Concord, New Hampshire – Cornerstone International Alliance (C.I.A.) members completed 146 business transactions in 2021, setting a new record of more than $1.1 billion in value. The Alliance is comprised of 25 industry-leading M&A and investment banking firms in the U.S., and across the globe, focused exclusively on serving businesses in the lower middle market.
“This is an incredible accomplishment and a testament to our member’s expertise, the strength of the organization and the global network it creates,” said Nick Olsen, Managing Director of Cornerstone International Alliance. “The members’ combined experience, resources and collaborative efforts are generating a new level of value for their clients in the lower middle market, and we’re excited about what’s ahead in 2022.”
The Alliance members typically work with business owners whose companies have $500,000 to $10 million in EBITDA or $5 million to $150 million in revenue; the primary services provided include business sales, acquisitions, and valuations.
“We’re always striving to find ways to help one another through networking and the sharing of best practices, which is the goal of the organization,” explains John Howe, Director of Business Transition Strategies(BTS). “Ultimately, the members are firms with a track record of success, high integrity professionalism at all levels of the market and actively work to set a high standard for M&A excellence in the lower end of the mid-market. We work with owners who have built impressive businesses - ones big enough to need a strategic transfer process like the one we use. We have a passion for the lower mid-market and understand the tug of war emotions involved in reaching a time when selling is a reality. I was among the founding members of this alliance which has grown through adherence to strong core values. We look forward to meeting owners and their teams.”
Founded in 2018, C.I.A. members have completed over 3,600 business transactions.
"The entire process went smoothly and professionally. The BTS team kept me fully informed at every step. They worked hard and were effective in bringing the deal home."
"Skip and I continue to be grateful for all you have done to make the sale of Pure Flow come to fruition."
"BTS’s level of expertise in the process and close attention to detail enabled us to successfully navigate the deal."
"These types of transactions are often long and complicated and I doubt it could have been successfully completed without your close ongoing involvement."
"The outside objective point of view that you have brought us has been invaluable as we prepare for the rapid growth."
"John then found the right buyer and coordinated a seamless transition—he doesn’t miss a single detail."
"John immediately identified our strengths and experiences and discussed a business that ultimately was more in line with our goals."
"The BTS team came in, evaluated everything in a professional and thankfully non-threatening manner."
How M&A Will Respond to Next Recession
The takeaway for business owners: Get back to basics. Don’t worry about hyper growth. De-risk your company as much as possible.
Perception vs Reality with Small Businesses
Sometimes the economic picture on the news seems inconsistent with what is happening for many business owners. Nearly every owner we speak to is out straight.
NH-Based Techinical Manufacturing Company Sold
Hampshire Controls has a bright future with new ownership. The company was recently sold by Diane Rush, owner and president, to Pillar Imaging and its leader Dr. Michael Pilon.
Be Ready When You Are Ready
When a business owner says it’s time to sell, I ask, “How fast do you want to be out?” The answer I hear most is, “Yesterday.” But sellers underestimate how long the process takes.
Looking at a Sale Through the Right Lens
Sometimes our vision about the future is blurry because we aren’t considering the whole picture but only parts of it.
5 Deal Points from the Trenches
Today I work with clients of Business Transition Strategies who are implementing Growth Through Acquisition strategies. Here are a few observations from working on a wide variety of projects.
Tax Changes Could Hurt Net Proceeds
Changes proposed to the capital gains tax suggest they may need to get 30% more in a transaction in the future just to net the same value they would get today.
Good Ideas From Shark Tank Deal
One of my colleagues in Cornerstone Alliance was front and center in a recent Shark Tank exercise. A business that had been sold was put in front of four potential buyer groups.
Buyer Trends in Lower Mid-Market
Other businesses are a significant market for companies being sold within the lower mid-market.
Things to Consider in Transition Thinking
As a business owner, you have to consider the role you want to play in the business in the immediate future following a sale and how that could impact the sale.
Precision Machining Company
Initially, liquidation was a serious consideration. It would offer a quick exit but would hurt loyal employees and disrupt the customers who had come to rely on its quality production.
Green Product Company
Our client owners could dig in for the long haul…However, this would take five years or more. Owners simply lacked the horsepower to do it.
Water Purification Company and Young Buyers
Owners decided they wanted to retire. They also wanted to be fair to the staff who had been loyal to them. Could the company be sold, the staff retained and the facility remain in use?
Magnetics Company with High Profile Customers
(T)he manufacturer would need to focus on growing EBITDA to capture interest from major strategic buyers and achieve a higher multiple of earnings.