Articles & News

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

Our firm’s substantial increase in closings compared to previous years indicates that the M&A market remains active and healthy. Even though good businesses are still in short supply, buyers remain motivated and tend to move quickly when they find the right match. In this process, many buyers are starting to ask owner(s) to be more involved in the transition to help mitigate their perceived risk. For those business owners who have effectively built themselves out of the daily operations, the transition time may be minimal (less than 30 days). However, for those who are more involved in the day-to-day operations

Our firm continues to work with more and more industry buyers who are very active in today’s M&A market. In many cases, these buyers are in the same industry looking to acquire a business in Colorado or in a nearby geographic market. While working with industry buyers can help increase the market price of a business, there are disadvantages as well. Below are three key aspects to consider when selling to an industry buyer. Overhead Synergies such as financial reporting, accounting, and human resources can often help drive more cash flow to the bottom line.   An industry buyer with similar locations can leverage their overhead resources (commonly referred

Over this past year, our firm is seeing an increase in owners who need to sell quickly but they have not put the necessary time and effort into preparing their business to sell.  Though risky, some have decided to go at it on their own or have only had general conversations with their accountants or financial advisors without putting a real plan in place. While the range can vary based on the industry and uniqueness of each business, the average is 9-10 months from when the business goes to market to the closing table. However, we’re seeing more exceptions in