ARTICLES
I receive a steady stream of calls from minority shareholders who are dealing with one or more of the many struggles inherent in such positions. I also talk regularly with people about the valuation, purchase and sale of minority interests. It’s a very important and...
The biggest barriers to business sale bliss are low or declining profit and revenue source concentration. After all, it's steady and dependable profit that drives value. Add consistent growth and buyers will line up at your door. But many slam-dunk deals are derailed by latent...
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A private M&A research firm that tracks private U.S. business purchase/sale transactions in the $10 million to $250 million transaction size range – a size and type that has historically been underreported - recently released its analysis of 2015 year-to-date transactions. As usual, size matters. Larger...
Don’t expect business buyers to appreciate the work that went Into building your business. Buyers look at your business simply as an investment. They won’t appreciate the blood, sweat and tears you put into building it. You’ll always have the pride of knowing what you...
What is the one absolute, undisputed key to selling a business for maximum value? Multiple, high-quality buyers, worked simultaneously. Could it be anything else? Nope. Everyone instinctively knows this. Still, many try to find another way. Attempt to ply an alternative route to an optimal sale. There...
The biggest mistake buyers make is definitely overpayment. It can be heartbreaking. Just last week I talked to a former client we helped sell. He turned around and vastly overpaid for another business (he didn’t use my firm) and he’s really struggling right now....
I’m convinced most business owners think high-value business sales just kind of happen. You run into a guy on a plane, or the phone rings one day and a sweet deal takes place. This misconception takes root from the sound bites heard at the club,...
It's tough to recover from paying too much for a business. And business failure can lead to personal financial failure, and shattered lives and families. Sure, bad timing or bad luck can kill even a good deal, but the goal is always to get in...
A business has a lot of moving parts – customers, products, location(s), vendors, employees, reputation, relationships, processes, competitors, legal status and history, tax status and history, systems, databases, websites, etc. If one wants to peer into the crystal ball of a business and see its...
Selling a business is a sales process. The business sale price ultimately received for a business is greatly impacted by HOW the business is sold. A maximized business sale price is garnered through appropriate preparation of the offering documents (packaging); savvy execution of the proven...
People talk about multiples of revenue. Sure, one can take any price and divide it by the annual revenue of a business and obtain a revenue multiple. A $1 million sale price divided by $750,000 in annual revenue equals a 1.33 revenue multiple. Right? Nothing...
You heard Joe Schmidt got an 8x multiple? Wow! I don’t blame you for holding out for 8. Your company is so much better than Joe’s. In fact, here are the normalized income statement and balance sheet for both your company and Joe’s. Of course,...
An offer for purchase says almost nothing about the value of a business. Why? Because “value” (as in market value) is the price a buyer is willing AND ABLE to pay. An offer, by its very nature, cannot speak to ABILITY to pay. I see...
How can I maximum the sale price of your business? HOW any asset is sold impacts the price for which it sells. Here’s how that applies to a business sale. ...
The International Business Brokers Association (IBBA), in partnership with Pepperdine University's Private Capital Markets Project, recently released its “Q4 2014 Market Pulse Report” detailing business transaction trends for Main Street and Lower Middle Market companies. Sixty-nine percent of survey respondents felt it was a buyer’s market...
Should you tell your employees you are planning to sell? Should you tell key employees. When to tell your employees you plan to sell. ...
NEWS RELEASE FOR IMMEDIATE RELEASE 02/05/2015 David Perkins, founder of Acquisitions Advisers outlines 6 keys to selling a business and maximizing sale price. TULSA, Oklahoma, February 5, 2015 – David Perkins, founder of Acquisition Advisors, a firm specializing in the purchase and sale of mid-sized US companies, has released a...
If one wishes to sell a business quietly, professionally and for absolute maximum, is an M&A advisor needed? If so, why? What does an M&A advisor do that might add value?...
To maximize the business sale price or value, be open to seller financing. If you ask for 100 percent cash at closing, you’ll receive a lower price. This is because the amount of cash the buyer has, and the amount a bank will lend, are...
TULSA, Okla., Jan. 13, 2015 /PRNewswire/ -- Acquisition Advisors, a firm specializing in the purchase and sale of mid-sized US companies, has released the "Path To Absolute Maximum Sale Price." Its purpose is to help business owners garner the highest possible sale price when they decide...
Selling a business can be complicated and stressful. But Acquisition Advisors is here to help you. Hold your hand. Coach you. Help you get it done quietly, professionally, and for absolute maximum value. ...
No business owner-seller should pay up-front for services before they are delivered. At least not a large, lump sum up-front fee. The scam M&A advisory firms have for years coached $15,000 to $50,000 up front out of business owners. Unfortunately, nothing happens after that. Don’t...
