PEI Cites 8 Attributes of Quality Deals
Quality deal flow is among the top concerns for M&A advisors. A recent blog posted by Private Equity Information offers 8 key attributes of “quality deals.” Growing revenue streams, (preferably recurring) Stable, increasing cash flow Scalable Non-cyclical products or services Low CapEx required to achieve growth An excellent management team A diverse customer base A motivated seller […]
Growth Through Acquisition in the Lower Mid-market
Growth through acquisition has been a strategy largely used by mid-sized and larger companies for years. Now firms in the lower mid-market are getting into it as well. Under this strategy, a company buys another entity for reasons that include: building market share gaining access to a new market getting special skills or services offered […]
Looking Back to Plan the Future
Looking at the calendar, it is natural to ponder the transition perspectives presented. As one year closes; another is just beginning. It is an excellent time for company owners to consider the options for what is next. A productive way of doing this is to complete a Value Factor Analysis. This process looks at strengths, […]
Why an IOI can help get a better LOI
We generally include an Indication of Interest (IOI) in our sales process. This is not the same as an LOI – letter of intent – but is still an important part of the sales process. Here’s why. An IOI is an informal proposal while an LOI is more definitive, and is the document that often […]
Three Things to Check
When you are preparing for a possible transition and sale, lots of things come to mind. What you will do with all that free time. Champagne after the closing. Winter days in the warm sun. Before you get too far along the path to dreams, consider these three things when preparing for the transaction that […]
Successful Acquisition Hinges on More Than Strategy
In the current labor environment, it can be difficult to grow a business. According to one recent National Federation of Independent Business (NFIB) jobs report, 60% of business owners reported hiring, but 88% said they couldn’t find qualified applicants for the job. Instead of hiring the talent you need to fuel organic growth, growth through […]
Selling Your Business? Get Clear About Why
We regularly have conversations with owners about selling. As part of these discussions we take time to talk about the ‘why’. This almost always leads to one of ten core factors, each of which requires a different strategy. Key influences include burnout, skillset, legacy, new opportunity, health, family issues, risk, recapitalization, and timing the market. […]
M&A Advisor Tip: Intangibles Matter
Intangible assets can play a significant role in your business value. While these may not take physical form, they can be legally identified and transferred. It can be a hard exercise, especially when you’re so close to the business. But here’s a list of some possibilities to consider formally documenting. Contracts, licenses, distribution agreements, permits […]
M&A Tip- Make Sure We Know Your Goals
It’s a good idea for owners to be clear about their goals when discussing the sale of their company with the M&A advisor. Beyond price and deal structure, there may be other priorities. Do you want to protect your employees? Is a long-term lease of the facility critical? Minimize your post sale transition role? If […]
A Good Process Gets Results
Companies in the lower mid-market often are surprised when they attract attention from larger entities, even those whose balance sheets dwarf the target. I moderated a panel discussion on Strategic Sales at the May M&A Source conference. The session looked at three case studies: A small regional bread company in the organic space sold to […]