Tag Archives: Plan & Prepare

NACVA’s 2015 40 Under 40 Honorees!

Congratulations to Allston Advisory Group’s Senior Managing Director, Nolan K. Kapp, for being selected as a 2015 NACVA 40 Under 40 Honoree!! NACVA and the CTI are founded on excellence, superior quality, and the spirit of pioneering. They have a rich history of partnering with visionary leaders across all spectrums of the accounting and financial consulting professions regardless […]

Read More

Calculation of Value: The Precursor to an Exit

Business owners contemplating an exit from their business should begin the transaction process by engaging an experienced M&A Advisor to perform a Calculation of Value. Although the requirements for a calculation engagement may be more limited than for a valuation engagement, business owners should expect an efficient and systematic approach to the calculation of their […]

Read More

Hikes Point Paint & Wallpaper has been acquired by Dages Paint

ABOUT THE DEAL: Hikes Point Paint & Wallpaper (also referred to as the “Company” and “Sellers”) has been acquired by Dages Paint (the “Buyers”). Established in 1976 and headquartered in Louisville, Kentucky, Hikes Point Paint & Wallpaper has become the preeminent, independent retailer of high-quality paint and decorating supplies in the region. With three locations, […]

Read More

Knowing your key performance indicators

QUESTION: “AS A SMALL BUSINESS OWNER, WHAT CAN I DO IN THIS PRESENT ECONOMY TO PROTECT MY COMPANY?” Know Your Key Performance Indicators! If you are not keeping score, you aren’t going to make it. You must know your numbers! You can start with your monthly income statement and balance sheet. You must identify the Key […]

Read More

“Targeted” PEGs

For many smaller middle market companies (less than $50 million in revenues), Private Equity Groups (PEGs) are “targeted” buyers that seek to acquire ongoing, profitable businesses with realistic growth potential. PEGs provide access to capital, offer insights and expertise, assist with improving market share and operating efficiencies, and have a clear exiting path. Often times, PEGs […]

Read More

Confidentiality: Loose Lips Sink Ships

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

Strategizing for “The Big Dance”

Having a preliminary valuation performed by a qualified M&A professional is one way for a middle market entrepreneur to identify the issues in their business that should be addressed, cleaned-up, or improved to make their business more successful and eventually more attractive to prospective buyers. A preliminary valuation analysis will identify the “value drivers” of the […]

Read More

The Offering Memorandum: Framing the Story

The mergers and acquisitions (M&A) sales process begins with the preparation of a thorough Offering Memorandum (OM). This critical document provides the framework for profiling a company and positioning it for sale. An effective OM requires collaboration between the Sellers and the M&A advisor to capture the essence of the business. These conversations will include: […]

Read More

How Seller’s weaknesses are made Buyer opportunities

It is important for the Seller to address Company weaknesses up front in the Offering Memorandum (OM) as opposed to later in the sales process. If not disclosed early, Buyer discovered weaknesses will certainly have price implications and challenge the Buyer’s confidence in the Seller’s management ability and honesty. A simple list of common weaknesses […]

Read More

Non-disclosure confidentiality agreements, the acquisition profile and the executive summary

It is most appropriate to have targeted buyers sign a Non-Disclosure Agreement (NDA) or a Confidentiality Agreement (CA) before exchanging sensitive information regarding a seller’s potential acquisition target. Will the potential buyers sign? It depends, most times it will be signed; sometimes only after negotiating various details; potentially slowing down the sale process. A carefully […]

Read More

Stock Appreciation Rights (SAR) Plan: Rewarding & retaining key staff in connection with building a business for value or sale

Rewarding key personnel is an important element of many Middle Market M&A transactions. A Stock Appreciation Rights (SAR) Plan is a method for Companies to give their key employees a bonus if the Company performs well financially. Participants do not own stock nor are they required to purchase anything; however, their benefit from the SAR […]

Read More

Normalization of Income

“Normalizing Adjustments” are essential to value a Company and to make meaningful comparisons between a Company’s past and future performances. The normalization of the financial statements should reflect a willing buyer’s expectations for operating results and assist in determining the appropriate future cash flow stream. In order to minimize confusion and disagreements between Buyer and […]

Read More

Preparing for the Dance, the Buyers’ List!

A key step in the sell-side merger or acquisition process is generating a list of potential acquirers. Today, M&A professionals avail themselves to extensive and expensive research tools which help them in identifying possible buyers for their sell-side clients’ businesses. This relatively straightforward exercise of identifying likely acquirers from databases may be greatly enhanced by […]

Read More

Avoiding expensive mistakes by understanding multiples of EBITDA

A multiple of EBITDA (earnings before interest, taxes, depreciation and amortization) is a means to reflect the economic value of an operating business and is a significant driver of sale price discussions in M&A transactions. EBITDA represents the earnings stream (free cash flow) produced by a company available for distribution to the investor. Multiples are […]

Read More

Synergy, the ‘Magic Dust’ of Value

Synergy is the magic dust that allows for the achievement of revenue enhancement and cost efficiencies in business mergers and acquisitions. The value of synergy depends entirely on the assumptions made about how combined businesses will operate after closing. The assumptions are unique to the companies involved in the deal and may not always be […]

Read More

Confidentiality and Playing Close to the Vest

Most M&A professionals will warn you that you can’t keep your intentions to sell your business close enough to your vest. Confidentiality in M&A transactions is a serious concern in four areas: With employees of the selling company With customers and suppliers of the selling company With competitors of the selling company and the public […]

Read More

Exit strategies; do you have one!?

A great amount of real wealth is created when entrepreneurs sell their business. The secret behind ultra-successful entrepreneurs is their development and implementation of an exit strategy and timetable of events beginning with the start their business. The good news is the short and long term successes are not mutually exclusive. Exit planning is absolutely […]

Read More

Hidden Marketplaces and their “Targets”

In the current economic environment, troubled, distressed, insolvent and Chapter 11 bankruptcy businesses are presenting strategic and financial investors with attractive opportunities. Distressed transactions may provide the acquirer with a pathway to: gain access to a new client base or geographic territory; acquire assets at extremely discounted prices; effectively eliminate a competitor; or new technology, […]

Read More

How do I prepare my company for sale?

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

Read More

Discovering the Potholes of Deals

The buyer’s due diligence process deals with the legal, financial and strategic reviews of all of the seller’s documents, contractual relationships, operating history and organizational structure. Due diligence is a process and a test of the value proposition underlying the transaction to insure that the buyer’s company meets the expectations created before the signing of the […]

Read More

Recent Posts

Recent Comments

    Archives

    Categories

    Article Tags