Sellers and Buyers of businesses tend to have different opinions on adjusted financials that add back discretionary bonuses. They can come to an agreement upon understanding the meaning and timing of bonuses. The most important question to answer is “Are the employees really receiving a ‘discretionary’ bonus?” If employees have… Read More »Bonuses: To Adjust or Not to Adjust
Mergers and Acquisitions Buy side
Business owners are burned out, worn out, and past ready to get out. More than 1 in 4 business owners who put their business on the market this spring did so because of burnout according to the first-quarter survey of business brokers and M&A advisors conducted by IBBA and M&A… Read More »Burnout & Unsolicited Offers: Why Business Owners SOLD in 2021 Q1 and Q2!
With most acquisitions, a strategic purchaser is looking to grow value by enhancing their top and bottom line. These acquisitions work best when they accomplish one of two goals: leveraging a core advantage or minimizing a weak area. The more market share one acquires, the greater the top line …… Read More »Increase Market Share: Leverage Strength, Minimize Weakness
Business owners often come to us concerned about employee jobs and retention issues after a sale. They worry that selling their business will lead to job losses if certain positions become redundant. However, buyers today are often just as focused on retention issues. Your experienced talent can be a key… Read More »Why Employees Matter to Sellers AND Buyers?
As part of the Economic Aid Act that passed in December (and modified 2/18/2021), the Small Business Administration will make borrowers’ payments for three months on new SBA 7(a), 504 real estate and micro-loan programs. These incentives were available last summer under a stimulus program that expired in September 2020.… Read More »SBA Covers New Loan Fees Plus 3 Months Payments
March 10th 2021 Update to the SBA Payment Relief Program that became effective on 2/19/2021. The SBA determined that they will not have sufficient funding to make all the payments outlined in the December 2020 Cares Act. Below are the following changes: • New SBA 7(a) and 504 loans approved… Read More »SBA CARES Act 2 Update!
The year 2020 was anything other than ordinary and customary. Deal volume was down, like in most recessions. However, unlike other recessions, valuations held strong and even increased for COVID-proof organizations. How are deals getting done in this economy? The capital stack has shifted to greater equity investment, partially by… Read More »Financing M&A in a Pandemic
Datasite’s recent research reveals that the most common 2 issues uncovered in due diligence that causes buyers to withdraw from a deal in due diligence are cybersecurity and data concerns (36%) and financial weaknesses (22%). When asked how often a deal does not progress due to an issue uncovered in… Read More »Top 2 Deal Killers in Due Diligence
One year ago, buyers were looking for talent. Every company we talked to was up against the same problem – there was so much opportunity to be had, but none of the employees to make it happen. So much has changed in a year. Business buyers today are coming to… Read More »M&A Buyers May Need to Move Quickly in 2021
As we continue to take companies to market during COVID-19 period, we’re asking new questions about business response plans and resilience. It’s been interesting to see the different attitudes and approaches. Business owners who are burnt out are very much taking a “sell now and let the next person deal… Read More »When COVID is the “Next Buyer’s” Problem