News

On January 1, 2011 about 8,000 Baby Boomers (people born between 1946 – 1964) turned 65 years of age. Every day for the next 18 years, others will turn 65 at the same rate. While many may know about this trend, a lesser known fact is that, according to the US Census Bureau, 70% of all businesses (with more than 1 person on the payroll) or 4.2 million businesses are owned by people over 53 years old.

You've decided the time is right to move on from the business you've built. Now the question top of mind: how long will it take? The answer is: perhaps longer than you might expect. For this reason, savvy business owners begin strategizing as far in advance as possible to ease the transition and maximize gains. 

If you're an aging boomer business owner, selling your company is likely something you're considering. Is now the right time? Many put off this life-altering decision, but by waiting too long these major decisions could be made for you. Economic impact, industry changes, competition, health and other factors could usher in a transition all their own.

Despite careful negotiation, disagreements are likely to emerge during a transaction. In the middle market, this friction is typically related to purchase price. One strategy to bridging the gap between buyer and the seller is to use an earn-out agreement. With an carefully crafted earn-out, the buyer makes additional payments to the seller, after the sale, based upon the performance of the business and the owner’s involvement in the business. These earn-outs are excellent tools closing deals when the buyer and seller fare unable to agree upon a price. Implemented skillfully, they are designed to protect both parties and ensure that everyone receives fair value for the business.

“Do I really understand the purpose of an M&A advisor?” This is a question thousands of business owners ask themselves every year when they embark on the process of selling their company. Although there are many benefits to an advisor, some business owners still choose to bypass the intermediary, thinking the value is overstated.

Lacking full comprehension of the implications behind assumptions applied in reserves valuations can result in sub-optimal decision-making for lenders and shareholders alike. Learn the factors necessary for an objective evaluation of oil & gas properties.

Although many industry experts are still reluctant to call the ongoing resurgence in U.S. manufacturing a widespread phenomenon, several trends lend support to the conclusion that manufacturing once again has become a relevant and meaningful component of U.S. economic growth. 

We recently observed a compelling discussion of the key trends driving evolution and increased activity in middle market deal making. Alongside these trends, traditional and emerging middle market participants are changing the way they approach business development, deal sourcing, and relationship building.