How does an election year impact M&A activity?
Election years often bring a unique set of uncertainties that can have a notable impact on mergers and acquisitions (M&A) activity. Here’s how election dynamics generally influence M&A trends: Uncertainty in Policy and Regulation As elections approach, policy stances on taxation, trade, antitrust regulation, and industry-specific rules become focal points. Companies may hold off on...Read MoreStay Bonuses Will Add Value When Selling A Business
M&A Advisor Tip Beware the Benchmark Valuation You can practice some back of the napkin math to value a company, but it’s not always reliable. A company with $3 million in EBITDA, may, as a general rule of thumb, sell at a 4x to 6x multiple. In other words, it might sell for $12 million to $18 million in...Read More
How M&A Will Respond to Next Recession
M&A Advisor Tip Deal killers: The I-Don’t-Know-What’s-Next Seller Is your identity tied up in your business? Do you know what you’ll do after selling? We look for signs that a seller is overly attached to their business. It’s a red flag, as these are the sellers most likely to dig in their heels, turn down good offers (even above...Read MoreSmall Business Values Up in 2021
M&A Advisor Tip Perks & Business Value Business owners take a number of perks from their business, from the standards like auto expenses, memberships, and insurance plans to extras like entertainment, vacations, or an additional family member on the books. Perks are a way for owners to be further compensated for...Read MoreValue = Risk vs. Reward
Buyers value your business based on risk (real or perceived) and future cash flow. Consider potential business risks. What could prevent your company from realizing your forecasted earnings? Think talent, customers, suppliers, competition, cash flow. Strategize ways to reduce risk in each area, e.g. cross training, outsourcing, succession planning, customer...Read More