When it comes to investment banking most people think that if a business goes bankrupt it must have had too much debt. But debt doesn’t necessarily kill companies, poor cash flow does. Here’s what I mean:   We’re working on a few buy-side engagements. For one transaction, we approached the seller with what we thought […] The post Investment Banking – It’s Not the Debt that Kills You appeared first on Exit Strategies Group, Inc ..read more

Exit Strategies Group, Inc., a California based mergers and acquisitions (M&A) brokerage and business valuation firm, recently advised the owners of Leap Solutions Group, Inc. of Santa Rosa on the sale of their business to George Petersen Insurance Agency. Leap Solutions Group is a business management consulting firm specializing in organizational development, human resources, executive […] The post Exit Strategies Group Advises Leap Solutions Group on their Sale to George Petersen Insurance Agency appeared first on Exit Strategies Group, Inc ..read more

Not exactly. A Quality of Earnings (commonly called a “QoE”) analysis used in mergers and acquisitions due diligence and a financial Audit serve distinct purposes. Here’s how they differ in terms of purpose, scope of work, timing and reporting: Purpose: QoE: The primary purpose of a QoE analysis is to assess the sustainability and reliability […] The post Is a Quality of Earnings (QoE) Analysis the Same as an Audit? appeared first on Exit Strategies Group, Inc ..read more

A Quality of Earnings (a.k.a. “QoE” and”QofE”) report is prepared by a CPA firm to provide a detailed analysis of a target company’s revenue, expenses, working capital, EBITDA adjustments, etc. While not an Audit, a QoE provides buyers with important assurances on cash flows and risk. When buyers do this work internally its often just […] The post M&A Glossary: Quality of Earnings (QofE) Report appeared first on Exit Strategies Group, Inc ..read more

We’re coming off a recalibration year for M&A. While 2021 and 2022 saw record activity, the first half of 2023 was marked by significant declines. Inflation, interest rates, increased capital costs, and geopolitical uncertainty all made buyers wary, and the global market held back on deal making.   Now we’re anticipating an uptick in 2024. […] The post What’s behind the door for M&A in 2024? appeared first on Exit Strategies Group, Inc ..read more

In M&A, an equity rollover, or recapitalization (recap), occurs when a business owner sells their company but chooses to reinvest, or “roll over,” a portion of their proceeds into the newly acquired business. An equity rollover allows a shareholder to maintain an interest in the business and benefit from future growth and value creation. How […] The post What is an equity rollover when selling your business? appeared first on Exit Strategies Group, Inc ..read more

This report is prepared by a CPA firm to provide a detailed analysis of your company’s revenue, expenses, working capital, EBITDA adjustments, etc. While it is not an audit, it does provide key assurances a buyer wants to know when evaluating your company. We recommend a QofE for companies with $10 million in sales and/or […] The post M&A Glossary: Quality of Earnings (QofE) Report appeared first on Exit Strategies Group, Inc ..read more

Testing, Inspection, Certification (TIC) companies play a crucial role in various industries, from agriculture to manufacturing to construction, by providing services that verify adherence to standards, regulations, and specifications. TIC services are typically nondiscretionary, regulation driven, recession resistant, and predictable, which makes businesses in this sector a priority investment opportunity for private capital and strategic […] The post Why Some Testing, Inspection and Certification Companies Sell for More than Others. appeared first on Exit Strategies Group, Inc ..read more

Most entrepreneurs are a rare breed — full of optimism and confidence. But that faith and certainty can also make them feel invincible. Every business downturn will be the last, every new year will be another record, and every good leader retires happily with their family. Unfortunately, none of us are invincible. And if you’re […] The post Will your business survive losing you? appeared first on Exit Strategies Group, Inc ..read more

Even though retirement is far and away the biggest reason that business owners sell, many owners are doing little to no exit planning before going to market. The above chart shows that the smaller the business, the less likely owners are to plan. Of those owners who did plan, most started less than a year […] The post Exiting Without a Plan appeared first on Exit Strategies Group, Inc ..read more