Smart business sellers choose Acquisition Advisors because they want to sell their business quietly, professionally, and for absolute maximum....
Values have robustly recovered from the recessionary lows of 2009 and 2010. According to GF Data, the average price paid in the most recently completed year (2013) — for private business sale transactions in the $10 million to $250 million range — was 6.7x EBITDA...
You want to sell your business? Are you sure? Here’s the economic tradeoff you will be making. ...
Values have recovered from the recessionary lows of 2009 and 2010 in all markets, not just the energy sector, said Perkins, who consults on the purchase, sale and valuation of companies. There are several reasons. Equity is abundant, debt is available and cheap, there are...
Recapitalization refers to the restructuring of the balance sheet of the business. Particularly, the capitalization of a business, i.e. the debt and equity. Typically, it involved borrowing debt and paying the proceeds out to the equity holders. It could also involve a buyout of equity...
By all accounts, debt financing seems to be amply available and rising in the amount extended for business acquisitions in the United States. Debt financing – for deals completed in the $10 to $250 million transaction value range – rose to 57% in the second...
Five business purchase offers quietly presented to you at the same time, each tailored to your specific needs and desires, from the most fitting and capable buyers for your business, and a closing within 120 days of LOI or we’ll return any and all fees...
Your M&A advisor or business broker should do some basic things for you. Preparation of the business. Packaging. Buyer candidate outreach. Buyer screening, etc. Watch the video to learn more....
An exciting education session titled “Lower Middle M&A for the CFO” was delivered today by David L. Perkins, Jr., managing director of Acquisition Advisors. The event -- CFO Summit -- was organized by Professional Systems Network International (PSNI), a nationwide network of leaders in audio...
What is a management buyout and how is it accomplished? We can help. This video is a top level overview of the management buyout process. ...
Members of the Tulsa Chapter of the Oklahoma Society of Certified Public Accountants obtained 4 hours of continuing education credit today at a seminar presented by David Perkins, Executive Director of Acquisition Advisors. The topic was, “Lower Middle Market Update for the CPA.” ...
“Prices being paid are up, actually,” says David Perkins, Managing Director of Acquisition Advisors. “The number of closings is a fraction of what it was in 2012, but those that do sell are getting very competitive prices,” he continues....
Know a business owner that wants to sell for big dollars? Introduce us. When we complete the transaction, we’ll send you and five of yours on the Caribbean sailing trip of a lifetime. Call Acquisition Advisors at (918) 748-7995 today!...
What can you do today to sell your business for maximum value tomorrow? We tell you. Build in business drivers. ...
The characteristics that drive the value of a business hire and cause business buyers to pay more. ...
Question 1: What did you learn in Econ 101? Answer 1: Price is determined by the balance of supply and demand. Question 2: Why do some business sellers work with just one buyer at a time? Answer 2: Great question!...
There is just one absolute, undisputed key to selling a business for maximum value. Everyone knows it, deep down, and accepts it as fact. Still, many try to find another way, attempt to ply an alternative route to an optimal sale. There isn't one, at...
Quiet Is a PART of the Plan, Not THE Plan. Confidentiality is important, but if you make it your #1 consideration, you’ll never get anywhere. Here’s how to maintain confidentiality AND get your deal done....
Acquisition Advisors consults on the purchase and sale of small and mid-size U.S. companies. That is, generally, companies valued between $2 million and $100 million....
There are three types of business buyers – individual, industry and private equity. As a business owner that will one day sell, you need to know which type is most likely for you. Going after the right type of buyer can make all the difference...
June 18, 2013, Tulsa, Oklahoma – Acquisition International (AI) Magazine, a U.K.-based periodical publication serving the global merger and acquisition industry, has released the winners of its 2013 Acquisition International M&A Awards. Acquisition Advisors, LLC, a merger and acquisitions (M&A) advisory firm headquartered in Tulsa,...
OKLAHOMA CITY — Hugg & Hall Equipment of Little Rock, Ark., has acquired Oklahoma City-based Westquip Inc. Westquip, a Toyota Industrial Equipment dealer, offers rental forklifts in Oklahoma. Westquip also sells forklifts for special applications from other manufacturers including Hoist, Sellick and Combilift....
The boom in unconventional oil and gas sparked high-level merger and acquisition activity across the nation last year, according to a Deloitte report released Monday. Tulsa's own energy sector was no less active in 2012, with at least 15 major deals reported. Williams Partners...
February 10, 2013, Tulsa: Hugg & Hall Equipment Company, one of the largest material handling companies in the lower Midwest, has announced it has acquired Oklahoma City-based Westquip, Inc....
