Benchmark International facilitated the transaction between Delta Outsource Group, Inc and Australian-based InDebted enabling their access into the American market.

The seller, Delta Outsource Group, Inc, has been providing professional and compliant receivables solutions in the U.S. since 2009. The owners of Delta set out to create a collections agency where performance, respect, and communication would put them ahead of the industry’s curve. After accomplishing this, Delta became a viable target.

“While the process was longer than we thought, Benchmark did a good job of advising us of our options and guiding us through the sale process,” said Michael Lages, President & CFO.

The buyer, InDebted, is an Australian-based digital, data-driven collection agency. They have built a collections platform that seeks to empower the financial fitness of their customers.

John Watson, incoming CEO of Delta commented regarding the deal, “After facilitating the introduction of Delta and InDebted and outlining the desired transaction structure, Benchmark did a good job of allowing the principles to work directly with each other to maximize the efficiency of the process.”

Regarding the deal completion, Transaction Director Matthew Kekelis at Benchmark International commented, “The Delta team stuck through a multiple offer situation with many ups and downs along the way. Ultimately, it was a terrific result with both buyer and seller very pleased with the outcome.”

Benchmark International successfully facilitated the transaction between Solution Matrix, Inc. of Rocky Mount, VA and EXI Investment Partners, Broadview Group Holdings, LLC, management and other co-investors. The seller, Solution Matrix, Inc., is an orthopedic manufacturing business that provides high-quality cold-therapy gel packs and compression bandage wraps to over 340 hospitals nationwide. The company manufactures all its products in-house.

Keith Marshall, co-owner of Solution Matrix with his wife, Linda, mentioned regarding the transaction, “We are so excited to entrust the future of Solution Matrix to its next partner. With their leadership, there is no upward limit to where they can take the business. The spirit of partnership abounded during the transaction process and they will be an ideal caretaker of the Solution Matrix brand and legacy.”

Marshall went on to say, “I’d like to thank Benchmark International for their absolute professionalism throughout the entire process. I thought it would be challenging to sell a business with a special designation like mine, a veteran-owned business. I had the impression the pool of available and interested buyers would be small but Benchmark’s resources proved me wrong in that regard. I could not recommend their services more.”

Regarding the deal completion, Managing Partner Dara Shareef at Benchmark International commented, “Having the opportunity to work with a veteran-owned business is always particularly meaningful. Keith and Linda have built Solution Matrix around a mission to provide truly unique products that address critical healthcare needs. Their sense of service to team, partners, and customers comes naturally from a background of service to country and has been a difference-maker in building a great company and an unequalled suite of medical devices. Benchmark International is proud to be a key part of finding Solution Matrix a great partner for their next phase of growth.”

Benchmark International is pleased to announce the transaction between Carolina Marine Structures, Inc. (“CMS”) and United Infrastructure Holdings, Inc. (UIH).

CMS is a leading provider of commercial waterfront construction services. The company specializes in construction related to boat ramps, bridges, dredging, shoreline restoration, and wetland creation. CMS resides in Powells Point, North Carolina and is centrally located for its preferred service areas of coastal North Carolina and Virginia.

UIH focuses on providing a wide array of infrastructure services across the United States, from marine construction to engineering services. With this transaction, they are positioned for continued expansion nationwide.

Senior Deal Associate Nick Woodyard at Benchmark International commented, “The entire team here is glad to have facilitated the successful transaction between Carolina Marine Structures and United Infrastructure Holdings. It was great getting to a conclusion where both parties were excited to begin the next phase of their new adventure. This deal represents a platform opportunity for UIH to build an enterprise of future growth in the industry. We wish the teams continued success.”

When a company is sold, it can have major effects on employees, customers, clients, and suppliers. Uncertainty stokes fear in most people, as they wonder about their security and their futures. Even top management can feel as though they failed at their jobs when the company is being bought out. For these reasons, it is important that the messaging and transition planning is handled very carefully and thoughtfully leading up to an acquisition—especially considering that the majority of acquisitions fall through. Announcing the news too early can cause widespread unrest over a deal that never happens

Communication is everything in this situation, but it needs to be planned. Before announcing a single word about the sale of the company, you should have a solid plan in place. A consistent message is critical and the distribution of the information should be carefully coordinated both internally and externally to avoid misinformation and confusion. Your plan should clearly outline intentions, steps, timelines and how the process will affect all parties. Predetermine what will be conveyed by whom and when. Figure out how to address questions that you are unable to answer and consider all potential scenarios for all parties involved. And always remember how critical confidentiality is during this time. You do not want details leaking to the press before you are ready to go public.  

How Private Equity Works

Private equity firms raise financing from institutions and individuals and then invest those funds into the buying and selling of businesses. Once a pre-specified amount is raised, the fund closes to new investors and is liquidated. All of the fund’s businesses are sold within a set timeframe that is typically less than ten years. The more successfully a PE firm’s funds perform, the better its ability to raise money in the future.

PE firms do accept some limitations on their use of investments under fund management contracts, such as the size of any single business investment. Once the money has been committed, investors have nearly zero control over its management, unlike a public company’s board of directors. 

The leaders of the companies within a private equity portfolio are not members of the PE firm’s management. Private equity firms control its portfolio companies through representation on the boards of those companies. It is common for a PE firm to ask the CEO and other business leaders in their portfolios to invest personally. This offers a way to ensure their level of commitment and motivation. In return, the operating managers can get significant rewards that are linked to profits when the company is sold.

With large buyouts, PE funds usually charge investors a fee of around 1.5 to 2 percent of assets under management, plus 20 percent of all profits (subject to achieving a minimum rate of return). Fund mostly profit through capital gains on the sale of portfolio companies.

How Private Equity Improves Value

The free online trading app known as Robinhood has proclaimed to be “on a mission to democratize finance for all.” It was intended to open up the Wall Street stock market to the average American for investment “on their own terms,” with more easily digestible financial information readily available to novice investors. The app was designed to “let the people trade” and make the financial system more accessible for everyone, until things took quite a turn, all due to a fledgling brick and mortar video game retailer known as GameStop.

The amateur traders using Robinhood became pitted against the hedge fund honchos when they started buying up options and shares of GameStop (GME), enlarging those bets and also making large trades of other stocks, such as AMC Entertainment, Tootsie Roll, and BlackBerry.

How It All Happened

Professional hedge fund investors had been short selling shares of GameStop, essentially borrowing shares of stock to sell, and then buying them back later so they can return them. This lets them profit if the stock price drops (betting that the company will fail). If the stock does not continue to fall, investors are forced to cover their position or buy more stock to minimize their losses.

