Resources
Private Equity Groups
If you are a Private Equity Group (PEG) looking to invest in businesses valued between $1-25 million, make a commitment to participate in The M&A Source Dealmakers Expo. The M&A Source Expo attracts over 150 experienced merger and acquisition professionals who are eager to discuss business opportunities with you.
Education and Certification
To learn more about M&A Source certification, online courses and webinars, please visit the Education and Certification pages
Glossary
Terms that are applied within the Lower Middle Market to facilitate the transfer of business interests may not be familiar to non-M&A practitioners.
Market Pulse Report
The M&A Source and IBBA, along with Pepperdine Private Capital Markets Project publish a quarterly report on the current business brokerage environment. M&A advisors are asked to complete a survey, answering questions about recent closings and what is in the pipeline, and the information is compiled into a report that allows M&A advisors to keep a finger on the pulse of the marketplace.
Businesses for Sale
To search for middle market opportunities posted by the members of the M&A Source, click here.
Member Directory
Are you looking for an M&A advisor to handle the acquisition or sale of a business in the middle market? Search our member directory to find the experienced and qualified M&A advisor that is right for you.
Monthly Newsletter
The Bridge, M&A Source’s monthly newsletter, publishes timely articles on a variety of topics. Past Bridge articles can be found by topic below on this page.
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Making Intangibles Tangible: The Benefits of Measuring Intangible Assets 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 […]
Restrictive Covenants in M&A Transactions 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 […]
Earnouts Don’t Deserve A Bad Reputation 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, […]
Risk Of Recession: Should I Sell My Business Now 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 […]
Closing is Just the Beginning – Post-Merger Integration Plan Best Practices 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 […]
3 Takeaways From Harvard Business School’s 2019 Search Fund Conference 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 […]
Value Rises, When There are No Surprises! How to protect your client’s business value from unplanned, chance events. As we all know, there are rarely good surprises in business. Record concurrent years of positive economic growth are behind us, with an unclear future. Risk exposures beyond our control loom daily — tariffs, trade wars, industry slowdowns, recession, partisan politics or international crisis. Of equal concern, internal operating risks abound — increasing pay rates, hiring difficulties, technology edge and compliance requirements to name a few. Most business owners want to enjoy the value that took years to develop. So how can we help them protect and grow that same […]
A Business Valuation is Not Just In the Numbers: Part Two A Business Valuation is Not Just In the Numbers Leadership & Culture The culture of an enterprise may be hard to measure, but it nevertheless very important to the worth and value of a business. Employee retention and turnover is one important variable that appraisers will want to understand, as well as some of the underlying drivers. Companies with weaker benefits and compensation programs will likely face more competitive employment pressures and increased turnover, which in turn creates increased discounts to value when analyzed by a qualified appraiser. Another issue many businesses face is key person risk. We have enjoyed a […]
Cannabis Currently – The Challenges, Correction and Consolidation 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, […]
The Arranged Marriage 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 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 […]
Aon Representations and Warranties Case Study 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 […]
Podcast: Building a Profitable Culture-Focused Business, an Interview with Jill Nelson 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 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 […]
4 Simple Ways M&A Firms Sign Up More Clients By Gabe Galvez Co-Founder of CAPTARGET, LLC Founder/CEO of Merger Labs LLC What if I told you that you could easily catch up with your competition by making just a few small changes to your M&A firm? Well, that is exactly what we are going to talk about in this article. Below are four simple, but often overlooked hacks that can make your firm more attractive to potential clients and help you leave the competition behind. #1 Focus On a Single Vertical or Geography Only Seems counter intuitive right? After all, the more diverse your service and market are the more […]
An Owner’s Strategy for a Down Economy: Heads, You Win; Tails, You Don’t Lose By Gary W. Ampulski, PhD Managing Partner of MidwestGenesis There is a saying that a rising tide lifts all boats. But the opposite is also true. As the skipper of a business, an owner needs to know when a tide comes in and when it recedes in order to plot a course to realize maximum business value. Just as there is a repeating nature to the tides, the economy also runs in cycles. Its ebb and flow may not be as predictable as the moon’s gravitational force on our oceans but they are nevertheless still cyclical and their periods can have […]
Age Specific Target Marketing By Charles Milam, CBI, M&AMI Improve the return-on-investment for your marketing campaigns Every business will eventually change ownership and the decision to sell a company can either be viewed by the owner as the most agonizing event or the most liberating. Some owners are ill prepared for a business transition and are caught off guard by deteriorating health, unanticipated financial calamities, divorce, or personal stress. These owners are forced to sell without proper planning and often receive less than optimal remuneration for their company. Other owners recognize that in order to maximize the business value, similar strategic planning done during the […]
A Private Equity Perspective on Budget Planning A Private Equity Perspective on Budget Planning It’s time for the next stage of business ownership: Bringing on an investment partner. Finding the right fit is an inexact science – some combination of due diligence, reference checks, and “gut feel.” These ten questions can help sellers find the right match for their personality, business style, and future goals. Read the article: A Private Equity Perspective On Budget Planning_ INSIGHTS from Prospect Partners
Search Funds: Creating A Whole New Generation of Entrepreneurs By Heather Endresen Takeaway: New entrepreneurs are flocking to the previously obscure search fund model in droves. No generation has had the impact on small business creation that the baby boomers have had over the past 50 years. As they look to retire, a new model of entrepreneurship is emerging and these new entrepreneurs are flocking to the previously obscure search fund model in droves. To paint you a picture of the current small business landscape, during 2017, 36% of small business owners—those with $100,000 to $10 million in sales—said they plan to transition the ownership of their company in the next five […]
Taking a Second Look: How My View of Search Funds Changed By Kevin Dempsey, CBI, CMEA Takeaway: Several reasons you may want to (re)consider working with a Search Fund: Over the past five years we have been getting more calls from a special set of buyers known as Search Funds. About three years ago, after working very hard through due diligence and MBA level discovery, and three unsuccessful deals, we gave up on Search Funds as a buyer source. The experience of working with graduate students, their alma mater programs, the MBA-entrepreneur/owner was very disappointing. As you might imagine, our Sellers were also very disappointed by the experience and even projected their frustration on me. After three […]
Deal Flow Options and the Single Family Office Investor Takeaway: Markets are continually in flux. This means that your sales practice must be adaptable to compete in the market place. These deal flow options, or even an SFO, may be the best for you when the time comes. For traditional private equity investors, today’s market conditions present challenges in putting their money to work. On the one hand, the amount of investable capital remains plentiful and interest rates remain relatively low. On the other, however, a shortage of quality investments has pushed valuations outside of the consideration set for many investors. Market conditions are no different for Single Family Offices […]