January 11, 2013, Tulsa: The owners of Applied Industrial Machining (AIM), an Oklahoma City-based contract manufacturer, have sold a controlling equity interest to Argonaut Private Equity. Acquisition Advisors represented the seller. AIM provides precision machining services to an array of companies, a majority of which operate...
There’s a point in each sell-side engagement – towards the end – when one of the serious buyer candidates makes a push to communicate directly with my seller client. I call it the “moment of truth.” I talk to my seller clients about it in...
There is no possible way in the world to get the best deal by courting and negotiating with just a single buyer. Need I say again? You will not get the highest and best price if you deal with just one buyer....
November 20, 2012, Tulsa: Precision Fitting and Gauge Company (PF&G), a Tulsa-based regional value-added distributor of instrumentation and control products, has purchased Flow Measurement Company (FMC). FMC, also headquartered in Tulsa, provides gas flow measurement equipment and services to regional natural gas producers, gatherers and...
A recent survey conducted by the Alliance of Merger & Acquisition Advisors (AM&AA) shows deal volumes accelerating. Their bi-annual survey of U.S. M&A advisors shows deal volumes up 19% in the first six months of 2012, compared to same period in 2011. Benchmarked to the...
David Perkins, managing director of Acquisition Advisors in Tulsa, doesn't blame the families one bit for what some casual observers might call "cashing out." He believes the city will see more of those in the coming months and year. "I think it's silly when families feel...
If you are considering the purchase or sale of a private company, call 918-748-7995. Our business is serving you in a confidential and professional manner. You can also email us at confidential@acquisitionadvisors.com, and let us know how we should contact you confidentially....
You own a C-corporation that you want to sell. You asked us not to beat you up for never switching to a pass-through entity and just help you reduce taxes. Okay, here you go: Sell Stock. This is much easier said than...
Acquisition International (AI) Magazine, a U.K.-based periodical publication serving the global merger and acquisition industry, has released the winners of its 2012 Acquisition International M&A Awards. Acquisition Advisors, LLC, a merger and acquisitions (M&A) advisory firm headquartered in Tulsa, Oklahoma, has been named the U.S....
July 1, 2012, Tulsa, Oklahoma: Superior Fabrication, Inc. (SFI) of Elk City, Oklahoma has completed the purchase of R. L. Gilstrap Company. SFI is a private, employee-owned custom fabrication company that produces oil and natural gas production equipment. R. L. Gilstrap Company, located in Oklahoma City,...
David L. Perkins, Jr. to Speak at 2012 FSPA Conference April 21, 2012, Nashville, Tennessee: David L. Perkins, Jr. has accepted an invitation to speak at the Financial and Security Products Association (FSPA) 2012 Conference and Manufacturers Showcase. It will be held May 31 through June...
Caveat Emptor -- the Latin phrase for “Let the Buyer Beware” – has been the orientation of laws governing trade in English speaking Western countries for centuries. That is, buyers of goods bear the bulk of the burden to protect themselves from harm that could...
An article in today’s Wall Street Journal (January 4, 2012) corroborates what we’ve been seeing and telling our clients. Namely, that private equity firms are: Very active Paying premiums ...
It's a busy time of year. About 60 percent of all mergers and acquisitions close in the fourth quarter, and 70 percent of those deals close in the last two weeks of December....
It's a surprise to many, but now is a great time to sell a business. Premiums are being paid. How can this be? First, there's a massive supply-demand imbalance - lots of buyers and not many sellers. Private equity groups and strategic buyers are as aggressive as...
Undeterred by the weak economy, a surplus of buyers remains ready, willing and able to purchase businesses of every size, and contrary to the ever-present scuttlebutt about banks not willing to lend, they are, in fact, making loans, including loans for purchase/sale of businesses. After...
What is the ONE characteristic of a business that drives buyers mad? That will cause business buyers to lose their ability to negotiate aggressively? Cause them to throw dollars at you like they’re rubles?...
Let there be no doubt – it’s a great time to sell a business. My phone rings regularly with private equity group representatives looking for deals. “Private Equity buyers are sharks. They must keep moving to stay alive,” quipped David L. Perkins, Jr., Managing Director...
Question: We have a business we would like to sell, but not sure if it is too small for your firm to consider. It’s a "new media" business established in 1999 and very successful and growing. 2010 sales were $600K. We anticipate sales of $700K...
Among the many issues to consider when selling ownership in your business is whom you sell to. Sell to an unsophisticated buyer with limited net worth and you’re asking for trouble. He or she might be able to rescind the transaction on legal grounds because...
Acquisition Advisors is please to announce that WestOak Industries has been purchased by a St. Louis-based private equity group. Acquisition Advisors represented the seller. WestOak Industries is a highly efficient and profitable electronic manufacturing service (EMS) provider located in western Oklahoma. EMS is a category of...