IntraCoastal Environmental (ICE) is a leading provider of environmental, industrial, and emergency response services in the Southeastern United States. ICE has two offices in Jacksonville, FL, and Savanah, GA. The principals of ICE attribute their success to a solid framework of proven policies developed over the years and exceptional customer service. “The industry is wrought with operators that will drop everything they are doing on one job for higher margins on another. ICE is safe, provides quality workmanship, and is, most importantly, dependable. When we start a job, we will finish it, and that’s what keeps our customers coming back.”

The Ambipar Group is a publicly-traded multinational entity based in Sao Paulo, Brazil, formed by two companies: Environment and Response. With focus and agility, these two segments offer a vertically integrated structure that provides a wide range of services to fifteen different countries across six continents. Lead by Pulsar, a Brazilian Investment Bank, Ambipar executed its first transaction in the USA in 2019. ICE served as the first of many bolt-on acquisitions in an aggressive strategy to consolidate the market recreate their superior business model in the United States.

US travel bans due to COVID-19 caused both sides of the transaction to build trust in innovative ways to keep the momentum going. The alignment between the acquisition and growth strategy of Ambipar and ICE’s operations is what motivated both buyer and seller to push through the difficulties in today’s
ever-changing landscape.

Regarding the deal completion, Senior Associate Sean Fechtmann at Benchmark International commented, “IntraCoastal was by far one of the most exceptional clients we have had the pleasure of representing. From day one, it was clear the management team and financial systems would make this process successful. The principals of ICE were diligent in our shared efforts to pursue a sale while simultaneously driving meaningful growth in their company along the way.”

As a business owner considering the sale of your company, you may be asking yourself, “When is the right time to sell?” The answer is simple. The time is now.

The global recovery is underway, and 2021 has given us several reasons to be highly optimistic, and these reasons are why you should take action.

Benchmark International has successfully facilitated the transaction between Scott, Singleton, Fincher & Company and Park Associates, PLLC.

Scott, Singleton, Fincher & Company, PC is a public accounting firm that provides audit, review, taxation, and compilation services. It serves a variety of clients, including businesses and individuals but specializes in providing auditing services for nonprofit and governmental entities. Whether a company  needs tax preparation help or regular accounting services, their team can tame clients’ unwieldy finances.

Company owner, Tommy Nelson of Scott, Singleton, Fincher & Company, PC commented regarding the transaction, “My experience with Benchmark  International was excellent.  They did a wonderful job in preparing the marketing material.  Many prospects commented on the professional presentation of the information.  The marketing team provided us with several prospects, which culminated in a successful transaction.  I would highly recommend the use of Benchmark’s services.”

Park & Associates, PLLC is a full-service Tax, Accounting, and Business Management firm based in Houston, Los Angeles, and Richmond. Established in 2000, their seasoned professionals have provided quality, personalized financial guidance to individuals and businesses. Some of their services include, financial and retirement planning, audit services, business setup and restructuring, and estate and trust planning.

Regarding the deal, Transaction Director Peter Kim at Benchmark International commented, “Our engagement with Scott, Singleton, Fincher & Company, PC was about building a confident future for our client, Tommy Nelson. Our talented deal team sought out a buyer motivated by the client’s footprint in the DFW metro area, reputation in the profession and quality of accounts. We serviced the entire deal from beginning to end with the ideas of max value as well as the client’s motivation of family in mind. Our achievement in both objectives are the culmination of tireless teamwork and relentless pursuit of preeminence in the marketplace.

Benchmark International facilitated the transaction between StatKing Consulting, Inc and Genesis Biotechnology Group.

The seller, StatKing Consulting, has been providing data related clinical services to the pharmaceutical and medical device industries for over 30 years. StatKing has evolved to become an industry-respected, full-service Contract Research Organization led by two distinguished individuals, Dennis King and Rod Lashley. Both Dennis and Rod have assembled a world-class team of experts to navigate regulatory approval studies.

“Finding the right buyer for the business we had built over the last 30+ years was very important to us. Besides having the expertise to guide us through the steps in selling our business, Benchmark had the resources to connect us with several companies that fit our requirements. Benchmark also provided invaluable guidance as we successfully negotiated a particularly difficult situation enabling us to complete our sale.” – Rod Lashley, EVP StatKing Consulting, Inc.

The buyer, Genesis Biotechnology Group, is a New Jersey based healthcare company providing clinical diagnostics, drug discovery solutions, and manufacturing/distribution of essential laboratory products.

"The way pharma companies work with CROs is changing. CROs are taking more of a strategic planning role and execution in the drug discovery and development process. This engagement model results in sponsors and CROs becoming end-to-end partners, and M&A is helping CRO's extend their service portfolio to partner with their customers in providing greater efficiency in service and delivery across the R&D continuum. The acquisition of STATKING would bring GD3 one more step closer to becoming a full-service CRO," said Ben Bandaru, Ph.D., Director of Corporate Development for GBG.

Regarding the deal completion, Transaction Director Matthew Kekelis at Benchmark International commented, “Benchmark was thrilled to bring StatKing on board as a client. We enjoy working in all industries, but it’s always special working with healthcare companies given our office location in the heart of Nashville’s healthcare hub. Dennis and Rod have built a great company, and I know Genesis will carry on their legacy.”

CCAC is a Texas-based full-service heating, ventilation, and air conditioning (HVAC) company.  They focus on servicing and installing residential and light commercial markets: the company services Corpus Christi and the surrounding areas.

Founded in 1994, Southern Air Heating & Cooling is a BBB Accredited and NATE Certified HVAC and plumbing services business serving residents across Louisiana and Mississippi.  It proudly employs technicians who have met the highest standards of training in the industry and backs its work with a 100% satisfaction guarantee.

President David Mathews of CCAC, Inc commented regarding the deal, “I have enjoyed working with Benchmark for the sale of our business.  They were professional and brought us several potential buyers to choose from.  We had several offers and chose the buyers that we thought would be the best to take care of our employees and the business going forward. Thank you.”

Benchmark International proved value in finding a buyer with experience in the industry through its proprietary multi-medium marketing strategies.  Also, Benchmark International incorporated several campaigns with local, regional, and national associations.  As a result, Benchmark International presented the client with multiple buyers and offers for the client to have the most vital options and make the best decision for themselves, their business, and their employees.

Deal Associate Amy Alonso commented, “We are excited to see that our client’s legacy will remain and prosper through this transaction. We understood that our client was seeking a company that would provide a succession plan for the future of the company while also providing a great work environment for their employees. On behalf of Benchmark International, we wish both companies continued success in the future.”

