Why Can’t You Sell Your Business on eBay?
Wouldn’t it be a lot easier if we could buy and sell companies online? Owners could avoid a lot of trouble and fees as well as get deals done quicker. Imagine going to a 55-year high school anniversary and finally deciding to retire. The next day, simply put your business up for sale on eBay,... Read More →
Exit Planning 101
As an owner, you’ve spent perhaps 20–30 years building your business, so it’s important to spend a little time to prepare it for sale. Proper exit planning is essential to get the most for the business, increase the amount of cash at closing, help ensure a smooth transaction, get more in after-tax proceeds, and make... Read More →
Delegate and You Shall Be Set Free
As a business owner, do you find yourself licking stamps, taking out the trash, and answering phones? When the business started, you probably had to wear 50 hats. Over time, the business grew, so more tasks were delegated to others, but maybe you are still clinging on to a variety of responsibilities. It is good... Read More →
What’s Special About Your Business?
Before selling a business, it is important to understand why someone would want to buy it. The concept is similar to why customers buy your products or services, but a little different. A plain vanilla, me-too business or product is not easy to sell. To help sell your business to buyers, or to sell your... Read More →
Getting to a Signed Letter of Intent
The letter of intent (LOI) is an important milestone in the sale of a business. It shows that both the buyer and seller have agreed in general to the valuation, terms, and conditions of a deal and that closing should take place in 60–90 days or so if due diligence, financing, final negotiations, and other... Read More →
Why Sell to a Private Equity Group?
PCB/PCBA owners often think that a short list of strategic buyers (companies in the same industry) are the only ones who would be interested in acquiring their company. One category of buyers that is often overlooked is private equity groups (PEGs). Owners either think that their company would not be of interest to a non-strategic... Read More →
Beware of Cultural Issues in M&A Deals
Company culture is hard to define and manage, but it is a critical factor in making an M&A deal successful. It is also often ignored or misunderstood during and after due diligence because culture is a “soft” science instead of a “hard” subject like finances, legal contracts, IP, or accounts receivable, among other things, which... Read More →
Creating PCB Industry Giants and Mid-majors Through Acquisitions
In December, 2018, Summit Interconnect announced the acquisition of Streamline Circuits. Summit itself was created in 2016 through the merger of KCA and Marcel, and is backed by a private equity firm. In the PCB and PCBA industry, TTM Technologies is the giant King Kong of acquisitions, growing from just $80 million in revenues 20... Read More →
Avoid Surprises During the M&A Process
No one likes surprises, especially in merger and acquisitions (M&A) deals; there are enough unknown variables to start with. As the deal progresses, tensions start to rise, so any additional variables can cause a disproportionate response. Below are some ways to avoid surprises, and how to deal with them when they come up. The best... Read More →
GP Ventures’ Tom Kastner on PCB Mergers and Acquisitions
It’s always interesting talking with Tom Kastner, president of GP Ventures, because he has his finger on the pulse of our industry’s mergers and acquisitions (M&A) more than anyone. He knows which companies are selling, buying, or thinking about it. Most of the time, he is so buried in non-disclosure agreements (NDAs) that it’s difficult... Read More →