Recognizing the strong momentum in the market, most brokers and M&A advisors are reporting optimism for the rest of 2021. There was a much more positive outlook for rising deal activity for the quarter ahead. Likewise, advisors also expect lifts in valuation. Source: IBBA & M&A Source Market Pulse 2021… Read More »2021 Q2: Expectations for new clients in the next 3 months, 5-point scale
In the sale of a business, confidentiality is VERY important. What happens when your critical employees must be informed prior to the sale? We recommend stay bonuses. A stay bonus incentivizes key employees to cooperate and assist with your sale. How much should the bonus be? There is no set… Read More »Should a Business Owner Provide a “Stay Bonus”?
The current M&A market is incredibly active, with North American deal volume hitting near-record peaks. Buyers, constrained by a relatively low number of sellers who went to market during the COVID-19 pandemic, continue to search for expansion and growth opportunities. Source: IBBA & M&A Source Market Pulse 2021 Q2 (published… Read More »2021 Q2: Seller Sentiment Increasing
As reported by Axios: Consumers defied expectations and shopped at an increasing rate amid a resurgence in COVID-19 cases. Why it matters: Several measures of consumer confidence fell sharply in August, suggesting consumer spending could fall during the month. In fact, concerns about the Delta variant’s impact on the economy… Read More »Sales of Goods At An All Time High
According to InBusiness: Arizona Recovers 100% of Private Sector Jobs since April 2020, Says State Report Arizona is experiencing the third-fastest job recovery in the nation inbusinessPHX.com Less than a year and a half after the initial economic disruption of the COVID-19 pandemic, Arizona has already recovered more than 100… Read More »Arizona nonfarm employment increased by 162,400 jobs
For Buyers in the $2 to $50 Million Benchmark/Purchase Price, Financials barely edged out Revenue and Management Team/Key Employees for the top spot. Keeping close to the top, the next 3 tied in importance for buyers: Employees–longevity, loyalty and work ethic, Customer Concentration, and Operations. Source: IBBA & M&A Source… Read More »2021 Q2: Due diligence factors ranked by importance to buyers: Between $2 million and $50 million in Benchmark/Purchase Price
Due diligence concerns ranking at the bottom of the list were marketing, regulations, taxes, insurance, cyber/data security, real estate, and IT for buyers in the less than $2M in Asking/Purchase Price. Source: IBBA & M&A Source Market Pulse 2021 Q2 (published 8/18/2021) #DeltaBusinessAdvisors #MergersandAcquisitions #BusinessBrokers #MandAMarket #DailyBusinessAcumen #MASource #IBBA #MarketPulse… Read More »2021 Q2: Due diligence factors ranked by importance to buyers: < $2 million in Asking/Purchase Price
Almost all businesses were affected by COVID in 2020. For the most part, businesses fell in one of two camps: the COVID Slump or the COVID Bump. Hospitality businesses, including restaurants, predominantly fell into the slump. Gyms may lose customers permanently (or at least for the foreseeable future) as people… Read More »Bump or Slump: COVID Impact on Business Value
As outlined in Statista: In 2001, Apple’s total revenue amounted to $5.36 billion but came with a loss of $25 million. For the fiscal year that ended September 26, 2020, Apple posted a net profit of $57.4 billion on revenue of $274.5 billion, meaning the company managed to maintain an… Read More »Apple’s Incredible Growth
According to Axios: Producer prices increased by more than expected in August, a reminder that inflation pressures continue to linger in the economy. Why it matters: Producer prices reflect what businesses pay for the materials that go into the goods they eventually sell to their customers. While businesses will make an… Read More »Producer Prices Are Still Moving Up At An Alarming Rate