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Benchmark International Named Among The 50 Best Workplaces Of The Year

Benchmark International has been named as one of the 50 Best Workplaces of the Year 2021 by The Silicon Review. The list is handpicked from different areas and recognizes businesses that attract both talent and clientele and stand out with regards to unique and positive company culture.  

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The Benefits of an Effective Seller Transition Period

A very important part of selling your business occurs after the business has been sold. The transition period, also known as the handover period, begins when the exiting owner remains with business for a period of time to assist the new owner with taking control of the company. The transition period should be carefully planned and thought through in order to ensure that it is well executed when the time comes. It can make a great deal of sense to begin working on these details early on in the sale process.

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Reps and Warranties Insurance is Now Key for Strategic Buyers

Reps and warranties insurance is a policy secured for corporate transactions such as mergers and acquisitions. In recent years, the amount of this type of insurance sold has increased significantly. It covers the indemnification for certain breaches of the representations and warranties in transaction agreements, either partially or in full. Reps and warranties insurance usually doesn’t cover losses for breaches of covenants (other than pre-closing tax indemnification) or purchase price adjustments. 

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The Impact of U.S. Infrastructure Investment on M&A

The U.S. Senate recently passed the $1.2 trillion bipartisan infrastructure bill, titled the Infrastructure Investment and Jobs Act (IIJA), to improve the country’s roads, bridges, and utilities. The bill does face an uncertain future in the House of Representatives, where its support is more limited. Still, the Democratic Party could use the reconciliation process to get the bill passed into law. 

The bill includes:

  • $73 billion for electric grid and power infrastructure
  • $66 billion for passenger and freight rail
  • $65 billion for broadband investments
  • $55 billion for water systems and infrastructure
  • $50 billion for Western water storage 
  • $39 billion for public transit 
  • $25 billion for airports
  • $21 billion for environmental remediation projects 
  • $17 billion for ports and waterways
  • $15 billion for electric vehicles
  • $11 billion for road safety

So, what might this all mean for M&A? 

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The Latest Sales Trends Heading Into 2022

Every business owner should be keeping up with the top sales trends being used to boost companies’ bottom lines in today’s tech-driven economy. So what does the future hold? Use these sales trends insights to make sure you’re doing every last thing you can to take your business to the next level.

Social Selling
Over the last decade, selling has evolved immensely. More than 90% of consumers do online research before buying something these days. And that’s why social selling is becoming so integral to the sales process. Social media connects you with consumers already interested in what you do, so you already have the upper hand by simply having them as an audience. You are also able to build better relationships with them, which will translate to higher customer retention rates.

And don’t forget about the power of referrals. 70% of companies have reported that referrals convert faster than any other type of lead. If your consumers are happy with what you are doing, they will be more likely to recommend you to their friends and family—something that social media makes it easy to do in just a click or two.

Social selling also comes with a few other added benefits. It increases your brand visibility by actively engaging with people online, and it also keeps your brand top of mind. This means you get higher-quality leads. And with high-quality leads, you can expect to see higher sales numbers.

Value-Based Selling
Customers are savvier than ever. They can see through gimmicks. Simply shoving deals in their faces doesn’t work so well anymore, especially in the B2B sector. This is where value-based selling comes in.

Data shows that 87% of high-growth companies use the value-based approach, and with good reason. By focusing more effort on showing customers the direct benefits or personal value they can enjoy from using their products or services, you’re more likely to close more deals.

Artificial Intelligence (AI)
AI adoption for sales teams is projected to be at 139% for the next three years. This is because business leaders are realizing how it can make a massive impact on sales numbers by helping with processes and tasks. Did you know that AI is capable of performing 40% of sales tasks?

AI can help you gather valuable data on customers that you can use to craft marketing strategies to increase your sales. It can also provide value by offering suggestions to customers based on their recent transactions. But that’s not all. AI can also predict trends in your sector to help you stay ahead of the game, boost productivity by automating menial tasks, identify leads with a higher chance of conversion, and improve customer satisfaction.


Ready to explore your exit and growth options?
Personalized Customer Experience
When you give your customers a more personalized experience, they are more likely to do business with you. Research shows that nearly half of all buyers will make an impulse purchase after getting a personalized shopping experience. Because most customers appreciate a level of personalization, they are willing to give you their personal information or create online profiles. And this is really half the battle when it comes to building a solid customer base. Additionally, when customers feel more engaged on your website or app, they are more likely to do business with you. As long as you can offer them convenience, speed, helpfulness, and friendly service, getting personal can take you a long way.

