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By JoAnn Lombardi, President VR Business Brokers/Mergers & Acquisitions

American companies are seeking foreign acquisitions in greater numbers than ever before. If an international deal is possibly in your company’s future, start thinking about how you’ll handle the complex cultural differences that sometimes sink foreign M&As.  

Go With What You Know

Domestic M&As are already challenging without dealing with foreign legal and regulatory systems and a workforce whose makeup and culture can be quite different from what you’re used to. Even with a Canadian or British company, there will likely be some elements of friction – such as the persistence of cultural stereotypes and differing perspectives on office culture. But you can take preventive steps to make a cross-border transaction and integration go a little more smoothly.

Most important is to avoid the complications related to buying a business that’s radically different from your own. Making your international acquisition in an unfamiliar industry can be dangerous to your bottom line. Instead, target companies:

• Those are in the same or a related industry; 
• That make or offer similar or complementary products and services; 
• Whose workforces resemble your own in terms of size, types of positions, and education levels;  
• Whose management structures are roughly parallel to yours.

The more your businesses are in alignment, the less you’ll have to discuss during negotiations. Integration, too, is likely to be easier.

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By Peter C. King, CEO VR Business Brokers/Mergers & Acquisitions

A company that’s looking to divest to a buyer will have to examine whether they should seek out one that’s either strategic or financial. In these current times there are reports of companies being sold for extravagant sums to strategic buyers. Those entrepreneurs looking to invest in a company often find that strategic investors recognize higher valuations than venture capitalists, who are more financially oriented.

To understand the difference between the two, a strategic buyer believes that your business will help make theirs perform better, whereas a financial buyer focuses on the economic value that your business will create on its own. In most cases, strategic buyers will pay more, and occasionally buyers when no one else will.

Locating Strategic Buyers

The best way to find a strategic buyer for your company is to consult with a VR M&A intermediary. We will assist you in finding qualified candidates through identifying possible synergies such as:

• Vertical. Integrating vertically allows the buyer to bring its solution to industries, in which the seller currently focuses. An example is a larger executive recruiting company that acquires a business specializing in executive recruiting for the healthcare industry.
• Horizontal. Integrating horizontally allows the buyer to bring its solution to the market in which it currently focuses. A marketing company, for example, might acquire a Web developer so it can provide Internet-based solutions to its established clients and prospects.

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By Tejan Kapoor, Strategy & Operations at Axial

When the time comes to sell, business owners want the process to be quick and efficient.

With 14 years of experience in small business M&A, we’ve learned that every step is crucial. You must plan the transition, understand your business’s value, create compelling marketing materials, and identify the right buyers to advance to the due diligence stage.

To ensure you don’t run into any roadblocks midway through the sale, you have to be prepared for both expected questions and unexpected buyer requests.

In this article, we outline the essential steps for selling a business, laying out how to enhance your success rate. We also cover a less commonly mentioned aspect: the role of an M&A advisor.

We’ll explain how an advisor can expedite the process, secure the best deal, and take a lot of work off your plate, especially since you need to focus on good business performance while getting ready to sell.

Note: Our experience on this topic comes from streamlining the exit preparation process for over 10,000 business owners annually for 14+ years with the largest network of pre-vetted M&A advisors and capital providers. You can learn more about Axial and how we can help you prepare to sell your business by clicking here or reading more below.

The Importance of Understanding Your Own Motivations First

Before we get into the steps to selling a business, we think it’s important to confirm with yourself that you’re serious about selling. This may seem unnecessary, but many business owners approach this process with a “let’s see what we can get” mindset, which doesn’t bode well for success.

The process of selling a business is time consuming, stressful, and intense. Buyers will scrutinize every piece of your business. If you’re not bought in, your will power to continue will wane. Owners must make sure they’re fully committed to actually selling their business before initiating any dialogue with potential advisors or buyers.

So, let us be clear: if you’re thinking, “I’ll sell if the right offer comes along,” or you just “want to see what’s out there,” your chances of success are low.

Buyers want to work with motivated owners and have ways of gauging your motivation. For instance, they’ll often ask about the reason for the sale. If the owner doesn’t have a compelling answer, we’ve seen buyers walk away to avoid investing time in due diligence only to have the owner get cold feet midway through the deal.

In contrast, here are some common motivations for selling a business that we frequently see among serious owners. This list isn’t exhaustive, and other legitimate reasons may also apply, but these are the most typical:

• Retirement: This is, of course, a very common and compelling reason for a sale.
• Personal events: Certain events, like divorce, health issues, or familial obligations, can significantly impact your work life and make owning a business too demanding.
• Death: The heir or successor to a business may choose to sell the company after the owner’s death, or the owner may choose to sell after the death of a co-owner.
• Loss of passion: This may come as a surprise, but many business owners wish to sell after a strong realization that their passion lies elsewhere. Some want to focus on serving the community, while others discover business opportunities that are more enticing.

