Exit Planning Strategy Blog for Business Owners

Hot M&A Market – Logistics

Posted by Carl Doerksen on September 29, 2014 at 8:30 AM

Every so often we like to highlight an industry that, from a mergers & acquisitions standpoint, is becoming “hot.” A “hot” M&A market means that buyers are quite active, looking for deals, and competing with one another to make acquisitions and consolidate an industry to take advantage of future growth.

One such industry right now is logistics. This is interesting to see because this was one industry that was hammered by the last recession. Logistics is dependent on goods to ship, and no goods = no shipments = no buyers.

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Topics: exiting your business, sellers market, logistics industry

Projected M&A Deal Volume in 2014

Posted by Carl Doerksen on September 26, 2014 at 8:30 AM

A few weeks ago, Business Insider did an analysis of merger and acquisition (M&A) activity in the U.S. Their findings were revealing. According to their sources, they are projecting that the value of all M&A transactions, based on deal announcements, will potentially reach $1.5 trillion, potentially equaling 2007’s record year. You can see the data in the following chart:

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Topics: projections, m&a activity, selling your business, sellers market

4 Secrets To A Successful Business Sale

Posted by Lindsey Perkins Wade on September 25, 2014 at 8:30 AM

Selling a business is long, complex process that isn’t lacking in numerous opportunities for things to go wrong. So how can you set yourself up for success?

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Topics: projections, selling a business, finding a buyer, recasting

Generational Equity and the M&A Advisor Award Nominations

Posted by Carl Doerksen on September 24, 2014 at 8:30 AM

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Topics: generational equity

What is IT Due Diligence in a Business Sale?

Posted by Carl Doerksen on September 22, 2014 at 8:30 AM

Since most of the readers of this publication are business owners, from time to time we like to bring you the perspective of buyers so you can gain insight into how they think and what motivates them. I thought of our readers recently when I read a piece on IT due diligence from Axial, a leading network combining business owners with capital providers. As always, Axial provides us with leading-edge research due to their unique position of knowledge in the industry.

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Topics: due diligence, selling a business

Companies That Have Sold Businesses with Generational Equity in 2014

Posted by Carl Doerksen on September 19, 2014 at 8:30 AM

Quite a few times during the past several months we have talked about how merger and acquisition (M&A) activity in the market is up in 2014 and it is up significantly with Generational Equity so far this year. I thought in this posting we would review a sampling of some of the recent deals we have closed so that you can get a flavor for what is happening in the real world of M&A.

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Topics: deal activity, exiting your business, m&a activity

Do Private Equity Firms Invest in Small Companies?

Posted by Carl Doerksen on September 17, 2014 at 8:30 AM

We are asked the question in the title of this piece quite often at our exit planning seminars. Because it is an area of interest for most business owners, we spend time on it in the teaching we do on the merger and acquisition (M&A) process. And even though we know equity firms are interested in lower middle-market companies because they tell us so (we have more than 34,000 registered buyers in our buyer database – buyers who have told us exactly what their investment criteria are), the data continues to amaze us.

The latest research from PitchBook* illustrates my point:

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Topics: deal activity, selling a business, exiting your business, finding a buyer, private equity firms

What Are Add-Ons?

Posted by Carl Doerksen on September 15, 2014 at 8:30 AM

Equity firms specialize in acquiring platforms and then during the ensuing 5- to 7-year “hold period” make additional investments in synergistic companies in order to expand the platform far beyond the size of the initial investment. These additional investments are called “add-ons” or “bolt-ons.” These descriptors refer to the fact that the subsequent investments are acquired and then rolled into the platform acquisition. They are typically “additive” and enable the equity firm to grow its investments beyond just organic expansion.

This strategy has become extremely popular for equity firms to pursue, according to PitchBook, a leading research company focused on private equity and venture capital firms. They do a great job compiling research on an industry that is notoriously secretive.

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Topics: add-on company, partial sale, Exit Strategy

M&A Activity in Canada

Posted by Carl Doerksen on September 12, 2014 at 8:30 AM

As we have discussed in past posts, merger and acquisition (M&A) activity is experiencing a significant lift in 2014. This is not only true in the U.S. but it is also occurring in Canada. According to a recent article in PE Hub:

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Topics: canadian m&a activity, economy, exit planning

Protecting Your Financial Legacy

Posted by Carl Doerksen on September 10, 2014 at 8:30 AM

There is an old Scottish proverb that goes something like this: “The grandfather buys, the father builds, the son sells, and the grandchild begs.”

This saying is referring to the transfer of wealth from generation to generation. Sadly, as we have seen over the decades, it is often true. A family creates a business that is well run and profitable, and as successive generations take the reins, too often the investment and the legacy in the business is completely lost through bad management, lack of focus, and poor decision making.

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Topics: baby boomer business owners, retirement, succession planning, exit planning, family dynamics, becoming buyer ready

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