We believe the small-to-midsize business mergers and acquisitions market looks positive going into 2021. More Clarity and Certainty As we put 2020 behind us, what does 2021 hold for us in the SMB M&A industry? We are now entering a new year where lockdowns give way to a vaccine, and there is more clarity around taxation, spending, and related policy from an expected divided government. These factors along with Q4 signs of substantive activity led us to believe the small-to-midsize business (SMB) mergers and acquisitions (M&A) market looks positive going into 2021. 2021 Market Factors Looking at the details at the time of this writing, no one knows how to call the [...]
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So far Sarah Pinkowski has created 45 blog entries.
Sara Burden Sara Burden is the owner of Walden Businesses based in Atlanta, Georgia. Sara has over 30 years’ experience and selling companies with sophisticated high profiles in the services, heavy manufacturing, and distribution sectors. Prior to joining Walden, Sara was a successful entrepreneur as the founder of a permanent staffing service specializing in high-end administrative support personnel. In 1984, her acquisition of a temporary services provider expanded her firm to one of the largest in Atlanta. The temporary division was divested in 1988, and the permanent division in 1991. She has served on the Executive Board of the Atlanta chapter of the National Association of Women Business Owners and is a member of the [...]
The IRS reminded taxpayers of the home office deduction rules during Small Business Week and urged individuals to consider taking the home office deduction if they qualify. Who qualifies for the deduction? The home office deduction is available to qualifying self-employed taxpayers, independent contractors and those working in the gig economy. However, the Tax Cuts and Jobs Act suspended the business use of home deduction from 2018 to 2025 for employees. Hence, employees who receive a paycheck or a W-2 exclusively from an employer are not eligible for the deduction, even if they are currently working from home. What is [...]
I have met thousands of business owners over the decades, and the majority of small to medium-sized business owners/entrepreneurs are “do-it-yourselfers.” Most have survived many challenges along with some failures but have continued to work diligently which is why they are successful today. They believe in themselves, as they should, and many believe they do not need an M&A advisor - they can do it themselves. Many studies have been completed over the years by various associations and the conclusions are consistent: A competent, experienced M&A advisor will: Remove a great deal of emotion from the owner, allowing them to make logical [...]
The COVID-19 pandemic put a temporary halt to virtually all M&A transactions earlier this year, and for good reason too. We’re about seven months into the pandemic and the future is still uncertain with no clear path forward. We are starting to see more deals put back on the table and buyers are reemerging to hunt for opportunities. The question is, how do sellers, buyers, investors, and their advisors find common ground to navigate these uncharted waters? As necessity is the mother of innovation, business owners and their advisors are adapting to the realities on the ground, developing unique strategies and [...]
Lamar Stanley is Vice President of Gen Cap America, a private investment firm headquartered in Nashville, Tennessee. GCA specializes in acquisitions and recapitalizations of quality middle market and lower middle market businesses with revenues between $10M and $200M. Before joining Gen Cap in 2016, Lamar was with Diversified Trust Company, a wealth management firm where he worked in their private-equity strategy group. Prior to Diversified Trust Company, Mr. Stanley served as an intelligence officer in the United States Navy. He holds a B.A. degree from The University of the South, in Sewanee, TN, and an M.B.A. from The University of Chicago. Tell us about your career pre-Gen Cap America and how it led you to do this [...]
Business owners, including business brokers, should take a moment to answer this important question: what happens to the interest in your company when you decide to sell your shares, you become incapacitated, or you are deceased? If your answer to the question is “I don’t know,” you aren’t alone. Many businesses fail to answer these important questions prior to entering into a new business venture with another individual. If a business has already been formed, it is likely too late for a business to incorporate these important what if’s into their by-laws. Furthermore, an amendment to the by-laws is not [...]
We have all been there. Deals that challenge all parties and seem to have no chance of getting over the finish line. And sometimes, they don’t! By highlighting the experiences of M&A advisors, members will learn key factors to success (and failure) in the M&A world. Our first story is from Milt Anderson, CBI, owner of Sunbelt Quad Cities. Milt has led a team of licensed professional business brokers as the leader in the business brokerage/merger and acquisition field in the Quad City Iowa and Illinois region since 2003. Industry: Restaurant with real estate Price/Terms: $1,450,000 with SBA financing What Happened Sunbelt Quad Cities sold [...]
Integrative negotiations seek to create value and expand the pie Creating value is the name of the game in integrative negotiations and these principles also apply to the highly competitive realm of business negotiations. In the business world, why is competition so often the norm, while cooperation seems like an impossible goal? One of the most destructive assumptions we bring to negotiations is the assumption that the pie of resources is fixed. The mythical-fixed-pie mindset leads us to interpret the most competitive situations as purely win-lose. For those negotiators who recognize opportunities to grow the pie of value (see also, [...]
With travel restrictions, portfolio companies in crisis mode, and a very skittish global economy, now is certainly not the time for investors and acquirers to focus on M&A. …or is it? While the idea of doing deals right now might seem daunting, not to mention logistically challenging (how exactly do you conduct on-site diligence in a shutdown?), there’s an argument to be made for M&A to keep moving forward, despite the circumstances. Data from the global financial crisis (GFC) of 2007-2009 “shows that companies that made significant acquisitions during an economic downturn outperform those that did not,” argues a recent article [...]