Baton - Past Issues

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Business Transfer (M&A) Trends & Information

 

Volume 16, Issue 3 - 2019

• Value of Sell-Side Quality of Earnings Reports
  We are seeing more sellers invest in a QofE analysis prior to taking their company to market. Here we discuss how and why this could pay off in the long run.

• A Fasten-ating Deal
  Selling a company in the face of rising tariffs and uncertain global trade negotiations, which significantly affect sourcing decisions and pricing, is no easy task. BCC had the opportunity to assist The Boulder Company in their successful sale to AFC Industries.

• Supplying a Thoughtful Exit
  Desiring a thoughtful, prepared exit from their business, the owners of City Supply Corporation hired BCC Advisers to guide them through a sale process that included evaluating interest from local competitors, out of market strategic buyers, and key City Supply management all at the same time – with a winning result.
  
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Volume 16, Issue 2 - 2019

• Unsolicited Offers
  Business owners receive numerous unsolicited inquiries from buyers expressing interest in acquiring their company. Responding to all simply takes too much time away from running the business. But what if there is that one gem worth considering? In this article we share tips for preparing and responding to unsolicited offers.

• Unravelling Transaction Multiples, Business Valuation Mysteries
  Transaction multiples may make the theory of business valuation seem relatively straightforward. However, valuing a company can quickly veer into a challenging world of discount rates, weighted average cost of capital, and other obscure concepts, making it easy to lose sight of the big picture. We give you five valuation tips to help you maintain perspective.

• An Electrical Connection
  One of Iowa’s largest electrical contractors was looking for a buyer that would seamlessly fit with their culture and operations. BCC identified EMCOR, which ultimately purchased Baker Electric, providing employees with significant career opportunities while maintaining the quality of service Baker Electric customers have come to expect.
  
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Volume 16, Issue 1 - 2019

• Employee Retention
  One of the most important transition items when selling a business is the retention of employees. In this article we share tools used as part of a successful transition strategy for keeping key employees.

• Rayser Upfits Service Offering with New Acquisition
  BCC guides KELTEK, an innovative provider of vehicle upfitting, communication products and technology solutions to law enforcement, fire, EMS and public works agencies, through the sale of their business to a buyer that would value their culture, employees, and customers.

• Brexit and M&A in the UK
  How is Brexit impacting business in the UK, and what might it mean for cross-border M&A activity? Here BCC shares insights from good friends in the UK willing to provide clarity on the situation.
  
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Volume 15, Issue 2 - 2018

• Selling an ESOP-owned Company
  There are a variety of reasons business owners use ESOPs as an exit strategy, usually with the expectation that the ESOP will last in perpetuity. However, that’s not always the case. Learn about the more common situations we see leading to the sale of an ESOP company to a third party.

• Acquisition Advantages for ESOPs
  Creating an employee stock ownership plan presents many unique benefits and risks for a company. In this article we discuss two advantages for ESOP-owned companies when growing through acquisitions.

• Evaluating Prospective Buyers
  What characteristics should you evaluate when interviewing prospective buyers? Here we cover three key considerations.
  
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Volume 15, Issue 1 - 2018

• Cross-Border M&A Update
  Although there are many company-specific reasons for companies to engage in cross-border M&A, in this article we examine some of the most prominent macro factors including local economic conditions, cost of financing, currency fluctuations, and regulatory environments.

• Dragon Shield Trades Hands
  In order to fully evaluate the universe of potential buyers to attract the best price and terms for their business, owners must consider prospects located beyond their native country. As a member of the Alliance of International Corporate Advisors, we are able to leverage our access to global markets to the benefit of our clients. Here we discuss a recent example of how BCC was able to assist a Denmark-based colleague in that spirit to complete a transaction.

• Alliance of International Corporate Advisors
  Learn more about the makeup, attributes and performance of our dynamic, international M&A network, the Alliance of International Corporate Advisors.
  
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Volume 14, Issue 4 - 2017

• POET Acquires Tall Corn Ethanol Plant
  Though Tall Corn Ethanol was meeting its goals of increasing local corn values and creating well-paying jobs in the community, the lack of liquidity was a concern to their aging membership group of more than 450 members. Read how they were able to leverage BCC’s expertise to guide their strategic planning and support tactical decisions that ultimately led to the sale of their plant to POET.

