M-and-A-Wire-Economy Part 2

M&A and the Economy Part ll: Six Considerations Affecting Sellers’ Timing

There are numerous economic indicators that are pointing towards recession or stagflation. As discussed in our previous Wire article titled M&A and the Economy Part 1: Americans are Getting Poorer, price increases driven by rampant inflation and the energy sector crisis (gas, natural gas, diesel fuel supply demand imbalances) are hurting the American public, and…
MA-Wire-June-Blog-Post-pt-1_1140x665

M&A and The Economy Part 1: Americans are Getting Poorer

We want to turn our attention to recent economic developments as conditions in the US continue to worsen. The M&A market is not immune to these worsening conditions. There is a lot to cover on this issue, so this topic will span over several articles. Today, we’d like to focus on macroeconomic indicators that are…
Watermark Wire

The Ultimate Preparation Step for a M&A Sale

Section 1202 was enacted in 1993 and was meant to help encourage investment in small businesses. Put simply, Section 1202 allows individuals to avoid 100% of the federal capital gains tax incurred upon the sale of qualified small business stock (also known as QSBS), given the shareholder and business have met the (many) requirements that…
Consider- M-&-A in 2022

Is 2022 a Good Time to Consider M&A?

M&A Had a Banner Year in 2021 There is no question that 2021 was a year for the record books in the M&A marketplace. In the US, over 18,500 M&A transactions closed vs. 14,800 in 2020. After a dramatic drop in M&A volume in 1H’20 due to COVID-19 rearing its’ ugly head, the M&A market…
Watermark Advisors Single Family Office

Family Offices and M&A

Family offices continue to grow in prominence in the world of M&A and are increasingly competing against PE firms and strategics for acquisition opportunities. Single-Family Offices (SFOs) manage wealth of a single-family or individual. Multi-family offices (MFOs) are designed to provide similar services to their SFO counterparts but to a number of wealthy families. According…
M&A Capital Gains

Watermark Wire: To What Degree Would a Capital Gains Hike Influence M&A?

The capital gains tax has been a topic of debate for many years, as both individuals and business owners must take these one-time taxes into account when exiting investments. Among other tax hikes currently proposed by the Biden Administration, the proposed Federal long-term capital gains hike under consideration for assets sold greater than $1MM is…
M&A Protecting National Interests

In Focus: Protecting National Interests in M&A Transactions

Who is CFIUS? Much has been written and spoken about foreign companies with ties to communist governmental regimes acquiring US-based companies. This article discusses how the US government protects our country’s national security issues when M&A transactions are suspect. Many may not know that there is a body within the U.S. government that is devoted…
M&A in a Devisive World

2021 M&A Wire #1: M&A in a Divisive World

We are pleased to share Watermark’s inaugural M&A Wire for 2021. Back to Fundamentals: Comprehensive M&A Expertise a Rarity, but also a Requirement M&A continues, as it always has been, to be a risky endeavor. If any one area in M&A goes sideways, that can spell trouble. Considering M&A involves so many processes and skills,…

Sellers, Be Aware of M&A Advisors’ Biases

A fascinating mergers & acquisitions topic rarely written about is, how would a business owner know if the advice they are receiving from M&A bankers is biased. Does the advice favor the owner or the banker? From my experience, most business owners do bounce the decision to sell off family members, respected peers, professional advisors,…

How Will COVID-19 Influence M&A Valuations?

COVID-19 is impacting how practitioners value target companies for M&A purposes. How are valuation practices changing and what stays the same? Let’s take a look. Guideline Publicly Traded and M&A Transaction Comparables methods’ influence over a final valuation range should be reconsidered during this crisis. First, looking at the M&A Transactions method, Revenue and EBITDA…
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