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, …

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.

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.

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.
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