Articles & News

Our firm meets regularly with business owners who have had their businesses valued by a 3rd party. While these valuations can provide some good insights, invariably, the valuations often don’t adequately address the intangibles in the business that go beyond the financial statements. Of course, there are exceptions, but too often 3rd party valuations fail to address some key areas that significantly affect the market value of a business. Below are a couple key questions a business owner should consider when obtaining a business valuation. How are trends in the last 2-3 years applied? Prior to the pandemic, trends over

When an offer is presented to a seller, how the buyer plans to address working capital is an important consideration. As the cost of capital has increased over this past year, working capital has become more and more of a negotiation point between buyers and sellers. Without a good understanding of the working capital requirements for a particular business, sellers could be leaving their hard-earned money at the closing table. Below are a few key questions to consider when addressing working capital in a transaction. 1) How is working capital calculated? To understand why working capital can be hard to

As 2022 comes to an end and we look back on the challenging economic turns we’ve had this year, the ability for a business owner to predict trends going forward and to figure out the right time to sell has become even harder. In our conversations with owners, in many cases, the right time is more dependent on each owner’s unique situation versus being at the mercy of unstable economic conditions.  In fact, we find the right time to sell is more driven by the owner’s expectations and ability to understand when they’ve hit a point of diminishing returns both

What a difference a half a year can make! I just returned from the M&A Source conference in San Diego this past week. These valuable biannual conferences bring together M&A advisors from across the nation for in-depth workshops, specialized training, and exclusive education. At our last conference, held back in May here in Denver, the consensus among attendees was significantly more upbeat. While there was a growing uncertainty building by the war in Ukraine, concerns of high inflation, and possible interest rate hikes, most transactions were still moving forward, and many had assumed a small correction would be good for

As we move into the last quarter of 2022, few would argue that market uncertainty has substantially increased to a level that have caused many in the process of buying or selling a business to push away from the closing table and take a “wait and see” approach. Our firm works with businesses across many different types of industries and while each industry has its unique set of challenges, there have been three clear messages from the current market that should not be ignored. Higher Interest Rates Are Affecting Buyers The average interest rate for SBA and other traditional loans

With the corporate tax deadline extension of September 15th behind us and many accountants taking a much-needed break, it may be an opportune time to schedule a strategy meeting with your CPA if selling is a consideration in the next 3-5 years. Over the past few months, our firm has experienced a substantial increase in new clients going to market. During our initial review of each company’s financials, it becomes very clear which owners have been preparing and will benefit the most now with the burden of historically high interest rates and the ongoing recession debate. We have daily conversations

Over the past few years, turmoil in the global market and considerable impacts of COVID-19 shutdowns have created two distinct groups of business owners: those who have successfully transitioned their business to new ownership and those that wish they had started sooner. Rarely do we hear of an owner who believes they transitioned too soon. As we circle back with our clients within months after closing, we hear a common theme of unforeseen major changes that occurred post-closing. Below are a couple of key issues that come up most often. Employee Challenges The current labor shortage has changed the landscape

Our firm has recently experienced a flurry of business owners considering the possibility of selling and many are already going down the path with a key employee or other interested party. Experience has shown us that although this appears to be a straightforward solution, especially for owners looking to retire, there are many different obstacles in the process that sellers learn about the hard way by trying to do it alone. Unqualified Buyers Many dream of owning their own business but when the acquisition process begins, frequently end up backing off when they realize the risks involved in a business

Business Acquisition in a Down Market Our firm continues to have daily conversations with both sellers and buyers on how the latest market conditions impact transactions of privately held businesses. Many owners are questioning whether it is a good time to sell as some watch their retirement accounts take a turn for the worse with high inflation hitting hard as well. If you can get past the initial knee jerk reactions, now is a still great time to sell due to these three long standing principles. 1) Cash (flow) is still king Especially in a bear market, many buyers tend

Several of our team members attended the IBBA/M&A Source Conference held in Denver last week. It had been many years since this semi-annual international conference was held in Colorado. While the pandemic caused cancellations and light attendance over the last couple of years, it was wonderful to see this event returning back to pre-pandemic levels with over 700 IBBA members and 200+ M&A Source members in attendance. These conferences are packed full of both instructor-led classes and expert panel workshops to help continually educate members on important topics and trends such as financing transactions, marketing/social media options, negotiation tactics, available