Author: Gregory Pearl

Business Valuation, Buying & Selling a Company

M&A Metrics Q1 2022

Gregory Pearl

Alteris LLC tracks Mergers & Acquisitions (M&A) generalized valuation and other trends/metrics from its various partners and research sources.  We will periodically report on what we find here.  For more detailed information on valuations and M&A trends contact us directly. Please note that this information is a summary of many different types of companies of various sizes in a variety of industries. The specific valuation for any individual company, for your business, may and probably will vary greatly.  Each company and set of circumstances is unique and must be considered individually. This data is collected from various sources and includes…

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Buying & Selling a Company, Exit Planning

The Best Time to Sell Your Business?

Gregory Pearl

Everyone wants to sell their business for the best price possible.  Doing so is a gigantic achievement.  It also true that you cannot get the best sales price for your business without working closely with your advisors.  You and the people helping you must be a team.  And it is up to both of  you – the business owner and the advisors – to allow the sale for the highest amount to happen. The timing of the sale will also allow you to get the best possible price.  Here are some factors to consider when trying to sell your business.…

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Buying & Selling a Company, Culture and Ethics

The Top Reasons Why A Buyer Purchases A Business

Gregory Pearl

The decision to buy a business is probably one of the most important ones that you will ever make. Probably the only other decision that is more important is who you will marry. After buying the business you will be responsible for its success and the well-being and livelihoods of its employees. That’s a lot of responsibility. While there can be a possible financial reward and some satisfaction, the downside can be the assumption of risk, a loss of freedom, and almost certainly a lifestyle change. To better understand what are the reasons people buy businesses, Pepperdine Private Capital Markets…

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Culture and Ethics, Decision Making

Can You Succeed Being in Business With Your Spouse?

Gregory Pearl

I’ve seen hundreds and hundreds of privately held, family businesses over the years. Many are jointly and successfully run by a husband and wife team. A husband/wife management team adds a layer of complexity over and above the normal issues of business management. The effect of that complexity depends on several factors, that my team and I have noticed. How well does the couple get along outside of the office? Do they cooperate and collaborate on their home life? Their financial life? Does one of the spouses hide information and make important decisions without the others’ knowledge and consent? If…

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Alternative Investments, Buying & Selling a Company, Exit Planning

Are Private Equity Groups For You?

Gregory Pearl

In recent decades more and more capital has flowed into the alternative investment category of private equity or Private Equity Groups (PEGs). Maybe because of this higher profile, we get asked repeatedly by business owners in the lower middle market if they can sell to a private equity group. I’ll say this right up front – most likely the answer is no. Private equity investments have traditionally been focused on large companies, the so-called middle market and especially the lower middle market have been ignored. That has changed in recent years as more capital has entered this investment category. Seeking…

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Buying & Selling a Company, Exit Planning

Should You Use An Intermediary Or Investment Banker?

Gregory Pearl

What are the situations that the sellers of privately held businesses should turn to intermediaries for help? Is there a company that is too small or big to use an investment banker? How does an intermediary – a business broker or investment banker – add value to the process? The simple answer is almost always. For large companies, an investment banker will add much value and are almost always used. The intermediary/investment banker will do all of the preparation work, the modeling, the valuation, the offering memorandums, and so on. The large companies, despite their resources, almost always outsource all…

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Buying & Selling a Company, Exit Planning

What Exactly, Is M&A Due Diligence?

Gregory Pearl

The dictionary definition of due diligence is “research and analysis of a company or organization done in preparation for a business transaction.” Basically, a buyer will conduct due diligence before the Purchase Agreement is signed to make sure they are buying what they thought they are buying.  This goes beyond just reviewing documents and contracts. With so much is at stake for the buyer in a M&A transaction, they will want to have all the facts and information available before making a final decision and going ahead. In the due diligence process, the seller will receive a long list of…

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