The Mergers & Acquisition Blogger
By admin In Blog On May 14, 2018
So…. this is a BLOG, free opinions (mine and others I think you should hear), generalities, some anecdotal information etc. to help readers understand more about buying or selling a company.
The information provided herein is in no way intended to be used or construed as a one size fits all for every business. The opinions expressed here are strictly for informational purposes. If you require professional assistance, please contact us using the provided methods and we will be happy to schedule an appointment and see if we are a good fit for your particular case. Thank you for viewing our blog and we hope you find the information provided useful as you begin your journey.
5 Comments
Ross Ose 6 YEARS AGO
2018 is looking like it will be a record year for BTB in the M&A arena. We have 6 closes under our belt so far and one more scheduled for August 31, 2018. I think we'll close two more in the last quarter for 9 completed sales in 2018. The economy is helping things along as well as a number of new players in the Hybrid TPA arena. There are a number of buyers actively seeking opportunities to grow by acquisition in the market so if you have been thinking about selling now is a good time to give BTB a call.
Kenneth Will 6 YEARS AGO
Having done M and A in this industry for over thirty years, I can tell you that one of the most important things a prospective buyer needs to see is a set of financials (P&L and Balance Sheet) that reflect several years of financial information in a GAAP format (Generally Accepted Accounting Principles), or US GAAP. The accounting standard adopted by the U.S. Securities and Exchange Commission (SEC).
Ken Will 6 YEARS AGO
With an economy that is "booming", mid-sized companies continue to look for acquisitions to expand revenue steams. However, they are specific about their "wants" with the most desirable being 2 - 3 million dollar revenue streams turning 20%^+ net profits.
Ken Will 6 YEARS AGO
We still get several calls each week from one and two person collection companies looking to sell. Unfortunately we rarely can help them because even though they might be doing 200K or 250K per year, when you add back the cost of replacing the owner(s), who are doing all or most of the collections, there is little or no profit margin. The best bet for these companies is to merge with a larger company and continue to work for them, thereby basically "buying a job" and hope for an "earn out" later down the road.
Ross Ose 5 YEARS AGO
FYI: C-Corps pay taxes on the sale of assets. Most small companies that sell use Asset Purchase Agreements for the transaction for a variety of good reasons (more on that later). So if you are a C corp and thinking of selling, the new corporate tax structure can save you a good bit on asset sales, about 18%. A couple of prospective sellers have been in touch after visiting with their financial planners. The savings on a $3.0m sales price is $540k. The question might be "how long this tax structure will be in place." Probably two more year but after that it is anyone guess.