Though every business will go through changes as it evolves, being acquired by a business is perhaps the one that can be the most stressful for its employees. There can be much uncertainty for a company that is acquired. If not handled properly, the buyer can lose some of their people (along with their customer relationships, institutional knowledge, etc.) that made the company successful. Managing the change positively during this tumultuous time can reduce a mass exodus after a sale is completed.

Key employees may be worried about whether their jobs will be intact after an acquisition. Perhaps they feel their role won't be needed, or the buyer will want to use their people to perform their functions. At the same time, the buyer may be worried that these key employees will leave. Leaders and other influencers within organizations set the tone for a company's culture, innovation, and strategic initiatives. Losing them reduces the value of the company they are acquiring.

One key to reducing uncertainty for the acquired company’s employees is first to create readiness for change. People will resist change unless they are ready for it. On the other hand, when they are open to change, employees are more likely to accept everything that comes with it. These employees will be an essential part of the transitional period after the acquisition. Getting their buy-in will pave the way for creating a stronger company in the future.

In their book Developing Management Skills, Whetten and Cameron suggest four ways to create readiness when leading positive change:

Benchmark best practice and compare current performance to the highest performance

Within the context of an acquisition, it's possible (likely even) that each of the involved organizations can perform certain functions better than the other. This may be one of the catalysts behind the acquisition. In that respect, synergies can be experienced when buyers and sellers learn each other’s best practices and implement improvements. Improvements can mean doing things better, faster and/or cheaper.

Institute symbolic events to signal the positive change

Symbolism can have a significant impact. The authors indicate that to be "successful in leading positive change, you must signal the end of the old way of doing things and the beginning of a new way of doing things." This can be accomplished in a variety of ways and can be elaborate or more reserved.

Create a new language that illustrates the positive change

Changing the way people talk about the change that is occurring is vital. If negativity abounds, positivity must replace that language. Taking the time to reframe things with a positive outlook can impact how employees view change.

Overcome resistance

People are typically against change because of the unknown. Finding common ground and having people participate in the change helps. Converting resistors is especially important because they have a way of influencing the rest of the team. Proactively identify the employees most likely to undermine the change and help them get on board first. They will, in turn, help persuade other employees.

Helping people understand the importance/urgency of the change that is happening through the acquisition will increase the likelihood they will stay and help ensure a smoother transition of ownership. The key is conveying that the company's employees are an essential part of the company's success going forward and preparing them for the change they will experience.

 Benchmark International Buyer Profiles

Want to be the first to know when new opportunities come to market that fit your acquisition criteria? Create a buyer profile today. While you're there, be sure to check out all the resources we've created specifically for buyers, including opportunities, on-demand webinars, buyer events, and our latest edition of The Mark magazine.

Benchmark International is pleased to announce the acquisition between Alliance Dx LLC and Tesis Laboratory, doing business as Claro labs.

Alliance Dx is a clinical pathology laboratory that provides diagnostic testing services for physician-referred patients in the healthcare sector. The company examines and analyzes DNA, body tissue, and other bodily samples for testing specific to cancer diagnostics. The company provides laboratory testing services for end-user patient clients who have been referred by physician clients in hematology and oncology for the Greater Houston, Texas area.

Claro Labs provides physicians, physician groups, and hospitals with full-service complex clinical diagnostic testing in an accurate and timely manner. Claro Labs prides itself on maintaining state-of-the-art technologies and equipment, meeting the highest industry standards.

Sam Ruta, former owner and CEO of Alliance Dx, commented, “The Benchmark Team did an excellent job of facilitating a transaction quickly and went above and beyond to keep all parties on track and on schedule until the very end.”

Anthony Hernandez, Benchmark International Transaction Director, shared, “the Benchmark Team is delighted to announce the successful sale of Alliance Dx to Tesis Laboratory, resulting in a swift exit for the seller despite the negative macroeconomic headwinds resulting from the current pandemic. The team at Benchmark International is excited about the future of Alliance Dx under the strategic ownership of the Tesis Laboratory group and wish each of the parties every success in their future endeavors.”

Many business owners believe that enlisting an expert in their industry is the right way to go when selling their companies. But if you want to rake in the most value for your business, there’s a better way.

There is no question that mergers and acquisitions are complicated and subject to constantly changing market conditions and industry trends. An industry expert might know plenty about a particular industry, but they are not experts on selling and buying businesses. A mergers and acquisitions firm is.

It is not uncommon for a company acquisition to be viewed as a simple transaction that means transferring the business from one owner to another. But rather than just allowing the business to simply carry on as is under new leadership, a merger or acquisition should be viewed as a solid strategy to boost the company’s overall health, productivity, and bottom line. While M&A transactions can serve as great solutions for exit strategies, they can be so much more than that. M&A should be regarded as a powerful tactical opportunity.

Often times, M&A deals are considered to be a way to get out and cash out with instant gratification. But what else might be possible when a deal is carefully crafted to deliver sustainable returns and support a powerful legacy for the business in the long-term? M&A done right can translate into great success for a company and, ultimately, its leadership.

Benchmark International is pleased to announce the transaction between Marley Drug, Inc. (“Marley Drug”) and Medicure Pharma Inc., the US subsidiary of Medicure Inc. (“Medicure”).

Marley Drug is a North Carolina corporation owned by Dr. David Marley and his wife, Elizabeth Marley. The company operates as a hybrid walk-in local pharmacy and a nationwide mail-order pharmacy focused on providing affordable prescription drugs. Established in 2002, the company is licensed throughout the United States, including Washington D.C., and in Puerto Rico.

Medicure is a pharmaceutical company focused on the development and commercialization of cardiovascular therapeutics for the U.S. market. Medicure Inc. is based in Winnipeg, Canada, and trades under the symbol MPH on the TSX Venture Exchange. Its subsidiaries include Medicure International, Inc. (Barbados), which owns the U.S. rights to AGGRASTAT and two U.S. corporations, Medicure USA, Inc. and Medicure Pharma, Inc., which distributes the company’s products in the United States.

Albert D. Friesen, PhD, CEO of Medicure Inc. commented regarding the deal, “The team at Benchmark International was very helpful in facilitating the Medicure Inc. acquisition of Marley Drug, Inc. Benchmark was well organized and kept the discussion and deal making on schedule for a timely closing to the original target date, for which I thank the entire Benchmark International team.”

The acquisition enables Medicure further to expand the distribution of its products within the United States. As a manufacturer, Medicure intends to provide branded medications, as well as extremely low-cost generic medications.

Dr. Marley commented, “It’s a perfect and responsible transition for Marley Drug.” Regarding Benchmark International, Dr. Marley added, “I can’t begin to express my gratitude to Benchmark International for their role in facilitating the sale of Marley Drug. As someone with zero experience in the M&A world, they were patient with me, as well as educational and efficient. It goes without saying I simply could not have asked for a smoother transaction. In fact, I doubt I could have had a successful transaction without the Benchmark International team.”

