IMPACT Strategic Funding’s Post

Often in business we hear people talking about the "Nuts and Bolts" of a business. So how about buying one? A US manufacturer of nuts, bolts, and screws. Self running enterprise, in business for some time, and will just keep going. Whether you are planning, still building your empire, maximizing its valuation, preparing for exit, or ready for the exit, we have the tools to help. Stony Hill Advisors is a M&A Advisory and Management Consulting firm that is built to help its clients drive revenue, increase efficiency, and gain market share with the goal of increasing profitability. Focusing on the fundamentals, using our M&A, capital formation, and other growth strategies, we help our clients create long term options, whether it be an Exit strategy such as being acquired, or an IPO, or, if the business is to continue with a succession plan. Thanks for watching Nuts and Bolts with Brian Jue of Stony Hill Advisors, Inc. Hill Advisors Roy Y. Salisbury Joseph Radic Anthony Amuso Geoff Miller Scott Rother

M&A From the Plane…Maybe it is time for me to stop flying? Recently, I was on a four-hour flight back home. As luck would have it, I actually scored an upgrade to first class. Sweet, I thought to myself. Big seat, watch a couple of movies, maybe a cocktail, or two:) I sat in my assigned window seat and settled in for my voyage. Suddenly, a stressed-out looking guy plopped down in the aisle seat next to me. He glanced over and asked if I would mind switching seats with him as he really preferred the window. Of course not! I’ll always take the aisle seat I said. The problem with the seat swap was that it triggered an interaction and discussion that lasted almost the entire flight. I should have just kept the window seat! The discussion started as usual… He asked me, “What do you do? How long have you been doing it”? And then, THE QUESTION! My seatmate asked me, “Since you are an investment banker, let me tell you, I’ve been thinking about selling my Company. 𝗪𝗵𝗲𝗻 𝗱𝗼 𝗜 𝗸𝗻𝗼𝘄 𝗶𝘁 𝗶𝘀 𝘁𝗶𝗺𝗲 𝘁𝗼 𝘀𝗲𝗹𝗹?” Other than questions on valuation or how private equity works, the question of knowing when it is time to sell is by far the question I am asked the most often. It is an obvious question and one that causes most business owners countless sleepless nights and anxiety. So many factors can influence the owner’s decision to sell, from health, age, competition and the big one, burn out. Let’s take a quick look at some of the key issues that should be contemplated around this all important topic: 1.    Financial performance 2.    Market demand 3.    Personal goals 4.    Timing 5.    Company growth 6.    Competition 7.    Exit strategy 8.    Trends Please keep in mind, it's important to note, this checklist is not exhaustive and the decision to sell a company is a personal one that should be based on individual circumstances and goals. More to come... #MergersandAcquisitions #MandAFromThePlane #sellingyourbusiness ============== 🆘 When is the right time to sell your business? DM me to discuss 🔔 To see more M&A content ring the bell on my profile

Taking Your Company Public: A Simple Guide to the IPO Process 🚀 Thinking about taking your company public? The IPO (Initial Public Offering) process can seem overwhelming, but breaking it down into clear steps makes it manageable. Here’s what you can expect: Preparation & Planning 📋 Start by assembling a strong team, including legal, financial, and IPO advisors. Together, you’ll create a strategic plan, assess your financial health, and determine if the timing is right for going public. Due Diligence & Compliance 🔍 Your team will conduct a thorough review of your company’s finances, operations, and legal matters. This is to ensure everything is in order and compliant with regulations before you file with the Securities and Exchange Commission (SEC). Filing with the SEC 📄 The next step is to submit your registration statement (Form S-1) to the SEC. This document details your company’s financials, business model, and risks to potential investors. Roadshow & Marketing 🎤 Once the SEC approves your filing, you’ll begin the roadshow—an investor outreach campaign where you present your business to potential investors. The goal is to generate interest and build demand for your shares. Pricing & Allocation 💰 After gauging investor interest, your underwriters will set the IPO price. This is the price at which your shares will be offered to the public. Once set, shares are allocated to investors. Going Public! 🎉 On the day of the IPO, your company’s shares will be listed on a stock exchange, and trading will begin. This is your company’s official debut as a publicly-traded entity. Post-IPO Management 🔄 After the IPO, it’s all about delivering on your promises. Focus on managing investor relations, maintaining transparency, and driving business growth to ensure long-term success. Going public is a transformative journey for your company. By understanding each step of the IPO process, you can navigate it with confidence and set the stage for lasting growth. #IPO #BusinessGrowth #Entrepreneurship #StockMarket #PublicOffering #BusinessStrategy

The common denominator of the clients we work with is their passion for what they do and their dedication to the company they created. But a downside of that passion and dedication is that it causes many business owners to neglect planning for their eventual exit from the business. What business owners need to realize is the sooner they start planning, the better their odds of achieving their goals—both financial and personal. While some owners may be closer to a transition point than others, it’s not too late to create a meaningful plan. And following through on a transition doesn’t necessarily mean the selling owner has to leave the company or be done working. In fact, two of the prior owners of the companies we recently sold are still running their companies but no longer have the risk or stress of ownership. According to a recent study, the top five reasons to start planning for your exit include: 1. Getting older (67%) 2. Providing security for their family (55%) 3. Meeting the valuation goal (36%) 4. Reducing taxes (35%) 5. Receiving an offer from a potential buyer (22%) If you’re a business owner of a privately held company and want to sell now or within the next 5 years, we’re happy to work with you wherever you are on your journey. Find your Waypoint Private Capital M&A Advisor here: https://hubs.ly/Q02l4pYQ0 #mergersandacquisitions #waypointprivatecapital #familybusiness #familybusinesses #buyabusiness #buyingabusiness

