M&A Representations & Warranties: “Risk”y Business
In the sale of a privately-owned company, the purchase & sale agreement serves two key purposes. First, of course, it states the purchase price to be paid for the stock or the assets of the business and the terms and conditions of how and when that price is to be paid. Second, the agreement allocates […]
Food M&A Heats Up
Over the past decade there has been a bifurcation of M&A activity in the food industry, as “better for you” health & wellness brands have attracted strong acquisition interest from both strategic and financial acquirers while more traditional steady, solid, profitable, but lower-growth food manufacturing businesses have not attracted as much attention. That is changing […]
8 Reasons to Hire an Investment Banker when Selling Your Business
“He who represents himself has a fool for a client.” While Abraham Lincoln was talking about lawyers, a recent empirical study shows the same could be said for business owners who forego the services of an investment banker when selling their business. A research paper on “The Value of Middle Market Investment Bankers” published by […]
The 4 P’s of Business Valuation
How can business owners increase the valuation of their business prior to an M&A transaction or business sale? Mirus recently collaborated with other Boston-area trusted advisors (including a leading accounting firm, law firm, and commercial bank) to gather 40 business buyers and sellers for a roundtable discussion of proactive steps CEOs and owners can implement […]
Answers to Questions from Middle Market C-Suite Executives: Part 2
This week Mirus partner Andrew Crain is answering questions from C-suite executives of middle market companies about investment bankers’ role advising private business owners. Here is Part Two of the Q&A: Question: What are the biggest mistakes a middle market company makes in engaging in its first acquistion? Underestimating the importance of company culture is […]
Answers to Questions from Middle Market C-Suite Executives: Part 1
This week Mirus partner Andrew Crain is answering questions from C-suite executives of middle market companies about investment bankers’ role advising private business owners: Question: Ideally, how long before a business is put on the market should an investment banker be involved? What are the risks to involving a banker too early? That’s a great […]
Brand Equity Builds Stockholder Equity
To build enterprise value in the food & beverage industry, build brand equity. Consumer loyalty to a brand generates repeat purchases; repeat purchase patterns create annuity-like cash flows; recurring revenues reduce investors’ and acquirers’ perceptions of risk and increase the valuation paid for the brand marketer’s stock or business. But how do you cook up […]
4 ways to maintain confidentiality when selling a business
Many business owners we work with when selling a company express deep concerns about maintaining the confidentiality of the M&A process: “If my competitors learn that my business is for sale, they’ll tell their sales force and all my customers will know.” This is a concern with which I’m painfully familiar.When selling my family’s fifth-generation […]
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