Outsource Sales
80% of logistics leaders have reported that the matter of outsourcing is no longer a yes or no question—it’s just a question of how much needs to be outsourced. The global outsourcing market is projected to grow to $82.2 billion by 2022.

By outsourcing, you will have a dedicated sales team that is laser-focused on identifying leads, reaches different segments through different platforms, and converts potential customers. Meanwhile, your company saves money and gets the sales expertise needed for the job while you focus more on your business. Outsourcing can also help small businesses with scalability issues. If your company experiences rapid growth, an outsourced sales team is ready to handle it.

Customer Relationship Marketing (CRM)
91% of companies in North America have a functional CRM solution integrated into their system. And guess what else? 65% of sales reps using mobile CRM have a higher chance of meeting their quotas. CRM makes it easy for reps to see all the data they need in a centralized system. Because it also stores customer data, CRM can suggest products depending on their past purchases. It can also improve your relationships with your customers by giving you a complete understanding of their needs and preferences.

Omnichannel Sales
Selling today is all about unifying your sales channels and creating a single commerce experience. This gives customers the freedom to choose how they want to buy your product while expecting the same level of service no matter which they choose. 73% of shoppers look at different channels when searching for a product, such as websites, social media, and physical stores. By being visible across channels, your company has a better chance of being chosen by a customer. Omnichannel sales also make the buying experience more convenient. In fact, businesses using omnichannel sales retain 89% of their customers. Yet, 55% of companies do not have an omnichannel strategy in place. It’s simple. Get ahead of the competition by nailing down your omnichannel sales structure.

Target Millennials
Millennials live through technology. In the U.S. alone, 82.2 million Millennials use the Internet, spending about $600 billion every year. They are the most likely customer segment to try new technological features that you offer. And 68% of Millennials prefer a more integrated shopping experience. This is why having that omnichannel sales strategy is so important. Offer them a seamless shopping experience that focuses on technology.

Don’t Forget Generation Z
Generation Z now makes up 32% of the global population, and they have a collective $45 billion in spending power. They represent a huge chunk of the consumer population, and they are spending more and more. Gen Z-ers are digitally entrenched, with an affinity for content from sites like YouTube and Instagram. You should use these preferences to your advantage. And the best part of securing their brand loyalty is that they are poised to be customers for the coming decades because they have just recently come of age. That’s a massive sales opportunity you don’t want to overlook.

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The Myth Behind Multiples: How Buyers Really Value a Business

A topic common to the mergers and acquisitions market is the measure known as the business valuation multiple. This method determines a company’s value by its potential to earn in the future. It calculates a business’s highest value by assigning a multiplier figure to its current revenue. Multipliers differ based on the industry, economic climate, and other factors. There are a few ways in which multiples can be applied. Common multiple methods include:

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High Net Worth Retirement Planning Tips

You’ve proven you are an expert at running a successful business, and you know how to make money. But are you an expert when it comes to retirement? There are certain financial factors that high-net-worth individuals should consider leading up to retirement.  

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What Is Decentralized Finance?

Decentralized finance, also known as DeFi, makes financial products available to anyone on a decentralized blockchain network. Through this relatively new software system, all parties can interact directly through applications, eliminating a need for middlemen such as banks or institutions to facilitate transactions. It also eliminates a need for proof of identification or age requirements that banks typically require. There is no need for anyone to know anyone else’s identity. Everything occurs over a public blockchain, using smart contracts, which are bits of code that execute specified actions once certain criteria have been met. It’s based on mutual trust and strict privacy.

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15 of The Most Luxurious Hotels in The World

Now that the COVID-19 pandemic is settling into our rearview mirrors, so many of us have been itching to get out there to enjoy an indulgent vacation and a much-deserved change of scenery. So, here you will find a list of some of the most luxurious hotels in the world (in no particular order) to help you start planning your next beautiful adventure or a quiet escape from it all.

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Why Companies Need Mergers and Acquisitions

There are many reasons that mergers and acquisitions are critical tools for companies of all sizes, some of which may not even be fully realized by business owners. Ultimately, it’s all about achieving positive results for the business by making strategic moves that make sense, all depending upon what the fundamental goal (or goals) may be. For companies in the lower to middle market, M&A can be an extremely effective solution for a variety of purposes.

