Cross-border mergers and acquisitions offer key geographical diversification benefits for buyers and businesses alike. Gaining new exposure in new regions can lower business and operational risks under different economic and regulatory conditions. Buyers often look for cross-border deals when their core markets become saturated, when business slows down, or if they can find regulatory or monetary benefits in another country. Cross-border deals are important because they allow companies to expand their offerings by entering new markets or adding new products, services, intellectual property, or technologies. Cross-border M&A can bolster revenue opportunities and cost synergies while scaling efficiency as company operations expand to a broader market.

In most businesses, books are kept on one of two typical bases: cash or accrual. Some business owners choose one or the other for a specific reason. Others work under the guidance of their CFO, bookkeeper, controller, tax advisor, accountant, or other financial specialists of choice and review the resulting reports to measure operations. However, the two bases of accounting have major differences and can significantly impact the perceived performance of a business. For example, if you've been grappling with the potential sale of a business, most acquirers prefer books on an accrual basis. There are many reasons for this, but the primary reasoning is that accrual basis financial statements follow Generally Accepted Accounting Principles (GAAP), whereas the cash basis financial statements do not. However, both bases have their merits depending on the type and function of the business.

For the sale of a company, the parties involved can choose to structure the deal as an asset sale or a stock sale. An asset sale is when a company sells all of its assets or a portion of them. In this type of deal, the seller remains the legal owner of the business but no longer owns the assets sold. Under a stock sale, the buyer purchases equity from the selling company’s shareholders. There are several different reasons for sellers and buyers to pursue one type of transaction over the other.

Positive news surrounding middle market M&A continues to swell as well as continue into 2023. A recent survey conducted by Citizens Bank revealed a great deal of optimism for middle-market M&A activity this year. Essentially, businesses have remained resilient even during challenging economic times. In addition, interest in M&A deals continues to be a top priority by both middle-market companies and private equity (PE) firms as both buyer and seller pipelines return to pre-covid levels. To summarize, all indications point to 2023 being a great year to consider selling your business. So if you have been hesitantly holding off, it is time to start the conversation. 

2023 holds a positive outlook for middle-market business valuations. Results of the survey, 2023 M&A Outlook from Citizens M&A Advisory show good signs for company performance and high motivation for growth this year. The annual survey polls 400 leaders of US middle-market companies with $50 million to $1 billion in revenue and private equity firms actively buying and selling companies in the same revenue range.

Benchmark International is pleased to announce the acquisition of Remata (Pty) Ltd & Remata Communications and Printers Production House (Pty) Ltd (Remata) by the Formeset Group of Companies.

Benchmark International is happy to announce the completed acquisition of The J. J. Elemer Corporation by Action Bag Company.

If you are a business owner and want to keep up with all the latest business, finance, and M&A news and insights, these ten sites are a must-add to the bookmarks in your browser, or a follow on social media.

Benchmark International has successfully facilitated a transaction between Atlanta-based WeCareMD, P.C. (“WeCareMD”) and Tampa-based Physician Partners, LLC.

With discussions of a recession looming, business owners may display concerns about the timing of going to market to sell, asserting that the economic downturn will not be beneficial if they were to go to market. In fact, acquisition opportunities present a significant value creation prospect for private equity groups, which tend to increase mergers and acquisitions during a recession for various reasons.

Several important factors play into the deal-making process if you are a business owner considering a merger and acquisition for your lower- to middle-market company. Timing is often one of these factors.

Intellectual property (IP) is a non-physical creation of the mind or the product of a company's work or reputation. It is essentially ideas that are executed to become successful business assets and are often copyrighted, under patent, trademarked, or considered trade secrets, to protect from unauthorized use. Technology is a key IP type in our largely digital world and is a major driver of change and progress in nearly every industry. As a result, IP is a very important aspect of the valuation of a company. In our modern global economy, some countries recognize more IP types than others, as circumstances vary.

The global freight & logistics market is forecast to grow to $18.69 billion by 2026 at a compound annual growth rate (CAGR) of 4.4%. When looking solely at logistics, the global logistics market is expected to reach $6.55 trillion by 2027, growing at a CAGR of 4.7% between 2022 and 2027.

The flagship of The Small Business Administration's programs to support small businesses is the SBA 7(a) loan guaranty program. The program was designed to encourage lenders to provide loans to borrowers that might not otherwise obtain financing on reasonable terms and conditions. Under this program, the SBA will guarantee 75% for loans greater than $150,000 with a maximum loan amount of $5 million with reasonable interest rates. This is a viable option for the average person looking to acquire their first business or an existing business looking to grow through acquisition. This loan is so popular that in 2021, the SBA approved 51,856 7(a) loans totaling $36.5 billion.

