Sell-side Mergers and Acquisitions.
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
Many business owners have preconceived notions about who will buy their business or whether it’s even salable at all. A lot of owners think their most likely buyer option is the competitor down the street. Maybe that was true, once upon a time. But the M&A world has changed dramatically-and… Read More »Selling to Competitor – One of Several Option
A recent survey of business brokers and M&A advisors showed about a third of businesses on the M&A market temporarily closed their doors due to the pandemic. According to the Q1 2020 Market Pulse Report published by the International Business Brokers Association, M&A Source, and the Pepperdine Private Capital Market… Read More »Will Business Valuations Decline?
A strong management team has long been one of the hallmarks buyers look for in a business. In the era of COVID-19, buyers will be increasingly interested in issues of cross-training, succession planning, and leadership development. Buyers will be looking at how the business could be impacted if health issues,… Read More »Management Team: Cross-Training and Succession Plans
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 advisors are digging in right now, trying to figure out how COVID-19 will affect their clients. We’ve been talking with business owners, active buyers, and other advisors around the country. Right now, we know that some M&A deals are getting delayed over routine process points. Certain bank approvals that… Read More »In Pandemic, Not Panic
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
When selling a business, an earnout or foregivable promissory note is a Buyer’s commitment to pay the Seller a certain amount of money tied to future performance after a sale. It bridges a valuation gap between what the Seller wants out of the business or future contracts are expected but… Read More »WIN-WIN: Earnouts / Forgiveable Promissory Notes
May 7, 2020 Why choose Delta Business Advisors for selling your company? This video provides a brief overview of things to consider prior to the decision to sell your business. Contact us at 480-686-8062 to be prepared for the moment that triggers your desire to sell. A shout out and… Read More »Why choose Delta Business Advisors for selling your company?