I am in the middle of a transaction in which a fairly sophisticated buyer submitted a Term Sheet for a service business having a value of approximately $3 million. During the process of analyzing the offer with my client, the Seller (who is also a fairly sophisticated business man), a number of questions came up […]
Term Sheet vs. Letter of Intent vs. Purchase Agreement Read More »
Although this year has been the exception, buyer activity typically slows down during the summer, and picks up with intensity after Labor Day, as the vacation season ends and buyers realize that there is still time to complete a transaction before the end of the year. In anticipation of this increased buyer activity, our firm
This month’s article is written by our Team Member, Scott Densmore, and addresses the tricky issue of a potential sale of a business to one or more employees. Although a sale to an employee could be a viable option, as Scott’s article points out, there are traps for the unwary and an owner should consider
Most entrepreneurs considering the sale of their company have a legitimate concern about keeping a potential sale confidential from employees, competitors, and customers until the transition process can be appropriately managed. Owners would not want the employees to be concerned and leave for another job, they wouldn’t want their competitors to use the potential sale
Private Equity Groups (PEGS) have become some of the most active acquirers of middle-market businesses. For over twenty years, the FBB Group has been exposing and selling its client companies to PEGs. Our first transaction with a PEG was a platform with EBITDA of over five million dollars. As the PEG business model developed and
I have commented in recent eNewsletters about the strong market conditions. This month’s featured article that was penned by team member, Scott Densmore, quantifies activity on a national basis. Due to the strong Colorado economy, we are also seeing significant activity as demonstrated by the two transactions that we closed last week, and the significant
The State of the Business Acquisition Market in Colorado Read More »
Thinking about buying a business? More and more investors are considering the acquisition of an existing business as the best way to control their own destiny and accumulate wealth. It is estimated that over 80% of the millionaires in the United States own their own business. Below are some questions that are frequently asked by
More and more owners of small and medium-sized companies are considering the advantages of selling their businesses these days. Of the close to one million businesses that will change hands this year, most will involve privately held companies selling for $500,000 to $15,000,000. Yet, until business owners experience a merger or acquisition, few will know
Last month my team member, Scott Densmore, and I attended an industry conference in New Orleans. I have been attending similar conferences twice a year for over twenty years, not only to stay current with changes in the industry, but primarily to interface with the forty-plus Private Equity Groups (“PEGs”) that usually attend these conferences.
This month’s article addresses reasons why businesses sell and how value can be generated by planning ahead and consulting with advisors. Many buyers become fixated on the reason that a business is for sale. I suspect that is because most people look for bargains such as buying a business due to a sudden health event
