SELLING PRIVATELY HELD BUSINESSES


–SINCE 1982–

Articles & News

Are You Prepared for an Unsolicited Offer?

Despite growing market uncertainties in the backdrop as our nation braces for another presidential election, our firm has seen an increase in business owners receiving unsolicited offers for their business. The changing M&A landscape (especially with technology and now AI) has produced many avenues for these types of offers making it more important than ever for business owners to have a plan in place to evaluate and better understand key aspects in the acquisition process. 1. Know What Drives Business Value Business values fluctuate similar to the stock market and are subject to outside market forces that can cause the

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DEAL KILLERS: Mistakes to Avoid in the Sale of Your Business

With 2024 in full swing, we can reflect back on why 2023 was so challenging and better understand the primary factors that caused many transactions to fail. The M&A industry is very broad in terms of deal size, but according to Bloomberg Law the number of successful transactions in 2023 was the lowest year on record over the past 10 years. In our firm’s experience, the first half of 2023 was very active at a near record pace while the 2nd half slowed down due to lack of “sellable” businesses on the market but buyer activity remains strong. While there

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Unlocking Success: The Vital Role of Financial Advisors in Preparing a Business to Sell

It’s that time of year again when business owners start reflecting on the past year while looking to the next, knowing in the back of their mind that they’re yet another year closer to the ultimate goal: transitioning the ownership of their business. Regardless of market conditions, more than half of owners of companies valued under $50M have not put together any formal transition plan. Our firm frequently meets with owners who have amazing businesses but simply have not discussed the transition of their business with their financial advisor or have even engaged with one. As market conditions become more

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M&A Source Conference Update

The recent M&A Source fall conference in Charlotte, NC was well attended and provided some valuable insights into the current state of M&A. Despite the cost of capital remaining high this past year, activity continues to be healthy, but buyers remain cautious while they persevere in their search for quality businesses that are well prepared to sell. Below are a few key takeaways from the conference: Quality of Earnings or “QofE” reports are now being recommended by private equity groups to be completed by the seller prior to going to market. Typically, a QofE report is commissioned on the buy

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The 5 Key Areas Influencing a Business’s Sellability

Our firm frequently meets with business owners who are not ready to sell today but will need to sell over the next decade. The majority of these owners will be the last of the baby boomer generation who will want to retire in the next 5-10 years. It’s understandable, with high inflation and a looming recession, that many owners have put off retirement plans, but they should still start preparing their business to sell. All too often, we see business owners who could have received much more at the closing table and would have experienced a much smoother ownership transition

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How Soon Should a Business Owner Engage with an M&A Advisor?

With market uncertainty increasing, when to engage with a Merger & Acquisition(M&A) Advisor is becoming even more important. Our firm often comes across business owners who could have made key strategic changes years ago that would have made the ownership transition much smoother and more profitable at the closing table. Because market and industry conditions fluctuate, many times the advice these owners received set unrealistic expectations that could have been avoided if they had met with M&A Advisor earlier. In our monthly update, we outline reasons why business owners should engage with an M&A Advisor earlier in the process. Preliminary

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[Podcast] Looking at Your Business From the Perspective of a Manufacturing Business Broker & Ex-Business Owner

FBB Group’s own Chris Fagnant joins Nana Bonsu on the Build Value By Choice Podcast to discuss making your business more sellable. Chris has unique experience that gives him an expanded understanding of the manufacturing industry as well as the business sellers perspective. He uses this background to help businesses identify and optimize value. So when sellers are prepared to market they can get maximum benefit from their investment. Podcast Transcript Looking At Your Business From The Perspective Of A Manufacturing Business Broker & Ex-Business Owner NANA BONSU, HOST, BUILD VALUE BY CHOICE PODCAST: Well, hello! And welcome to this

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What are the Key Differences Between Business Brokers, M&A Advisors, and Investment Bankers?

In the evolving world of business transactions, there remain 3 general types of professionals who play a critical role in facilitating successful transactions: Business Brokers, M&A Advisors (Mergers and Acquisitions Advisors), and Investment Bankers.  While these professionals often work in similar areas, they differ significantly in their roles, expertise, and the types of transactions they handle. Understanding these distinctions is essential for owners seeking assistance in buying, selling, or merging with other entities. Business Brokers Business brokers assist in the buying and selling of small businesses with the focus primarily on transactions on the lower end of the market under

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The Perils of Overpricing a Business for Sale in an Uncertain Economy

In an uncertain economy, selling a business can be a challenging endeavor. One critical factor that can significantly impact the sale process is the pricing strategy. Overpricing a business in the hopes of the numbers “catching up” with the asking price may seem tempting, but it can lead to adverse outcomes.  The following are the potential negative consequences to consider and the importance of setting a realistic and competitive price. 1) Prolonged Time on the Market Most buyers, especially in times of economic uncertainty, are cautious and diligent in their investment decisions.  If a business is priced too high, it quickly becomes

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[Podcast] Business Innovators Interview: Preparing Your Business for Sale w/Rob Amerine

A special thanks to host Mark Imperial and Business Innovators for the interview of our very own President of The FBB Group, Rob Amerine. Watch, listen or read the interview transcript as Mark and Rob discuss some outstanding insights for business owners. Podcast Transcript Mark’s Introduction: This segment is all about preparing your business for sale welcome to the program I’m Mark Imperial and the segments brought to you by booksgrowbusiness.com it’s the place where busy professionals get their books published to educate consumers to grow their businesses and to leave a legacy. Mark: Joining me on this segment is

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