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?

M&A Outlook for Winter 2019/20; Q3 Transaction Report

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
In this report, ClearRidge reviews the region’s most active industry sectors and provides an outlook for Winter 2019/20. Aerospace, Chemicals, Construction, Engineering, Energy, Healthcare,...

Mergers and Acquisitions Report Q2 and Fall 2017 Outlook

Posted by Matthew Bristow in Mergers & Acquisitions
We are in the third quarter of 2017 and deal data is now available through the end of the second quarter of 2017. In this report, we review our region’s most active industry sectors and give an outlook for the remaining 2017 year.

Mergers and Acquisitions Report Full Year 2016 and 2017 Outlook

Posted by Matthew Bristow in Mergers & Acquisitions
We are in the first quarter of 2017 and deal data is now available through the end of the fourth quarter for full year 2016. In this report, we review our region’s most active industry sectors and give an outlook for 2017. Analysis by Sector: i. Aerospace ii. Chemicals iii. Construction and Engineering iv. Energy: Oil and Gas v. Healthcare vi. Manufacturing vii. Transportation, Logistics, Distribution viii. Telecommunications

Mergers and Acquisitions Report Q3 and 2017 Outlook

Posted by Matthew Bristow in Corporate Finance, Journalrecord.com, Mergers & Acquisitions
In this report, we review our region’s most active industry sectors and give an outlook for 2017. Before we consider each industry, let’s start with the overall economy and the most talked about Trump effect. The polls were wrong and the improbable happened. The economic outlook for 2017 has also changed as a result, mostly for the better. The Federal government is ...

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.

Mergers & Acquisitions for Q3 2014 and Outlook through 2015

Posted by Matthew Bristow in Mergers & Acquisitions
ClearRidge Report: Mergers & Acquisitions for Q3 2014 and 2015 Outlook. In this report, we review our most active industry sectors. These 7 industries are also among the most active sectors that drive M&A Activity in Oklahoma and the Southern Midwest region.

Mergers & Acquisitions for Q2 2014 and Outlook through 2014

Posted by Matthew Bristow in Mergers & Acquisitions
ClearRidge Report: Mergers & Acquisitions for Q2 2014 and Outlook through 2014. In this report, we review our most active industry sectors. These 8 industries are also among the most active sectors that drive M&A Activity in the Oklahoma and the Southern Midwest region. Click "More" to read the the full article.

Mergers & Acquisitions for Q1 2014 and Outlook through Fall 2014

Posted by Matthew Bristow in Mergers & Acquisitions
ClearRidge Report: Mergers & Acquisitions for Q1 2014 and Outlook through Fall 2014. In this report, we review our most active industry sectors. These 8 industries are also among the most active sectors that drive M&A Activity in the Oklahoma and the Southern Midwest region. Click "More" to read the the full article.

Mergers & Acquisitions Outlook through Summer 2014 and Full Year 2013 Review

Posted by Matthew Bristow in Mergers & Acquisitions
ClearRidge Report: Mergers & Acquisitions for Full Year 2013 and Outlook through Summer 2014. In this report, we review our most active industry sectors. These 8 industries are also among the most active sectors that drive M&A Activity in the Oklahoma and the Southern Midwest region. Click "More" to read the the full article.

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…

Baby Boomers and Their Businesses – Implications for Mergers & Acquisitions in 2013 and Beyond.

The U.S. economy is at a critical intersection. Privately-held businesses have long been the driving force of the economy, and are now in a period of transition that has been building up for the last 50 years. Baby boomers own an unprecedented number of businesses and hold an unprecedented proportion of U.S. private wealth. Having propelled the booming U.S. economy since the early 1990s, baby boomers have now reached their peak in the consumer spending cycle.

Baby Boomers and Their Businesses. Implications for Mergers & Acquisitions in 2013 and Beyond.

Posted by Matthew Bristow in Uncategorized
November 30, 2012: Q3 2012 Baby Boomers and Their Businesses. Implications for Mergers and Acquisitions in 2013 and Beyond.

