John D. Wagner
John Wagner is a managing director at 1st West Mergers and Acquisitions, which offers a specialty practice in the LBM sector. To learn more, contact John at: j.wagner@1stWestMA.com, or visit www.1stwestma.com.
Don’t let the COVID-19 pandemic devalue your LBM business upon sale
For LBM companies that are now in the process of seeking acquisition—indeed for almost every company—the COVID-19 pandemic has suppressed sales revenues and resulting EBITDA.
Beware of financial engineering
For successful, growing companies, there is simply no need to allow an acquirer to pay you with your own money.
Don’t let the COVID-19 pandemic devalue your LBM business upon sale
Here’s how to credit COVID-19 losses to earnings when selling your company.
Revenue is not profit
In each and every deal we do, potential acquirers will want to know the revenues, sure, because that will show the orders of magnitude of the EBITDA.
Do you get a check for inventory at closing?
I can't tell you how many company sellers wrongly calculate the dollar value of inventory when they are tallying up their company’s worth.
White Paper: M&A Heats Up for Component Manufacturers. Prepared?
Acquirers Are Rolling Up Component & Truss Manufacturers and Panelized Providers Are you prepared for this surge of interest? If you’re a component or truss manufacturer,...
Losing control during an earnout period
When there is a disagreement between an acquirer and a seller about the value of a company, yet determination to get the deal done, an earnout is often put in place.
Always shop the deal (almost always)
You never know who your buyer will be, and it’s imperative that—short of accepting a market-clearing price—you take the offering of your company as far and wide as possible.
Why companies sell for less, or don’t sell at all
Why don't companies sell getting top dollar, or sometimes not selling at all? Here are a few reasons.
Taming unrealistic valuation expectations
When selling at a time of strong growth, some owners want the valuation of their businesses pegged not where they are now with financial performance.