Virtual Data Rooms (VDRs) are now a fairly well-established practice in business transactions. Also known as a Deal Room, a VDR is a secure online portal used to share confidential files. Historically, a physical data room would be set up at the seller’s business office, or their advisor’s office, so… Read More »Virtual Data Rooms: Don’t Use an Advisor Without One
When… You don’t see how to grow the business anymore. You’re ready to diversify and take some chips off the table. The business value equals your goals and a big economic/political shift could decrease your valuation. You’re not sure how to reach the next level on your own. Your interest… Read More »How Do You Know When It is Time to Sell?
With all the upheaval in the world right now, you’d expect M&A deal value to take a dip. But recent market analysis shows that’s anything but the case. According to GF Data, companies with an enterprise value of $10 million to $25 million sold at an average multiple of 5.9… Read More »Lopsided Market Drives M&A Values in Pandemic
The more your business revolves around you, the more risk buyers see. To increase business value, build a strong management team. Work yourself out of the day-to-day business by developing an experienced, empowered management team. The less the business is dependent on you and your knowledge or relationships, the less… Read More »Work Yourself Out of a Job
It’s estimated that in the Lower Middle Market, only 20% to 30% of companies who want to sell will successfully transition to new owners. The number one reason for unsuccessful transitions is due to business owners who try to handle a sale themselves or use an advisor with limited experience and buyer reach. For most business owners, at least 80% of… Read More »Do-It-Yourselfers Lose 30%
SBA relief efforts incentivizes buyers to move ahead with business acquisitions. Per the SBA website, “the SBA will pay six months of principal, interest, and any associated fees that borrowers owe for all current … as well as new 7(a), 504, and microloans disbursed prior to September 27, 2020.” This… Read More »Motivated Buyers Fueled by SBA Incentives and Need
On one of our virtual Happy Hours, a business owner shared how her children remember the Great Recession. However, now they’re seeing economic upheaval again and are missing out on graduations, summer job opportunities, and even full-time employment. In good times and lean, money issues have always weighed heavily on… Read More »Is COVID-19 the Ultimate Cure for One-More-Year-itis?
SBA debt relief efforts are incentivizing buyers to move ahead with business acquisitions. Right now, “the SBA will pay six months of principal, interest, and any associated fees that borrowers owe for all current … as well as new 7(a), 504, and microloans disbursed prior to September 27, 2020.” This… Read More »SBA Debt Relief Incentivizes Buyers
The Wall Street Journal recently ran an article about CEOs accelerating succession plans and backup management strategies in the wake of COVID-19. It’s a question every owner should be able to answer: What happens if I get too sick to run my business? No one likes to think about all… Read More »Planning for What If?
Business owners are working to process the impact of COVID-19… and we’re investigating how it will affect M&A and business sales. As you’ve undoubtedly seen the short term impact is that companies have (and will) slow the pace of acquisitions. That’s natural in uncertain times. However, market conditions are vastly… Read More »Downtime: Use It to Add Value