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Understanding How External Factors like Interest Rates Affect the Sale Price in an M&A Transaction By Dirk Armbrust Sellers often have a number of factors to consider in selling their business… What’s my business worth? Am I ready? Is the team ready? Is this a good time to sell? The list goes on. The plain […]

The first step in the right direction is deciding to use a business broker because you don’t know what you don’t know! Ask questions, expect questions and review standard documentation. Be Bold and Ask Questions This is your business and selling it should be handled professionally and with transparency. Credentials such as being affiliated with the

Amman, Jordan – Karl Armbrust completes Arabic study program in Amman, Jordan The Middle East is not a likely destination for most interns at Dallas M&A firm The Vant Group, but Karl Armbrust, a college senior at the University of Oregon recently returned from that trembling cup of a location.  It was a trip of

Relationships require an understanding of each other’s roles. While some business transfers can be like speed dating and a shotgun wedding, most others will have more of a courtship. In either situation and any in-between, understanding each other’s objectives and needs will bring a more organic transition between parties. There is an emotional attachment to most

By Anthony Cullins Seven (7) years ago, The Vant Group represented a seller who was anxious to sell his business so he could enjoy the fruits of his labor. Like most sellers, he had a number in mind that he wanted for the business and was not too keen on the deal structure so long

By Anthony Cullins No one wants to be blindsided by real estate issues during a business transfer. Many business owners use leased real estate to house their company. There are benefits to having someone else deal with the maintenance, general upkeep, and curb appeal. Make sure to do your due diligence if you ever what

By Dirk Armbrust Challenge: A business owner was considering selling and retiring while still wanting to secure a future for his son who worked in the business A manufacturing business owner was introduced to The Vant Group by his attorney.  The owner was approached by a private equity (PE) firm wanting to buy the business

Does any single customer represent more than 10% of your revenues?  From an evaluation standpoint, some prospective business buyers would consider a single customer accounting for 10-15% of a company’s sales as a major negative.  Almost all prospective buyers would consider client concentration of 30% or more in just two to three customers as a

Printing Money May Not be One of the Options for Financing a Business Transfer, but There are Options Out There. For small to medium-sized businesses, there are several types of funding sources for financing a business transfer. Each type is governed by the same basic factors, such as; transaction size, asset base, type of company

Who is Your Buyer? Before starting the selling process, determining where your potential buyer will come from will put you ahead of the game. Know who your buyer really is. Each business transaction is different, but there are common factors to any deal. There are certain main aspects of a buyer, each with their own

Business Insights: Understanding Different Types of Buyers, the Buyer to Business Match-up There are numerous possibilities for the types of buyers to whom a business would be sold. Options are often limited by the nature of the business (ie: the industry, the company’s size, profitability, the number of employees, whether family members are involved in

Closed Deal Case Study: Unrealistic Expectations of Business Value Challenge:  Business owner neglect led to a significant revenue decline without understanding the impact on the business value A business owner that sold home décor contacted The Vant Group (TVG) to sell their business. The business was over 10 years old and the owner was becoming

As a Business Owner – Salary, Draw or Both! When looking at a balance sheet, there are a few ways an owner can receive compensation at the end of the day. How to go about this should involve an accountant and an attorney who is on the payroll or ones that are entrusted to give

By David M. Wang, Esq. Collective Insights on business ownership has David Wang posing the question to business owners, “Should I Give Employees Equity in the Business?” with added food for thought from our in-house attorney consultant.   Many business owners need to find ways to recruit and retain employees. The cost of training employees

Losing Sight of the Big Picture is Easy to Do Challenge: To Recognize the True Value of an Acquisition, Not Just Focusing on Today TVG represented a project-based business that had a few million dollars in current backlog. This backlog represented over 100% of the current yearly revenue. When we went to market, our valuation was based

Knowing and Understanding ODCF – Owner’s Discretionary Cash Flow It cannot be stressed enough the importance of verifiable cash flow on a small business. Replacing an income from corporate America is the main drive for a high percentage of first-time buyers. They are typically looking for a small business to “cut their teeth on” for