Stock Markets Volatile – Time to Sell My Business?

We’re just coming off the back of a month when the Dow Jones lost almost 10%. Should this mean anything to you if you were planning to sell your business? We should try to separate perception and reality; future expectations and historical performance and discuss how they intersect.

Optimism Despite Strong Headwinds: Private Equity for Private Oklahoma Businesses.

Private equity has been in a lot of headlines lately … and many of those for the wrong reasons. Mitt Romney, a private equity success story, has brought unprecedented attention to the industry, amid political and public calls for sweeping changes to the tax treatment of their earnings; in an economic climate that has already hurt many private equity firms. In spite of all the negative press, a recent survey by CFO.com, along with Rothstein Kass, has revealed a positive outlook from those in the business; at least according to their survey responses

Ready to sell your business in 2012 – NOT SO FAST.

If you are considering selling your business in 2012, you need to consider the full sale process, from start to finish. Oftentimes, a business owner has so many other commitments and so little time, that they focus on the front-end of the sale process and work through the later stage of the process when the time comes. What we’re talking about today is why it is critical to consider the complete sale process at the outset and we’ll talk through some common mistakes and potential consequences.

Filling a Void? Oklahoma Venture Capital and Growth Capital

According to participants in yesterday’s Bricktown Capital Conference in Oklahoma City, Oklahoma has a need for more robust venture capital, nurture capital and in some cases private equity, when an entrepreneur needs between $1 million and $5 million to fuel the growth of their business. For any higher amounts, out of state capital is targeting Oklahoma companies, and for amounts below $1 million, there are small business grants, loans, incentives, family money and even bootstrapping that can provide the required capital. It is the critical gap in between where we need to focus our efforts.

Honor Thy Banks and Creditors – It’s Good for Business.

In the last year, huge numbers of loans were refinanced on the back of competition among lenders to sell money and attractive loan pricing. As a result, many CFOs have now refinanced, put their loan documents away and will revisit them in a few years when it’s time to renew. Unfortunately, it’s not that easy anymore; in particular in a sluggish and faltering economy, as your creditors keep a closer eye on all the covenants of your loan.

Acquisitions: Earnings Multiples or Absolute Valuations?

How is it possible to make an acquisition valuation based only upon earnings multiples in disparate economic environments and business climates? And how heavily should we rely upon “standard” earnings multiples for comparable transactions in an industry?

Lending for Business – Debt Ceiling Concerns?

In April and May, commercial and industrial lending was strong, companies were opening up new revolvers and refinancing at reduced rates. Banks were allowing extended maturities and were eager to put money to work; so much so, that some banks were loosening lending standards to offer favorable terms to those with less than strong credits.

Implications of Earnouts when you sell your business – Tax Focus

First, a couple of thoughts on earnouts when you sell your business. While an earnouts is often seen as a mechanism to defer payment of the purchase price; if used correctly, it should in fact be consideration to the seller of a company over and above full cash paid at closing. Earnouts should not be considered part of the purchase price if/until they materialize and are paid to the seller, but why not set additional opportunities to increase the purchase price paid, over and above the full cash price paid? If “x” is the maximum that a buyer will pay for a company in cash at closing, it is still possible to negotiate “x” at closing, plus an additional 25-50% or more after closing. As with most things in life and business, it is not the tool that is at fault, it is the way that it can be misused and misunderstood.

How would high inflation affect Oklahoma businesses?

Well, this may seem a strange day to write about inflation – I just read this morning that fixed-rate mortgage rates have dropped this week to the lowest level this year, with a 15-year available at 3.75%. However, it doesn’t do much good to dwell on the past or present – we should always be considering other scenarios in the future to stay ahead of the competition.

Positive M&A trend gaining momentum for midsized private companies

Posted by Matthew Bristow in Mergers & Acquisitions
April 25, 2011. The positive start for Oklahoma and Midwest mergers and acquisitions activity in 2011 is gaining strength and momentum. Higher prices, cash at closing, more deals getting done. Click "More" below to read this article.