Question: What is the industry valuation multiple for the commercial heat treat industry? Also, is there a chart somewhere of the trends in multiples through the years?...
We’ve written recently about premiums being paid for the purchase of private companies due to a supply-demand imbalance that has emerged that favors sellers (see "Premiums Being Paid Due to Supply-Demand Imbalance" and "Suddenly, A Business Seller’s Market.”)...
If your company’s earnings have not suffered greatly during the recession, now might be the very best of all times to execute a management buyout. Buyers are out in mass and paying premiums for companies that have performed well during the recession. We did not see...
The biggest barriers to business sale bliss are low or declining profit and revenue source concentration. After all, it’s steady and dependable profit that drives value. Add consistent growth and buyers will line up at your door. But many a slam-dunk deal is derailed by...
In today’s Tulsa World, Fred Russell is quoted as saying, "The value of something depends on what other people are willing to pay." This may seem like common sense but people commonly forget it in practice. They waste a lot of money as a result. Mr....
If you don't own 100 percent of your company, you should assess whether you have some shareholder-related issues that could hinder a sale....
You knew him. He was the talk of the town. Spent a fortune. Had everything. Then, suddenly, busted. Bankrupt. Everyone was shocked....
Business owners find their motivation in varied things. Commercialize a pioneering methodology. Be one’s own boss. Prove naysayers wrong. Provide a great place for people to work. While every entrepreneur has his or her unique set of goals, virtually all share one in common -- to...
We’ve been reporting that premiums are now being paid for businesses that have managed to post decent earnings during the recession. One key reason is there are many more buyers than sellers right now. Lots of buyers fighting to win the few deals available means...
BAE Systems' willingness to spend $352 million to buy Atlantic Marine testifies to the Navy's plans to expand at Mayport Naval Station and could lead to more work at Atlantic's sprawling local shipyards. At the same time, the entrance into the Jacksonville market of the British...
“Things Every Business Seller Should Know” was the title of a presentation David Perkins gave Tuesday to an esteemed group of executives that volunteer their time assisting owners of small businesses. The group, Tulsa SCORE, is an affiliate of the Service Corps of Retire Executives...
Cash is king, but owning a business can have some pretty nice perquisites. So what does a business owner do when he or she really wants to take serious chips off the table but does not want to give up ownership or management?...
Amazing but true. Premiums are being paid for companies that are selling today. Companies that would have topped out at five or six times EBITDA three years ago are going for seven, even eight today. I didn’t see it coming but now that it’s here the...
Need to buy out a shareholder but don’t want to put up your own money? Need to take some chips off the table but don’t want to sell out? Reduce your risk and gain some experienced, well-capitalized and well-connected partners? Consider leveraged recapitalization....
For owners of large and midsize companies, need for liquidity does not have to be an all-or-nothing decision. It really isn’t like the famous song by The Clash: “Should I stay or should I go now? If I go it could be...
Acquisition Advisors has issued their 2010 forecast for merger and acquisitions (M&A) activity in thirteen key industries – Aerospace and Defense, Chemical, Construction, Consumer Products, Energy, Financial Services, Health care, Hospitality and Leisure, Manufacturing, Publishing, Retail Food and Beverage, Technology and Software and Transportation and...
Some shareholders of Arena Resources Inc. are questioning the company's $1.55 billion proposed sale to Oklahoma City-based SandRidge Energy Inc. despite a 17 percent premium on the stock price. Law firms across the country are examining the deal, especially since Arena management said earlier this year...
The president of Coca-Cola North America was in Tulsa on March 24. The visit was made possible by Oklahoma State University's Spears School of Business. Now I'm a Sooner, but I regularly hand it to OSU for its successes and contributions, such as its long-standing...
Selling a business is a sales process. The business sale price ultimately received for a business is greatly impacted by HOW the business is sold. Maximum business sale price is garnered through appropriate preparation of the offering documents (packaging); savvy execution of the proven “quiet...
When your mission is to sell a business for absolute maximum sale price, selling a business is a sales process. The business sale price ultimately received is greatly impacted by HOW the business is sold. That is, when the mission is to sell a business,...
Another group of business buyer-scammers has been convicted. This time it was a father-son team from Farmington Hills, Michigan. They were convicted in federal court in Philadelphia in November 2009 for “a scheme that allowed them to fraudulently gain control” of businesses and “deplete the...
Thousands of sources of equity capital in the U.S. and around the world are willing and able to pay top dollar for great companies, leave the tenured management in place, provide meaningful ownership to the manager or management team that remains, and mentor and support...