Selling a Business – Woes to Heroes Challenge: Reporting Financials / Partner Disputes Due to partnership conflicts, a client went from being a passive minority investor to an active majority owner in a short amount of time. This was in an industry where they had limited knowledge. To further complicate the selling process, late paying

Unlock Your Business’s Potential The value of a small business is primarily driven by its profitability. In most small businesses, there are numerous opportunities to enhance revenues, increase gross margins, and reduce costs. Improvements in each of these areas can result in significant increases in the value of your business. For many small businesses, every

Murphy’s Law – “If something can go wrong, it will.” In this case, a deal killer or Murphy’s Law surrounds the concepts of communication and being mindful of a proven process. The Vant Group was engaged to assist the buyer in a business transfer purchase. They hired us to find a business, and quickly, the

– Like Anything In Life, There Are Pros And Cons Franchise Advantages Buying a franchise provides resources that can bridge the gap between learning a new business and industry by having a franchise system in place which ensures the likelihood of success through the initial transition years. The largest benefit of buying a franchise is

When surveying buyers on why they decided to buy a business, the most common answer is, “I’m tired of working for someone else”. While being your own boss can be a very rewarding experience, the desire to become a business owner does not automatically mean you should. As an employee with a steady and mostly

Keeping the Business Deal Alive Recently, a wealth management professional approached us about a client of his.  This client owned a large industrial distribution business and was being courted over a long period of time by a private equity-backed competitor.  She was interested in selling but wanted to make sure it was the right deal

Selling a business takes effort and time; a business broker ensures confidentiality, financially qualified prospects, deal negotiations, and a successful closing.  Pricing a business In conjunction with a CPA, a business broker conducts a thorough market analysis, determining the best price for your business. Buyer prospecting Once a business owner has decided to sell his

It has been well documented that only a low number of small businesses listed actually sell. While there is a myriad of reasons why overpriced businesses are quite common thus accounting for a high percentage of them going unsold. Anyone who studies markets knows that markets can swing. Sometimes the markets are bullish, and prices can

Challenge:  There was a significant change in the profit and loss (P&L) statement from the seller after TVG had already marketed an EBITDA number and found a Buyer based on the original inaccurate data. Since, the seller was unaware of his own financial numbers and not familiar with how to read financial statements, he gave

 While each business acquisition transaction varies in its complexity and size, knowledge of the process will help keep you on the path to a successful close. Owner’s decision to sell  Intermediaries understand that there are two elements necessary for a successful business sale: The business offering must make economic sense to both a buyer and

TVG was engaged to represent a well-qualified buyer who was ready to leave his job in corporate America. This buyer was well positioned financially and poised to be an ideal business owner, judging from his background. We found an ideal business with the right infrastructure, cash flow, location and in a growing industry. We moved

Did you know less than 40% of small businesses listed for sale, actually sell? I know, scary! While the reasons vary, the main reason is that business owners do not have an action plan in place to sell their business. When should a business owner start their exit plan? The Vant Group recommends that the

Deciding the market value of a business is the most difficult part of the selling process. Business owners often have misconceptions, believing the business is worth more than the market value. A broker or a business valuation service is the best bet in determining a value that is in line with what the market is

Exit planning provides the road map to control your own destiny; to successfully sell your business and transition to the next stage of your life. “If you don’t know where you are going, you will wind up somewhere else!”  Yogi Berra An exit plan helps to establish realistic business, personal and financial goals with a path

7 years ago, TVG represented a seller who was anxious to sell his business so he could enjoy the fruits of his labor. Like most sellers he had a number in mind he wanted for the business and wasn’t too keen on the deal structure so long the purchase price matched the desired asking price.