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The Critical Focus On Cybersecurity In M&A Deals

The recent cyberattack on the Colonial Pipeline in the U.S. is a glaring reminder of the vulnerabilities that all industries face, as well as the costly repercussions that can be a result of such a situation. Colonial Pipeline Co. paid the hacker group $5 million to have the company released from the ransomware to restore service to the critical pipeline. This actually turned out to be a wasted $5 million. For that high price, the hackers provided the company with a decrypting tool to restore its disabled computer network. But this tool was too slow, and Colonial ended up using its own backups to restore the system.

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Growing Business Trends For 2021-2022

Our world continues to change, and businesses must remain adaptive in order to keep pace with their competition and consumer demands. Thanks to new technologies, changing customer priorities, societal movements, and of course, repercussions from the COVID-19 pandemic, business owners can expect certain industry shifts that began leading up to 2021 to continue into 2022.

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2021 Energy & Sustainability Report: Progress, Trends, And M&A

The COVID-19 pandemic revealed to the world just how unprepared entire business sectors can be when it comes to unexpected events of mass proportion, and just how delicate our global supply chains actually are. COVID has been a health crisis that impacted lives, economies, and industries. Climate-driven events and disasters occur on a more concentrated scale but have proven to be extremely costly and disruptive to multiple sectors in various geographies—a problem that appears to be growing more prevalent.  

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Medtech M&A On Track For Strong Second Half Of 2021

In the first half of 2021, medtech M&A deals already surpassed the total number of deals from last year, and this bustle in activity is forecast to continue through the second half of the year, as medtech companies have stockpiled billions of dollars in cash. The dollar value of deals in 2021 is also expected to far outpace that of 2020. Eleven megadeals were announced in H1, with a total deal value of around $128 billion.

Medtech M&A activity kicked off 2021 right out of the gate, with at least 10 deals announced in January alone. Companies emerged from 2020 flush with cash reserves and were ready to spend on dealmaking. The medtech sector recorded a total of 33 deals in the first half of 2021. That's up from 25 total in all of 2020. In fact, the first quarter of 2021 was the busiest for medtech M&A since 2016. While the initial rapid momentum may have slowed, the second half of 2021 should be abundant with new deals.

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10 Mistakes To Avoid When Selling Your Company

Selling a business comes with its share of challenges and concerns. Many business owners do not realize just how much time and energy is required to facilitate the sale of a company and are blindsided when they embark on the M&A process. The good news is that many of the pitfalls around selling can be avoided by learning from others' mistakes, like the 10 outlined below.

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Can you Fund M&A With Cryptocurrency?

What is Cryptocurrency?

It seems like everyone is talking about it, but what exactly is cryptocurrency, or crypto? It is a digital payment method that is exchanged online to pay for goods and services. Crypto uses blockchain, which is a highly secure, ledger technology that is spread between multiple computer systems that manage and record transactions. As of now, bitcoin (BTC) is the most popular digital token network, followed by ethereum (ETH). They are both decentralized, meaning that they are not issued or regulated by a central banking authority. In 2020, Bitcoin beat the investment returns of gold and the S&P 500.

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Why Leveraged Buyouts Are Making A Huge Comeback

The last time we saw leveraged buyouts (LBOs) occur with such frenzied speed and spending, it was during the years of 2006 and 2007, right before the financial crisis of 2008. As we recover from the COVID-19 pandemic, interest rates remain low, and many business owners forced into survival mode are seeking exit opportunities. Plus, private equity firms are more than ready to spend the record levels of cash on which they have been sitting for quite some time.

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How Your Company Can Benefit From Cross-border M&A

Growing a company once it has reached a certain plateau of success can be challenging. Mergers and acquisitions are a powerful tool for boosting the growth of an existing company—especially cross-border M&A. As a business owner, you should consider the different ways your company can benefit from an international deal.

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Why 2021 Is A Seller’s Market

A Seller’s Market Versus a Buyer’s Market

In a seller's M&A market, excess demand for assets that are in limited supply gives sellers more power when it comes to pricing. Such demand can be generated and galvanized by circumstances that include a strong economy, lower interest rates, high cash balances, and solid earnings. Other factors that can instill confidence in buyers—leading to more bidders willing to pay a higher purchase price—include strong brand equity, significant market share, innovative technology, and streamlined distributions that are difficult to emulate or recreate from scratch.

