Trusted Advisor | Sale of Personal Goodwill | Budget Planning | Owner Perks | Sign Up More Clients
November 2016






Free Unlimited First Research Industry Reports

What this means to M&A Source members
  • Get an edge on the competition by quickly gaining the "knowledge advantage"
  • Enhance strategic planning and marketing with industry-specific content
  • Establish credibility on sales calls by articulating and intelligently discussing key business issues
  • Identify what a prospect is not telling you about some risks and opportunities his or her business is facing
  • Develop clients' trust to build long-term relationships
  • Maintain meaningful contact, stay on top of critical trends, and identify cross-sell opportunities
  • Now covering over 1,000 industries, the reports are updated quarterly - exportable into customizable formats
To access First Research please follow the steps below:
  1. Go to www.masource.org/discounts where you can enter your M&A Source member login credentials.
  2. After this, you will be on the benefits page and should select Click here to access First Research.
  3. If you have not accessed First Research before you will need to enter your email address and complete the registration page.  Once everything is complete you will be able to simply login with your email address in the future.
  4. Each time you access First Research you will need to follow the steps listed above.
Trusted Advisor or Deal Killer?
Joe Lindsey, M&AMI, CM&AP, CBI
Chairman: The M&A Source Board of Directors

Author's Note:   Let's start with the thesis that this article was inspired by actual events. It could be an amalgam of multiple experiences combined into one story. Let's assume that the names, dates and other data relevant to this article were changed because of concerns of confidentiality. Regardless, let's see if lessons can be learned from this article.
The business was a provider of chemical products whose primary customers were involved with fracking; the injection of fluid into shale beds at high pressure in order to free up petroleum resources such as oil or natural gas. After more than 20 years of moderately successful operations, the owner (Arnie) and his daughter (Cindy) had reached the point in which they had differing ideas on what to do next with the business. In his mid-sixties, Arnie was burnt out and wanted to explore other opportunities...like retiring and spending more time pursuing leisure activities. Cindy wanted to grow the business, had ideas on how to achieve that growth, but was reluctant to assume the personal liabilities and financial guarantees that accompany business ownership.
Chet Walden Scholarship

M&A Source 2012 Chairman Chet Walden was instrumental in introducing Cole's College to The M&A Source and cementing the mutually beneficial relationship that led to the creation of the Certified M&A Professional (CM&AP) program. In honor of Chet, Coles College generously created and donated a scholarship in Chet's name. The scholarship winner is rewarded with a full refund/rebate equal to the amount of that
program's tuition.

Sale of Personal Goodwill
Jim Afinowich, M&AMI, CBI
Founding Principal, Designated Broker of IBG/Fox & Fin  

One of the roadblocks that commonly arises in structuring the sale of a business has to do with the competing tax consequences for the buyer and seller. From a tax standpoint, what is good for the seller is often bad for the buyer, and vice versa.
 
However, one important tax strategy for sellers generally has no impact on buyers: the allocation of company assets as "personal goodwill" of the company's owner (or executives). In this strategy, the seller's personal reputation, expertise and relationships are segregated from the assets of the company being sold. The goodwill that otherwise would be attributed to the company is shifted to the seller.

A Private Equity Perspective on Budget Planning
Prospect Partners

Fall is budget-planning season for many private equity firms and their portfolio companies. Fall also is an ideal time for prospective sellers to get their team together to think proactively about the future.
"Most management teams are smart, passionate, and extremely well-versed in their industry and their company," said Prospect Partners' Vice President Brett Holcomb. "Yet, when we meet for the first time, we discover that many have never done an actual budget. Everything is in their head."
Dave Kauppi, Contributing Writer
Article reprinted courtesy of Divestopedia

Takeaway:   When deciding to sell, it's not just the buyer you need to prepare for, but yourself as well.
 
When representing business sellers, it is important to recognize that this is usually their first and only experience in selling their business. No matter how smart they are, there is no replacement for experience in this complex process. Also, any mistakes made during this process are usually very expensive, time consuming or both. Finally, it is usually an emotional roller coaster for the owner:
"Am I doing the right thing?" "Is this the right time?" "What is going to happen to my employees and my customers?" "Is this the right buyer?" "Are these the best price and terms I can get?
4 Simple Ways M&A Firms Sign Up More Clients
Gabe Galvez
Co-Founder of CAPTARGET, LLC
Founder/CEO of Merger Labs, LLC

What if I told you that you could easily catch up with your competition by making just a few small changes to your M&A firm?
 
Well, that is exactly what we are going to talk about in this article. Below are four simple, but often overlooked hacks that can make your firm more attractive to potential clients and help you leave the competition behind. 

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