Selling Your Business

As the article explains in much more detail;

1. Clean up your books and operations so Buyers will not equate issues in your business to possible risk and reduce their valuation and scare them away.
2. Prep now to run the process, know what details you will be expected to produce after signing a offer.
3. Build your deal team, don’t try to do it your elf, it will likely cost you more than it saves.

About The Hatteras Group

The Hatteras Group is a collaborative team of professional advisors who create options for their client’s to grow and sell companies in the middle market.
We lead business owners as they navigate the complex and often emotional process of selling a business. We represent owners to sell their businesses, lead proprietary acquisition searches, source equity and debt and provide business valuation services, generally working with companies whose annual revenues are $5MM to $100MM.

If you ever have questions about the process to sell your business, or if you would like to explore the M&A market and plan for an eventual sale then please contact us for a call or meeting.  Simply contact Alan at 704.307.4166 or by email alan@hatterasgroup.com .

3 Things to Consider Before Selling Your Business

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Industrial Crane Services Business for Sale – We are pleased to represent the owners of a successful truck crane rental and rigging business for sale.  The owners have been involved with the business for 20 years and are now exploring their options.

The Company services industrial, governmental, property owner and construction accounts in the Mid-South market area.  Their customer base is large and diverse.  New construction related work is estimated to comprise no more than 25% of overall revenues.

Highlighted equipment includes boomtrucks, truck cranes, all-terrain cranes and rough-terrain cranes.  Additionally, the Company has extensive rigging experience and equipment.  The Company prides itself on the scheduling and maintenance of its fleet and a high level of customer service.

This opportunity is well-suited for a like operation seeking coverage in the area, a mechanical contractor with clientele in the eastern US, or as a platform investment for a large investor.  The owners are available to work through a reasonable transition period are  amenable to a long-term partnership with an appropriate party.  All key employees are expected to remain with new ownership.

Industrial Crane Services Acquisition Highlights include:

• 2017 Revenues of $8 million with an Adjusted EBITDA of $1.8M
• Equipment included in sale
• Facilities available for lease or purchase in a related transaction

Contact

For additional details and to sign an NDA for confidential information on this Industrial Crane Services business for sale, contact Jason Pope at o/ 828-475-0147 or c/ 708-359-5122, jason@hatterasgroup.com

About The Hatteras Group

The Hatteras Group is a collaborative team of professional intermediaries and advisors, leading business owners and entrepreneurs as they navigate the complex and often emotional process of selling or buying a business. We represent owners to sell their businesses, lead proprietary acquisition searches, source equity and debt and provide business valuation services, generally working with companies whose annual revenues are $5MM to $100MM.

Contact Jason Pope to schedule a 30 minute call to learn how we can help you explore the M&A market or sell your business

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Checklist to prepare your business for sale in the 2018 M&A market

The M&A market in 2018 offers an exciting time to sell your business, valuations are high and financing is flowing. Here is a great article related to preparing your business for sale. But even for those with no intention to sell, it is a great checklist to review as you work to improve your business.
https://www.axial.net/forum/3-things-to-consider-before-selling-your-business/

Axial is a great resource for our firm to connect with strategic and private equity buyers for mid-market companies.  We also use it to network with lenders and other capital providers for our clients.

As the article says, take some time this Summer to asses your business the way a buyer would.  It may reveal opportunities to improve your business even if the time is not right to sell your business.

We are available to explore the market on your behalf to determine the current market value, level of interest and the options you may have available.  Your business is likely your most valuable asset and current market feedback is the best way to determine the value and marketability of your business.  Conditions are only certain to change, for good or bad.  Your circumstances may change as well, why not be prepared so you can maximize the value of your asset on your schedule.

About The Hatteras Group
The Hatteras Group is a collaborative team of professional intermediaries and advisors, leading business owners and entrepreneurs as they navigate the complex and often emotional process of selling or buying a business. We represent owners to sell their businesses, lead proprietary acquisition searches, source equity and debt and provide business valuation services, generally working with companies whose annual revenues are $5MM to $100MM.

Contact Alan Clark to schedule a 30 minute call to learn how we can help you explore the M&A market or sell your business.

The post Sell Your business in 2018, Tips to Prepare for M&A appeared first on Hatteras Group.

