Welcome to this issue of Capital Ideas, our
newsletter dedicated to business selling, business buying and
financial resources for mid-market companies.
The Market is Hot to Sell Your Business, But You’re Not; Think
Equity Recapitalization
An Often Overlooked Way to Create Liquidity
By Jay Carter, Principal
Charlotte Office, Corporate Finance Associates
The market for selling a family-owned or other privately held
business in North America has never been better than it is today.
This is due in part to the following factors:
- 6 years of continuous quarterly GDP growth in the U.S.
- Record levels of money flowing into private equity funds
($215 billion in 2006).
- Record levels of money flowing into hedge funds
($1.53 trillion in 2006).
- Readily available commercial credit from banks and other lenders
- Strong performance at individual company levels
Combined, these factors have resulted in:
- More Merger and Acquisition activity
- Greater interest in privately-held companies from investors
- Increased competition for acquisition candidates
- Higher valuations being paid for private companies
However, not all owners are ready to sell their privately held
company. Consider the case of Bill James...
Read more »
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How Do I Know It’s Time To Sell My Company?
A Ten Point Guide
By Robert Contaldo, Principal
Chicago Office, Corporate Finance Associates
Selling
your business, which is perhaps your largest asset, can be a
difficult decision. It has been part of you and part of your
family. You have loved it – you have cursed it – you have nurtured
it. Unlike us, it can live for generations – though the time will
come when it must change hands.
Here are some points to consider when deciding whether or not it
is time to sell your business:
The Thrill Is Gone
There simply comes a time when a business owner does not care to take the business any further. The battles and victories that at one time were energizing have now lost their importance, and have become somewhat
boring and wearisome...
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Feature
Acquisition
Situation:
Vayden Anderson decided at 78, it
was time to sell his business and retire. With no heirs
interested in acquiring Overland Sand and Gravel, on the
recommendation of his attorney, Anderson turned to CFA. He
retained CFA to sell his business, the fourth largest ready mix
concrete producer in Nebraska, to a buyer he pre-approved, a
buyer who would retain all of Overland’s employees and
operations.
Result:
CFA quickly identified the right prospects and received
several offers. Ultimately, CFA
negotiated a transaction favorable
for both parties (and significantly
exceeding the seller’s value expectations).
The transaction closed in less
than 6 months from when CFA was
hired and helped and achieved all
of the seller’s goals.
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