Senior Transaction Associate Sunny Yang Garten at Benchmark International commented, “It was a pleasure to support Marley Drug in this transaction. Dr. Marley and his team were wonderful to work with. They were engaging and always responsive to diligence requests. This acquisition represents a tremendous opportunity for both businesses and their teams. On behalf of Benchmark International, we wish both companies continued success.”

In early 2020, there was plenty of optimism for investment opportunities and growth in the sports sector prior to the COVID-19 pandemic, which has since caused disruption in nearly every sector around the world. Financial uncertainty has been a large factor in addition to issues surrounding player contracts and broadcasting rights. Mergers and acquisitions activity in the global sports world has experienced a downward trend but there is hope on the horizon.

Italian Football

Amidst COVID-19 delays, Italian football (calico) has had its share of off-the-field matters this year. In August, the Italian club A.S. Roma announced the completion of a takeover by Texas-based Friedkin Group: an 86.6% stake in for €591 million, a large decrease from the previously agreed upon figure of €750 million prior to the pandemic. This lower price demonstrates how lost matches, sponsorship, and broadcasting income all impact the valuation of sports clubs. In light of these decreasing valuations, PE firms could be motivated to seek out bargain M&A and financing opportunities.

Italy’s Serie A has also embraced private investment. In September, its 20 clubs agreed to create its own media company financed partially by PE funds in order to better organize the sale and promotion of the league's TV rights. The move is designed to improve governance and increase revenue, especially abroad.

No one knows for sure how much longer the COVID-19 pandemic will be affecting our lives and our businesses. But we do know that mergers and acquisitions are still happening, deal activity will pick up, and the way we approach due diligence in a post-COVID world has the power to make major differences when it comes to selling a company. While there are new obstacles to consider, there are also significant opportunities to identify and create value, and help companies outperform the market.

Real-time Data

Benchmark International is pleased to announce our attendance at the ACG New York Annual Technology M&A Conference on December 16, 2020.

The conference is devoted to deal making in the middle-market technology sector.

Key elements include:

• Multi billions in dry powder represented
• Attendees include premier technology investors and intermediaries
• 100+ senior capital providers and technology sector insiders
• Private one-on-one meetings scheduled with top decision makers
• Speakers include high profile founders that have sold to Facebook, Amazon, Apple, Netflix and Google

Link to Conference Registration: https://www.acg.org/nyc/events/acg-ny-annual-technology-ma-conference 

ACG New York Annual Technology M&A Conference 

Key topics include the latest trends and investment opportunities:

• Identifying how Private Equity using technology for competitive advantage and to enhance portfolio company value
• Finding tech innovations and ideas that will boom beyond CV-19
• Naming where are Capital Providers are placing their technology sub sector bet

• Joint Venture: When two or more parent companies form an entity together with a business objective, sharing in the risks and returns, and retaining their individual legal statuses. It can be an equal joint venture, in which both parent companies own an equal portion of the entity, or it can be a majority-owned venture, in which one partner owns a larger percentage of the company. A joint venture can help to save money, combine expertise, or enter new markets. It is not a partnership, consortium, or merger. 
• Equity Alliance: When one company purchases a specific percentage of equity in another company. 
• Non-Equity Alliance: When two companies enter into a contractual relationship, which allocates resources, capabilities, assets, or other means to one another.

Calvin’s Electric is an electrical contractor that focuses on residential projects.  The company provides hardwire electric services for their clients’ projects while improving each customer’s electrical efficiency and providing electrical code compliance consulting as needed. They also offer 24-hour service for their existing customers.

Calvin’s Electric is based in Dripping Springs, a suburb of Austin, Texas, but the company services Austin and the surrounding area. They work with new home builders such as Ash Creek Homes, Brookfield Residential, Sitterle Homes, and Scott Felder Homes, to name a few.

In Charge LLC began in 2007 and provides residential production construction, custom residential and commercial construction, and retrofit services.  In Charge completes jobs that are production or custom and have vast expertise in the areas of electric options, smart home technology, and lighting. In Charge is headquartered in Round Rock, Texas, a suburb of Austin, Texas. Prior to the acquisition of Calvin’s Electric, they had seven locations in Texas.

Benchmark International proved value in finding a buyer with experience in the industry through its proprietary multi-medium marketing strategies.  Also, Benchmark International incorporated several campaigns with local, regional, and national associations. While clients are often hesitant to meet with local competitors, after speaking with both parties about their goals with a potential transaction, it was abundantly clear that there could be a great fit between them. After much work, we could get both parties in the same room where the great cultural fit emerged.

Deal Associate Amy Alonso commented, “We are excited to see that our client’s legacy will remain and prosper through this transaction. We understood that our client was seeking a company that would provide a succession plan for the company’s future while also providing a great work environment for their employees. On behalf of Benchmark International, we wish both companies continued success in the future.”

November 2020 Benchmark International facilitated the transaction between Associates in Pediatric Therapy (serving Kentucky and Indiana) and VersiCare Group of Detroit, MI.

The seller,  Associates in Pediatric Therapy, has provided therapeutic services to children with special needs in Metro Louisville, Lexington, Bowling Green, Erlanger, and Southern Indiana since 2007. Renea Sageser, CEO of APT, and husband Scott started with six part-time employees and grew to over 175 employees who serve patients in rural areas to receive high-quality care closer to their homes.

The buyer, VersiCare Group, is a Detroit, MI-based provider of home and community-based services for children and adults with intellectual and developmental disabilities.

“We are pleased to welcome APT to the VersiCare Family,” stated Lauren Sclesky, CEO of VersiCare. “When we decided to launch an aggressive growth plan in 2018, we targeted companies who share the mission in “helping people succeed” that has led to VersiCare’s success. With this new partnership, I am confident we can continue to provide best-in-class services across Kentucky and Indiana in addition to our other service areas.”

Benchmark International was fortunate enough to represent another highly sought after business opportunity with Associates in Pediatric Therapy.  “We had a lot of connections along the way.  We never know who he is going to put in our path.  We challenge ourselves every day to be better.  We are only here for a short period of time.  I pray we cross paths again one day.  Thank you and your team for their contributions,” stated CFO of APT, Scott Sageser.

Matthew Kekelis, Transaction Director with Benchmark International, added “Scott and Renea Sageser are truly the most caring clients whom I have ever had the pleasure of working with.  Their passion for providing quality care to children in need and providing a family environment for their staff is commendable. It deserves to be recognized.”

