Capital Structure – The composition of the invested capital of a business enterprise and the amount of debt and/or equity employed by a firm to fund its operations and finance its assets. It may also include information about stock, options, warrants and who owns or contributed them.
As outlined by Statista: Successful business enterprises are they key to the wealth of the world’s richest families. According to a ranking by Bloomberg, three American families top the ranking of the world’s wealthiest. The top 2 – The Waltons and the Mars family – deal in consumer goods, while the Kochs in… Read More »The World’s Richest Families
As outlined in https://www.bea.gov/news/2021/personal-income-state-2nd-quarter-2021: State personal income decreased 21.8 percent at an annual rate in the second quarter of 2021 after increasing 56.9 percent in the first quarter, according to estimates released today by the U.S. Bureau of Economic Analysis (BEA) (table 1). In the second quarter of 2021, the decrease… Read More »Personal Income Growth Rate
According to Axios: Why it matters: Fewer new buyers are opting into America’s competitive housing market that’s pushed prices to historic levels, economists say. “A number of potential buyers have merely paused their search, but their desire and need for a home remain,” NAR’s Lawrence Yun said in a statement. … Read More »First-Time Home Buyers Drops To New Lowsxios Visuals
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