M&A Insights | GaP Advisors

Apr 19, 2024

Is Majority Recapitalization Right for You?

When guiding business owners in the later stages of their careers, achieving their slow-down and eventual exit goals is an important part of the sale process.

Negotiation Red Flags When Selling a Privately-Held Middle Market Business

Selling a privately held, middle-market business can be both exhilarating and daunting. While selling a business holds the promise of financial reward, it also comes with its fair share of challenges, particularly during the negotiation phase.

5 Strategic Solutions for Middle Market Privately-Held Businesses in 2024

As we step into 2024, middle-market privately held business owners who are looking to exit in the coming years are facing a mix of challenges and opportunities that require a savvy and practical touch to maneuver.

Selling Your Business? 5 Points for Building Confidence in Post-COVID Induced Profits

In the wake of the COVID-19 disruption, some businesses experienced unanticipated spikes in revenue, defying the odds and showcasing resilience. While this surge is undoubtedly a positive, it has served to raise skepticism among potential buyers.

Perspectives - Stock Deal vs. Asset Deal?

One of the most significant decisions in the sale of a middle market business is whether the transaction will be a "Stock Deal" or an "Asset Deal." In this special edition blog, we aim to demystify these two structures from both the buyer's and seller’s perspectives and to highlight their merits and pitfalls.

The Real Cost of Failure

80% of privately-held businesses in the US fail when it come time to sell.

Understanding Working Capital in M&A Transactions

While most business owners are familiar with the concept of working capital, they really need to understand its significance within the context of an M&A deal.

Opportunities in Times of Rising Interest Rates

Welcome to this month’s GaP Insights where we will explore the effects of interest rate increases on lower middle market mergers and acquisitions (M&A) amidst a weakened economy.

Why Current Business Value is Important

Selling a privately-held business is a complex process, particularly when it comes to determining and defending its fair market value.

10 Key Business Attributes Private Equity Firms Find Attractive

What are the key attributes that businesses need to possess in order to attract growth capital investment from private equity?

The Future of Your Business

Where should you turn when you want to take on a growth partner or maybe even sell your business altogether?

12 Things to Ask - Indication of Interest

As a rule, the Owner of a business should never meet with a potential Buyer of that business until the Buyer’s intentions are known.

What is the Role of M&A Insurance in Today’s Marketplace?

Transactional Risk Policies, also known as M&A Insurance, are becoming increasingly popular in today’s M&A world. Their purpose is to subtract risk from the equation for both buyers and sellers of lower middle and middle market businesses.

Purchase Considerations in M&A

You’ve decided to sell your privately-held business. You’ve refined all your business processes and procedures, and the company financials are all in line. You’ve had a professional M&A Readiness Valuation performed on your business, established realistic goals and expectations, and selected a highly-qualified M&A Transaction Advisor who has helped you source a buyer. Now what?

Who Is Buying a Business Right Now?

Many successful business owners assume there will be a buyer ready, willing, and well-capitalized when they decide they want to sell their business. They also overestimate how easy it is to sell a business.

The Importance of Legal Due Diligence

In business acquisitions, a thorough legal review is a critical component of comprehensive due diligence.

What are Multiple Bites of the Apple?

Many business owners mistakenly think of selling their business as a one-and-done event.

Who Killed Your Deal?

Going into any business opportunity, if you knew that 4 out of 5 of your competitors or peers who had pursued something similar had failed, would you even entertain the idea?

Avoid This Mistake That Cost Me Millions!

To set the stage, I am 53 years old and have been the founder, co-founder, or a significant shareholder in several businesses that grew to be very successful.

On the Nature of What Business Sellers Are Looking for in a Buyer

What do business sellers really care about in a search fund transaction?

Recommended Steps to Buying Out a Business Partner

According to most studies, it’s common for business partnerships to only last between three and five years, with the average being four years.

How Rising Interest Rates Impact the Sale of Your Business

I’m getting real today, and if just one business owner picks up on what I’m saying, then it will have been worth it.

Best Ways to Grow a Business in 2022

Which way is better to grow your business? Organically or through acquisition?

Six Power Ratios to Start Tracking Now

If you’re planning to sell your company one day, here’s a list of six ratios to start tracking in your business now to start building value:

Sellers Beware - 5 M&A Deal Killers

We’ve often warned that choosing the wrong transaction advisor can be akin to rolling out the red carpet for deal killers when you decide to sell your business.

3 Invisible Gates That Stop Most Companies Flat

How many people can one person manage?

