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Exit Strategies Group Inc.

Our seasoned advisors, systematic M&A process and unequaled dedication to our clients combine to consistently produce successful transactions that stand the test of time.

Consider Your Options When Selling a Business with Real Estate. We often get asked how owning a facility (versus leasing one) affects the sale of a company, so I dug through our 17 years of business sale transactions involving seller-owned real estate to look for patterns.

Consider Your Options When Selling a Business with Real Estate

And the archives didn’t disappoint. I found five common deal scenarios that shed light on this question. But first, here’s the short answer. Owning your real property is likely to increase the demand, transferability and selling price of your business. Why? 5 Real Estate Options Available to Business Owners Upon Exit Option 1: Lease and hold the real estate This is a popular choice with seller clients who want a source of retirement income and will soon have more time to manage investments.

Option 2: Sell the real estate in a concurrent transaction Buyers like to own real estate for the same reason our seller clients do—they see it as a good long term investment. Option 3: Lease the real estate with an option to purchase. Opportunity Zones: a Compelling Tax-Advantaged Investment for Business Sellers. Cashing in on the sale of your business is the final reward for many years of dedication and hard work.

Opportunity Zones: a Compelling Tax-Advantaged Investment for Business Sellers

Then your CPA tells you how much you will owe in taxes. It’s a shock, but there’s a relatively new reinvestment opportunity that may help trim your tax bill … In April 2018, The U.S. Department of the Treasury and the Internal Revenue Service (IRS) designated Opportunity Zones in 18 States. The Tax Cuts and Jobs Act created Opportunity Zones to spur investment in distressed communities throughout the country.

Under the Tax Cuts and Jobs Act, States, D.C., and U.S. possessions nominate low-income communities to be designated as Qualified Opportunity Zones, which are eligible for the tax benefit. Qualified Opportunity Zones retain this designation for 10 years. California M&A Advisors, Brokers and Accredited Valuation Experts. The Sale of a Business May Actually Excite Employees. Many sellers worry that employees might “hit the panic button” when they learn that a business is up for sale.

The Sale of a Business May Actually Excite Employees

Yet, in a recent article from mergers and acquisitions specialist Barbara Taylor entitled, “Selling Your Business? 3 Reasons Why Your Employees Will Be Thrilled,” Taylor brings up some thought-provoking points on why employees might actually be glad to hear this news. Let’s take a closer look at the three reasons that Taylor believes employees might actually be pretty excited by the prospect of a sale. Phase I Environmental Assessment in M&A Transactions. A Phase I environmental site assessment is commonly required by buyers and lenders in merger and acquisition transactions that include commercial real estate.

Phase I Environmental Assessment in M&A Transactions

One may even be called for when the target company (seller) uses or stores hazardous materials at a leased facility. Sellers are generally rewarded for conducting a Phase I assessment before taking a deal to the marketplace. Understanding environmental risk allows sellers to argue for a higher price and increases the likelihood of closing a deal. This article explains why. What is a Phase I Environmental Assessment? A Phase I environmental site assessment (ESA) consists of a thorough inspection of a commercial property and research into its current and historical use to identify potential environmental contamination liabilities. What All Buyers Want How Sellers Benefit. Capable California Business Brokers Appraise and Sell Single-Handed Business Brilliantly.

403 Not Allowed. Exitstrategiesgroup. Forbes Article: Which Is Better, A Financial Buyer Or A Strategic Buyer? I thought would share this brief Forbes article that came across my transom early this morning.

Forbes Article: Which Is Better, A Financial Buyer Or A Strategic Buyer?

I generally agree with author John Warrillow’s comments on Strategic versus Financial buyers. If your goal is to maximize value and liquidity today, and you’re not looking for an equity partner to help you build longer term enterprise value, a strategic buyer generally produces the best outcome. Financial exit planning, Is your business ready? I recently had a client looking to sell their medical supply business and retire.

Financial exit planning, Is your business ready?

I worked with management to pull together all the documentation and financials needed, and conducted conduct a probable selling price analysis. With report in hand I met with our clients to review the results and plan a go-to-market strategy. Unfortunately, the probable selling price fell slightly short of what the client needed to retire (after taxes). We identified excessive inventory as one of the factors that was limiting enterprise value. How did inventory reduce value and spoil our client’s exit strategy? The company had thousands of SKUs, colors, shapes, types and sizes of medical supplies in inventory. Cash Flow is King It’s no surprise that buyers of going concern businesses buy primarily to get returns on their time and money invested. The income approach to valuation is based on the concept that a business is worth the present value of its expected future cash flows to its owners. California Business Appraisal & Business Valuation Sacramento, San Jose. Disagreements with tax authorities arise because valuation is not an exact science and is based on the judgment of the appraiser and his or her interpretation of the facts and circumstances of a business.

California Business Appraisal & Business Valuation Sacramento, San Jose

Our appraisers analyze facts and apply accepted business valuation methods to arrive at defensible opinions of value supported by a report that conforms to professional standards. We can defend our valuations in the unlikely event of an audit or challenge. (return to top) Business Valuation California helps business owners maximize business profit (Business Opportunities - Marketing & Sales) California Business Brokers. Get In Touch With California Business Brokers To Obtain The Best Market Valuation.