Tag Archives: Negotiations

Hibbs & Associates, PLLC has been acquired by CPA Innovations, LLC

ABOUT THE DEAL: Hibbs & Associates, PLLC (also referred to as the “Company” and “Sellers”) has been acquired by CPA Innovations, LLC (the “Buyers”). Established in 1984 and headquartered in Bardstown, Kentucky, Hibbs & Associates, PLLC is a full-service accounting firm that specializes in a diverse range of services, including individual and business tax preparations, […]

Read More

River City Glass & Mirror, Inc. has been acquired by the Management Team

ABOUT THE DEAL: River City Glass & Mirror, Inc. (also referred to as the “Company” and “Sellers”) has been acquired by the Management Team (the “Buyers”). Established in April 1993 and headquartered in Louisville, Kentucky, River City Glass & Mirror, Inc. is an independent, family-owned and operated glass company specializing in a diverse range of […]

Read More

Louisville Sign Company, Inc. has been acquired by B Sign Group

ABOUT THE DEAL: Louisville Sign Company, Inc. (also referred to as the “Company” and “Sellers”) has been acquired by B Sign Group (the “Buyers”). Established in 1996 and headquartered in Mt. Washington, Kentucky, Louisville Sign Company, Inc. is an independent, family-owned and operated sign company offering a huge array of products and services including monument […]

Read More

Bridge the Gap

Economic uncertainty, volatility in the capital markets, and financing restrictions have created a challenging environment for committed buyers and sellers in the lower middle market. Foremost, valuations have come under deep scrutiny. Having reached all-time highs prior to the pandemic, buyers and sellers may find it difficult to align valuation expectations. Some considerations for both […]

Read More

The Strategic Exit

If you are considering a sale of your business in the near future, strategic buyers, or corporate acquirers, must be at the top of your prospective buyer’s list. Strategic buyers operate in the same industry or business and may include competitors, suppliers, or clients of your company. The main objective of strategic buyers is to […]

Read More

Balance Sheet Analysis

In most merger & acquisition (M&A) transactions, valuations are determined based on the income and cash flow of the company. Furthermore, the character and makeup of the balance sheet must also be assessed when evaluating a company for a transaction. Negotiating balance sheet target values should be an early and meaningful part of Middle Market […]

Read More

The Value of Confidentiality

Nearly every M&A advisor would agree that confidentiality is the foundation upon which successful transactions are built. Confidentiality is paramount throughout the M&A transaction process, but this is especially true when it concerns: the seller’s employees the seller’s customers and vendors the seller’s competitors and the public public companies and the possibility of insider information […]

Read More

Quality of Data Drives Deals

The quality of data is the most commonly overlooked risk factor of business owners pursuing a sale of their business in the marketplace. Owners must be able to provide prospective buyers with evidence to support their earnings and their adjustments to earnings. Poor data quality is usually linked to: Antiquated accounting systems Incorrect revenue recognition […]

Read More

Be Prepared!

It is impossible to list all the issues and decision points that may arise in the course of selling or preparing your business for sale. Every Merger & Acquisition transaction is different. A successful sale requires early preparation from the seller to optimize the sales value of their business and minimize the risk of a […]

Read More

Integration: The “Real Work” Begins…

Leading up to a transaction, buyers and sellers of companies can’t help but be enthusiastic about the endless opportunities that lie ahead. With all the synergies, growth possibilities and efficiencies to be realized; what’s not to be excited about!? This Honeymoon phase may continue post-transaction, but as integration becomes a reality, the excitement dissipates and […]

Read More

Delta Services, LLC has been acquired by The State Group, Inc.

ABOUT THE DEAL: Delta Services, LLC has been acquired by The State Group Inc. Established in 2004 and headquartered  in Louisville, Kentucky, Delta Services is a privately-owned, bonded and fully-insured electrical contractor specializing in various types of electrical construction, communications systems, fire and security systems, safety services, utility distribution services, and PLC controls. Headquartered in […]

Read More

Do Taxes Matter?

Mergers and Acquisitions (“M&A”) are complex, multilayered, excitingly negotiable with endless options. M&A transactions present numerous tax planning and compliance issues. Below are tax considerations that appear repeatedly in middle market deals and only serve as a starting point for delving into more intricate and tedious tax issues: Structure – most commonly used structures are asset or stock purchases Reorganizations – tax-free reorganizations are subject to a myriad of IRS requirements Purchase price […]

Read More

The PE Alternative

Owners and stakeholders of companies with strong cash flows, defendable market positions, products and services in expanding markets and a management team capable of driving the business forward must consider private equity (PE) groups, or financial buyers, as a viable alternative to exiting their business. Although these groups vary in size and focus, most PE […]

Read More

Intellectual Property Rights: Don’t Forget?

Intellectual capital is often the key objective in mergers and acquisitions.  Despite the importance of intellectual property rights (IPRs), intangible assets and goodwill, the assets are routinely misunderstood and are often under-valued, under-managed or under-exploited. “The cardinal rule of commercial valuations is that the value of something cannot be stated in the abstract; all that […]

Read More

Know Your Options – PEGs

There are a host of prospective buyers for lower middle market companies (less than $75 million in revenues), and every possibility should be explored, vetted and considered. One buyer-type that must be on every business owners’ radar are Private Equity Groups (PEGs). PEGs provide access to capital, offer insights and expertise, assist with improving market share and operating efficiencies, and have […]

Read More

Compete to Exit!

In the mergers and acquisitions marketplace, competition from multiple prospective buyers is an absolute necessity to maximize the sale’s value of an owner’s business. An experienced M&A Advisor will develop a Confidential Information Memorandum (CIM) designed to stimulate competition among potential buyers. The CIM reflects sales and marketing strategies to efficiently, effectively and confidentially attract qualified buyers from two major groups: […]

Read More

Comstock Brothers Electric Company, LLC has been acquired by The State Group Inc.

ABOUT THE DEAL: Comstock Brothers Electric Company, LLC has been acquired by The State Group Inc. Established in 1999 and headquartered  in Louisville, Kentucky, Comstock is a privately-owned, bonded and fully-licensed electrical contractor specializing in various types of power distribution, electrical construction, process controls, conveyors, package handling, automotive, design-build and electrical testing. Headquartered in Toronto, […]

Read More

Value Proposition

The value of a company is in the eye of the buyer; therefore, sellers of lower middle market companies should position their businesses to drive the strategic value and attractiveness before a possible sale transaction. Enhancing the value of a company is an ongoing process, and sellers should begin preparing their company for sale 18 to 24 months before marketing […]

Read More

Crystal Balls, Bubbles, Cycles, Roll-ups and Business Values

Recently, I was discussing with a good friend and long-time client the past financial successes of her company. Its continued annual growth in revenues, net income, and earnings before interest taxes depreciation and amortization (EBITDA) was extraordinary. Should she continue with the Company’s compounding growth and ride it to the glass ceiling of mid-size companies […]

Read More

A Business Colonoscopy

The due diligence process in an M&A transaction involves a legal, financial, and operational review of all the seller’s documents, including contractual relationships, operating history, and organizational structure. Due diligence is a process and a test of the value proposition underlying the transaction to ensure that the seller’s company meets the expectations created before the […]

Read More

Recent Posts

Recent Comments

    Archives

    Categories

    Article Tags