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How Do I Get The Most Out Of My SaaS Company?

As the owner of a Software as a Service (SaaS) company, there are several strategic steps you can implement in order to drive growth and maximize the value of your business.

1. Expand Geographically

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Benchmark International's Steven Keane Named Chairman of the Year

The Benchmark International team is proud to announce that our chairman, Steven Keane, has been named International Chairman of the Year in the 2021 Global Business Awards given by Corp Today Magazine.

London-based Corp Today is a business enterprise magazine that focuses on emerging businesses and the world’s leading and fastest-growing companies, as well as their style of doing business and manner of delivering effective and collaborative solutions to strengthen market share. Their reader base consists of 138,000 C-level executives, VPs, Consultants, VCs, managers, and advisors.

The publication’s dedicated team of in-house researchers handpicked all of the 2021 winners based on merit and not popularity. Their stated goal is to recognize the best in the business.

We salute Steven for earning this prestigious recognition, as he certainly deserves it. CEO Gregory Jackson stated, “Steven’s exceptional leadership is a testament to the greatness that our company continually aspires to achieve, never settling for anything less than the very best. It’s just how we are wired at Benchmark International. Congratulations, Steven.”

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Selling Your Company? Beware Of Strangers Bearing Gifts

If you are considering selling your company, you should be aware of a certain menace that could have you in its crosshairs. There are direct buyers out there who intentionally prey on business owners, attempting to acquire a company by blindsiding its owner with big promises and, more importantly, taking advantage of their lack of guidance from a seasoned M&A professional. These buyers purposely look to avoid competition for a company because competition drives valuations higher, and they want to make an acquisition on the cheap—in addition to other shady maneuvers.

Bait & Switch
Some buyers will attempt to pull “bait & switch” tactics. To initially intrigue a seller, the buyer will present a high dollar amount. As they conduct due diligence and get the target more and more committed to the deal, they begin chipping away at the value until they reach a price and terms that are far more favorable for the buyer. This is typically an exhausting process for the seller and can lead to plenty of regret. If the deal falls apart, the seller may be reluctant to restart the process with another buyer, thinking the process will just be the same. In reality, it could have been completely different for the seller if they had a reputable M&A specialist on their side from the beginning.

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Benchmark International Named International Mid-Market Corporate Finance Advisory Of The Year

In the GAMECHANGERS (ACQ5) 2021 GLOBAL AWARDS, Benchmark International has been named the International Mid-Market Corporate Finance Advisory of The Year.

The ACQ is a leading corporate news publication serving the sector since 2003, with a global audience of more than 261,000 subscribers. The GAMECHANGERS (ACQ5) GLOBAL AWARDS celebrate achievement, innovation and brilliance, recognizing the most outstanding organizations and professionals in the world. 

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M&A Expectations After The Covid-19 Pandemic

It’s no surprise that the COVID-19 pandemic slowed M&A deal activity overall in 2020. According to data from PitchBook, more than 2,000 transactions closed for a value of $336.8 billion in Q2 of last year. That represents a 41 percent decline in the number of deals from Q1. Yet, deals did pick up in the second half of the year, which is likely to continue, as businesses are poised for improved economic conditions that leave COVID-19 in the rearview mirror.

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The Importance Of Being “Sale Ready”

As a business owner, maybe you haven’t given much thought to selling your company. Or maybe you’ve bounced the idea around but not too seriously. It’s pretty common for business owners to think, “I have years before I plan on selling my business. Why would I worry about that now?” Well, here’s the thing. Life is unpredictable. Just look at how prepared the world was for the COVID-19 pandemic. We think it’s safe to say that no business owner was prepared for that.

But being prepared for the unexpected isn’t the only reason that it is important to have your business in “sale ready” shape at all times, even if you’re not ready to sell. If the company is not in ready condition, it could cost you financially. And it goes beyond that. Always operating your company as if you are ready to sell accomplishes several very beneficial objectives. It ensures that you are operating at peak performance with a focus on profitability at all times, and it helps you avoid being too late to the game to make the necessary changes to be ready to sell. A person’s priorities in life can change quickly or even gradually over a span of years, and you might not have the time to correct any issues that would impact the valuation of your company and, ultimately, its sale price. It’s important to remember that properly preparing a company to go to market can take years. When push comes to shove, if you end up in a situation where you need to sell, not being ready can be a costly mistake.   