HVAC Business for Sale Southeast

This Carolina based HVAC business for sale is a leading regional, commercial and industrial HVAC services provider and contractor. Services include contracted preventive maintenance, equipment replacements, turnkey installations of any HVAC system and controls. Clients include some of the largest facilities in the region. The company has developed an outstanding staff, with a vast knowledge and understanding of even the most complex HVAC systems. Ownership seeks options to transfer to minority owners, exit or recap and remain in the business.

Acquisition highlights include;

• Revenues: $ 12.4 MM / 2017 YE
• EBITDA: $ 3.5 MM / 2017 YE
• Average growth 14% YOY – 57% over 4 years
• EBITDA margin > 25%
• Diverse base of commercial and industrial customers
• 190+ Annual Service Contracts represents $1.6MM/yr recurring revenue and over $6MM in additional services revenue.

The Hatteras Group has been engaged to explore the market for the sale of all or a portion of the business to facilitate upcoming transitions in management and ownership in management and ownership.

Products & Services Include;

Chillers
Split Systems
Package Units
Geothermal Heat Pumps
Compressors
Pumps and Systems
Commercial Grade UV Lights
Variable Frequency Drives
Fan Wall Technology
Knock Down Air Handlers

Ductless & Duct Mini Split Systems
High Efficiency Purges
VAVs
Chiller Contingency Plan
HVAC Rentals and Portable Units
Refrigerant Monitors
Petroleum and Refrigerant Products
Chemicals
Glycol

Contact Alan Clark for additional details, alan@hatterasgroup.com or call 704-307-4166.  To register your interest and sign an NDA for details of this opportunity go to www.HatterasGroup.com/Start/ and use Project CHARLIE for the project code.

About The Hatteras Group

The Hatteras Group is a collaborative team of professional intermediaries and advisors, leading business owners and entrepreneurs as they navigate the complex and often emotional process of selling or buying a business. We represent owners to sell their businesses, lead proprietary acquisition searches, source equity and debt and provide business valuation services, generally working with companies whose annual revenues are $5MM to $100MM.

Contact Alan Clark to schedule a 30 minute call to learn how we can help you explore the M&A market or sell your business.

The post Industrial / Commercial HVAC Services Contractor for Sale appeared first on Hatteras Group.

Economies of scale are virtually impossible in trucking at $250 million and above. Instead, it’s about synergies of size—balancing flows, dealing with problems, running in more lanes. New technology allows companies to run much larger operations with the same span of control. Yet only well-run companies can efficiently operate at large scales. And as always, market conditions matter.

Here’s what we predict—and what we’re already seeing—for 2018:

• A surge of M&A activity. There’s plenty of capital out there, but who gets it depends on a number of factors. Buyers want to ensure they can improve upon their investments. Their eyes are on their next 12-month multiple. Many buyers still remember the terrible market of 2016, and are going to be more cautious about what they buy.
• A slow market for big acquisitions, and a mixed market for smaller firms. Investors who started out giddy over the “Trump economy” may have undermined the market. They’ve pushed stocks so high that big acquisitions may now be too pricey. Valuations are high, and economies of scale are low. This means that buyers may now begin to balk at premium prices for smaller carriers.
• Higher market premiums. When things look better, buyers have to pay more. Equities have increased by double digit percentages. So while there may be more bidders and higher cash flow, those bidders must be willing to pay more.
• A change in the market’s appetite for debt. Historically, there wasn’t much debt in this industry. As carriers grow through mergers, there may be greater willingness to take on more debt. We don’t yet know how the market will react to this.
• A strong labor market. This corresponds to greater difficulty retaining drivers. Carriers may have to pay more, and offer more benefits. This translates into a greater appetite for carriers with highly qualified drivers. A trucking firm with a low turnover rate and a committed team suddenly becomes much more appealing to an acquirer.

2016 saw a slow down in production of new Class 8 trucks, with similarly weak production in 2017. But by the end of 2017, production picked up, with several months of 30% year-over-year growth of new truck deliveries. While carriers may be cautious about expanding their capacity, preliminary figures suggest high confidence in 2018. This is rooted in highly favorable market conditions.

