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
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
Virtual Data Rooms (VDRs) are now a fairly well-established practice in business transactions. Also known as a Deal Room, a VDR is a secure online portal used to share confidential files. Historically, a physical data room would be set up at the seller’s business office, or their advisor’s office, so… Read More »Virtual Data Rooms: Don’t Use an Advisor Without One
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
SBA debt relief efforts are incentivizing buyers to move ahead with business acquisitions. Right now, “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 »SBA Debt Relief Incentivizes Buyers
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