Selling your business should be a win-win for you, but many owners face a rude awakening when taxes claim 30-50% of their proceeds. In 2025, while long-term capital gains rates range from 0-20%, the real cost is often higher. A $5 million sale could trigger a 20% federal government tax, plus 13.3% in states like […]
Strategic vs Financial Buyers in M&A: Key Differences Explained
When a business owner starts thinking about a sale, one of the first questions should be “Who’s likely to buy my business, and what exactly are they looking for?” This is especially true for business owners in the Main Street and Lower Middle Market ($1M–$50M) revenue range. There are two buyer types that dominate the […]
M&A Trends 2025: What Small and Mid-Sized Businesses Need to Know
The mergers and acquisitions (M&A) market has significantly shifted in recent years. While deal volumes surged during the post-pandemic rebound, rising interest rates, inflation, and geopolitical uncertainty brought a wave of caution. Yet, despite these headwinds, small and mid-sized businesses have continued to draw attention from buyers, especially those looking for resilient business models, niche […]
Legal Challenges in M&A Deals and How to Address Them
Introduction Mergers and acquisitions offer exciting opportunities for growth and innovation. However, when companies merge, the legal complexities get much trickier. A successful M&A deal starts with carefully drafted agreements, adherence to legal guidelines, and obtaining all necessary approvals. All of these help lay a solid foundation for future success. Legal experts are there to […]
Types of M&A Deal Structures
Introduction Mergers and acquisitions (M&A) are complex transactions that shape a company’s future. The deal structure determines how ownership, the target company’s assets, liabilities, and financial terms are transferred between two companies. It impacts tax obligations, legal risks, and long-term business success. There’s no universal approach to structuring an acquisition deal. Some involve a wholly […]
How to Maximize Your Business Value Before a Sale
Introduction The best way to maximize business value before selling is to understand your business’ actual worth. This advice might sound like common sense, but you would be surprised by how many owners fail to do so. An organization can only improve a business’ value based on what they actually know. As with other transactions, […]
The Importance of Confidentiality in Business Sales
Introduction Confidentiality is a critical currency in business sales. It is an essential component of any business sale process, ensuring that sensitive information remains secure while negotiations take place. While confidentiality is often implied, it is a fundamental requirement that both buyers and sellers must prioritize to protect their interests and achieve a successful transaction. […]
Q3 2024 M&A Market Pulse: Key Trends in Business Sales and Valuations
As a contributing member to the IBBA and M&A Source Market Pulse Survey, NEO Business Advisors is pleased to share insights from the Q3 2024 report. This comprehensive analysis draws from data provided anonymously by 340 business brokers and M&A advisors, including our firm, who collectively completed 277 transactions this quarter. Our direct participation in […]
Due Diligence in Mergers and Acquisitions: A Comprehensive Guide for Manufacturing Companies
Due diligence is a critical process in mergers and acquisitions (M&A), particularly for manufacturing companies. It involves a comprehensive investigation of a target company’s financial, legal, operational, and other aspects before finalizing a deal. For manufacturing businesses, due diligence takes on added complexity due to the industry’s unique characteristics, including capital-intensive operations, supply chain intricacies, […]
The Importance of Business Valuation: Understanding Your Company’s Worth
Understanding the true value of your business is crucial, whether you’re planning to sell, merge, or simply strategize for future growth. Business valuation is more than just a number; it’s a comprehensive assessment that influences every major decision you make as a business owner. Without an accurate understanding of your company’s worth, you could be […]