The trucking industry has already gone through two boom-and-bust cycles since 2009’s Great Recession. 2010 saw tepid growth, followed by rapid growth in 2011 and a plateau in 2012. The second cycle began with a small contraction in 2013, followed by rapid growth in 2014-2015, and a significant contraction in 2016. This suggests we can reasonably expect one more year of growth in 2018, followed by a contraction. It’s important to plan M&A transactions with this timetable in mind.

About The Hatteras Group

The Hatteras Group is a collaborative team of professional intermediaries and advisors, leading business owners and entrepreneurs as they navigate the complex and often emotional process of selling or buying a business in the Transportation & Logistics industry. We represent owners looking to sell their businesses, lead proprietary acquisition searches, source equity and debt and provide business valuation services, generally working with companies whose annual revenues are $5MM to $100MM.

Transportation & Logistics Practice Group

Contact Bill McBane or Rod Randolph in our Trucking & Logistics Practice Group to schedule a 30 minute call to learn how we can help you explore the M&A market or sell your business.

The post Transportation & Logistics – 2018 Trucking M&A Outlook appeared first on Hatteras Group.

Nut & Bolt Business for Sale

The Hatteras Group is pleased to represent another business for sale.  This wholesale distributor and fabricator of construction fasteners and custom concrete anchor bolts used in steel erection and industrial and commercial structures.
The company has been established for decades and ownership is ready to exit making this an excellent opportunity for a new owner.  Their repeat business and word of mouth marketing has allowed the Company to maintain and increase profitability without active sales generation, they cover the Southeast market area.

Acquisition highlights include the following:
-Growing YOY 8.4%
-Largest customer is only 10.6% of total sales so there is no customer concentration.
-Value Added / Custom Fabricated products make up 28% of sales

Revenues of over $ 2.2 million in 2017
SDE: $ 408,710 / 2017 YE
Asking Price is $1.25 million

The business has been Pre-qualified for an SBA 7(a) loan for the acquisition and working capital by one of our preferred lenders.

Contact Alan Clark for additional information, to sign an NDA and answer your specific questions.

About The Hatteras Group

The Hatteras Group is a collaborative team of professional intermediaries and advisors, leading business owners and entrepreneurs as they navigate the complex and often emotional process of selling or buying a business. We represent owners to sell their businesses, lead proprietary acquisition searches, source equity and debt and provide business valuation services, generally working with companies whose annual revenues are $5MM to $100MM.

Contact Alan Clark to schedule a 30 minute call to learn how we can help you explore the M&A market or sell your business.

The post Nuts, Bolts and Fastener Business for Sale appeared first on Hatteras Group.

ELD-Induced Chaos
Electronic logging devices seem to have caused thousands of trucks to vanish on December 18. DAT solutions reported growing load to truck ratios that rose to 10:1 in January. Truckers were left dealing with angry customers, with drivers demanding higher pay or promising to leave. ELD has been the source of utter mayhem. Companies that previously hoped to grow through acquisitions are waiting for the market to balance out.

More Chaos: Trump
Donald Trump was long treated as a long shot candidate, so when he won the presidency, everyone was shocked. His ongoing threats to kill NAFTA have sent many buyers and sellers scrambling. This protectionist bent could alter the entire shipping industry. In the wake of this fury, many offers were removed from the table.

Things remain in flux, and it’s unclear what Trump will do next. In Canada, high tariffs could affect other industries, making international mergers more risky. Carriers are waiting to see what comes next as NAFTA negotiations break down and Trump continues to make threats.

The Real Estate Market
Real estate is a major player in trucking M&A. Carriers that own property have wealth tied up in land, not just trucking. So selling a fleet may also mean selling land—a double headache, but also a double windfall. On the other side of the coin are carriers who lease properties. Landlords increasingly demand longer leases. Consider how this might affect owners in their fifties who hope to soon retire.

As demand for commercial real estate skyrockets, many truckers will make decisions more motivated by real estate than by transportation. Some are making their decisions earlier than expected, amid great pressure.

The Broker Landscape
This time last year, carriers were hastily acquiring freight brokers. The world of ELD has changed all of that. Carriers already have too much freight. Now they’re getting even more customer calls than ever, eliminating the middle person of the broker. Carriers are anxious that the broker model may not be sustainable in this new world. Rather than seek deals, carriers may wait until the dust settles on the new world to see who’s left standing, and decide what to do next.

