Aberdeen Dynamics Acquires Southwest Seal & Supply, Expanding Reach in the Southwest

Aberdeen Dynamics, a leader in motion and control technologies, has acquired Southwest Seal & Supply, a leading distributor of sealing products, hydraulic hoses, fittings, couplings, gaskets, and fluid control solutions in the Southwest region. ClearRidge advises Aberdeen's Senior Management team and Board on acquisition strategy

Increasing Merger & Acquisition Activity in this Election Year

A prevailing assumption is that a slowdown in mergers and acquisitions (M&A) occurs from October to December of an election year (and the following year depending on the party that is elected), but is that actually the case? Let’s first take a look at the last two previous election cycles...

Surprises to selling a company in COVID-19

We had several acquisitions working in March when everything shut down and were not expecting to initiate any new engagements until late summer. However, we did start discussions on a new acquisition at the end of May. Surprisingly to us, the response was overwhelmingly positive and, as of last week, we have nine bona fide offers to acquire this company, five of which are at or above pre-COVID market value. How could this be?

How does a Presidential Election Impact the Sale of My Business?

What happens to M&A in the run up to the 2020 Presidential Election? In past election years with an incumbent President, there has been a slowdown in M&A activity from October into mid-November, but how about 2016? Most experts got it wrong. Prior to the 2016 Presidential election, …

Is 2020 the right time to sell my company?

We were recently asked by a client if current market conditions are right for the sale of his company. There are two parts to the question: “current market conditions” and “for his company.”  The primary driver of the decision should be an analysis of his particular, unique business.  Current market conditions are an external driver of his company's performance and also impact the price a buyer will pay for his company, but they are only one factor of many factors that impact business valuation and timing for a sale.

Section 338 Business Sale –Stock Sale, with Asset Sale Tax Treatment

What is a 338 Election? How would I use it when I sell my business? In a typical acquisition (using an S-corporation as an example), the seller seeks to maximize capital gains, on which they pay a lower tax rate, and the buyer seeks to maximize the present value of tax deductions. While this may be desired, there may be a need to effect the transaction as a stock deal rather than an asset deal.

How long does a Private Equity Group wait before selling your Company again?

Most people think of a private equity holding period as between 3 and 5 years, which could cause a significant and legitimate concern among business owners. However, there is no hard rule to apply to this asset class and to make a determination whether or not to consider a PEG as a prospective buyer based upon the median hold period, would be to make a one-dimensional decision.

How Much Should a Buyer Pay a Seller for Synergies of two Merged Businesses?

This is an interesting question and the answer has certainly changed over the years. Whereas synergies may have previously been credited entirely to the buyer’s benefit post closing, the trend has been for buyers to pay an increasing premium to sellers for some of the shared future synergies. In most strategic deals, there is now more…

Stock Buybacks at Unprecedented Levels – Good, Bad or Ugly?

U.S. Public companies are giving cash back to investors at unprecedented levels. Companies in the S&P 500 index are expected to pay at least $300 billion in dividends in 2013, according to S&P Dow Jones Indices, which would top last year's $282 billion. Is it a good thing? Does it help or hinder economic recovery? Help or hinder the business?
Show All