During the first half of 2020, M&A activity in the automotive industry was down from previous years due to uncertainty stemming from the COVID-19 pandemic, with cross-border deals becoming more complex. However, the pandemic also resulted in new opportunities for consolidation within the industry.

There were $11.9 billion in M&A deals, which represented a 54.8% decrease in value compared to the first half of 2019. Most investments were in the pursuit of CASE (Connected, Autonomous, Shared, Electrified) technologies. This type of tech is predicted to drive M&A through the end of 2020. Dealmakers are expected to concentrate on securing supply chains and increasing resiliency rather than expanding globally.

Global Deal Activity

The majority of deal value in volume in the first half of 2020 took place in Asia and Oceania, followed by North America. The largest automotive transaction in the first half of the year was valued at $2.9 billion, with Traton SE, a vehicle-manufacturing subsidiary of Volkswagen AG, acquiring Navistar International Corporation. Volkswagen Group China continued to strengthen its electrification strategy by making two acquisitions valued at more than $1 billion each: Gotion High-tech Co. and JAC Volkswagen Automotive Company.

The right time to retire is going to be different for everyone based on individual circumstances and goals. While finances are obviously a major factor in the decision, being emotionally and mentally ready is equally important. Here are some points you should consider if you are thinking about embarking on retirement.

Financial Stability
Retirement hinges upon having the appropriate income to support a comfortable lifestyle in the future. This entails having an accurate and realistic picture of what your expenses will be and how much you will need in order to cover them, including income from your savings, pensions, social security, 401ks, IRAs, and any other assets. The earlier you plan to retire, the more significant your nest egg will need to be. Waiting a few years can help you build up more financial security through tax-advantage investment accounts. So if you love what you do, a later retirement means that you can continue doing it while you shore up your savings for the future. A common algorithm for retirement planning is to have savings that are 25 times the amount of your annual expenses.

No Debt
When heading into retirement, it is advised that you make sure you do not have outstanding debt in the form of high-interest credit cards and outstanding loans aside from a mortgage or car financing, which can be taken into account for your needed expenses. By eliminating debt, your retirement income can be used for current expenses instead of past expenses and offer you added peace of mind.

The Economy
While there is no way to be sure what the future holds, if there are signs of an economic downturn, you may want to hold off on the retirement plans for a bit. This will give the markets time to recover, which will help you recoup your invested assets and retire with a better bottom line.

The most expensive mistake in selling a business is to undersell it. A qualified intermediary can add significant value to a transaction simply by virtue of experience.

Putting this into context, buyers are fit for transactions, they conclude deals in multiple jurisdictions and often have dedicated teams that focus exclusively on mergers and acquisitions. Business owners may typically have done a transaction or even two in their careers, but most often they have not yet sold a business and can benefit enormously by having a seasoned sell-side advisor on their team.

Whilst there are very broad categories of advisor; no two intermediaries are the same. In selecting an advisor there are some fundamental questions to ask that will help establish whether the firm will meet your specific needs and requirements.

1. Who will manage my deal?

Now that Biden was named the President-elect, what does this mean for mergers and acquisitions under a Biden administration? The good news is that mergers and acquisitions activity is expected to increase regardless of the election results. Many experts predict that M&A activity will return to pre-pandemic levels in the next year, and that the market will be favorable for the next few years.

Taxes
President Biden’s proposed tax plan raises the corporate tax rate from 21% to 28%, which would likely make M&A deals more expensive. Biden has also voiced support for an increase in capital gains taxes, which could impact M&A activity. The proposed plan would tax long-term capital gains and qualified dividends at the ordinary income tax rate of 39.6% on income over $1 million, and eliminates step-up in basis for capital gains taxation. Sellers may be anxious to complete deals prior to 2021 to dodge higher taxes and potentially lower valuations, and to avoid having increased capital gains taxes cut into profits from a deal.

The Biden plan also restores the top individual federal income tax rate from 37% to the pre-Trump rate of 39.6%. It also promotes tax provisions to penalize the exporting of jobs overseas and to incentivize investments in new infrastructure and green energy, transportation and manufacturing, and establishes a minimum tax on corporations with book profits of $100 million or more, structured as a 15% alternative minimum tax, to prevent them from paying no taxes. The plan also offers tax credits to small businesses for adopting workplace retirement savings plans and creates a Manufacturing Communities Tax Credit to reduce the tax liability of businesses that face workforce layoffs or a major government institution closure.

It is important to note that getting tax code changes enacted into law requires congressional leadership and the White House to work together to reach consensus. This can be challenging, and can also take a considerable amount of time, meaning that there may not be immediate tax implications for M&A. But you still may not want to wait until 2021 to sell your company. Here’s why.  

Benchmark International facilitated the transaction of Johnson Claim Service, Inc. in Tulsa, Oklahoma. It has been acquired by Davies.

Johnson Claim Service provides insurance adjuster and appraisal services for insurance contracts written to cover property, casualty transportation and agricultural claims. The transportation claims include truck, trailer, heavy equipment physical damage, motor truck cargo, dealers open lot, garage keeper’s legal liability and non-truck liability. The company has both a domestic and international client base for which its services are provided.

Allen G. Johnson, President of Johnson Claim Service commented regarding the transaction, "We engaged Benchmark to assist in providing professional services in the sale of our insurance related business.   Their team, and most importantly their Deal Associate who handled our transaction through to completion, stayed involved during some difficult negotiations.  The Deal Associate helped JCS finish the business sale with a very positive result for the owners.  Great job Benchmark International!"

Johnson Claim Service will join Davies already established Claims Solutions business in the US, adding specialist transportation claims capability. Globally Davies has more than 4,000 colleagues, with operating centers across the UK, Ireland, Bermuda, the US and Canada.  The business delivers professional services and technology solutions across the risk and insurance value chain, including excellence in claims, underwriting, distribution, regulation, customer experience, human capital, digital transformation & change management. This deal marks Davies sixth acquisition of 2020. 

Benchmark International proved its value in finding a buyer with experience in the industry through its proprietary multi-medium marketing strategies. In addition, Benchmark International incorporated several campaigns with local, regional and national associations.

Deal Associate Amy Alonso at Benchmark International commented, “Benchmark International added value by negotiating this deal. We saw throughout the entire process that the buyer, Davies, was a perfect fit who stood to benefit greatly from the experience, industry knowledge and high quality service that they would gain from the existing owner. With this knowledge, the team was able to negotiate a deal that would allow for the existing owner to successfully transition the business to a capable buyer. We wish Johnson Claim Service Inc and Davies the best of luck in their future endeavors.”

Benchmark International is proud to be a part of the 2020 OCFO Founders Conference, taking place virtually, during Global Entrepreneurship Week on 19^th November 2020.

