Colonnade Advisors LLC’s Post

Thinking of acquiring another business? A few tips before you do: (1) Check to see if you have the time to invest in the handover and overseeing the new business operations. (2) The valuation is likely based off of accounts - #duediligence of the accounts is therefore essential! Sellers like to paint a very rosy picture of the performance of the business. (3) Prepare a Busines Plan - not just for yourself to see if the acquisition makes sense, but also for potential #financing partners (e.g. private equity or bank loans) (4) Crunch the numbers - prepare financial projections that include ways the new business AND your current business can mutually benefit from the #acquisition. Maybe you can cross-sell services or reduce operational costs? (5) Include provisions in the deal for a payment plan for the business purchase (e.g. 50% now, 50% in 1 year based on performance). This gives you some insurance in case key staff or large client accounts leave straight after the acquisition. Added benefit - you don't need to finance the full acquisition straight away. Acquisitions are great when done right, but buyer beware!

Navigating the complexities of selling a business requires meticulous planning and a keen understanding of market dynamics. This article delves into the essential steps for preparing your business for sale, understanding its valuation, and leveraging expert advisors to ensure a successful transaction. Please reach out to our team if you have any questions. https://lnkd.in/gHQ6rGUp #smallbusiness #yyz #toronto #valueofadvice

Navigating the complexities of selling a business requires meticulous planning and a keen understanding of market dynamics. This article delves into the essential steps for preparing your business for sale, understanding its valuation, and leveraging expert advisors to ensure a successful transaction. Please reach out to our team if you have any questions. https://lnkd.in/gxpCsySX #smallbusiness #yyz #toronto #valueofadvice

M&A Deal Fact Sheet:- Note 1:- In this Deal, Acquirer Co paid Cash + Stock Consideration to Target Co. Note 2:- The Full Article is over LinkedIn for the calculation of Equity Consideration for the transaction. Transaction Highlights:- 1) Investment-grade company with a Sustainable Capital Structure for the long term. 2) Substantially Improved Scale in Key Region Foodservice Markets. 3) Significant Cost Efficiency and Synergies over $1.50 Bn. 4) International Expansion Through merged Platform. Equity Consideration to create Substantial value for existing Shareholders:- 1) New Company to Maintain Dividend Per Share, Which is Expected to Increase Over Time. 2) The Transaction is accretive since the EPS is expected to increase post-deal and shortly thereafter. Note: Cash Consideration + Share Consideration = Total Equity * Consideration:- 1 Share of Target Co = 1 Share of the Merged Entity + Cash Payment ($ 16.05) Deal Highlights:- 1) Consideration: The target o to own a 49% stake and the Acquirer is to own a 51% stake in the combined entity. 2) Capital Structure:- A) Creation of investment-grade capital structure for long-term sustainability. B) Refinance $9.5bn of existing High-Yield debt with Investment Grade debt at transaction close. C) Call Preferred Equity in the financial year to be replaced with Investment Grade debt, of approx. $450-$500 million in annualized cash savings.

Passing on your manufacturing business to a family member? Here's why this could be Riskier than you think! https://zurl.co/MNcly #familybusiness #manufacturingbusiness #familyownership #taxplanning #estateplanning #nextgeneration #businessvaluation #legacyplanning

Business Valuations are a must if you are contemplating selling your company, buying a company, making changes to partnership structure, or simply planning for the future. Learn more here: https://lnkd.in/gm4r_TCJ #businessvaluations #freebusinessopinionofvalue #businessbroker #sellyourbusiness #sellmybusiness #businessbrokers #companysellers

One of our business partners, Lisa Meyer of Sunbelt Business Advisors of Minnesota, explains what a business broker does, and how to work with one during a business transition. Read Lisa's guest blog here: #businessbroker #valuation #businesstransfer #transition #JAKcpa

Selling your business doesn’t mean you have to walk away entirely. Rolling equity allows you to stay invested and reap future rewards. Explore how this strategy can enhance your sale and provide continued growth opportunities. #M&A #BusinessSale #EquityStrategy

Selling your business doesn’t mean you have to walk away entirely. Rolling equity allows you to stay invested and reap future rewards. Explore how this strategy can enhance your sale and provide continued growth opportunities. #M&A #BusinessSale #EquityStrategy

Selling your business doesn’t mean you have to walk away entirely. Rolling equity allows you to stay invested and reap future rewards. Explore how this strategy can enhance your sale and provide continued growth opportunities. #M&A #BusinessSale #EquityStrategy