“Value Killers” - Key Business Characteristics that Erode Transferable Value

In our Houston based M&A valuation practice we have the privilege of looking under the hood of a lot of businesses.

One Counterintuitive Strategy Led to This $380 Million Payday

Why would a startup business with no revenue or employees be thinking about potential acquirers so early?

What’s In Store For 2022?

No one has a way to predict the future with 100% certainty, but there are various market indicators that lay the groundwork for healthy speculation.

One Personality Trait Most Successful Entrepreneurs Share

Survey a group of founders about the personality traits that made them successful, and they will be quick to use words like determination, sacrifice, and hard work.

Matt Gilbert of GaP Reflects on 2021

As the holiday season gets under way, I wanted to take a moment to reflect on this past year.

Run Your Business Like You’re Going on Maternity (or Paternity) Leave

How well does your company run when you don’t show up for work?

The 6 Things to Know When Choosing a Transaction Advisor

I’ve written about this many times over the years – what to look for in a firm before signing an engagement agreement to sell a privately held business.

The Downside of Being a “One-Stop Shop”

Before Jeff Bezos & Co. blew up traditional distribution channels, there was some value in being the local guy or gal. Being the local product retailer was a good business and being a regional distributor of a popular line could make you a mint.

Communicating CapEx When Selling Your Business

Capital expenditures (CapEx) are a part of every business’s story.

How Your Greatest Strength Becomes Your Weakness

What’s your greatest strength as a CEO? Sales? Marketing? Operations? Whatever you do well, know that it might become your Achilles’ heel. As owners, we tend to invest in areas where we know we’re weak. We know we have limited resources, so we spend what we have on backstopping the places where we’re most vulnerable.

Investment Banking Method - How to Successfully Sell Your Business

If you run an established privately-held business, there are numerous ways you could go about selling your company.

How to Avoid the Switzerland Valuation Discount

The Swiss are known to value their independence. They don’t use the Euro currency despite being sandwiched between France and Germany, and they never officially picked sides in the World Wars for fear of tying their wagon too closely to one geopolitical regime over the other.

Why Is This a Historic “Seller’s Market”?

Unless you’ve been residing under a rock, you’ve no doubt noticed the value of real estate, exotic cars, collectables, and other inflation-hedging assets are at all-time highs.

Stop Selling Your Time

If your goal is to build a more valuable company, stop selling your time. Billing by the hour or day means customers are renting your time rather than buying a result, which means that your business model lacks leverage.

Contemplating the Sale of your Business?

Regardless of your age, the age of your business, or any other factor, you should be mulling over the pros and cons of selling. Why? Let me rattle off a few good reasons...

Protecting Against the End Run

Just like in football, you have to defend against an end run when a supplier chooses to go around you to get to your customers.

Why Some Business Sale Transactions Miss the Mark

Most of our clients have survived decades of being in business. Like squadron leaders, they have spent their careers making decisions “in the arena” with less than perfect information.

Why the Future of Your Business Is Critical to Its Value

As a business owner, you’re likely proud of the results you’ve achieved in the past, but when it comes to the value of your business, your future is critical. That’s why your growth potential is one of eight factors that drive the value of your business.

Preparing Your Business for Sale

As business advisors, we are often asked, “What do buyers of middle market companies look for when they scan the universe of selling companies?” Answer: Buyers of middle market companies usually seek businesses that...

The Hidden Danger of Cross-Selling

You've likely heard the adage that it is far easier to cross-sell an existing customer a new product than it is to find a new customer. And if your goal is to grow at all costs, then cross-selling makes sense...

The RIGHT Process Produces Desired Results When Selling Your Business….

Let us discuss the various ways a business intermediary might market your business for sale. They will typically...

3 Ways to Flip Repeat Customers into Subscribers

Repeat business drives the value of your company, and you can categorize these sales into one of two buckets.

A Tried-and-True Success Principle

About a decade ago, I watched a business owner masterfully walk a prospective customer’s purchasing committee through his sales process.

How to Turn Repeat Customers into Subscribers

Many people mix up re-occurring and recurring revenue, but one is much more valuable than the other.

Do you own a boring business?

Do you own a boring business? Is it in a sector that never makes headlines? Is the business really only visible when someone has a need? Are the employees average people who could easily be my neighbors?

4 Reasons Why It’s Better to Own a Big Chunk of a Small Company

Is it better to own a big chunk of a small business or a minority stake in a big company?