Certain concepts are really hard for me to grasp. Infinity. Light. The space-time continuum. Retirement. Business valuation. As a business owner, I can get by without fully understanding the meaning of "infinity" and "light-year." But "business valuation" might hit home, especially when it comes to understanding...
If you are buying or selling a mid-size business, you have a lot at stake. You also have a lot of questions. You need answers. Answers you can trust. The principals of Acquisition Advisors are recognized experts on the purchase, sale and valuation of mid-size...
Acquisition Advisors talks about win-win transactions. That is, business purchase/sale transactions that result in a “win” for the owner-seller, buyer, employees and community. By “community,” we mean where the company operates. When the right buyer is found, the business has its greatest opportunity to thrive. This,...
Most successful business owners are good people. Caring people. I’ve worked with thousands of them. Jerks tend to implode, eventually. Traits of care, honesty and integrity aid the business owner in surviving and succeeding over the long haul, so most who “make it” are “good folks,”...
Smart succession planning will be the topic of a seminar for business owners sponsored by the respected law firm of Doerner, Saunders, Daniel & Anderson, LLP. The date is Thursday, March 4 and David L. Perkins, Jr., Managing Director of Acquisition Advisors will speak....
If recent economic surveys are accurate, owners of small businesses are not experiencing an economic rebound. Not by a long shot. They also have little confidence that better times are near. This is in contrast to both the stock market run-up that continues unabated and frequent...
The day will come when you want out. Given all your hard work and sacrifice, you deserve a big pay day. So, why not set yourself up today for that to happen? As it turns out, buyers have a lot in common. Below is a list...
How a business is sold has as much to do with the value received (i.e., Sale Value) as the characteristics of the business itself, but the business— and its compilation of characteristics— is the foundation. Remember the Sale Value© equation: Sale Value = Enterprise Value +...
Business owners hold something of value -- ownership in a business. And, in the life of an owner, there typically comes a time when he/she becomes willing to part with his ownership in exchange for some things he/she values. Typically, the thing of value is...
Business valuation and best practices in the purchase and sale of private companies was the topic of a four hour presentation provided by David L. Perkins, Jr. on Tuesday, January 19th in Weatherford, Oklahoma. The presentation was arranged by Paul Walenciak, an extension agent with...
Are you the day-to-day manager of a valuable and profitable company? What happens when the owner of the business you manage wishes to sell? You’d like to buy the business yourself, of course, but you can’t afford it. The owner knows this. But the owner...
The biggest mistake buyers make is definitely overpayment. It can be heartbreaking. Just last week I met with a former client we helped sell out. He understood the value of skilled assistance, we worked the proven process and he made a lot of money. He...
The hardest part about helping people buy and sell businesses is watching or hearing about business buyers and sellers that made mistakes that cost them substantial amounts of time, money and, often, credibility. As I’ve said, M&A deals are complex, time consuming and risky, and...
When a battle must be waged, a battle plan is developed. Experts are brought in and together settle on the plan that has the best chance of securing victory at the lowest possible risk and cost. The plan is always confidential, and almost always includes...
Debt financing remains available for business purchases, it’s just more cautious than it was a couple years ago. Much more cautious. My firm has closed a few deals in this climate but banks have been burned and they must operate conservatively to ensure they have...
Transitioning a family business is a delicate, time consuming and potentially hazardous undertaking. There are numerous tax and non-tax factors to consider. Common complexities include how to handle family members who work in the business versus those who do not, and liquidity issues that inevitably...
M and A activity crashes during a recession. This is because, for an M andA transaction to occur, someone has to sell. During a recession, the price owners can obtain for their equity in the business falls. Their desire is not to “sell low,” of...
When selling a one-of-a-kind asset, how do you estimate “fair price”? How do you know whether an offer is “high”? How do you determine what price is absolutely the highest sale price possible?...
There is but one absolute, undisputed key to selling a business for maximum value. Everyone knows it, deep down, and accepts it as fact. Still, many try to find another way, attempt to ply an alternative route to an optimal sale. There isn't one, at...
It’s a shame. Business owners just don’t understand that how a business is sold has as much to do with the eventual value obtained (“sale value”) as the characteristics of the business itself. They naively think their business has a certain value and all they...
Acquisition Advisors helps people put winning deals together. Deals for the purchase, sale and recapitalization of mid-size U.S. companies. Our focus is deals that involve businesses with annual profits between $1 million to $25 million, which is deal sizes of $4 million to $150 million....
Most business owners fail to understand that there is a way they can sell their businesses, when they decide the time is right for them, for the very highest price possible, and serve well the many people that have served them so well for so...
What value do you personally bring to your business? More precisely, what impact would your departure have on the performance of your business?...
