Why your small-mid sized business isn’t selling

If you’ve found your way to this article you’ve no doubt found out how difficult it is to sell a mid-sized or small business. The lower mid-market (small-mid sized businesses) are what business school professors would refer to as inefficient markets. There are far more sellers of small-mid sized businesses than there are buyers. Why […]

Royalties in Mergers & Acquisitions

What is a Royalty and why do we utilize it in our small-mid sized business acquisitions? Using a royalty allows us to fairly compensate the seller for their continued management of a business post-close.  We ask all sellers to continue running the business for a minimum of six months post close and many choose to […]

Seller Financing in Mergers & Acquisitions

What is Seller Financing (a seller note) and why do we utilize it for small-mid sized business acquisitions? In short, seller financing is a portion of the purchase price for a business that is paid over a number of years after the transaction. This is utilized by buyers because it decreases the amount of cash […]

Compensating Company Sellers & Employees With Equity

As anybody who has run a sizable business can attest, one of the largest headaches is hiring talented people, training them and keeping them. We have found that compensating employees of our portfolio companies with equity to be a beneficial practice on keeping talented employees longer and having them be fairly compensated for their work. […]

Lower Mid-Market M&A – A Guide to Selling Your Small-Mid Sized Business

If you are like most business owners that are looking to sell, you have kept your head down and worked 50 hour weeks for a few decades.  You know your business inside and out. You have made mistakes and learned from them, you understand your service, equipment, finances and marketing like the back of your […]

Leveraged Buyouts for Small-Mid Size Businesses

The leveraged buyout acquisition model gained popularity with wall street financiers of the 1970’s and 1980’s. The most notable leveraged buyout in history is Henry Kravis’ KKR taking over RJR Nabisco which was later featured in the book and movie “Barbarians at the Gate.”  Keen observers of this deal can quickly point out that there is […]