• Case Study – Explosive Growth
  BCC was recently called upon to assist Quick Supply Co. in navigating two simultaneous acquisitions, each offering unique opportunities and challenges. Read about these transactions here.

• Value of Boards in Privately-Held Businesses
  Formal boards of directors are required for public companies, but are often overlooked in privately-held businesses. In this article we discuss the considerable value directors can provide to sole owners and large shareholder groups alike.
  
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Volume 14, Issue 3 - 2017

• The Art of Transition
  With one of three owners contemplating retirement and having achieved record performance, it was an ideal time to sell. BCC recently led the owners of a national commercial millwork company through a confidential auction process, finding a buyer that not only affords opportunities for complementary production capabilities, greater scale and a larger customer base, but also is dedicated to investing in current employees and local operations for future growth.

• Maintaining Confidentiality
  One of the biggest concerns among business owners when selling is keeping discussions confidential in order to maintain the value factors (full staff, satisfied customer base, strong vendor relationships) that attract buyers. Here we discuss steps to mitigate confidentiality risks throughout the sale process.

• What is a Financial Buyer?
  Broadly speaking, business owners typically consider two types of buyers: strategic and financial. In this article we focus on defining the various types of financial buyers that business owners might consider approaching.
  
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Volume 14, Issue 2 - 2017

• Building a Complicated Transaction
  Maintaining quality, reliability, and trust is critical to the long-term success of a transaction when selling a building products distribution company. Here we discuss a recent transaction that, though complex, accomplished just that.

• Preparing for Inventory Due Diligence
  When selling a business with inventory, it is inevitable that a potential buyer will want to perform an in-depth review of inventory assets. Learn how to be prepared in order to avoid issues and delays in the sales process.

• Building Products Outlook
  Commentary on the building product and construction material distribution industry: M&A activity, construction spending, and housing starts.
  
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Volume 14, Issue 1 - 2017

• 100+ Year Tradition Flows On
  Read about the sale of a 116-year-old iconic business, Fox River Mills, with BCC's assistance to find the right strategic buyer while navigating complexities that included partial ESOP ownership.

• The Value of Investment Bankers: Business Owners' Perspectives
  Here we share results of a whitepaper published by Carter Morse & Mathias.

• Forms of Consideration
  Business owners often need to agree to a combination of alternative forms of consideration when selling their business to maximize valuation and get the desired transaction completed.
  
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Volume 13, Issue 3 - 2016

• How to Succeed in an Auction
  Learn how to stand out from others when taking part in a competitive auction process to obtain a desired acquisition.

• Quick Response Wins Auction
  BCC advised Quick Supply Co. in a recent acquisition by navigating a complex auction process.

• Objectivity Premium
  Here we explore the challenge of and offer solutions for maintaining objectivity throughout the process of selling your business.
  
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Volume 13, Issue 2 - 2016 

• Working Capital Adjustments
  Every company and industry has unique characteristics for calculating and setting a working capital target, which is necessary in a business sale. Here we discuss developing a working capital target, its effect on purchase price, and common challenges.

• Cost of a Failed Sale Process is Higher Than You Think!
  In this issue’s Business Lines, Steve Jacobs talks about the cost of a failed deal.

• BCC Opens Cedar Rapids Office
  BCC Advisers expands its physical presence into eastern Iowa and hires Managing Director, Jack Gonder.

• Ownership Transfer – Philosophy and Planning
  Only 10% of private businesses in the U.S. have a clear and thoughtful succession plan. Learn several factors to consider regarding legacy preservation, maximizing financial results and positioning a company for future growth and prosperity.

• Effect of Election on M&A
  Here we explore several sources of uncertainty for M&A markets that arise in an election year.
  
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Volume 13, Issue 1 - 2016

• Avoiding Deal Fatigue
  “Deal Fatigue” – the frustrated feeling that arises when negotiations drag on for an extended period of time.  What causes it, what are the effects on a deal, and how can it be avoided, minimized or dealt with when it does occur?

• Rolling into New Markets
  Read how BCC Advisers assisted the owners of Country Maid, Inc. in attaining their growth goals by expanding the company’s product and market reach through the sweet acquisition of Dutch Country Apple Dumplings, Inc.