Acquisition Advisors helps people put winning deals together — deals for the purchase, sale and recapitalization of midsize U.S. companies. Our focus is on deals that involve businesses with annual profits between $1 million and $25 million, which is deal sizes of $4 million to...
Assuming ownership of a new business is one of those tough, scary-as-heck jobs. It's tough for the business buyer. It's also tough for the seller, employees, vendors, customers, et al. Nobody's comfortable with change. In a business purchase-sale transaction, if you don't burn the...
Reserve your seat complements of Acquisition Advisors, by registering here. All eyes will be on William D. Cohan at noon on October 15 when the former Wall Street banker and author of House of Cards: A Tale of Hubris and Wretched Excess on Wall Street...
We all have heard that companies sell on "multiples of earnings." As such, the talk at the country club or trade conference has quickly moved to who sold for the highest multiple. We hear the multiples, but we almost never hear the definition of...
It seems the conventional wisdom is there must be a lot of activity in the deal business right now — lots of business owners wanting to sell because business conditions are so poor. In reality, however, most business owners are choosing not to sell today...
Harvard Place Investments has completed the purchase of an automotive products distributor. Seller was a Midwestern U. S. Private Equity firm. Acquisition Advisors represented the buyer. Acquisition Advisors developed and executed a sound strategy, consulted on the valuation of the enterprise, and led the negotiations. The...
Business profits are down. Ditto for multiples. The result is a double whammy on pricing. For this reason it’s a great time to buy. Not so much for selling. So after years of a seller’s market we now have a buyer’s...
Are you considering hiring an M&A firm? Does the firm you’re considering disclose the actual names of past clients or nebulous descriptions? Check out the tombstones and testimonials on the firm’s website and printed materials. Do they contain the real names of companies, buyers...
The March Group claims to be “the leading M&A firm for offshore investments in the United States.” What they appear to be trying to convey is the impression that they have contacts with overseas buyers. Interestingly, however, the only buyer I found featured on the...
Sashay Corporate Services, owned by Michael and Carla Covey, announced today that it has acquired Automated Mail Service from Cheshire Holding Corporation, owned by Doug and Janelle Brooks. Automated Mail Service (“AMS”) is a full service direct mail and commercial mail presort company that was founded...
TULSA, Okla., June 30 /PRNewswire/ -- Sashay Corporate Services, owned by Michael and Carla Covey, announced today that it has acquired Tulsa-based Automated Mail Service from Cheshire Holding Corporation, owned by Doug and Janelle Brooks....
The buyer of a business, having selected his minimum required rate of return, justifies purchase price of a "going concern" by the cash he expects the business to generate....
If you own a business organized as a C-corporation, you could face a wealth-draining dilemma when you try to sell. Buyers of businesses want to effect the purchase by buying all assets of the business as opposed to purchasing shares of stock from the person(s)...
You've devoted untold time, money and energy to building and running your business. It may well represent your life's work and net worth. Now you've decided that it is finally the right time to sell. Here are six things you should know....
Who wouldn't want to retire, sell the company and put money in the bank? Who wouldn't want to have the time and freedom to travel, play tennis, exercise and volunteer? Even spend more time with the grandkids?...
Q: What is the difference between audited and reviewed statements?...
Question: My partner and I started our business 31 years ago. We share ownership 50-50. He'd like to retire and wants me to buy him out. We don't have a buy-sell agreement of any kind in place. How can we agree on price? And, if...
Many private business owners dream of "going public." It's the ultimate entrepreneurial status symbol. Build a company and take it public. Well, you've really done something....
Do you remember the old saying "The person who represents himself has a fool for a client"? Athletes, highly paid executives and persons involved in legal disputes adhere to it. Unfortunately, some business owners do not. No doubt, you're an amazing person - but you...
Do you really need an attorney? Do you really need a CPA? Are they worth the money and could you do without them. Well, the answer is probably yes, you could do without them, but you'd be worse off for it. So,...
In an attempt to project what the future might hold for a business, the buyer looks at many things. One is past performance of the business. Historical income statements provide useful, factual information about income, expense and resulting profit for particular periods of time. Given...
You fought and clawed your way into business ownership. Then, several times, you did it again just to survive. The years rushed by. The kids are grown. A few of your retired friends have asked, quite crudely, "You gonna die in the saddle?"...
There are more than 10,000 ESOPs in the U.S., covering 8 million employees. Read about the benefits and drawback to an ESOP....
The ESOP offers powerful and compelling benefits - but it's not for every person or every company. It adds an ongoing layer of cost and usually involves the use of leverage, so good candidates will have healthy profits and cash flow. It also often requires...
You decided two years ago you wanted to acquire a competitor. You've spent months talking to a host of different companies and have finally found the perfect acquisition. You know it makes sense, you'll be able to expand geographically and you'll be able...
