M&A and Business Advisory Resources and Information

Growth Through Acquisitions

Among the fastest ways for a company to grow entity value is through accretive acquisitions. With a well-executed acquisition strategy, companies can realize significant value in the first year, which often accelerates in the years that follow.

Should I Change My ESOP Valuation Firm?

Change is hard to initiate even when we know the results will be better for us. This is true when there are signs that our ESOP valuation firm is no longer providing the necessary professional assistance. Our reluctance fades however, if warning signs begin pointing to increased risks for our company.

ESOP Tax Advantages

Congress has chosen to bestow a variety of significant tax benefits on business owners and companies that participate in a special ownership structure. Because it is very difficult for a fully taxable ownership structure to compete with a tax-advantaged structure, many business owners should evaluate the possibilities under this special structure, known commonly as an Employee Stock Ownership Plan (ESOP). The ESOP structure provides shareholder and corporate tax benefits which require proper consideration and transaction structuring to ensure maximum benefit.

How to Close the Valuation Gap

According to IBISWorld, 98% of business owners do not know the value of their business or have an unrealistic idea of the value of their business. ^[1] Business owners who have unrealistic expectations about the value of their business can experience a ‘valuation gap’ - the difference between the fair market value of a company and the business owner’s value expectations. The number one reason a company does not sell is due this valuation gap.

Best Practices for Identifying Buyers of Choice

Business owners thinking about transitioning out of their companies must consider factors that help identify and target buyers of choice. Certainly, active acquirers that consistently demonstrate an ability to pay handsome prices, close deals rapidly and continuously create shareholder value via acquisitions is a winning combination.

How Transportation Companies are Achieving Success through ESOPs

Transportation companies are thriving today. But the industry’s most coveted asset, its drivers, are being heavily courted in a competitive employment environment. For a majority of transportation companies, driver satisfaction goes hand in hand with company reputation, customer satisfaction and success. The American Trucking Associations (“ATA”) reports that the transportation industry has struggled with driver shortages over the past 15 years. The shortage further exacerbates profit margin as the recent tight labor market has given rise to increased wages for drivers.

Tax Reform Enhances ESOP Benefits

Are you a business owner considering a partial or total ESOP (Employee Stock Ownership Plan)? If so, you are likely to find that the Tax Cuts and Jobs Act of 2017 will produce greater benefits for you and your company’s stakeholders than before the law was passed.

Why Investment Bankers are Your Most Valuable Asset

Research consistently shows that the additional cost of an investment banker is a fraction of the value they add.

ESOP Valuations and the Effect of Tax Reform

Late last year Congress passed the final version of the Tax Cuts and Jobs Act of 2017. Although the plan does not alter ESOP legislation, there are some indirect effects on ESOPs. Some of the changes will impact the valuations of ESOP-owned companies.