Why Now is the Time to Buy a Business

2020-06-30T13:43:42-04:00

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 [...]

Why Now is the Time to Buy a Business2020-06-30T13:43:42-04:00

What is Needed to Restart M&A Markets Post-Pandemic?

2020-06-02T16:02:24-04:00

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 [...]

What is Needed to Restart M&A Markets Post-Pandemic?2020-06-02T16:02:24-04:00

The 4 Types of Family Office Investors and Which Are Likely to Close a Deal

2020-06-02T15:38:30-04:00

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 [...]

The 4 Types of Family Office Investors and Which Are Likely to Close a Deal2020-06-02T15:38:30-04:00

Closing is Just the Beginning – Elements of an Effective Post-Merger Integration Plan

2020-06-30T15:17:11-04:00

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 [...]

Closing is Just the Beginning – Elements of an Effective Post-Merger Integration Plan2020-06-30T15:17:11-04:00

Making Intangibles Tangible: The Benefits of Measuring Intangible Assets

2020-01-07T12:25:28-05:00

Making Intangibles Tangible: The Benefits of Measuring Intangible Assets If you have trouble understanding intangible assets, don’t worry – you’re not alone. Any discussion around intangibles can get complex due to accounting rules that are hard to explain, let alone understand. There are certain basic concepts, such as intangible assets, that as a manager you should know well. Why? Because intangibles are meaningful and material to your business at many different levels, and yet you cannot rely on accounting to help manage them because intangibles are not on your company’s balance sheet unless they have been acquired. And, in another strange [...]

Making Intangibles Tangible: The Benefits of Measuring Intangible Assets2020-01-07T12:25:28-05:00

Restrictive Covenants in M&A Transactions

2020-01-07T12:10:38-05:00

Restrictive Covenants in M&A Transactions As most, if not all, M&A advisors have likely noticed, restrictive covenants, primarily in the form of non-competition and non-solicitation agreements or provisions, are customarily included in M&A transactions. The main purpose of including restrictive covenants in an M&A transaction is to safeguard the buyer’s value in the purchased business. By restricting the seller’s ability to compete with the purchased business, for a certain period of time following the closing of the transaction, the buyer is looking to ensure that the business that the buyer just acquired does not lose value due to the seller competing [...]

Restrictive Covenants in M&A Transactions2020-01-07T12:10:38-05:00

Earnouts Don’t Deserve A Bad Reputation

2019-12-03T12:53:01-05:00

Earnouts Don't Deserve A Bad Reputation By Scott Bushkie, CBI, M&AMI When selling a business, an earnout is basically a commitment by the buyer to pay the seller a certain amount of money tied to future performance after a sale. While earnouts are a great way to boost the value of your company, they can be a dicey proposition for a seller. Even if you stay on with the business, you don't have complete control over how new ownership runs the company. If the business does well, you get paid. If business drops, you don't. Most times in the M&A world, [...]

Earnouts Don’t Deserve A Bad Reputation2019-12-03T12:53:01-05:00

Risk Of Recession: Should I Sell My Business Now

2019-11-05T16:46:31-05:00

Risk Of Recession: Should I Sell My Business Now Many economists are suggesting that the U.S. is heading towards an economic recession. BBVA projections indicate a 60% probability that a recession will begin in the next 24 months, and Deliotte points out that a slowdown is “increasingly likely.” As a business owner, a looming recession can be difficult and strenuous. Should you hunker down and try to weather the storm, or should you jump ship now before the going gets tough?  As with most complex business topics, the answer isn’t an easy one. There are several things to consider, and your [...]

Risk Of Recession: Should I Sell My Business Now2019-11-05T16:46:31-05:00

Success to Significance: Starting a New Future after the Business Exit

2019-08-29T11:01:03-04:00

Success to Significance: Starting a New Future after the Business Exit By Laura Malone, CAP®, CEPA, VP-Corporate/Complex Giving American Endowment Foundation The scenario may be familiar. A business owner arrives at their financial advisor’s office looking to exit their business, but unsure how to get the most financial benefit from that exit. A topic that both the business owner and financial advisor often miss out on is an understanding of how a charitable plan can help the owner build something of significance beyond their business while enjoying tax savings and preserving their wealth. What many financial advisors don’t realize about their [...]

Success to Significance: Starting a New Future after the Business Exit2019-08-29T11:01:03-04:00

IC-DISC an Underused Tax Saving Strategy for U.S. Exporters

2019-07-31T10:20:39-04:00

Is your client’s company one of the many in the United States that is experiencing a rapid increase of exported goods? Exporting creates an opportunity to use a tax savings strategy by creating an Interest Charge – Domestic International Sales Corporation (IC-DISC). Not just for large C-Corporations, an IC-DISC applies to small/medium pass-through entities as well. If your client’s company’s export revenue averages $1 million per year and/or is projected to be growing in the future, they should explore how an IC-DISC can result in a significantly lower tax bill for your client’s organization. What is an IC-DISC? An IC-DISC is a [...]

IC-DISC an Underused Tax Saving Strategy for U.S. Exporters2019-07-31T10:20:39-04:00
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