Industry group M&A Source recently released their quarterly survey of transaction data on the sales of lower middle-market businesses, analyzing sales of over 250 privately held companies sold between March and June this year. Key findings include….
READ MOREAlmost every transaction to sell a business involves a few obstacles to navigate before reaching the finish line. However, careful planning can help overcome many common last-minute "deal killers," including these four:
READ MOREHere are a few misconceptions we often hear about selling a lower middle-market business, and why they don't ring true:
READ MOREWhen used properly, the net working capital (NWC) adjustment incorporates balance sheet fluctuations into the sale. But to avoid nasty last-minute misunderstandings or surprises, the buyer and seller need to understand and agree how net working capital will be addressed.
READ MOREAnyone who has considered buying or selling a lower middle market business quickly becomes familiar with the term “multiple of adjusted EBITDA,” or the concept that valuation is often based on a multiple of earnings.
READ MOREBuying or selling a business can be time-consuming and challenging. While every phase of a transaction has its own set of potential problems, the due diligence period can be especially daunting.
READ MOREObtaining a professional business valuation is a critical first step, providing a formal estimate of value for the company, based on factors including the firm’s historical cash flow, balance sheet assets, trends, sales of similar businesses, and other tangible, measurable items.
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