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. 

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.

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 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 was awarded Logistics Deal of the Year for the sale of X Caliber Container, LLC, to LongWater Opportunities at this year’s M&A Atlas Awards from the Global M&A Network.

Benchmark is pleased to announce the transaction between Lookthinkmake, LLC, and Post House Creative. The target reason for the acquisition was the exponential growth that could come from combining the two companies.

Benchmark International successfully guided the acquisition of Recruiters Websites by Haley Marketing.

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.

In 2021, the global heating, ventilation, and air conditioning (HVAC) market was valued at $156.44 billion. The market is expected to be valued at $231.11 billion by 2027, expanding at a compound annual growth rate (CAGR) of 6.72% between 2022 and 2027.

Benchmark International's client, B. Carlson Heating & Air Conditioning, a provider of HVAC and Plumbing Services, has been acquired by Radiant Plumbing and Air Conditioning, a Texas-based portfolio company of The Riverside Company.

Benchmark International has successfully facilitated a transaction between Hialeah, Florida-based D.T. Woodcrafters Corp (“Woodcrafters”) and Hollywood Woodwork, Inc. (“Hollywood”), headquartered in Hollywood, Florida. Woodcrafters creates custom woodwork for a high-end customer base that includes banks, offices, restaurants, hotels, and homes. For over 25 years, the team’s craftsmanship has allowed it to distinguish itself in South Florida. Hollywood is one of the nation’s premier millwork and casework companies, with over 150 employees and a leading position in the Florida market.

Benchmark International is pleased to announce the acquisition of 6 Denver metro Jimmy John’s franchise restaurants, known as Rupp Enterprises, to a private investor.

Benchmark International successfully facilitated the transaction of Coastal Packaging and Lachemont Group. Coastal Packaging is a custom packaging and liner covers company offering turnkey, flexible packaging specializing in plain and printed roll stock for form fill and seal machines, open mouth bags, custom fit container liners, and pallet covers. They have flexible minimum runs, which is an advantage.