Heck no. You don't have to retire. Strom Thurmond remained a U.S. Senator through the age of 100. Dwight Hauff is 103 and owns Hauff Sporting Goods in Sioux City, Iowa. Jack Weil is 106 and still owns Rockmount, a Denver-based manufacturer of Western shirts....
Seller financing: Not only does seller financing help minimize the equity required, it provides ready and meaningful recourse in the event the seller breaches duties, obligation, representations or warranties. Try to get "right of offset." Assets, not stock: Buying stock is risky. A foolproof method...
When we estimate the value of a business, we are estimating the price at which it could be sold. Of course, buyers will only buy a business when it makes "financial sense" to do so. A purchase makes financial sense when the proposed price and...
There exists a tax reduction technique called "Stock-buying Middleman." We have previously cautioned against the transaction but have since learned that this type of transaction is "listed" by the IRS. To quote from IRS Notice 2001-16...
The majority owner of a business was presented with a new business opportunity that was not exactly related to that of his core business. He had lots of questions and asked for our help. This case study will walk you through the simple analysis that...
Why might a person want to own a business? Buy a business? Certainly, the reasons are unique to each person. Motives range from the material (i.e., money, possessions) to the spiritual; may originate from within (i.e., reside within oneself) or outside us (i.e., be socially...
Business valuation can be complex. But as with most projects a good start is to build a solid foundation. The foundation of a good appraisal will be the answers to four simple questions....
M&A Advisors typically represent owners of businesses valued in excess of $2 million. These businesses may be multi-unit retail establishments, dealers and franchisors, but are more often manufacturers, distributors or service businesses with regional, national or international clientele....
Want to know the value of your business? Pose the question to your closest friends and advisors. First, write your answer down. You will be amazed at the range of responses. Go one step further and ask each person how their answer was determined....
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Question: How will the IRS value my estate when I die?...
From the Business Seller's Perspective Setting: A Business Seller's leverage is greatest prior to signing a Letter of Intent ( LOI) because the Buyer is at an informational disadvantage - as the Buyer gains information in the due diligence process it will gain momentum in the...
Buyers of private companies purchase businesses for the profit they generate, or can generate. They look at the past as an indicator of the business' ability to generate cash or profits. They also look at the value of the assets, liabilities and equity of...
You can buy a business in one of two ways: asset purchase or stock purchase. In asset purchase, the buyer purchases “the business” by purchasing every single asset used by, necessary for or “making up” the business. By doing so, the buyer ends up in effect...
The business world is tough. Life is tough. Success is not gained by wimps. Happiness is not bestowed on wimps. Success and happiness is found when one has the courage to face reality, embrace truth, admit fault and accept blame (publicly and privately), defend and protect...
Are you under extreme financial pressure? Desperately need to restructure your debt – personal or business? First, try not to settle for simple short term survival. Go for improving your situation for the long term. Yes, it is possible. Figure out how. You don’t want to...
They key to getting a great price for your business is this – multiple, high quality buyers that are all bidding at the same time. Think I’m just arguing for my own benefit? Consider these things. First, there are a LOT of buyers out there. Not sure...
It is impossible to negotiate effectively when you have few, or no, options. If you are not willing to walk away. Dean Acheson, the acclaimed Secretary of State in the Truman Administration, said: “The single most powerful tool for winning a negotiation is the ability...
Times are tough. Business is slow for everyone. But for small-business owners, life has gotten a lot better. How so? Well, you’re a much bigger fish than you were six months ago. Two years ago. Right? Think about it. Talented vendors such as PR firms, creative agencies...
A John Hancock (big life insurance company) ad ran in the Wall Street Journal yesterday depicting a hypothetical dialogue between a middle-aged sister and brother. Here is what it says: ======== Sarah: Saw Bob today. Dave: Heard his father passed. So sad. Did Bob and Sue take over...
Yes, many banks are still lending. Yes, some businesses are still doing well. Yes, some business purchase and sale transactions are getting completed. With that being said, the economy IS very weak and, yes, bank financing is much harder to come by today. My firm closed another deal last...
A Denver-based business owner called me today to discuss his desire to sell. He said: “I know a handful of companies that would be really good buyers for this business. I could just call them, but for some reason that doesn’t feel right. Why?” This business owner’s...
Why Do Many Business Sellers Forget the Basic Economics of Supply and Demand? Every business seller wants a high price, right? Of course. Most want the absolute highest price possible. Sure can’t blame ‘em, I would, too. I love helping business sellers get that crazy high price....
It’s getting to me. For a long time, the recession did not seem to penetrate the lower-middle market. You know? Companies with revenue between $5 million and $250 million? But, ah, that’s not the case anymore. Nobody seems to be spared. Sure, our firm has gotten...
