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

Insights

Business Recovery & Exit Planning in Uncertain Times (Part 1):

What Doesn’t Kill You Makes You Stronger When will the market for private business sales rebound? Small business owners who were planning to transition ownership and retire in the next few years are losing sleep over fear that they missed the market. The truth is, private equity groups and other buyers still have plenty of…
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Business Recovery and Exit Planning in Uncertain Times (Part 2):

Three Stages to Navigating from Crisis to Success Three to six months of cash to cover business expenses? That ship may have sailed, but it’s not time to panic, it’s time to make a plan. Many business owners have succeeded by trusting their gut, but this is not the time to wing it: it’s time…
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Business Acquisition and Valuation in Electronic Manufacturing: Correct Terminology Matters

Acquirers of electronics manufacturers will pay more for certain types of businesses and will be more attracted to companies when they are properly described.  Thus, the correct use of industry terminology can be an important part of marketing and selling your electronics business. Background The term OEM stands for “original equipment manufacturer”.  Some years ago,…
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M&A Market Insights: IT Services

IT Services Industry Valuation Multiples
Overview Acquisition activity in the IT services space is strong heading into 2020.  A broad base of both strategic and financial buyers are paying attractive valuation multiples for companies that offer the right fundamentals. For business owners exploring the possibility of selling their organization understanding market dynamics in terms of both valuation multiples and characteristics…
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ROWC: An Effective Tool to Measure Financial Strength and Valuation for Electrical/Electronic Distributors

Buyers typically utilize a historical multiple of EBITDA to arrive at a valuation for an electronic distributor.  However, a positive operating income on the Income Statement does not guarantee a high business value.  A distributor’s business might look profitable (positive operating income) but may not be financially strong if cash is tied up mostly in…
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Ten Factors Determining Business Value in a Sale

Business valuations in a sale are based on the interactions of several important factors. We have outlined the ten key factors to consider. Operating Cash Flow – The number one determinant in business value is income or owners operating cash flow.  Generally, this includes the following: net income before interest, taxes, depreciation, amortization, excess owner…
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