What Hasn’t Changed
While there’s plenty of uncertainty in the market, three things haven’t changed. Truckers are aging and hoping to cash out. They want to know what their companies are worth—and they have high hopes for that worth. And finally, the most important determinant of value is what someone will pay for a trucking company. The market matters, yes, but the needs of the buyer and seller are the major determining factors.

About The Hatteras Group
The Hatteras Group is a collaborative team of professional intermediaries and advisors, leading business owners and entrepreneurs as they navigate the complex and often emotional process of selling or buying a business. We represent owners to sell their businesses, lead proprietary acquisition searches, source equity and debt and provide business valuation services, generally working with companies whose annual revenues are $5MM to $50MM.

The post Key Variables in the Trucking M&A Equation appeared first on Hatteras Group.

The first part of the Trump tax plan intends to bring companies’ $2.5 trillion overseas profits back to the United States, have them reinvest their cash in U.S. business, and boost economic output.  The President plans to achieve this stimulus through a repatriation tax holiday.  A major objection of companies with overseas operations to reinvesting their foreign profits in the US is the 35% repatriation tax the country charges on companies that transfer foreign currency to domestic dollars.  Trump proposes a one-time repatriation tax cut to 10% to businesses that bring cash state-side.  The intended result of this policy is companies with large foreign operations, such as Burger King, reinvest their savings in U.S. job creating initiatives.  However, CEO of Blackrock, Larry Fink, and VP of Transfer Pricing at Reuters, Sam Cicogna disagree the policy aligns the interests of corporations with the labor market.  Both Fink and Cicogna believe the tax cut incentivize similar actions to the 2004 repatriation tax holiday: stock buy-backs by companies – where businesses purchase their own stock forecasting it will increase in value, and M&A, since international companies will have significantly more savings than small corporations and the capital to purchase more assets for growth strategies.  This is good news for owners who look to exit in the coming 4 years, as abundant corporate capital means a higher willingness to pay for a business.

Additionally, the Trump tax plan calls for a decrease in the corporate income tax from 35% – one of three highest marginal tax rates in the world – to 15%, to turn the U.S. into the most competitive business haven in North America and throughout most of the world.  Similarly, this initiative leaves more cash on companies’ balance sheets from the lower middle market to large cap companies to make purchases in 2018. Combine these savings with indications from the President to overhaul regulatory policy and it signals strong potential for deal making activity, the likes of which could surpass $4.7 trillion 2015 M&A levels.   With any luck, these predictions are more accurate than those leading up to the election and create an equally exciting 2017 and 2018 for business.

Cullen Quinn

Research Analyst with The Hatteras Group

The post White House Tax Plan Lends to Explosive M&A Activity appeared first on Hatteras Group.

This is a great post from Axial to explain what most business owners never want to admit, their business may not be worth what they want it to be worth.  But there is hope, make note of the key value drivers and if necessary hire an advisor who can help keep you on the path to increasing the value and marketability of your business.

The post You Can’t Always Get What You Want appeared first on Hatteras Group.

M&A Proprietary Deal Flow

After hearing the frustrating stories of so many highly qualified buyers we developed a process to identify that other 80% of the market.  We target that business owner who is ready to retire or has other proper motivation to sell, and when approached by a professional advisor with a named, retained and qualified buyer we create proprietary deal flow for our client.  As a result of our process, we position our buyer client as the only one at the table, creating positive relationships with the seller, avoid auctions processes and increase the probability of a closing on a successful transaction.

With the market for lower middle market M&A at all time highs, finding proprietary deals is more valuable than ever.

About The Hatteras Group

The Hatteras Group is a collaborative team of professional intermediaries and advisors, leading business owners and entrepreneurs as they navigate the complex and often emotional process of selling or buying a business. We represent owners to sell their businesses, lead proprietary acquisition searches, source equity and debt and provide business valuation services, generally working with companies whose annual revenues are $5MM to $100MM.

Contact Alan Clark to schedule a 30 minute call to learn how we can help you explore the M&A market or sell your business or to learn more about our PASS Program, Proactive Acquisition Search Services.

The post M&A Proprietary Deal Flow with Buy-side Advisors appeared first on Hatteras Group.