To ensure your business is healthy and ready to sell, it is important to reduce customer concentration by diversifying the client base. It is a disadvantage when business owners focus all their energy on only their major customers.  To ensure a healthy mix of customers business owners should build relationships with current customers while seeking

You’ve made the decision to buy a business; now you must find the right deal. The best business opportunities are found by using all or some of the resources listed below.  Traditionally, buyers seek multiple business intermediaries to locate and handle a business purchase transaction. Business intermediaries have access to databases for buyer-directed searches and

The Vant Group represented the buyer in a Defense Contractor business acquisition. The company recently secured a large new contract making it a perfect fit for the buyer. The seller accepted a purchase offer of $4.1MM. Because the company financials did not reflect the revenue from the newly acquired contract, the bank returned a loan

The Vant Group represented a project based construction business for sale.   The business, in preparation for sale, created a forecast based on their upcoming projects. The report revealed that three of their largest projects were scheduled to start in the 4th quarter of the current year.   After the LOI was signed, a customer pushed their

The Vant group is excited to announce that Bill Massie has joined the firm.  He brings a wealth of experience in many facets of investment banking. Bill has worked with entrepreneurs and high-growth companies for over 20 years. His experience ranges from venture capital raises to IPOs. He is highly skilled at sourcing early to

A verifiable cash flow can determine the price of a business acquisition. Buyers and business brokers go as far as stating that cash flow is a major deciding factor in a business purchase decision. For buyers, an owner’s discretionary cash flow, secured through a business purchase, is important in determining the value of a company.

The professionals at TVG have some difficult and disappointing conversations with business owners when valuing their business for a sale. Business owners spend their entire life building a business with the hopes of selling and realizing that big payday. Most sales are the result of health, fatigue or customer issues and when business owners decide

Achieving the desired goal takes preparation and organization.  There are four key elements to the business buying process. Business identification Organized search process Collection of date Due diligence. Business Plan If you set out towards a destination without a map, you will get lost. Likewise, statistics show that without a business plan, the rate of

Position and transition a sale of a business without rocking the boat and upsetting contracted clients to the point that they pull their contracts. TVG represented a project-based business, with many future contracted projects totaling 3 million dollars. TVG has just the right experience that the buyer and a seller need for a delicate sales

Because buying a business is a process. “I want to buy a business, from a retiring owner, that has a strong management team, a 6-figure cashflow, a double-digit profit margin, and a reoccurring revenue stream. Oh yea, and I want to find it within 90 days.” I hear this all the time from prospective buyers.

Developing a marketing package that tells your story Do you have all required documents that market the story of your business?  Having a marketing package will ultimately shorten sell time and award the highest sales price. Without documentation, a buyer cannot make an informed decision about a purchase. In preparing for the sale of your

Three years ago, the purchase of a business went like this. Challenge: The buyer submitted an LOI. To motivate the seller during the sales process, a clause was created whereby the seller could earn additional compensation on all new client contracts. At the close of sale, the buyer discovered that the “new” client contracts were

Knowing when to sell your business is like knowing when the stock market is at its peak. Each business owner wanting to sell their business, as a separate list of factors- from personal health to the strength of a specific industry, etc. The perfect time to sell is not determined by a date but an

What happens when cash flow doesn’t match the work? Challenge:  The Vant Group was representing husband and wife owners of a residential/commercial paint company.  Like many construction trade-related businesses, our clients had projects that spanned different financial months and fiscal year.  But unlike other project-based businesses, our clients were using the Cash Accounting method. Our

And Distinct Types Of Acquisition Strategies?  Analyzing your buyer type and buying parameters can aid in focusing on acquisitions suited to your needs and buying capabilities. Knowing your acquisition strategy, allows you to focus on each deal more confidently, concentrating on offerings you are best positioned to acquire. The Employed Corporate Executive The most common

At the end of the day, the biggest failure in business is not having the proper policies and procedures in place. Operating a business without proper policies and procedures would be like going out into the wild, wild west without any instructions.    The startup costs may be less than an acquisition, the cost of not