This may not be the time to make a lot of money, but it can be a time to make some good money. What I mean is, this may not be a time for posting record profits, as a business owner, but it may be...
An offer for purchase says almost nothing about the value of a business. Why? Because “value” (as in market value) is the price a buyer is willing AND ABLE to pay. An offer, by its very nature, cannot speak to ABILITY to pay. I see...
Following up on my last post, sellers of quality businesses often let fear shrink the options available to them. Yes, it’s quite amazing, and rooted in the following: Business owners have a lot at stake in selling their baby. Their life’s work. Their creation. Business owners view...
Do you agree that things are just grim of late? A plane goes down in New York’s Hudson River. Another tragedy in a world of hardship. What? Everyone survived!? Oh, dear goodness. The joy in this outcome. Should I feel guilty that I ponder whether more people might...
By David L. Perkins, Jr. Well, that just burns me up. I just ran into a longtime acquaintance who manages a sizeable company. A couple of years ago, the owners of his company – two gentlemen in their mid 60s – began talking to me about helping...
Okay, this post deviates a bit from the M&A topics, but I feel the need to urge people to hold on to these equities! So, here you go, my 13 reasons it’s time to buy, not sell, public equities: Buy Low, Sell High. When we boil...
Myth and misconception reign as common knowledge in private business purchase and sale transactions. I’ve come to believe that some stem from what I call the airplane crash syndrome – when a plane crashes it makes headlines. This makes people believe that flying is unsafe,...
A common comment I get from people these days is, “your business must be good right now … with the economy being so bad.” A little probing on my part usually procures the following logic: There must be some business owners that are having trouble...
Quality Aircraft Accessories intends 50-percent growth in its facility and work force under its new ownership team, adding services for two new markets....
Tulsa Power, with about 75 employees, makes a wide range of coiling and material handling solutions for the pipe, conduit, hose and tubing markets, according to its Web site. The 35-year-old company's products are sold to the oil and gas, telecommunications and power industries....
Craig Sutton of Sapulpa has purchased valve systems manufacturer Roto Hammer Industries of Tulsa for an undisclosed price....
Acquisition Advisors, a middle market Mergers & Acquisitions firm, announces the availability of its library of M&A articles on the newly re-designed website, found at www.AcquisitionAdvisors.com The new website is dedicated to serving business owners looking to buy or sell a midsize business, featuring clearer...
Published in The Tulsa Business Journal on 10/12/2007 Written by Tulsa Business Staff David L. Perkins, Jr. announced today that he has sold his interest in Vercor, the merger and acquisitions advisory firm that he co-founded in 2000. Vercor currently has 10 U.S. offices a European office. Perkins says...
D.L. Perkins-Acquisition Advisors recently completed the recapitalization of Air Cooled Exchangers Inc., a Broken Arrow company that manufactures custom air-cooled heat exchangers. The transaction closed June 29. Transaction costs were not disclosed. Equity partner is Clearview Capital LLC of Old Greenwich, Conn., which now has 60 percent...
Business Viewpoint By DAVID L. PERKINS JR. Published in the Tulsa World 4/5/2007 Want to buy a business? Sell a business? If so, where do you go? Who do you call? How will it be handled? What will it cost? Unfortunately for all of us, the answers are...
By Bloomberg, AP and Staff Reports Published: 1/28/2007 Nowata Filtration Amsterdam company acquires NMW A company based in Amsterdam,the Netherlands, has acquired the operations of a Nowata manufacturer. Amafiltergroup BV, which designs, manufactures and services critical process filtration products in a wide array of industries, has purchased NMW Inc.,...
By JOHN STANCAVAGE World Business Editor Published in the Tulsa World 11/5/2006 I have a friend who bought a small business a few years ago in another state. For a short time, I envied him. He had been a longtime customer of the company, which sold high-end audio...
Everyone seems to know the magnetic Tulsa native. Joining him for a Stonehorse Restaurant lunch catches the 40-year-old father of three little girls conversing with a family clearly pleased to renew his acquaintance. The pattern repeats itself every four minutes as someone - a beautiful...
Published in The Journal Record Nov 16, 2005 Written by John Dobberstein A longtime manufacturer of pre-engineered panel building systems in Tulsa has been acquired by a Dallas firm. Elite Buildings was recently purchased by Pala Technologies Inc., a value-added reseller and systems integrator of power and control products...
Published in the Tulsa World Sunday, January 28, 2001 A company based in Amsterdam, the Netherlands, has acquired the operations of a Nowata manufacturer. Amafiltergroup BV, which designs, manufactures and services critical process filtration products in a wide array of industries, has purchased NMW Inc., a privatelyowned manufacturer...