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Capital Ideas for Private Business

Welcome to this issue of Capital Ideas, our newsletter dedicated to business selling, business buying and financial resources for mid-market companies.

Is Now the Time To Sell?

Taxes May Be an Issue

By Jim Zipursky, Principal
Omaha Office, Corporate Finance Associates

We are often asked by our clients to assist them in determining the best time to sell their business. While our crystal ball is no clearer than yours, there are certain elements to be considered when determining the best time to sell a business.

The best time to sell your business is when you are ready to sell, but it does help if the economy is in good shape. Also, buyers want a business with a bright horizon.

There is another factor looming today regarding timing the sale of your business. Today, we enjoy some of the lowest capital gain tax rates we’ve seen in decades. The temporary cut, implemented by President Bush, to 15% for long-term capital gains, has been a boon to both the economy as well as the Mergers & Acquisitions market. But, this low rate is temporary at best and certainly... Read more »


Understanding How Private Equity Groups Approach Value

How PEGS Value Your Company

By Sunrise Equity Investors
Dallas, Texas

It behooves Private Equity investors (PEG’s) to work with business owners who understand a deal from the PEG’s perspective. We hope this article helps any potential seller better understand the mindset of Private Equity Groups.

Obviously, the end analysis of value is driven by the Internal Rate of Return (IRR) a PEG wants to receive and that they have touted to their Limited Partners. Understanding how they work through that analysis is helpful to a business owner thinking about selling to, or taking equity dollars from a PEG.

How do PEGs build their IRR models?

First, many will assume a five year holding period. They will plan to sell the company in about that time frame, so they will build a model that looks at...
Read more »


Feature Acquisition

Founded in 1964, M&M Pump & Supply is a leading distributor of comprehensive systems and components used in oil and gas drilling and production to gas producers and industrial customers located primarily in the Illinois Basin. The Company also provides oil field services such as hydrostatic pipe and tank testing and cleaning, delivery, and equipment rentals. M&M Pump & Supply retained the services of Corporate Finance Associates to identify and negotiate a deal with a strategic acquirer. DN Partners is a Chicago-based private equity firm with investments in lower middle-market companies generally based in the Midwest. (www. The Company specializes in partnering with management teams to facilitate corporate spin-offs, family succession transactions, recapitalizations, buy and build strategies, and management buyouts. DN Partners’ other business interests include manufacturing, packaging, printing, and communications


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