As part of the event, Dustin Graham, Managing Partner of Transactions for Benchmark International's South African offices, will be speaking on the topic Building Your Business For Sale.

Topic: Building for Sale,  14:40–15:00 – Dustin Graham
Event date and time: 19th November 2020, 13:00–16:00
Location: Virtual event
Link to register and ticket sales:  https://zcu.io/1od4
Link to event agenda: https://www.foundersevents.co.za/agenda/

OCFO Founders Conference Annual Event
The annual Founders Conference normally takes place in the heart of beautiful Cape Town during Global Entrepreneurship Week. However, in the light of Covid-19, It was decided to host the Founders Conference as a virtual event this year.

The conference brings together top business people, investors, and entrepreneurs in South Africa for powerful networking, learning, and inspiration. The Founders Conference is one of the biggest gatherings of entrepreneurs on the African continent—not to be missed by any serious founder. Speakers include some of the most successful founders around the globe and investors who have raised and invested billions.

Strategic partnerships or alliances can be very effective business tools and are important to the health and growth of a company. They can enhance capabilities, and open up shared access to new markets, channels, intellectual property and lowered risk. But they can also be complex. Once you form this type of partnership, it takes some effort to maintain it and ensure that it is a win-win for both parties involved. By taking the right steps and having a clear vision for your long-term strategic partnership, you can help it create value, thrive, and boost your business. 

Narrow Your Focus

There are many businesses that you could form a partnership with, but you have to narrow it down to what makes the most sense. What partners serve similar customer bases that make sense? For example, if you have a landscaping business, consider partnering with a nursery or a landscaping supply company. You’ll be serving the same buyer and can pass on referrals while streamlining the process and relationship for the customer.

See Both Sides

A strategic partnership, like any relationship, needs to work for both sides in order for it to flourish and yield mutual benefits. When you’re pitching the alliance to a potential partner, consider the benefits for them and present them clearly.

Click Here To Watch The Webinar: How PPP Loans Affect Your Ability To Sell Your Business - We Now Have Guidance 

We have also included handouts that go along with this webinar for you to download and view at your convenience. Please see the handouts below:

• SBA Procedural Notice
• Sample PPP Loan Language
  
  

Culture Affects the Bottom Line

When a company demonstrates that it’s thriving with happy and motivated talent, it is more likely to garner a higher business valuation when going to market for a merger or acquisition.

There is a proven link between culture, employees, productivity, and profit. Research shows that:

• Businesses with satisfied employeeshave been noted to outperform competitors by 20 percent.
• Happiness leads to a 12 percent boost in productivity and companies with strong cultures see a 43 percent increasein revenue growth.
• When employees are engaged, absenteeism falls 41 percent, productivity rises by 17 percent, and turnover is cut by 24 percent.

Exit planning is how business owners prepare to depart from their private company and maximize its value through a merger or acquisition to increase shareholder value or transition the company to serve other objectives. It basically arranges for you to leave your company on your own terms. Unfortunately, many business owners do not recognize the value in professional exit planning because they do not see their company from the perspective of a potential buyer, resulting in significant loss of value when exiting the business.

A solid exit plan clearly defines the business owner’s objectives, and lays out a comprehensive strategy that accounts for all personal, business, financial, legal, and taxation aspects of reaching those objectives, including leadership succession and the future of the business. These objectives include the maximization of value, mitigation of risk, conducting an expedient transaction, and finding the right investor to take over the business in its best interests. The strategy may also cover worst-case scenarios, such as illness or death of the business owner. Quality exit planning usually should take place around 10 years prior to transitioning the business, to allow for value strategies to flourish.

Why It’s So Important

Dustin Graham, Managing Partner at Benchmark International, Cape Town, virtually chatted to innovators and business owners about the critically necessary planning for their exit and their worth at the recent SA Innovation Summit.

The SA Innovation Summit is the largest startup event in Africa, and brings together top entrepreneurs, investors, corporates, and thought leaders to inspire sustained economic growth across Africa. The Summit provides various platforms for developing and showcasing African innovation, as well as facilitating thought-leadership.

The interaction between Dustin and Jonathan Smit, founder of PayFast, is well worth a listen.

Listen Now on Vimeo: Planning Your Exit

Benchmark International is pleased to announce the acquisition of Advantage Plastics of New York and Sherri Plastics (Advantage Plastics), to an affiliate of Orchard Creek Capital.

Advantage Plastics specializes in thermoforming a variety of plastic products across numerous industries. Specialties include vacuum forming, CNC trimming, laser cutting, and laser engraving. The company works with a wide array of materials, including ABS, HDPE, Acrylic, and PVC.

Owner, John Salva with Advantage Plastics commented regarding the deal completion, "The team at Benchmark really stepped up and took care of all of us. It was important to us that we find a buyer that would compensate us for our life's work, as well as value our wonderful team of employees."

Orchard Creek Capital is an investment company based in Northville, Michigan that invests in small manufacturing businesses across the United States. Their investment focus is on successful companies with established track records and solid growth prospects. In 2018, Orchard Creek acquired a plastic injection molding company in Grand Rapids, Michigan. Acquiring Advantage Plastics brings additional assets in the plastics space.

Senior Transaction Associate Sunny Yang Garten at Benchmark International commented, “It was a pleasure to represent Advantage Plastics in this transaction. We’re excited to see that the legacy will be preserved and enhanced through this transaction. On behalf of Benchmark International, we wish both companies continued success.”

Benchmark International facilitated the transaction between Hillcrest Urgent Care of Alabama (serving the Greater Mobile area) and Carbon Health of San Francisco, CA.The seller, Hillcrest Urgent Care of Alabama, has been providing urgent care services to the Greater Mobile, AL market since 2013. Hillcrest has repeatedly remained on top of the most reputable urgent care facilities in Mobile and ranked 2nd in the state of Alabama. Dr. Gamil “Jimmy” Dawood is a compassionate individual with a true love of providing acute care services to patients looking for convenient, reliable care.

Dr. Jimmy Dawood mentioned regarding the transaction, “I was very pleased to find out that Carbon Health shares the same philosophy of putting patients first and providing excellent care in a friendly environment as I do. The Benchmark team was always available and more than a partner in the whole process! Matthew Kekelis and Neal Wilkerson in particular were very professional, resourceful, supportive and friendly. They went above and beyond to ensure the successful completion of the sale.”

The buyer, Carbon Health is a San Francisco based technology-enabled healthcare provider delivering omnichannel primary and urgent care across the country. The company, launched in 2015, has re-engineered healthcare delivery from the ground up to provide an exceptional experience for both providers and patients, making high-quality care accessible to all.

