McCombie Group’s blog offers a variety of insights catered towards middle-market business owners and executives. We our proud that Forbes turns to our founder as an ongoing Contributor to provide insights into middle-market M&A and strategy.
“We Couldn’t Have Done It Without Them” – McCombie Group Represents Client Through Successful Sale
This article was originally published in Forbes. For nearly two decades, private equity (PE) has been a transformative force in the insurance agency sector, driving consolidation and increasing valuations. Currently, 72% of all agency transactions involve private equity buyers. With over 50 active consolidators currently vying for acquisitions, the intense competition is resulting in frothy…
This article was originally published in Forbes. Surprisingly, the HVAC (Heating, Ventilation, and Air Conditioning) service industry has recently become a hot target for private equity (PE) investors. Five years ago, there were only a limited universe of buyers interested in these businesses. Today, the interest has exploded, with three times as many buyers vying…
One out of two businesses will never sell. In this video, I explain the key reason why many owners fail to sell their business – existential risks – and some examples of these types of risks.
In this video I explain how private equity functions and what role they play in the financial system. Private equity is important to understand, particularly for business owners as I explain in the video.
We expect continued choppy waters in healthcare deals for two primary reasons: 1. Functional reductions in Medicare Advantage reimbursement rates, and 2. A growing political consensus against private equity in healthcare.
Four reasons why our CEO believes transaction volume will be up in 2024 relative to the prior year.
This article was originally published in Forbes. Fortune 500 companies receive real-time feedback regarding their market value thanks to the stock market. Unfortunately, private mid-market businesses don’t have that luxury, with many owners totally in the dark. Of course you often hear whispered “country club” multiples, but they often are exaggerated, reflect a strong selection…
This article was originally published in Forbes. It started with a dream decades ago and through hard work and determination, you built a thriving business. Given your limited budget, you learned on the fly how to create and refine your product, how to market it, and how to build and manage a team. You’ve achieved…
This article was originally published in Forbes. Newton’s third law says that “for every action, there is an equal and opposite reaction.” Covid and the government’s response to it set in motion events that have created the current economic environment we’re experiencing. To figure out where we’re going, I find it helpful to look at…
This article was originally published in Forbes. Private equity’s (PE) playbook for creating investment value is relatively basic and straightforward (though not necessarily easy). Building on my prior article, The Alchemy of Private Equity Explained, this article delves into the strategies and tactics used by PE investors to boost EBITDA (Earnings before Interest, Taxes, Depreciation,…
This article was originally published in Forbes. Business owners are often intimidated by the mystique and the limited information available about private equity (PE) firms and how they operate. The goal of this article is to help explain their mechanics and typical strategy. PE buyers are neither inherently better or worse for sellers, they just…
This article was originally published in Forbes. So, you’ve completed the letter of intent (LOI) stage of trying to sell your business. You and the buyer have reached an agreement on the primary terms of the transaction, signed a non-binding agreement, and even perhaps made a public announcement (likely against the recommendations of your advisors). …
This article was originally published in Forbes. If the past two years have taught us anything, it’s that businesses must be quick to adapt to new and fast-changing market conditions. Based on recent developments, this likely means preparing for an environment that is different than the low-inflation, low-rate one that existed prior to Covid-19. Businesses,…
This article was originally published in Forbes. Selling a middle market business is a once in a lifetime experience for most owners. Its therefore essential that the selection of an investment banker occur in an informed and thoughtful manner, or you risk making the wrong choice, costing time and money and possibly resulting in the…
This article was originally published in Forbes. Signing a letter of intent (LOI) that outlines the key provisions of a prospective deal is an exciting milestone for sellers, who have likely spent a great deal of time, energy, and money getting to this point. But, once the LOI is executed, the seller’s negotiating power decreases…
This article was originally published in Forbes and “Deal Points” (Winter 2021 edition), the official newsletter of the Mergers and Acquisitions committee of the American Bar Association. Recent events have created an unprecedented sense of urgency amongst business owners to consider selling their businesses. The unexpected Georgia election results and resulting Democratic sweep all but…
This article was originally published in Forbes. A recession is not typically an ideal climate for M&A activity to flourish. But this recession, and our world right now, is anything but typical. Our firm has fielded an unusually high number of calls from business owners worried by the unknowns of the global pandemic, the state…
This article was originally published in Forbes. With the popular Paycheck Protection Program (PPP) currently closed and Congressional negotiations over a next round of stimulus stalled, where can a small or middle-market business hit hard by the pandemic turn for capital? One avenue still open to qualifying companies is the Federal Reserve-backed Main Street Lending…
