“As business brokers and M&A advisors, we need to find a way to get the conversation started with business owners earlier in the process,” said Lisa Riley, Principal of Delta Business Advisors. “The vast majority of owners need a successful sale to live their ideal lifestyle, making this one of… Read More »2020 Q4 proactive exit planning
One company taking over controlling interest in another company. More about Acquisitions from https://www.investopedia.com/terms/a/acquisition.asp: Why Make an Acquisition? Companies acquire other companies for various reasons. They may seek economies of scale, diversification, greater market share, increased synergy, cost reductions, or new niche offerings. Other reasons for acquisitions include those listed below.… Read More »Delta Tuesday Term – Acquisition
According to the Market Pulse 2020 Q4 survey Retirement continues to fuel the supply of In 2020, nearly half (49%) of all small business sellers were planning to retire. Yet even though retirement leads as the number one reason for sale, most buyers do not engage in a proactive planning… Read More »MP 2020 Q4 Reasons Sellers Went to Market in 2020
“Do what you love and success will follow. Passion is the fuel behind a successful career.” Meg Whitman Meg Whitman Margaret Cushing Whitman (born August 4, 1956) is an American business executive and former political candidate. She is a board member of Procter & Gamble and GM. Whitman was previously… Read More »Monday Mojo – Meg Whitman
According to the Market Pulse Q4 survey the average time to sell a business remains relatively consistent with Q4 last year, increasing only slightly upward. Of that, roughly 60 to 120 days are spent in due diligence and execution, after a signed letter of intent. Source: IBBA & M&A Source Market… Read More »2020 Q4 average time to close edges closer to 9 months
Whether applying for a loan or selling the company, business owners must be prepared to disclose EVERYTHING. The business needs to look good — in all areas. To not be disappointed, business owners must plan, address weaknesses, and be realistic in their expectations if they don’t have solutions.
According to the Market Pulse Q4 survey sellers continue to get the majority of cash at close. In this quarter, owners got 81% or more cash at close with most of the balance being seller financing, along with some earn outs and retained equity to close the valuation gap. Source: IBBA… Read More »2020 Q4 Portion of Sale Received as Cash at Close
According to the Market Pulse Q4 survey Multiples are slightly off peak, and yet businesses in the lower middle market continue to draw values at or even above internal benchmarks. Source: IBBA & M&A Source Market Pulse 2020 Q4 (published 2/9/2021) #DeltaBusinessAdvisors #MergersandAcquisitions #BusinessBrokers #MandAMarket #DailyBusinessAcumen #MASource #IBBA #MarketPulse #MainStreet
A business’ net income plus non-cash charges (depreciation, amortization, depletion). Can be defined (if so qualified) as before or after such items as taxes, debt service (interest only or principal & interest), or extraordinary items. (Should not be confused with net cash flow, a.k.a. free cash flow).
According to the Market Pulse Q4 surveys in 2018, 2019 and 2020, median final selling prices came in anywhere from 84% to 102% of the pre-set asking price or internal benchmark. Lower middle-market companies in the $2 million to $5 million and the $5 million to $50 million purchase prices… Read More »Median Price Realized vs. Asking Price, Q4 2018-2019-2020