“We are grateful to work with Benchmark International and Dr. Dawood of Hillcrest Urgent Care of Alabama for a seamless transition,” said Will Abbott, Chief Operating Officer at Carbon Health. “Dr. Dawood and his team have built a thriving practice in the Greater Mobile community. The Carbon Health team is excited to build on this foundation and continue to provide high-quality care while integrating additional innovations to expand services and meet the community where they are.”

Regarding the deal completion, Transaction Director Matthew Kekelis at Benchmark International commented, “Benchmark, through are open bid process, was able to secure many interested parties in a short period of time. Because of this, we were able to successfully negotiate an offer our Client could not pass up. A straightforward diligence process with open lines of communication between all parties expedited the time to deal completion. “Everyone involved in this transaction diligently worked together and agreed early on that this was a great match. Hillcrest Urgent Care is a beacon of healthcare excellence in the community. We were all excited to find the perfect buyer, Carbon Health, to build upon Hillcrest’s commitment of providing exceptional healthcare.”

ABOUT CARBON HEALTH Carbon Health is the technology-enabled healthcare provider designed from the ground up to put patient-care first. By combining technology with modern clinics, it delivers a uniquely seamless experience from virtual care to in-person care to meet patients where they are. Carbon Health removes the boundaries to high-quality, transparent and personal care and envisions making patient-centric, world-class care accessible and a reality for everyone. Carbon Health is headquartered in San Francisco with clinics across California and virtual care in 16 states across the U.S. To access Carbon Health, download the app (iTunes or Google Play) or visit carbonhealth.com.

2020 has certainly served up its share of uncertainties and economic concerns thanks to the COVID-19 pandemic. There seems to be a popular attitude that once 2021 arrives, everything will simply return to normal. If you are considering selling your company, you may not want to wait until next year. Here’s why.

Some Things Haven’t Changed

Regardless of the pandemic and economic concerns, certain factors remain constant. Investors sitting on plenty of capital are always seeking opportunities, no matter what is happening in the economy.

First, it is important to note that there was a record-setting amount of capital raised in 2019.

• Across 1,064 private equity, venture capital, infrastructure, and real estate funds, an astounding $888 billion was raised.
• Globally, PE firms raised more money than any previous year, closing on almost half a trillion dollars. 
• More than $300 billion was raised in U.S. private equity alone.
• More than $100 billion in capital is still unspent in funds that are six years or older. 
• In the U.S., venture capital funds saw a huge year for investment realizations, and exit value more than doubled year-over-year. This cash will eventually be distributed to limited partners and investors are likely to reinvest it in new funds.

It could easily be a seller’s market in your sector. Plenty of businesses have seen valuations rise because their services are in higher demand in the current environment. If your business is fortunate enough to fall into this category, selling now can be critical to getting maximum value.

Additionally, tens of thousands of Baby Boomers are still reaching retirement age and many of them are also business owners. Those who own companies that have suffered due to the pandemic may be more likely to consider retirement and an exit strategy because they don’t want to put in the time, effort and money to rebuild their business at their age. They could flood the market at any time, meaning you will be facing increased competition, giving buyers the upper hand. This scenario can also result in a lower valuation for your business. It is another solid reason you should consider starting the M&A process sooner rather than later.

We Know the NOW

Nobody can say for sure what the future holds for the economy, but we do know what the state of it is today. When we know and understand what is certain right now, we can make educated decisions based on current circumstances. These circumstances include political factors, trends within your sector, what your competition is doing, buyer demand, as well as current market values, tax rates, and interest rates.

• Right now, the U.S. is seeing the lowest interest rates in its economic history. On September 16^th, the Federal Reserve left the target range for its federal funds rate unchanged at 0-0.25%, and signaled that it would keep them at that level through at least 2023.
• At this time we also know the current tax environment. We can only expect that taxes will increase in the long term in order to overcome the growing debt burden that has been created in 2020 because of economic damage caused by the COVID-19 pandemic.

While you might feel that waiting until 2021 will allow you to sell your company for more money, that is not necessarily the case. There is no proven data to support that theory, and you could actually end up selling your company for a lower valuation because you chose to wait. Also, the right timing depends heavily on the activity in your sector. What type of business you own can constitute the best time to sell, even during a pandemic. It could actually be the perfect time.

You Can’t Prepare Too Soon

Timing is everything when it comes to selling a business. And sure, 2020 seems to have turned everything upside down, but we also cannot predict what 2021 holds. Optimism for the future is somewhat human nature during a long-term crisis, but questions surround the timing and availability of a vaccine for the virus, and how quickly the economy will fully recover.

It is important to note that plenty of businesses are still being bought and sold in 2020. If you put off a sale too long, you could run the risk of missing out on a great opportunity to get the most value for your company. But at the very least, you should not put off the preparation for a sale. It can take several months to years to complete a merger or acquisition. Even if you are unable to sell this year, starting the preparation process now can position you for a seamless transaction down the road. You should engage now to ensure that your company can be put on the market at the beginning of 2021. When the process is done correctly it can take 30-60 days just to get a business on the market, and a total of 6-12 months to close a deal. Waiting until January to act could put you at a major disadvantage with buyers on market at the beginning of the year.

Preparing now will also position you as a more patient seller, versus one that is panicking to unload your business without a solid exit plan. Buyers will see you as desperate, leading them to offer you less money. If you demonstrate that you have been carefully preparing for a sale and have done your due diligence, you are likely to garner a higher sale price.

Another advantage of preparing for a sale is that it can put you in the position to test the market. Maybe you are not sure if you should sell. So, why not put your business out there and see what kind of offers come back? You might be surprised at what emerges. If you still don’t want to sell, you can simply take your business off the market and wait for a better time. However, if you choose to do that, you do run the risk of appearing that you are not a serious seller in the future. Working with a reputable M&A firm can help steer you through the process and protect you from making common seller mistakes. They will also help you control the narrative, so that your business remains positioned in a positive light no matter what decisions you ultimately make.  

Let’s Start the Conversation

Our M&A experts at Benchmark International know how hard you have worked to build your business. Even if you are not sure if you are ready to sell, reach out to us and we’ll help you figure out what is best for you, your company, your family, and your financial future.

As the world still faces the COVID-19 pandemic, businesses in the financial services sectors are preparing themselves for life after coronavirus. This includes the management of credit risk for borrowers, and turning to digital strategies to drive revenue growth.

