As part of our outdoor industry focus, Compass Advisors served as the sell-side transaction advisor to BRS & Co. in the sale of Evolv, a climbing and lifestyle shoe company headquartered in Los Angeles, California. Evolv was acquired by the Oberalp Group which owns Salewa, Dynafit, Pomoca, and Wild Country. The full press release is below. Congratulations to both of these companies, and we wish them the best as they climb to new heights together!
In 2013, The Internal Revenue Service went after FedEx in a big way. The IRS claimed that the individuals who apparently owned and operated a FedEx Ground route were actually employees of FedEx and not independent contractors as FedEx claimed. If the IRS had won this battle, it would have cost FedEx many millions of dollars, not only in back taxes, but also...
Your first question may be, “Just what is my Corporate Social Responsibility (CSR)?”
Many entrepreneurs believe that the only role of a M&A Advisor is to find buyers for their companies. However, this is only half of the story. M&A Advisors do a lot more than simply locate buyers. Here are just a few of the valuable services they provide to sellers:
The Billings Gazette recently published an article on valuation and the general M&A market in Montana. Below are a few excerpts with quotes from our President, Bryce DeGroot.
When a business owner receives unsolicited interest from a buyer, whether the big name in the industry or a unique financial buyer, his first instinct is often to pursue it right away; it seems natural to follow that path. The danger is that you give up negotiating control, the powerful benefit of competition, and at that point, deals tend to derail.
John Warrillow, author of Built to Sell, explains why this is and how to avoid it:
If you were to draw a picture that visually represents your role in your business, what would it look like? Are you at the top of a traditional Christmas-tree-like organizational chart, or are you stuck in the middle of your business, like a hub in a bicycle wheel?
Here’s a list of eight warning signs you’re a hub-and-spoke owner and some suggestions for pulling yourself out of the middle of your business:
If your company’s revenue has stalled after a period of rapid growth, you may have fallen into The Mile Wide Trap.
Consider the case of Kim (not her real name) who runs a public relations firm. Kim studied marketing at school and went on to work for a big advertising agency where she spent ten years learning a variety of marketing disciplines, from public relations to advertising to direct marketing and social media.
It’s a common finance principle that all your eggs should not be in one basket. But, so many business owners completely disregard this principle, even though it’s a universal and proven way to reduce risk.
Allow me to paint a picture. Let’s imagine you were climbing a rocky, slippery, and formidable mountain. Sure, that’s a difficult endeavor by itself, but what if you had to climb it with a basket of six eggs? And that’s not all. Those eggs were your source of food, and therefore, strength for your climb. Would you carry them all in one basket, or would you carry them separately?
Business is like that formidable mountain
Part 3 of 3 in the Big Sky Business Journal
In a past column, we reviewed some high level considerations for a business owner who is thinking about a future ownership transfer. The article followed a conversation with Jim, who is a business owner wanting to make sure he has a valuable and sellable business when he decides to retire. In this article, we will look at some of the top factors that make a business valuable and sellable.
Value drivers are the business attributes that give a business real and perceived value. A buyer's questions will be centered on the value drivers in the business.