Challenge:  Close the buyer deal in 5 weeks from the receipt of Letter of Intent. Buyer and his wife had 3 kids and were living in Houston.  The buyer was currently employed and looking to purchase a business in Dallas.  He and his wife had found a business in Dallas, and were preparing to move

Timing In Selling a Business is Everything  A business owner can spend his entire career developing a business until it becomes his “baby.” Selling can be the most difficult and emotional decision a business owner will ever make. It is filled with emotions similar to sending a child off to college or giving a daughter

Regrettably, the biggest mistake a business owner makes when he or she must make the biggest decision in one’s life — is they wait until the last minute to make that big decision? Without proper planning, you can only receive a less productive result in selling your business. You wouldn’t take on building a house

Challenge: Navigating unexpected delays The Vant Group was representing a Middle Market Multi – National Company on the buy side. Our mandate was to assist this company with finding an acquisition target to diversify their cash flow. Their criteria was pretty broad; find a cash flowing business that has the ability to grow. Our clients were

Compelling Reasons for Buyers / Seller Motivation TVG has spoken with literally thousands of buyers over the years, asking them why they were interested in venturing into business ownership. As former business owners and intermediaries counseling buyers, we have been in a position to take our own polls concerning buyers’ motivations. Although there have been

Buying a business is one of the most important decisions that an individual will make during their entire life. And most likely, the purchase of a business would be larger than a purchase of a home, which most people view as the biggest investment they will need to make. Buying a business can be as

Challenge: Reporting Financials / Partner Disputes Due to partnership conflicts, our client went from being a passive minority investor to a majority active owner in an industry with limited knowledge in a short period of time. To make matters worse, late paying customers and a non-traditional accounting approach made year-end financials appear drastically different from

Selling a business can be a complex and daunting process. At The Vant Group, we understand business owners’ challenges and aim to help you confidently navigate the sales process. As a Dallas-based M&A advisory firm, we have the expertise and experience to ensure a smooth transaction. Here, we will outline the critical steps in selling

You have work to do now – Seven steps to getting the price that you want. The required steps to be ready to sell a business outlined in this article was excellent! Great attributes are put into place during the growth stage of a company, however, some of those things may have a negative effect on

The prices for small businesses changing hands in the Dallas-Fort Worth area have soared in recent months as older owners are finally being enticed to sell, according to industry data provided to the Dallas Business Journal. The sale of 59 local small businesses tracked by online marketplace BizBuySell in the second quarter went for a median

The Vant Group recently served as an exclusive transaction intermediary to InterCool, Inc., which was acquired by InterCool USA, LLC. Feb2017 InterCool is an Industrial and Commercial Refrigeration Design-Build Contractor with a comprehensive range of services including engineering, design, installation, construction, service, and system analysis.  Intercool is headquartered in Carrollton, Texas.

Deal-making among private equity firms in the U.S. declined in the third quarter as prices for middle-market companies remains well above their value, according to a report from PitchBook Thursday. Learn more…      

Vant Capital Partners (VCP), a division of The Vant Group, recently acquired Thornhill Catering, a 32-year-old Corporate catering company specializing in business breakfast, lunch and company events. “VCP is thrilled to add Thornhill Catering to its portfolio of companies,” said Alex Vantarakis, Founder of The Vant Group. “Though there are many catering companies to choose

When You Start Or Buy A New Business A career as a business owner has a beginning and an end. If you are giving birth to the business of your own or adopting one that is already operating, it is important to spare a moment’s thought for how you plan to end this chapter of

PitchBook Dealmakers Column The current private equity deal-making environment is dynamic, marked by several key factors that may seem at odds with the economic landscape. It is counter-intuitive to think that there is a liquidity surplus of both debt and equity capital. Not only are there plenty of funds available, interest is strong from all

By Axial | April 7, 2016 For the owner of any small business, deciding to bring in an M&A advisor or investment banker is a big decision. For family businesses, the decision can bring additional trepidation around questions of ownership, legacy, family leadership dynamics, and more. Says Mark Kincannon of Confidential Business Intermediaries, which works

