M&A Insights & Industry Articles from BMI Mergers & Acquisitions

Insights

Selling Your Business – Consider Purchase Price Allocation Early in the Negotiations

Business meeting discussing purchase price allocation and financial planning for business sale
Often, purchase price allocation is viewed as “something the accountants do” and is one of the last items discussed before closing the sale of a business. However, this is a mistake, as purchase price allocation (PPA) can significantly impact the value received and influence the negotiation strategy, as well as the future relationship between the…
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Understanding Seller Financing in Business Sales

Two businessmen discussing seller financing options.
With over 20 years in M&A, I’ve seen the popularity of seller financing shift in response to economic conditions. Recently, with rising interest rates and cautious lending practices, seller notes have become more common. But what exactly are seller notes, and how should you approach them? What is Seller Financing? Seller financing, or a “seller…
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Tax Considerations for Selling a Business

How much a business owner keeps from the sale of their company is a key question, and taxes are the primary factor. Below is a high-level overview of the major tax considerations applicable to most business sales.
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2023 Review: Distribution M&A Valuations

GF Data® reported on the Distribution business acquisition deal data for YTD December 2023 and while valuations are holding steady, deal volume is down 25-30% vs 2022. The decline in volume is not surprising, given the high cost of debt. However, the fact that valuations appear to be holding steady is, on the surface, surprising….
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Preparing To Sell Your Business

Key Considerations for Improving Value When Preparing to Sell Your Business Deciding to sell your business is one of the most important decisions you’ll ever make as a business owner. It represents the culmination of your hard work and dedication. As you approach this significant milestone, several key factors require careful consideration. The goal is…
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Construction Industry Multiples (Revised June 2023)

Construction industry multiples
EBITDA multiples are sometimes used to determine approximate business value in a sale transaction.  Multiples can vary widely by industry and within industry segments.  In recent years, we have also seen more higher end deals with multiples of 7 to 8 times EBITDA.  The data tells us only premium quality businesses are achieving extraordinary valuations…
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