Why Negotiating the Tough Stuff Upfront in a Letter of Intent is Crucial in M&A TransactionsWhen you're selling your business, the most challenging negotiations are the ones that often get pushed aside, but they are the ones that should be tackled upfront. Adjusted EBITDA ExplainedWhat is EBITDA?Seven Questions You Should Always Ask About a Business Before Buying ItIn the world of mergers and acquisitions, the adage, "knowledge is power," holds particularly true. This essential process involves meticulous investigation, analysis, and assessment of various aspects of the target company. It is critical to conduct thorough due diligence for multiple reasons, as it helps ensure buyers are making an informed decision and mitigating potential risks. Asking the following seven questions will help assess if the business is the right fit and potential synergy:Benchmark International Unveils Its New Flagship Office in AmsterdamBenchmark International is pleased to announce its new flagship office at The Edge, Amsterdam.Benchmark International is again ranked among the top M&A advisors in the world: Mergermarket and FactSetMergermarket has released its 9M 2024 Global & Regional League Tables, and Benchmark International is pleased to announce that it has once more been ranked for the number of deals conducted in Europe and globally. The latest recognition and rankings include:Managing Expectations While On MarketDeciding to sell your business can be a nerve-wracking yet exciting endeavor. It marks the culmination of many years of dedication, hard work, and strategic planning. As you prepare to go to market, engage with buyers through site visits, field and respond through information requests from interested parties, and hopefully navigate potential negotiations with buyers, it is vital not to overlook the significance of the market feedback you may receive while fielding these various levels of interest. The input received throughout the stages of this process is paramount to consider when managing your expectations while you are on the market. Understanding and finding the overall market consensus of feedback can help you determine what may add value to your overall offer or detract from your valuation. An often overlooked aspect is considering the market feedback generated by interest and adjusting your expectations accordingly.
Beyond The Price Tag: Non-Financial Considerations In Business ValuationIt’s easy to be swept up in the flood of advice and methods for valuing a business. A quick internet search provides almost infinite resources right at your fingertips. From more general approaches to specific analyses, there is a lot of financial data to parse through, regardless of the methods you choose.Benchmark International Secures Top Positions in LSEG's Q3 Global League TablesLSEG, previously known as Refinitiv as well as Thomson Reuters, has released its Global League Tables for the first nine months of 2024, and Benchmark International was once again recognized with several high rankings across different categories. Why Sell Now? Taxes Are About To SurgeIf you are a small business owner, such as a shareholder in an S corporation or part of a partnership, you don’t want to be caught by surprise by what is to come. Your federal income tax rate is currently on pace to increase by 30% on the final day of 2025. This is due to the expiration of certain tax laws, such as the 199A deduction, and an increase in individual federal income tax rates. The tax rate for pass-through entity owners will increase from 30% to 39.6%. There is also the possibility that taxable income could see a spike if the Tax Cuts and Jobs Act provisions are allowed to expire. This includes: Industrial Cleaning Chemicals Global Industry ReportThe industrial cleaning chemicals market continues to grow, demonstrating a compound annual growth rate (CAGR) of 7.3%, increasing from $57.56 billion in 2023 to $61.75 billion in 2024. This record growth can be attributed to several factors, including:Do I Really Need an Advisor When I Already Have a Buyer That Has Approached Me?An ever-increasing number of businesses receive unsolicited approaches from buyers yearly, yet a significant difference exists between being accidentally bought and purposefully sold. U.S. Private Equity Middle Market UpdateAccording to newly released data from Pitchbook, middle-market private equity (PE) dealmaking in the United States in the first half of 2024 has been stable, with buyouts tracking at $345 billion and the number of deals on pace to hit 3,400 for the entire year. This makes it the third-highest middle-market PE dealmaking year on record (data does not include growth-equity deals and growth-equity platform add-ons). The middle market is companies with enterprise values between $25 million and $1 billion.
Benchmark International is a Finalist for 18 M&A Advisor AwardsBenchmark International is a finalist in a total of 18 categories in the 23rd Annual M&A Advisor Awards, presented by The M&A Advisor, including the prestigious recognition as Investment Banking Firm of the Year.The Impact Of Interest Rate Reductions On M&A TransactionsThe Federal Reserve recently reduced interest rates by 50 basis points (4.75%-5.00%), the first rate reduction in over four years. This swing in policy change and significant first reduction is a major statement, with further cuts likely to occur in the foreseeable future. For the M&A market, this news brings opportunities for sellers, with lower borrowing costs leading to more favorable terms and an overall smoother process.2024 Global Accounting Services Industry ReportThe global accounting services sector continues to grow steadily, up from $652.32 billion in 2023 to $676.73 billion in 2024 at a compound annual growth rate (CAGR) of 3.7%. The market is forecast to see this growth continue in the next few years, surging at a CAGR of 4.4% to reach$804.27 billion in 2028. Benchmark International Named International Investment Bank of the Year at M&A Awards Gala in NYCThe lights of New York City shone brightly last week as Benchmark International gathered at the Athletic Club for the 15th Annual International M&A Awards by the M&A Advisors. It was a night of glamour, connection, and well-deserved recognition. Team members from multiple offices flew in and met for this incredible event, and we are proud to announce that we walked away with multiple prestigious awards, most notably being honored as "Investment Banking Firm of the Year (North America, Europe, & Africa)".Is Programmatic M&A Right for My Business?Programmatic mergers and acquisitions are a strategic approach to M&A deals that companies use to acquire several smaller companies to achieve certain goals, such as growth and value creation. This strategy differs from traditional M&A transactions, which usually involve singular transactions and higher valuations.Inheriting A Family Business: Should I Sell?It happens all too often. A family-owned business is at the juncture where the owner is retiring, facing health issues, or has unfortunately passed away. However, the inheritor(s) in line to take over the company either already have their own successful careers or simply do not have the interest or passion to assume the job. Instead of taking the time to find a solution for the health of the business, they just let the business fold. This is sad for many reasons, including the fact that you could have made a pretty penny by selling the company to the right buyer, but especially for the many employees who counted on that business to keep them employed and help them support their families.