• How Will Interest Rates Affect M&A Activity
  The Federal Open Market Committee raised its target federal funds rate by a quarter point on December 16, the first increase in nearly a decade.  Do we think this increase will impact M&A in 2016?  Read our commentary here.
  
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Volume 12, Issue 3 - 2015

• Minimize Business Risks for Higher Valuation
  Controllable and uncontrollable risk factors directly affect the valuation of a business. This article reviews steps a business owner can take to reduce the negative impact of “specific risk.”

• AICA Americas Regional Meeting
  BCC’s membership in the Alliance of International Corporate Advisors benefits our clients by providing global reach with local expertise. Take a look inside one of the regional meetings for North and South American members.

• Preserving a Legacy
  For some business owners, their company’s legacy is an important (or critical) consideration when they are ready to sell. BCC assisted one such client with this goal in mind.

• Due Diligence Preparation
  Don’t let red flags during the due diligence process derail your transaction, or cause you to renegotiate a less desirable purchase price. Here we discuss preparation tips for this important aspect of a business sale.
  
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Volume 12, Issue 2 - 2015

• How many buyers to approach?
  We discuss challenges and benefits of three different marketing approaches when selling your business.

• SMART Relationships
  Building and retaining long-term relationships has always been an integral component of BCC’s business philosophy.  Here is an example of how that created an opportunity for us to assist a client.

• Real Estate in M&A
  When structuring the terms of a business sale, there are several considerations related to how to handle the real estate.
  
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Volume 12, Issue 1 - 2015

• M&A Trend: Cross Border
  With the global economy more interconnected than ever, companies continue to expand their horizons in search of growth. Here we discuss the upward trend of cross-border M&A activity.

• New Shareholders
  As part of our long-term succession planning efforts, we are pleased to announce our newest shareholders.

• M&A Review & Outlook
  BCC reflects on 2014 and shares outlook for 2015 middle-market M&A activity.

• Manufacturing M&A
  Manufacturing companies remain an area of strong interest in a robust M&A market in 2015.
  
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Volume 11, Issue 2 - 2014

• Exit Strategies
  Pros and cons are discussed for three common ways to exit a business.

• Seizing a Quick, Complex Opportunity
  Challenges abounded for our client in their acquisition of a new start-up technology for manufacturing compostable products.

• Precision Ag
  An area of increasing focus for technology companies is the agriculture industry.
  
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Volume 11, Issue 1 - 2014

• ESOP Company Growth Through Acquisitions
  Discover one advantage ESOP companies have when growing their business through an acquisition.

• Is it a Good Time to Sell Your Business?
  Learn just a few reasons why we think this is a good time to consider selling.

• Demonstrating Success
  A leading provider of science-based, 3-D computer animation recognizes long-term growth opportunities with sale to a synergistic buyer.

• Our Newest Acquisitions
  BCC expands its M&A staff; and Iowa Appraisal hires a new real estate appraiser.
  
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Volume 10, Issue 2 - 2013

• Considerations When Pricing an Acquisition
  Even though two companies may appear to warrant the same earnings multiple, they can have very different risk considerations and potential value. Here we look at issues to consider when calculating the purchase price to propose to a company you’d like to acquire.

• When Opportunity Knocks… An Accelerated Acquisition Story
  Sometimes strategic business moves aren’t planned, but instead come as unexpected windfalls. Read about a recent client transaction where engaging BCC brought advantages to the table.

• Agriculture Attracts Investment Capital
  Here we discuss how investment capital is gaining greater knowledge and confidence in agriculture as it searches for new and promising investment sectors.
  
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Volume 10, Issue 1 - 2013

• Private Equity Roundtable
  With so many private equity (PE) firms now aggressively seeking out quality investment opportunities, we thought it appropriate to highlight what some of these firms consider when evaluating prospective investments in privately-owned middle market companies..

• An Electric Legacy
  When you are ready to make an exit but want to continue the legacy you took years to create, keeping your best assets in place may be your most advantageous strategy. Here we discuss how we guided the owner of ABC - Electrical Contractors, LLC on the sale of his business to a elect group of long time employees.

• U.S. Agribusiness
  With the rising trend of vertical integration, changing dynamics for the industry give agriculture related businesses unique opportunities for expansion in the U.S. food supply chain.
  
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