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Understanding Working Capital

Working capital, also referred to as net working capital, is the measure of a company's liquidity, operational efficiency, and short-term financial status. It is the difference between a business’s current assets, its inventory of materials and goods, and its existing liabilities. Net operating working capital is the difference between current assets and non-interest-bearing current liabilities. Typically, they are both calculated similarly, by deducting current liabilities from the current assets. So, essentially, if a business’s current assets total $500,000 and its current liabilities are $100,000, then its working capital is $400,000. But there are a few variations on the calculation formula based on what a financial analyst wants to include or exclude:

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Can I Put My Business On The Market Even Though I'm Not Actively Looking To Sell?

Maybe you’re not sure if you are ready to sell your business, but you’re curious about what you could learn if you put it on the market. You can always put your company on the market at any time, but you should understand the right way to do it, and everything that you need to consider.

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Can A PPP Loan Help or Hurt My Company Valuation?

The COVID-19 pandemic has impacted businesses of all sizes, affecting the value of many of those businesses. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was created by the U.S. government to get businesses through the pandemic, and includes the Paycheck Protection Program (PPP), which is designed to give private businesses access to cash so that they can continue to pay employees and cover other expenses, such as health insurance, rent/mortgages, and utilities, over a 24-week period. The loans contain provisions for forgiveness as long as the company meets certain requirements and certifications. The PPP loan and its associated forgiveness have impacted how company valuations should be determined for the recipients.

For company valuation purposes, there needs to be an understanding of the reasons that the business got the PPP loan. The loan could indicate that the company has been under duress. Because of this, past financial statements may not accurately represent the future of the business.

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How To Announce An Acquisition

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.  

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Why You Should Consider Private Equity

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

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Gamestop, Robinhood, And Drama On Wall Street

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.

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2021 Is Here. Why You Should Sell Now

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.

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Leading Positive Change After an Acquisition

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.

 

Ready to explore your exit and growth options?

 

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.

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2021 M&A Outlook

The Beginning of the End

The turbulent year of 2020 is finally in our rearview mirror. While so many lives have been lost and everyday life is still far from normal, effective vaccines for COVID-19 are being distributed, offering hope for a near-term end to the disruption we’ve endured for the past year.

Markets have begun to respond with optimism for the highly anticipated return to normal, but we’re not at the finish line quite yet. Mass distribution of the vaccine will take time, and people and businesses are still suffering as the virus is spreading at record-high levels and restrictions are being reinforced. This means that, yes, our world remains suspended in a state of uncertainty, but we have good reason to believe that the global economy will continue to recover, and mergers and acquisitions will lead the recovery. Research indicates that 53 percent of US executives plan to increase M&A investment in 2021. Some sectors have fared rather well during the pandemic. But how well—and how quickly—the overall economy recovers will depend on factors such as virus containment, fiscal and monetary policy, and inflation.

Virus containment remains the main priority for economic recovery to succeed. However, there are other possible risks to market performance. A lack of adequate policy support could occur due to concerns about mounting government debt. The technology conflict between the US and China is likely to continue even under a more traditional Biden administration, and the impacts are expected to take years to manifest. The decisions made by the two countries will affect regional economies and the businesses that operate within them. Other geopolitical factors could also shift investor attention away from recovery, but they are considered rather unlikely at this time.

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Why Choose An M&A Firm Over An Industry Expert?

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.

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M&A As A Strategic Opportunity For Business Owners

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.

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2020 M&A In The Global Sports World

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.

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Post-COVID Due Diligence

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

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Grow Your Business Through A Strategic Alliance Or Strategic Partnership

Mergers and acquisitions are proven highly effective strategies for business owners that want to create growth, diversify, save a struggling business, or craft an exit strategy for their retirement. But maybe you are seeking a less-permanent measure to boost your bottom line. By forming a strategic alliance or a strategic partnership with another business, you can create significant growth and cost savings for both companies. 

Strategic Alliances
Your business can gain a series of advantages through a legal strategic alliance agreement. An alliance can improve operations, pool resources, share core competencies, change the competitive landscape, create economies of scale, and offer a lower cost way to enter new sectors. There are three main types of strategic alliances:
  • 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.
 
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6 Considerations When Selecting A Transaction Advisor

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?

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