Back in 2021, the M&A market enjoyed record-level activity. But 2021 was an anomaly because it followed 2020 when so many deals were put on hold due to the COVID-19 pandemic. 2022 seemed like a slower year, but it was actually a return to normalcy. 2023 is expected to be strong for the middle market, as buyer focus shifts from public markets to private markets. While interest rates have been going up, both strategic and financial buyers are still sitting on record levels of cash. 2023 could actually signify a return to normal for the market and be a great year for business owners looking to sell their companies. 

Benchmark International has been awarded Best Global Middle Market M&A Specialists 2023 by the prestigious M&A Today Global Awards, which recognize excellence in business on a global scale.This honor is a testament to our achievements and places us among the best in the industry.

Benchmark International’s very own Kendall Stafford has been named to the Top 50 M&A Investment Bankers (Americas Dealmakers) by the Global M&A Network’sM&A Atlas Awards. Kendall is the managing partner of our Austin, Texas, office. You can learn more about her impressive background here.

Benchmark International is pleased to announce the transaction of Nationwide Express to Jones Logistics.

Benchmark International’s Kayla Sullivan has been named one of America’s Rising Star Dealmakers by the Global M&A Network. Their 5^th Annual Networking Recognition Ceremony was held in New York City at a luncheon on January 19, 2023.

If you have ever taken a family road trip, you understand the necessity of planning in advance. Navigation systems and GPS have made it easier, but advanced planning will make the journey more enjoyable. The most important decision is what is the intended destination. Once that is determined, there are a whole series of decisions that must be made, either in advance or along the way, to reach that ultimate vacation spot. The questions include which car we should drive, what roads we should take, how fast we can drive, whether we should pack a cooler or eat at restaurants along the way, what our budget is, and where we will stay.

Benchmark International has been named Best Global Middle-Market M&A Specialists by the Global 100 for 2023. We are proud to say that we also won this award in 2022.

Benchmark International has been named International Mid-Market Corporate Finance Advisory of the Yearby the Gamechangers™ Global Awards 2023. This year’s awards are especially significant because it is the 20^th anniversary of the Gamechangers Global Awards.

Benchmark International is pleased to announce the acquisition of Boiler and Industrial Plant (Pty) Ltd by Entruevest Holdings (Pty) Ltd - A Diversified Investment Holding Company.

Benchmark International is pleased to announce the acquisition of E-vergent.com by Tahoe Network Infrastructure.

Benchmark International has been honored with an M&A Atlas Award from the Global M&A Network for Small Mid-Market Investment Bank of the Year (Americas).

Benchmark International is pleased to announce the transaction between Gem Drugs, Inc. and Vital Care Infusion Services. The reason for targeting was strategic expansion.

Benchmark International is pleased to announce the successful facilitation of the strategic growth partnership between INVISION Architecture Ltd and The HFW Companies.

The majority of sellers within the lower middle market only go through the sale process once in their lifetimes. Sellers often hire an M&A expert to help guide them through the sale process and advocate on their behalf. While M&A experts have a wealth of experience, they do not have a crystal ball.

Benchmark International successfully facilitated the transaction between Flowstate Branding and Decision Sciences Research Associates.

Benchmark International has successfully facilitated a transaction between Illinois-based W. A. Imports and New York City-based Forever Cheese.

Benchmark International is pleased to announce the acquisition of KES Excavating, a Wisconsin company by Bug Tussel Wireless (Hilbert Communication), also a Wisconsin company.

Before completing a deal, buyers may conduct a variety of different research on a seller’s business to better understand its complexities of it prior to due diligence. This research is an important step to ensuring that due diligence is carried out. Business research occurs in a variety of different ways.

Benchmark International has successfully facilitated a transaction between New York City-based Cookie DO, Inc. and NeilEats.com, also based in New York City. Cookie DO is an innovator in the confectionery industry with a variety of unique, handmade flavors of edible and ready-to-bake cookie doughs. The company features an ever-growing product selection that includes its famous edible cookie dough, baked goods, baking classes, a proprietary cookbook, merchandise, cookie cakes, and baking mixes and flours.

In 2021 and early 2022, we saw record-breaking levels of M&A activity in the United States and around the world, and many business owners are wondering how long this cycle
will last.

The good news is that experts agree that 2022 will be in the clear from a recession for the US economy. But the next few years may tell a different story. 

An economic downturn could arrive as early as 2023. Federal Reserve policy is expected to change, which will result in more business cycles that many companies will not be ready to face. Even if the country is lucky enough to dodge a recession in 2023, we can expect the economic decline to be more detrimental in 2024 or 2025. The Fed will eventually start easing up on stimulus initiatives and raising interest rates at the same time that inflation is on the rise. It usually takes the economy about a year to react to the Fed’s actions, putting us on track for a safe 2022, but with the following years feeling the impacts.