The state of business sales for 2013 part1
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This is an update on what today's buyers want.
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The state of business sales for 2013 part1
- 1. The State of Business Sales for 2013 Part 1-Buyers Perspective
- 2. RBS Citizens Research Report • US Based Firms with a value of at least $5 million • Conducted by Research Firm Cogent • Asking Business executives if they are open to or currently engaged in o An acquisition o A merger
- 3. KEY FINDINGS • 80% of executives are open to considering buying another firm within the next 12 months • • • • Current Buyers 24% Actively Seeking 14% Passively Receptive 41% NON-current buyers 22%
- 4. Why Are They Buying Firms? • • • • • • Increase Revenue Expand Staff & acquire talent Improve distribution capabilities Put Cash to work Eliminate a Competitor Enter a new vertical
- 5. Concerns Related to Acquisition • • • • • Liabilities 35% Due Diligence 27% Losing Key Employees 27% Over paying for the firm 26% Disruption of Business Practices 21%
- 6. How are Deals Being Done • Internally Managed Deals 71% • Externally Managed Deals 29% • • • • Business Brokers 42% Investment Banks 40% Boutique Advisors 35% Other 32%
- 7. Summary of Data • There are many companies who are currently looking to expand through an acquisition • The eventual target company must be just the right fit • 71% of all deals are being completed without the help of an outside advisor. • On 29% of the transactions. Many times Business Brokers will be involved in the process
- 8. RPR Business Associates, Inc. • Our firm is in a position to help companies expand through an acquisition • Located in the Heart of America, Omaha Nebraska • RPR can provide a buyer with all the tools necessary for a successful transaction. Call David Bandars, President RPR Business Associates at 402-305-6088
Editor's Notes
- RPR Business Associates would like to welcome you to our brief summary of a recent Mergers & Acquisition report hosted by myself, RPR’s President and Founder David Bandars. The State of Business Sales for 2013, part one, the buyers perspective
- RBS Citizens commissioned this survey of US based firms valued at a minimum of 5 million dollars. The survey was conducted by a firm called Cogent. The survey asked business owners if they are open to or currently engaged in an acquisition or a merger.
- The key findings of the report are that 80% of executive are open to considering to buy another firm within the next 12 months. The number of current buyers s 24%, those actively seeking a business to buy is 14% and those who are passively receptive to a purchase are 41%. 22% of companies are considered non-buyers at this time.
- Why are companies considering an acquisition? To increase revenue, expand staff and acquire talent, improve distribution channels, put their excess cash to work, eliminate a competitor or enter into an new vertical market.
- What items are concerning to business buyers in 2013. At the top is inheriting a sellers liabilities at 35%. Due diligence is the top concern for 27% of buyers while losing key employees due to the acquisition is at 26%. Overpaying for the firm and causing a disruption of business practices are also concerns by business owners who are considering the purchase of an add-on company.
- Just who is helping bring the buyer and seller together? Clearly 71% of the time internal staff is driving these deals. In 29% of the time an external advisor is being called upon to help facilitate an acquisition. When an outside party is used, 42% of business owners who were asked, would use a business broker. 40% of business owners would consider the use of an investment banking firm. While boutique advisory firms could be asked for guidance by 35% of business executives. Other outside advisors such as CPAs or attorneys would be considered by 32% of business executives.
- Interest in acquisitions is widespread. Nearly 80% of mid-market firms say they arecurrently engaged in or are open to making an acquisition. About one-quarter of these firms are currently in theprocess of making an acquisition, while an additional 14% are actively seeking purchase targets. The remainingfour in ten firms are not actively looking to buy but would consider an acquisition if presented with the rightopportunity. Regardless of their current status, all firms agree, the core objective of acquisitions is to driverevenue growth.
- Our firm RPR Business Associates is in a position to help companies expand through an acquisition. We are located in the heart of America, in Omaha, Nebraska. RPR can provide a buyer with all the tools necessary for a successful transaction. Just call David Bandars, President of RPR today at 402-305-6088.