Tag Archives: M&A

Double Down!!

Most private companies have an opportunity to double their value over a 3 – 5 year period by adopting a disciplined approach to reducing risk and increasing quality. A preliminary valuation performed by an experienced M&A professional will identify many of these “risk areas,” and may be used as a road-map to strengthen the business, […]

Read More

Express Waste Removal has been acquired by a Private Investment Group

ABOUT THE DEAL: Express Waste Removal and Recycling (also referred to as the “Company” and/or “Sellers”) has been acquired by a Private Investment Group (the “Buyers”). Headquartered in Ellettsville, Indiana, the Company has provided cost-effectivve, reliable waste collection for over a decade to individuals and businesses throughout Bloomington, Ellettsville, and various other parts of Monroe […]

Read More

How Do I Create Value?

For business owners, there is a subtle balance between making the necessary decisions to successfully run their business day-to-day and focusing on the long-term value of their business. The actual realization of that value, an eventual exit, should always be present in the owner’s current strategies. The objective is for owners to make decisions that […]

Read More

Hire an M&A Advisor?

Upon engaging an M&A Advisor to sell their business, a seller can expect an Advisor to find a buyer for the business at the highest possible price with the most advantageous terms. An M&A Advisor would provide the following services to accomplish this goal: Provide the seller with a preliminary business valuation; confirming the expectations […]

Read More

First Date

In Merger & Acquisition activity, the anticipation of the first meeting with a potential Buyer may be very intimidating for the Seller. The Seller must be relaxed, open, honest and friendly; however, the Seller must be prepared and rehearsed to answer several questions: Why are you selling? What are you going to do after the […]

Read More

“BS Earnings”

Earnings Before Interest, Taxes, Depreciation, and Amortization, or EBITDA, is one indicator of a company’s financial performance, and is often used to calculate the earnings potential of a business. Earnings are measured in terms of the approximate cash flow of the business to the owner(s) before income taxes and interest expense. Eliminating the tax effects […]

Read More

Cashing Out!!

Sellers of middle market companies rarely receive all cash offers for their companies, and therefore, must compare multiple offers by weighing each component of consideration in accordance with its cash equivalency as a baseline. The two most common standards for weighing the components of consideration include: the time value of money and the probability of […]

Read More

Reverse LOI

Executing a Letter of Intent (LOI) constitutes a critical juncture in merger and acquisition (M&A) activity, so why is an LOI for the most part nonbinding? A seller simply cannot afford the distraction, time and expense involved in having multiple prospective buyers simultaneously reviewing the seller’s confidential documents and performing due diligence. The fact that […]

Read More

Pedia Research, LLC has been acquired by Qualmedica Research, LLC

ABOUT THE DEAL: Pedia Research, LLC (also referred to as the “Company,” “Pedia,” or “Sellers”) has been acquired by Qualmedica Research, LLC (“Qualmedica” or the “Buyers”). Headquartered in Evansville, Indiana, Pedia is a focused team of health professionals that are dedicated solely to “Improving Health Through Research.” The Company’s team includes study coordinators, physicians, scientists, […]

Read More

Communicate To Close!!

Successful transactions of lower middle market businesses have open, honest communication between the buyers and sellers. Business owners tend to be the greatest resource for information concerning the day-to-day operations of their company, and this information is ‘mission critical’ for serious, qualified buyers. Therefore, sellers should not hesitate to disclose on the front-end of the […]

Read More

I Don’t Know. Maybe?

Lackadaisical buyers waste everyone’s time and money and should be avoided whenever possible. These casual buyers may be curious but lack the commitment to close, lack the resources to make an acquisition, have the resources but are unsure of the type of business, looking for a deal but far below market value, or just plain […]

Read More

“True-Up Payments” May Be Expensive

In merger & acquisition (M&A) transactions, the valuation and purchase price of a company normally assumes a going concern business which implies that the company will have an appropriate level of working capital to continue operations and support future growth. A purchase price adjustment is often used to assure both buyer and seller that a […]

Read More

Transactions Structured for Success!

Transactions between buyers and sellers of middle market businesses are often complicated. Driven by opposing motivations and interests, both parties want the most advantageous deal for their side. Sellers must be sure to consider every offer, especially offers that are less than the asking price of their business. A “lesser” offer in hand will not […]

Read More

Show Me the Cash in Private Company Stock

In company sell transactions, secured and unsecured promissory notes, public and private company stock, short and long term earn-outs, all consideration has to be measured to its equivalent value in cash. Equivalent cash measurements allow for the meaningful comparison of offers by Sellers, and it is necessary to enable Sellers to make rational and informed […]

Read More

Kentucky Bourbon Barrel has been acquired by Independent Stave Company

ABOUT THE DEAL: Kentucky Bourbon Barrel (the “Company” and “Sellers”) has been acquired by Independent Stave Company (“ISC” and “Buyers”). Headquartered in Louisville, Kentucky, an important crossroads for the bourbon industry, the Company is a family-owned business selling high-quality, ready-for-filling used barrels to distilleries, wineries, and breweries around the world. The Company has become well-known […]

Read More

What’s a Rolodex?

Technology has disrupted nearly every sector of the economy, and there appears to be no slowing down or looking back from this trend. Due to the uniqueness of each deal, the numerous and varied complexities, and the amount of “hands-on” hours required to complete a transaction, the investment banking industry has proven to be a […]

Read More

Teamwork Makes the Dreamwork!

Selling a middle market business is a multifaceted process that requires tremendous preparation, patience, and strategic positioning. With the uncertainty of capital markets, the unpredictability of prospective buyers, and a business to run, business owners will find themselves well-served by assembling an experienced M&A Team to manage and execute a formal sales process. At a […]

Read More

Barriers to Entry: Build a Wall!!!

Business owners must “build a wall” around their businesses to avoid advances from would-be competitors, and reinforce their position in the market. Barriers to entry deter new competitors from entering a market, secure the revenues and profitability of established companies, and increase the value of protected businesses. Consequently, businesses with high barriers to entry reduce […]

Read More

Brand Recognition Enhances Value?

Early orchestration of a strategy for your business’ brand will create additional value at the time your business is sold. A brand represents the face of the business; a unique and recognizable design, sign, symbol, or slogan employed to create an image that identifies a product and differentiates it from its competitors. Aside from generating […]

Read More

Drive Value Through Operating Systems!

In addition to a knowledgeable and ambitious management team, developing innovative operating systems and procedures enhance the value of a business. Effective operating systems and procedures must be reliable, updated and maintained regularly, documented systematically, administered consistently, and adequate for growth of the business. Operating systems, or formalized business processes and procedures, are utilized most […]

Read More