Want to Sell Your Business? Avoid These 5 Mistakes

Every business owner will “exit” their business one way or another. The savviest owners know that selling their business to an unrelated 3rd party is the most lucrative option.

10 Resolutions That Will Boost the Value of Your Company

If your goal is to build a more valuable company in 2021, here are some New Year’s resolutions to consider:

Are You Focusing on Price or Value?

Warren Buffet once famously said, “Price is what you pay - but value is what you get.”

How to Create a Recurring Revenue Model That Appeals to Customers

Have you struggled to identify a recurring revenue model that will work in your business?

Preparing a 'Winning Tax Planning Strategy' When Selling Your Business

Tax Planning Tips - Preparing for The Future…

3 Things to Consider When You Hit “The Freedom Point"

When was the last time you calculated the percentage of your net worth that is tied to your company’s value?

M&A Insights: What is an Earn-out?

Earn-outs exist as mechanisms for reducing the risk of overpaying when buyers acquire intangible assets known as goodwill.

Business Goals - The Most Critical Factor in Achieving Them May Surprise You

As we roll into the fourth quarter of the year, you may be starting to consider your business goals for next year.

Preparing Yourself and Your Business for Sale - Take Wayne Gretzky’s Advice

He Shoots, He Scores!

3 Things Wealthy Business Owners Do Differently

Much is made of analyzing the personality traits of successful entrepreneurs.

Grand Canyon Railway & Hotel - True Story About the Successful Sale of a Business

All Aboard the Train to Success!

Raising Your Business Like a Child

If you’re like most owners, you aspire to have the freedom that comes from owning your own business:

Do You Understand What Your Business Is Worth?

Let’s start by admitting that what you “think” your business is worth, based on how you “feel,” isn’t a scientific defendable position and therefore may not ....

3 Ways to Get Your Life Back While Maximizing Business Value

If the pandemic has forced you back into the weeds of your business, you’re not alone. Many owners are again doing tasks they haven’t done in years because...

Why Sell a Business in the COVID/Post-COVID Environment?

Listen up! Your “feelings” on the situation will not serve you well here, trust me. In times where uncertainty reigns and the entire business ecosystem...

Recovering from Economic and Business Trauma - Vital Steps Whether You Rebuild or Sell

If you’re like most business owners, the first quarter of the year was progressing like any other. Then...bang. Everything shifted. Now that unexpected events have changed so many things, how are you feeling and what steps should you take?

Reset, Restart, Accelerate: A Path to Recovery From COVID-19

It is no secret that the COVID-19 pandemic has affected the entire world. In this article, GaP's Certified Business Coach, Paul Mueller, and his daughter, Elizabeth, outline critical-thinking steps for moving forward.

Build Business Value - Turn a Service into a Product

Does your business offer a service/product that you differentiate through a higher level of service? If so, you’re probably disproportionately impacted by the economic disruption caused by the coronavirus pandemic. Consumers are cutting back on services right now to avoid human contact and conserve cash but are still buying products that solve a specific problem. Read on to learn how service providers are pivoting to provide products.

Don't Follow the Crowd

Matt Gilbert responds to a current common school of thought in his response, "Dear Successful Business Owner,"

The Fog of War – 3 Examples of Reinventions During Crisis

Veterans refer to “the fog of war” to describe how difficult decision making can be when you’re on the battlefield with imperfect information...

Is Your Business Even Sellable?

As a sell-side M&A advisory and brokerage firm, we meet business owners every week.

Business Owners & COVID-19? Do the Right Thing but Document!

Look, we’re in the throes of a legitimate COVID-19 / oil-price-induced panic! There’s no other way to describe it, and I’m of the opinion that, until an antidote and/or vaccine are discovered and widely available, the uncertainty will continue.

How to Inoculate Your Business From the Dangers Ahead

A new decade always comes with a slew of predictions that can be scary. Will a new superbug take hold? Will the stock market crash? Will the economy tank?

What Business Owners Should Know about Exit & Succession Planning

When the time comes to transfer leadership, whether in a publicly-traded or privately-held company, it is critical to implement a cohesive exit plan...

Sell Your Middle Market Business for Maximum Financial Gain

Educated Business Owners Sell for More! They see increased valuations, are better prepared, and close the deal well.

Considerations When You Begin to Think About Selling Your Business

Business owners are usually sole decision-makers. What I mean by this is that they’re often the source of money to everyone in their lives, even exerting significant control over their households through financial choices.

Why Selling Your Business is Not Like Selling Your Products or Services

Most business owners have years of experience selling their products and services. So the logical conclusion....