This article was originally published in the Journal of Corporate Renewal (JCR), the official publication of the Turnaround Management Association (TMA). With each passing day, turnaround advisors, bankruptcy attorneys, and other supporting professionals answer the call as more and more businesses fight for their lives. Some of these businesses will implode from the pressures of the coronavirus…
This article was originally published in Forbes. As small and middle market businesses struggle with liquidity during this pandemic, there are levers that a business owner or CFO can pull to generate additional cash quickly. While there are implications to consider with every lever pulled, the reality is a business may have no choice. Business survival is…
This article was originally posted on Forbes. A Harvard economics survey estimates that 100,000 U.S. small and medium-sized businesses have already permanently shut, with 30-50% expected to fail by year-end, depending on the duration of Covid-19. The reality for many middle-market business owners is everything is on the line; more often than not personal assets…
All the king’s horses and all the king’s men couldn’t put Humpty together again. I’ve been thinking about that nursery rhyme these days as the federal government throws Trillions of dollars at this deepening economic crisis, even as Bain’s big thinkers are projecting that in just two months of COVID-19 mitigation efforts, we will likely…
Ray Dalio, who runs one of the world’s largest hedge funds, is also one of the smartest people in the room when it comes to economic thought rooted in learnings from history. If you have a few minutes, I’d highly encourage you to watch the Bridgewater founder’s recent TED presentation, where he makes a compelling…
Seemingly, every hour brings more news of death, pain, anxiety and fear as the world navigates a global pandemic. Like you, we have been closely following the news about federal and state relief efforts for our severely battered small businesses, including new low-interest loans offered through the U.S. Small Business Administration and the U.S. Treasury.…
This article was originally posted on South Florida Business Journal. If you’ve ever spoken with an investment banker or broker about selling or raising capital for your business, you’ve undoubtedly heard about EBITDA. EBITDA — or earnings before interest, taxes, depreciation and amortization — is a widely used earnings metric, particularly when quoting valuation “multiples”…
COVID-19: We are in uncharted waters, facing unprecedented challenges, with little certainty regarding the length and severity of disruptions. You can pick your own clichés, but the message to CEOs is clear: This is your moment to lead your company through the immediate crisis and the likely subsequent recession. One thing is for sure,…
This article was originally featured in the South Florida Business Journal. With the novel coronavirus pandemic mounting worldwide and businesses reporting widespread disruptions, as a US business owner, do you stay calm and carry on or do you batten down the hatches and prepare for the worst? While we have been enjoying the longest…
The next Amazon is out there, and it’s coming for your company. Business disruption is a constant threat. There will always be another company looking to take market share from your business — or worse, replace you entirely. The threat of business disruption is something you hear about constantly in the news. It’s common to…
This article was originally featured in the South Florida Business Journal. Since President Trump took office, the news media has covered the so-called trade war ad nauseam. Businesses are paying attention too. A U.S. Chamber of Commerce survey found that 158 Fortune 500 companies discussed the impact of tariffs and ongoing trade tensions on earnings calls in…
The Emperor Isn’t Wearing Clothes WeWork is Silicon Valley’s latest fallen angel. The co-working start-up raised an enormous amount of cash from venture capital firms, with a final private valuation of $47 billion (roughly ten times the valuation of its profitable peer). But, when the company took its first steps to go public in August…
“Micromanagement is bringing in a team of smart, talented people and crushing their souls by telling them what font size to use” – Chieh Huang. In 2013, Chieh Huang founded Boxed, an online wholesale retailer. Like many founders, he started the company in his garage. He packed boxes by hand with a few employees. The…
You spent a lifetime building your business: don’t neglect its value. Whether you plan to sell your business in a year, five years or don’t plan to sell at all, building a sale-ready business not only improves valuation but also minimizes risk and adds real value. Even if your exit strategy involves handing your business…
Mergers and acquisitions happen quite regularly with businesses of all types. Those on the buy-side need to have an understanding that goes beyond the company’s financial reports. If they’re not asking about the organizational structure and culture, you better run. With that said, the due diligence process can be intimating if you’re unaware of what…
Whether you plan to sell your business, bring in new partners or seek growth capital, you need to know the value of your company. That means taking a realistic perspective, rather than setting your expectations too high. When preparing a formal valuation, an accountant is likely to use one or more academic methods for determining…
About 75 percent of business owners “profoundly regret” selling their business one year after finalizing the deal, according to the Exit Planning Institute Survey. One of the prime reasons for their unhappiness is closing the sale with the wrong buyer. After all, every seller and buyer has a certain set of goals, values and priorities.…
Generational transitions require capital and a renewed commitment to the business. They can force difficult decisions, including whether to sell, although other alternatives may be superior. Many owners dream of keeping their business within the family for generations, yet this becomes increasingly difficult over time. Ownership stakes become dispersed among family members whose priorities are…