Insurance and Innovation

The COVID-19 pandemic is forcing the entire insurance sector to implement and leverage digital platforms that enhance customer experiences as a key part of their business strategies in a transformed world in which people are working remotely and driving their vehicles less often. The pandemic has led insurance companies to implement premium relief efforts, offer payment deferral plans, and expand coverage, but these companies are also turning to more digital strategies, emphasizing online customer experiences at a time when more and more transactions occur online versus in person. Consumers are demanding new products such as cyber insurance, more modern life insurance options, and usage-based car insurance. Middle-market insurance companies have always been a bit technologically behind the big players, but they now must adopt new innovations in order to merely keep up with convenience, simplicity, mobility, and modern interfaces that customers have come to expect.

Banking and Lending

Financial institutions are in a position where they need to understand borrowers’ needs and current financial states more than ever. They must also find new ways to measure performance through the rest of 2020. They have already provided assistance to many small and mid-size businesses during the crisis, some of which will be forgiven. Loan modifications have been provided to help businesses survive, and there is likely to be some loan losses. As the economy begins to recover, banks will be able to get a better understanding of borrowers’ financial states, knowing that it will take some time for businesses to bounce back. Deciding whether to lend more credit will be a difficult decision for financial institutions, especially for harder hit sectors such as hospitality and retail. Understanding the recovery of these industries as a whole will be critical through the use of data and payment activity monitoring.

Family Offices

Family offices are private wealth management firms that serve high-net-worth individuals and their families by offering a total outsourced solution to managing finances and investments. There are nearly 2000 of these types of firms around the world, with more than half in the U.S.

These firms have typically relied on physical offices to conduct business. Now in the wake of COVID-19, a shift to virtual family offices has become a necessity during a time where remote work has become commonplace. This has been a challenge for many family offices because most simply do not have the appropriate technology and infrastructure to result in a seamless transition to a virtual office. These businesses will be forced to evolve technologically into the rest of 2020 and beyond. As outdated technology is replaced with better performing innovations, family offices will become more mobile and agile, as well as better equipped with more adequate cybersecurity. Connectivity is also a timely issue, as Millennials will be inheriting family wealth in the future and they demand immediate access to data without disruption and with more transparency. This digital transformation to virtual family offices will also allow for a leaner staff that can deploy resources more quickly.

Capital Markets

The events of 2020 have led capital markets to affect businesses in different ways. Underwriting slowed for high-yield borrowers. Mergers were put on hold. Stock markets have been up and down, and a record number of securities and their values have been exchanged. As financial conditions improve, confidence combined with cheap credit will have companies seeking liquidity to get through the rest of the crisis. Corporations have been tapping into the public debt markets at high rates. While this generated profits at the start of the recession, bonds are less likely to be issued as businesses restore their reserves and establish liquidity that will be needed into the future.

For the rest of 2020 and into 2021, investment banking associated with M&A activity will continue to be tied to the economic recovery amid a softer deal pipeline. When the economy finally bounces back, there will be opportunity for a backlog of deals, boosting advisory revenues.

Data and Private Equity

In the time of COVID-19, certain private equity trends have emerged and are expected to be here to stay. People are still paramount, but how they work has changed. Data continues to be more important to deal making to determine the areas for greatest earnings impact. Datasets will track strategic movements and metrics within companies to gauge their performance. Remote workforces will allow competitive PE firms to source key financial talent from entirely new geographic regions. Firms are also expected to outsource more of their back-office work functions and instead focus on front-office responsibilities.  

Ready to Sell?

If you are a business owner who is considering making a move, our M&A experts at Benchmark International would love to discuss how we can help with the sale, exit or growth of your company.  

Benchmark International has successfully facilitated the transaction between Read’s Uniforms and Brighton Partners Equity. Read’s Uniforms, Inc., hereinafter referred to as “Read’s”, is an omnichannel distributor of uniforms and accessories for resale to all five major uniform verticals including medical, public safety, industrial, hospitality, and education. This multi-location provider has access to key brands in all major verticals. The company has ten locations throughout Florida, Tennessee, South Carolina, and North Carolina.

Eric Hutzler, Owner of Read’s Uniforms, mentioned regarding the transaction, “As founders, we were very pleased with the pipeline of qualified buyers that Benchmark was able to produce. We had multiple options to choose from, each with a unique upside to consider. Ultimately, it is highly unlikely we would have found any of these opportunities on our own.”

Brighton Partners Equity hereinafter referred to as “Brighton” is a private equity firm focused on regional distribution and service companies where geographic expansion is a key driver of future growth. Brighton takes a hands-on approach, bringing objective analysis and years of small, growth-oriented company experience to each investment opportunity. They pride themselves on being good communicators; with their management teams, lenders, and limited partners.

Read’s was a perfect fit into the current portfolio of Brighton, and an excellent platform for Brighton to expand upon based on their investment thesis. The challenges that COVID presented during this transaction were not insignificant, causing all sides to come together and develop creative financing solutions when the debt markets were retracting. This deal is a cathartic end to the Hutzler’s vision and a welcome beginning to a new partnership that is sure to thrive in the coming years.

Benchmark International’s Managing Director, Dara Shareef commented regarding the deal completion, “Benchmark International is happy to have successfully facilitated the transaction between Read’s Uniforms and Brighton Partners. Deal fatigue could have impeded this transaction at many points, but both sides remained diligent in their efforts. We certainly look forward to the prospect of working with the Hutzlers and Brighton Partners again should the opportunity present itself.”

The COVID-19 pandemic and the resulting government responses have had a significant impact on consumer spending, with retailers closed for months and shoppers staying home starting in the early part of 2020, with the timing of closures varying by country. Many consumers continue to stay home, even as most businesses have reopened. Online shopping has surged due to the pandemic. In the U.S. and Canada, e-commerce orders are up 146%.

Household consumption increased over the summer and is forecast to continue. Certain consumer behaviors that were newly formed during the earlier stages of the pandemic are expected to permanently influence spending habits. Retailers will need to clearly understand these behavioral shifts as they navigate the immediate future, and into the long term if they plan to succeed amid the new normal.

Digital as Key Driver

As globalization becomes more common in our world, many businesses are choosing to take advantage of the growth opportunities that lie in expanding into new markets. But expansion can be a significant undertaking for small and middle-market businesses, with many moving parts. As a business owner, you need to fully assess and understand the risks and rewards that expansion can present for your company. The following steps outline areas on which you should focus, and which elements of your business you should have ready in order for an effective expansion into new markets.

Impact Assessment

Before expanding your company into new markets, you must have a comprehensive understanding of what the overall impact on your business will be. Conduct market segmentation and product gap analyses to assess whether your product or service will sell in the target market and do a SWOT analysis to see how it stacks up against local competitors. You need to know if there is a need for your company and if anyone will buy what you are selling. You will also need to consider how large the market is and how long it may take to reach your target sales numbers.