Exit Planning: Make Your Business Sale-Ready

Whether you’re dreaming of retiring to a private island or if you’re simply ready for the next chapter, selling your business will change your life.

Three Proven Ways M&A Advisors Deliver Value

Thinking about selling your business? The internet is filled with advice emphasizing the importance of engaging with an M&A advisor.

Five Concerns Sellers Worry About Most

It’s easy to comb through Google search results and find advice on the M&A process. But what do sellers in the lower middle market really worry about, and what can...

False Assumptions Business Owners Make About Planning an Exit

Business owners often get nervous when they start thinking about exit planning. One recent study found that less than one-fifth of owners had drafted a formal exit plan...

To Successfully Sell Your Company in a Few Years, Get to Work Now

As you grind through the daily challenges of running and growing your business, the future sale of that business might be the last thing you’re thinking about - especially if your company is still growing.

Matt Gilbert's Guest Interview with Exit Promise: Overcoming Customer Concentration Objections When Selling a Business

One of the greatest risks any buyer faces is what will happen to the business’ best customers post-sale. Will the top customers celebrate the founder’s great accomplishment or maybe decide it’s a good opportunity to negotiate...

Business Exit - Beginning Steps

Gilbert & Pardue Business Advisors (GaP) would like to share this timely information for business owners - and the professionals who advise them - regarding the business exit process. If you are considering a business exit in 2019 or 2020, keep reading for information...

GaP MONTHLY INSIGHTS

M&A NEWS & Insights

Apr 19, 2024

Is Majority Recapitalization Right for You?

Mar 22, 2024

Negotiation Red Flags When Selling a Privately-Held Middle Market Business

Jan 25, 2024

5 Strategic Solutions for Middle Market Privately-Held Businesses in 2024

Dec 15, 2023

Selling Your Business? 5 Points for Building Confidence in Post-COVID Induced Profits

Oct 30, 2023

Perspectives - Stock Deal vs. Asset Deal?

Sep 25, 2023

The Real Cost of Failure

Aug 21, 2023

Understanding Working Capital in M&A Transactions

Jun 22, 2023

Opportunities in Times of Rising Interest Rates

May 19, 2023

Why Current Business Value is Important

Apr 25, 2023

10 Key Business Attributes Private Equity Firms Find Attractive

Mar 28, 2023

The Future of Your Business

Feb 21, 2023

12 Things to Ask - Indication of Interest

Jan 23, 2023

What is the Role of M&A Insurance in Today’s Marketplace?

Dec 19, 2022

Purchase Considerations in M&A

Nov 18, 2022

Who Is Buying a Business Right Now?

Oct 25, 2022

The Importance of Legal Due Diligence

Sep 26, 2022

What are Multiple Bites of the Apple?

Aug 15, 2022

Who Killed Your Deal?

Jul 15, 2022

Avoid This Mistake That Cost Me Millions!

Jun 17, 2022

On the Nature of What Business Sellers Are Looking for in a Buyer

Jun 16, 2022

Recommended Steps to Buying Out a Business Partner

May 16, 2022

How Rising Interest Rates Impact the Sale of Your Business

Apr 21, 2022

Best Ways to Grow a Business in 2022

Apr 4, 2022

Six Power Ratios to Start Tracking Now

Mar 21, 2022

Sellers Beware - 5 M&A Deal Killers

Mar 2, 2022

3 Invisible Gates That Stop Most Companies Flat

Feb 22, 2022

“Value Killers” - Key Business Characteristics that Erode Transferable Value

Feb 4, 2022

One Counterintuitive Strategy Led to This $380 Million Payday

Jan 24, 2022

What’s In Store For 2022?

Jan 10, 2022

One Personality Trait Most Successful Entrepreneurs Share

Dec 16, 2021

Matt Gilbert of GaP Reflects on 2021

Dec 3, 2021

Run Your Business Like You’re Going on Maternity (or Paternity) Leave

Nov 23, 2021

The 6 Things to Know When Choosing a Transaction Advisor

Nov 4, 2021

The Downside of Being a “One-Stop Shop”

Oct 26, 2021

Communicating CapEx When Selling Your Business

Oct 4, 2021

How Your Greatest Strength Becomes Your Weakness

Sep 27, 2021

Investment Banking Method - How to Successfully Sell Your Business

Sep 6, 2021

How to Avoid the Switzerland Valuation Discount

Aug 27, 2021

Why Is This a Historic “Seller’s Market”?