How to Maximize Valuation in 2016

KEXB Interview with Alex Vantarakis  

Understanding How External Factors like Interest Rates Affect the Sale Price in an M&A Transaction By Dirk Armbrust Sellers often have a number of factors to consider in selling their business… What’s my business worth? Am I ready? Is the team ready? Is this a good time to sell? The list goes on. The plain

Selling your business to employees or partners can maximize its value. Selling to your partners or employees is a viable and highly-profitable exit strategy that can maximize the value of your sale. Your partners and employees work in the business daily and understand the value proposition of the business—much better than anyone else. By using

Understanding Owner’s Discretionary Cash Flow – Part I Let the numbers do the talking We cannot stress enough the importance of hones and verifiable cash flow on the sale price of a small business. Many buyers and business brokers go as far as stating that cash flow is everything. Over 70% of small business buyers

BUYER PROFILES – Part II Turnaround Specialist In buyer classifications, there also exists a somewhat rare species known as the turnaround specialist.   This buyer is usually an experienced consultant looking for a bargain or diamond in the rough that he can transform from an under performing business to a profitable status. This type of buyer

BUYER PROFILES At first glance, it can be a bit overwhelming for buyers to acknowledge the many types of buyer groups that are active in the marketplace.  In reality, the different classes of buyers will be concentrated on distinct types of acquisition strategies at any one time.  It is our contention that an analysis of

Gathering Pertinent Documents – Part II Asset and Liabilities There are assets and liabilities on a balance sheet that can be transferred with the sale or kept by a seller.  A buyer needs to know exactly what assets and liabilities are to be transferred with the sale so that he can make an educated offer. 

Gathering Pertinent Documents- Part I Developing a marketing package When studying for a big final exam, attending study groups, preparing classroom notes, and going to the library were keys to success.  The same is true for one of life’s biggest exams – selling a business.  Having all the pertinent documents ready for the sale will

Determining When to Sell Timing is everything A business owner can spend his entire career developing a business until it becomes his “baby.”  Selling can be the most difficult and emotional decision a business owner will ever make.  It is filled with emotions similar to sending a child off to college or giving a daughter

We have spoken with literally thousands of buyers over the years, asking them why they were interested in venturing into business ownership. As former business owners and intermediaries counseling buyers, we have been in a position to take our own polls concerning buyers’ motivations. Although there have been many different answers, there are some basic

Business owner decides to sell business The first step sounds like common sense, but unless a business owner truly decides to sell, the process cannot and should not begin. Perhaps when a supplier has sent a shipment late, an employee has quit, or a customer has not paid on time, you may have pondered the

Jennings, 54, has started 40 businesses in 35 years. An impressive streak — until he admits that most of the businesses failed. “But that’s what entrepreneurship is about,” he said. “We do what others won’t do so that later on we have the freedom to do what others can’t do.” After 22 years of “dabbling”

Unlike the CEOs of major public companies, whose personal financial situation has little effect on their companies’ borrowing, if you are a small business owner, your personal credit is a major factor influencing your company’s access to capital. The power of personal credit scores to predict small business loan repayment, the legal structure of many

Goldman Sachs 10,000 Small Businesses is a $500 million investment to help small businesses or entrepreneurs create jobs and economic opportunity by providing them with greater access to business education, financial capital, and business support services. The program is based on the broadly held view of leading experts that greater access to this combination of

SBA is gearing up for National Small Business Week, May 12-16. They are taking the show on the road to celebrate small businesses across the United States. This year’s activity will include forums and panels about trends in small business, innovation, financing, business growth – and more. There will also be matchmaking events and networking

An M&A deal is the biggest deal of your life, so completing a successful transaction is key. Knowing a few key M&A tips — whether you’re merging or acquiring — increases your odds of successfully completing an M&A deal. Secrets to success include the following: Retain capable and experienced M&A advisors. You can’t complete this transaction