Most troubled companies share a common denominator: excessive debt and management indecisiveness. That doesn’t mean lack of desire to perform. It does, however, mean that there have been some fundamental issues, strategy mistakes or procrastination among senior management in the months or years leading up to that point. You could write several books on the lists of reasons that companies get into trouble and in a career of restructuring troubled companies, there are many stories to tell. In this article, we discuss 6 areas of focus for a troubled company: 1. Cash management 2. Profit and profitability 3. Controlling costs 4. Fixed Assets and Inventory 5. Accounts Receivable 6. Debt
When a business owner is asked who the most likely buyer is for their business, they will typically have a fairly good idea who the most likely candidates are, which normally fits one of the following profiles: i) a competitor who can’t access your market, client base, lacks certain proprietary differentiators or some other motivation; ii) a strategic buyer who would love to buy your technology, unique products, service, patents, intellectual capital, team, or maybe your reputation in the marketplace; or iii) the private equity group that has been courting you for years, or maybe even; iv) the Senior Manager in your Company who’s worked for you for 20 years and who, with the right financial backer, could buy, manage and grow the business.
This is an interesting question and the answer has certainly changed over the years. Whereas synergies may have previously been credited entirely to the buyer’s benefit post closing, the trend has been for buyers to pay an increasing premium to sellers for some of the shared future synergies. In most strategic deals, there is now more…
The U.S. economy is at a critical intersection. Privately-held businesses have long been the driving force of the economy, and are now in a period of transition that has been building up for the last 50 years. Baby boomers own an unprecedented number of businesses and hold an unprecedented proportion of U.S. private wealth. Having propelled the booming U.S. economy since the early 1990s, baby boomers have now reached their peak in the consumer spending cycle.
November 30, 2012: Q3 2012 Baby Boomers and Their Businesses. Implications for Mergers and Acquisitions in 2013 and Beyond.
September 2, 2012 - Shanna Dutton joins ClearRidge team in Downtown Tulsa, actively involved in M&A, restructuring, due diligence and financial analysis engagements
We’re just coming off the back of a month when the Dow Jones lost almost 10%. Should this mean anything to you if you were planning to sell your business? We should try to separate perception and reality; future expectations and historical performance and discuss how they intersect.
These brief tips are all intended to maximize the purchase price, ensure an efficient sale process and increase the likelihood of closing a deal the first time and on time.
Private equity has been in a lot of headlines lately … and many of those for the wrong reasons. Mitt Romney, a private equity success story, has brought unprecedented attention to the industry, amid political and public calls for sweeping changes to the tax treatment of their earnings; in an economic climate that has already hurt many private equity firms. In spite of all the negative press, a recent survey by CFO.com, along with Rothstein Kass, has revealed a positive outlook from those in the business; at least according to their survey responses
If you are considering selling your business in 2012, you need to consider the full sale process, from start to finish. Oftentimes, a business owner has so many other commitments and so little time, that they focus on the front-end of the sale process and work through the later stage of the process when the time comes. What we’re talking about today is why it is critical to consider the complete sale process at the outset and we’ll talk through some common mistakes and potential consequences.