Finally, consider the issue of company valuation and expected sale price. Price can obviously be a big motivator to sell. As we said above, many owners go into the process thinking that if the price is right, they’d sell. So, our advice here is to know your number.

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A B2B Signs, Graphics, and Large Format Print Franchise Business in Miami, FL

This is a great opportunity to buy a well-established large format signs and graphics print shop in the greater Miami, FL area. The business has been operating for 15 years, with revenue growing again in 2024. It serves professional clients in the B2B sector, offering solutions for businesses of all sizes and across various industries. The business has its own production capabilities with the latest equipment and technology, a skilled and experienced staff, and a growing customer base. The buyer will have the option to assume a multi-year lease on the space. This B2B signs & graphics franchise resale offers recession-resistant business, high repeat customer rate, great profit margins, and technology-driven business supported by a World Class franchisor with high franchisee satisfaction ratings. No previous sign experience is necessary as the top-rated franchisor will provide initial training and ongoing support, and the experienced staff will facilitate a smooth transition of ownership.

For more information contact: Larry Lane

Thinking of selling your business or looking for an established 

business to purchase? Contact a VR Office Near You!

VR Office in North Dallas, TX Sold a Fence Construction Company

This locally owned and operated fence construction company has been providing quality fence design and installation to their community for over 15 years. The company is staffed by experienced, licensed, and insured contractors offering various types of residential fence installations. Their specialties include custom-made cedar and redwood privacy fences, decorative picket fences, and stockade fences. They also offer handmade ornamental iron fences, decorative wrought iron gates, automatic gates, and iron handrails. Additionally, the company builds brick columns, stucco columns, stucco walls, arbors, and pergolas. Their metal shop allows them to custom design and build wrought iron fences and railings to their customer’s exact specifications.

Congratulations to John Harris for your successful closing.

Investment Opportunities in the Mining Mid-Cap Market

by Gundo Kahle, CEO CBA Cross Borders Associates

Summary

In the mining sector, public attention is mostly focused on the large international players, on their industry-shaping mega-deals and large mine development projects. However, there is a very large number of smaller and mid-sized mining companies which, although small by global standards, provide most supplies in most metals markets.

These smaller producers are sailing below the radar of public attention, but offer, nevertheless, vast opportunities for commercial partnerships, for M&A and for individual investments. 

1. Small and Mid-sized Mining Companies

Next to the large and well-known mining companies like Rio Tinto, BHP, Vale, Anglo American and Glencore, there are, worldwide, thousands of small and mid-sized mining companies. These companies are the risk takers and project generators for the mining industry, and they guarantee the continuous adjustment of production to the growing demand by end-users. They can be sub-divided into the following categories:

• Explorers: This category is the most prolific, with countless public and private enterprises which are driven by a true entrepreneurial spirit. These companies are generally owned and run by geologists on the hunt for a major discovery, or to drive historical exploration activities into a commercial business plan. Risk is high at this stage, and capital attracted is generally “hoping for the best but expecting the worse”. The potential upside for investors is very attractive: Outcomes range from 10x returns to 1000x returns in the most successful cases. These companies typically have a valuation of under $100 million. 
• Developers: These companies have enjoyed exploration success and now have to re-tool to study the project, define feasible mine development concepts, raise the necessary finance, and then build the project and set up production. This phase is challenging, as it requires a range of skill sets, a flexible approach, and a focus on commercially feasible outcomes. Major risks include over-confidence in a team’s ability or in the project assumptions, or driving for perfection, allowing the perfect to become the enemy of the good. Risk remains high at this stage, with many examples of excellent discoveries being left standard because of physical and management challenges that cannot be overcome. Return on capital during this period generally ranges from 5x to 10x.
• Operating mid-sized mining companies: There are hundreds of companies worldwide with a market capitalization from US$ 500m to some billions of dollars. These range from highly successful mining operations with a long-life cycle, producing high quality products with operating margins in excess of 50%, to marginal assets that eek out meagre annual profits and no return on capital investment. 

Reconstruction of a copper mine in Cyprus – brownfield development

Small and mid-sized mining companies play a crucial role in the continuous development of the global mining industry and, hence, in closing the supply gap of critical raw materials. They often rely on equity financing, partnerships, early-stage offtake agreements, and joint ventures to fund exploration and development activities. Although most are listed on specialized exchanges such as TSX, TSXV and ASX, many are privately owned, and information on their operations is limited. 

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