My Business is Having a Soft 2020 due to COVID, But I’m Ready to Sell. Should I Test the Market?
Yes, especially if you believe your business will rebound in the next 1-2 years to pre-2020 revenue and EBITDA levels. Private equity firms exist to deploy capital and acquire and grow companies, and they begun to embrace alternative approaches to valuing businesses. Some are valuing businesses based on 2019 performance. Others are agreeing to contingent […]
Improvement Opportunities In Manufacturing Targets
While none of these should preclude an acquisition, we’ve come to witness several variables that suggest that an acquired company may need extra help. These include: Are the finance employees familiar with using your preferred (or an analogous) ERP system, or will they be learning to use a sophisticated system anew? Will the target be […]
Tips To Execute A Successful Industrial Roll-Up
Acquiring several companies in the same or complementary industries is easier than making them work together harmoniously to create a business capable of achieving above-market organic growth. We’ve identified a host of better and best practices that we believe will deliver your greatest chance at success. These include: Hire (or at least identify) your platform […]
If I Believe My Business Will Grow In The Next Few Years, Should I Hold Off On a Sale?
Not necessarily. Acquisitions often include additional purchase price – known as an “earnout” – paid to sellers if the acquired business grows in the future, meaning you may still capture all of the value created by your growing business. Careful thought should also be given to the state of debt markets – if those markets […]