Due Diligence
Due diligence is the process in which the buyer and the buyer’s advisors verify everything they have been given during the sales process, verify the quality of the assets involved, and look for any unpleasant surprises. Buyers need to obtain information required by the financing source and often ask for information to get a head […]
Working Capital: How it Affects a Transaction
There is often confusion over the issue of Working Capital (WC) in a transaction. Buyers usually expect a historical level of WC as part of the transaction, and it is already accounted for in the offering price. There are a few ways to compute the twelve-month average, and they all end up with the same […]
Why M&A Offerings Often Aren’t Priced
A question often posed by owners is how a business will be priced when it goes to market. In general, an M&A advisory firm like Business Transition Strategies will take a business to market without a specific offering price. That doesn’t mean we are going to market completely blind. It depends on strategy, process and […]
Update on PlasTech Machining and Fabrication
PlasTech Machining of Dunklee Road in Bow, a company recently acquired by DelCam Holdings, is in the process of rebranding with a new website www.PlasTechFab.com and expanded social media exposure via LinkedIn, Facebook and YouTube. It is part of the growth strategy for the ownership group which acquired the company in November in a deal […]
Economist Suggests Business Owners Sell by 2024
Economically speaking, COVID-19 was a “natural disaster.” That’s according to Brian Beaulieu, CEO and chief economist of ITR economics. Beaulieu spoke at the virtual State of M&A conference hosted by Cornerstone Business Services in February, helping business owners and advisors understand the market ahead. Because the current recession was triggered by COVID-19, and not economic […]
Planning Ahead for a Sale
As you start thinking about selling your business, it is important to engage with someone who can coach you. There’s a lot of value you can create over the final years before you sell. Start asking questions like, “How can I position my business for sale? What are the levers I can start to pull […]
Spring Cleaning is Good for Business
May is a good time for spring cleaning, especially at your business. It is a good time to look at your business as though you were in the throes of due diligence. Here are a few areas to consider. Inventory: Make sure your inventory records are up to date and accurate. Look at inventory like […]
Things to Consider in Transition Thinking
As a business owner, you have to consider the role you want to play in the business in the immediate future following a sale and how that could impact the sale. That’s why we try to meet with owners months or even years before they “pull the plug” and go to market. Sometimes growth strategies […]
Good Ideas From Shark Tank Deal
One of my colleagues in Cornerstone Alliance was front and center in a recent Shark Tank exercise. A business that had been sold was put in front of four potential buyer groups. Each analyzed the information presented and came up with a hypothetical indication of interest and value they would offer for the business. The […]
5 Deal Points from the Trenches
I’ve been an M&A advisor for many years. Today I work with clients of Business Transition Strategies who are implementing Growth Through Acquisition strategies. Here are a few observations from working on a wide variety of projects. Transactions should not be adversarial. It’s not about winning or losing. Both parties should win. Both parties need […]