I spent two long days at the Acquisition.com HQ with Alex Hormozi Leila Hormozi , and their incredible team. Here are my Top 3 takeaways 👇 1️⃣ Your business isn’t worth as much as you think: -> We went through methods to calculate the current value of our companies. There are factors that pull that valuation down (sometimes to Zero). If you remove one person from the business (usually YOU), and it can’t last 12 months—then you don’t have a valuable business. 2️⃣ 5x’ing the value of your business is closer than you think: —> Alex showed real examples of how they took companies from low valuations when they bought in, to 5-20x valuations once they sold it. And actionable tactics on how we all can do the same. 3️⃣ A CEOs only purpose is to allocate resources to solve the biggest constraints: —-> Most tend to focus on the WRONG problems with the RIGHT solutions and fail to make real progress. All in all, massive knowledge was dropped by everyone on their team. Concepts were simple to grasp. Implementation was clear. They’ve really dialed in their methods and explanations to make all things business simple and accessible. They don’t overcomplicate it. Our hosts spent in-depth equal time with everyone whether they had an EBIDTA of $6M+ or $50k. 110% would recommend it. 😂 I was so tired in that pic. My brain was fried after Day One!!

Family-owned businesses must leverage their strengths and address their weaknesses to thrive and sustain their legacy, whether as privately held firms or publicly traded conglomerates. Forbes talks pros and cons of family businesses. https://lnkd.in/gdPy9GTB #FamilyBusiness #SuccessionPlanning #LeadershipTransition

The common denominator of the clients we work with is their passion for what they do and their dedication to the company they created. But a downside of that passion and dedication is that it causes many business owners to neglect planning for their eventual exit from the business. What business owners need to realize is the sooner they start planning, the better their odds of achieving their goals—both financial and personal. While some owners may be closer to a transition point than others, it’s not too late to create a meaningful plan. And following through on a transition doesn’t necessarily mean the selling owner has to leave the company or be done working. In fact, two of the prior owners of the companies we recently sold are still running their companies but no longer have the risk or stress of ownership. According to a recent study, the top five reasons to start planning for your exit include: 1. Getting older (67%) 2. Providing security for their family (55%) 3. Meeting the valuation goal (36%) 4. Reducing taxes (35%) 5. Receiving an offer from a potential buyer (22%) If you’re a business owner of a privately held company and want to sell now or within the next 5 years, we’re happy to work with you wherever you are on your journey. Find your Waypoint Private Capital M&A Advisor here: https://hubs.ly/Q02lyXNW0 #mergersandacquisitions #waypointprivatecapital #familybusiness #familybusinesses #buyabusiness #buyingabusiness

When is the "right time" to retire? In my opinion, there is no "right time". It is when the time is right for you! With the PE money coming into the accounting space, we are seeing mergers, sales and everything in between. Firm owners are feeling the pressure. Shall I sell? Is it the "right time"? Will I miss a critical opportunity? In these conversations, I prefer to dive into what you want for your life and your firm. Maybe its now, maybe its later and maybe its something in between. And, if you do step away now, what will you do? I have some firm owners who want to teach or consult or switch careers. Then yes, NOW may be the time. The advent of the new platforms coming into the accounting space is allowing firms and firm owners to find solutions to every possible sort of exit strategy, be it now or later. There are platforms that will run your back office, allowing you to continue to grow your firm and do the work you love to do. So lets talk about you, your firm and your plans. THEN we can decide how an exit strategy fits in.

Several of our clients are currently evaluating the possibility of IPOs in 2024 and 2025. A critical early step for any company considering a future S-1 filing is to create an IPO-ready board. Easy to envision...hard to create. Each PE/VC backed company follows a distinct path toward IPO readiness, but the most successful firms often adopt similar strategies in forming top-tier boards. Such boards can provide the propulsion for the CEO and the management team to unlock the company's full potential. We are excited to share some of those insights in "The CEO's Playbook." We would be happy to engage in a confidential and comprehensive discussion with any CEO or investor group considering a future IPO. #iporeadyboards RSR Partners Russell S. Reynolds, Jr. Greg Lau Carter L. Burgess, Jr. Alan Renne Melissa Durden Thames Fulton Eric Douglas Keene Lindsay Griesmeyer Kimberly Melcer Maryann Bovich Edward Fowler Jane Bierwirth Jim Whittle Don McMurchy Russell S. "Trey" Reynolds III

Q: What’s the biggest mistake CEOs make when selling to a private equity firm? A: They don’t have an advisor reading the fine print. Let me tell you a common horror story. I knew a CEO (let’s call him Jack) who sold his company for $30 million. He had a generous earn-out clause. If Jack grew profits for 4 years, he could earn an additional $10 million. Sounds great, right? Not quite. Jack didn’t actually control the company’s spend in the new deal. The new buyer allocated additional spending towards marketing, ads, employee benefits, etc. Jack managed to maintain the company’s revenue. But the new investments shrunk the company’s profit margins. The result? Jack lost his $10 million earn-out despite 4 years of hard work. But here’s the kicker. This could be avoided with an experienced merger and acquisition (M&A) advisor. They would have: - Shopped the business around to create competitive offers - Negotiated on Jack’s behalf for a better deal - Caught problematic terms early Don’t go into M&A deals vulnerable. Have an experienced advisor advocate on your behalf. It’s the best investment you can make for a successful exit.