were tired of beating each other up, bidding for the best employees, and [...]

Virtual Data Room outsmarts Seller saving Buyer $1.3 million and the Deal By D.M. (Doug) Robbins FCBI, M&AMI, CM&AA, MCBC, CSBA, CMEA   (GRIMSBY, ON.  CANADA)  Virtual Data Rooms, also known as deal vaults are being utilized by many M&A Advisors for convenience and efficiency. The encryption and secure communications for uploading and downloading electronic documents with sensitive information is a key consideration of all virtual data room users. Confidentiality is especially a concern of Sellers and Buyers during the exchange of information for due diligence and for the communication of purchase documents. Since 2003, US Healthcare professionals have been using [...]

Background Representations and Warranties insurance (“R&W insurance”) helps secure investments and enhance returns. Concerns about known and unknown risks can prevent a deal from closing or leave buyers with unwanted liabilities, placing both sellers and buyers at risk of not realizing their desired goals. The use of this insurance can protect buyers from losses resulting from a breach of the seller’s or target company’s representations in a purchase agreement, thereby eliminating the need for a robust indemnity. It also allows sellers to walk away cleanly from a deal. Representations and Warranties insurance is a proven tool that can allow deal professionals [...]

Takeaway: The customer experience is a vital part of the success of your business, so figuring out how to engage your employees to work the business like you would is important. About the Host Ryan is an entrepreneur, podcast host of the show Life After Business and the co-owner of Solidity Financial. Having personally experienced the hazards of selling a business, he joined up with his friend Brandon Wood to educate others on the process. Through their business (Solidity Financial), they provide a platform for entrepreneurs called Growth and Exit Planning that helps in exit planning, value building and financial management. About the Guest A driven entrepreneur [...]

Where the Past and the Future Collide: Internal versus Tax Depreciation In previous articles, I have stated that all business valuations are forward looking. I still believe this is true. I also discussed the potential impact that the bonus depreciation provision of the Tax Cuts and Jobs Act can have on a business valuation by providing real tax dollar savings. Within these two topics lies a possible valuation minefield that can be easily overlooked. What happens if you are a new minority interest investor in a Company and you miss out on a big year of bonus depreciation? If the Company is a C [...]

Joe Lindsey, M&AMI, CM&AP, CBI Chairman of The M&A Source Author’s Note:  Let’s start with the thesis that this article was inspired by actual events. It could be an amalgam of multiple experiences combined into one story. Let’s assume that the names, dates and other data relevant to this article were changed because of concerns of confidentiality. Regardless, let’s see if lessons can be learned from this article. The business was a provider of chemical products whose primary customers were involved with fracking; the injection of fluid into shale beds at high pressure in order to free up petroleum resources such [...]

Many business owners are jumping on the bandwagon to sell their companies, trying to take advantage of the current hot market and frothy multiples being paid by buyers. With the impending Baby Boomer tsunami, more businesses are and will be for sale over the next few years than at any other point in history. This trend creates a competitive environment among sellers and leads buyers to look more closely at the quality and price value relationship of any potential acquisition. For some time now, due to strong earnings, low interest rates and favorable capital markets, many buyers have sought to grow [...]