By Maurie Cashman Capturing synergy is usually a critical factor when acquiring a business. Last week in Acquiring Value For Your Business we discussed some of the strategic reasons companies have for acquiring other businesses. I have been involved in many acquisitions, the most recent of which was the acquisition of DeJong Greenhouses by Dan & Jerry’s Greenhouse LLC. I have seen successful strategies and acquisitions that did not capture the promised value. Once you
By Maurie Cashman Acquiring another business is a strategy that you can use successfully to grow the value of your business. It requires a sound strategy, discipline and an experienced team to identify, evaluate and complete a transaction that will add value. A recent McKinsey study states “Acquisitions succeed because of many factors, but they generally tend to have a clear strategic argument for them… such as improving the performance of the target company or
By Maurie Cashman An EBITDA multiple is often relied upon by business owners trying to understand the value of their business. This is often reinforced by business brokers who like to rely on “rule of thumb” multiples to value a business for listing. I have run into more than one occasion when an owner of a business with over $20 million in sales came to me after talking to a broker who put a matrix
DeJong Greenhouses, Inc. has been acquired by Dan & Jerry’s Greenhouses LLC Dan & Jerry’s Greenhouses LLC has a total of four locations, two in Monticello MN, one in Buffalo MN and one in Madison SD encompassing approximately 35 acres of greenhouse space. They serve independent garden centers, regional chains, supermarket chains and nurseries throughout Illinois, Iowa, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin. DeJong Greenhouses, Inc. is an eighty-year-old business
Note: I was recently interviewed by the Corridor Business Journal regarding my views on business ownership transition. Here is the article for which I was interviewed. By Dave DeWitte email@example.com As a growing number of baby boomers prepare to pass the baton of business ownership, they face a complex and sometimes lengthy process for which many are unprepared. “The most frequent comment I get is, ‘I had no idea how difficult this would be,’” said
By Shruti Gurudanti, May, Potenza, Baran & Gillespie | January 3, 2017 Co-author: Austin Potenza Let’s say you’re looking to sell your leather manufacturing business. A buyer comes along and asks you to make her an offer. What’s the best way to determine the worth of your business? There isn’t one right formula. But here are a few common valuation techniques: (1) asset-based, (2) income-based, and (3) market comparable. The most appropriate method will depend on your company’s individual
Maurie Cashman has been awarded the designation of Certified Valuation Analyst (CVA) by the National Association of Certified Valuators and Analysts (NACVA®). The CVA designation has been accredited by the National Commission of Certifying Agencies® (NCCA®), the accreditation body of the Institute for Credentialing Excellence™ (ICE™). NACVA’s designations serve to advise other professionals, prospective clients, and the community at large that the member has satisfied the Association’s rigorous Standards of professionalism, expertise, objectivity, and integrity
By Maurie Cashman Is employee ownership appropriate for every employee? Consider this example. Tom Pace was dedicated to his business and to each of its 48 employees. As he began thinking of the day when he would leave his wholesale landscaping supply business his thoughts turned to selling the company to the three key employees who had done so much to build the business and who ran it on a daily basis.
By Maurie Cashman There is a new republican majority after this year’s election. A significant driver of this election was the desire to reduce the burden of government regulation from U.S. businesses. However, nothing will change unless it is followed up by action, and in the short term bureaucrats may be trying to get their rules in place before the new administration takes office. Here are a few issues that you might consider writing to
By Maurie Cashman Opportunities to learn often come suddenly and then they are gone. Great performers are able to identify and capture those opportunities to learn very quickly from an experience or situation they are presented with. Great managers have the experience to see these opportunities and create environments for their team to consistently capture these fleeting moments when experience is created. “Learning is not compulsory; its voluntary. But to survive, we must learn.” W.