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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.

How to handle off-book inventory when selling your business

One of the last things the buyer does is perform a hard-count of the seller’s inventory so that the buyer has an opening balance sheet for their new operation.
John Wagner - working capital peg

What is a waterfall scenario?

Let's say you successfully found a buyer for your company, and you are wrapping up the due diligence process as the final stage before your deal proceeds.
John Wagner - working capital peg

‘10 and 10’ companies hold value in any market

Selling your business in an inflationary period doesn’t necessarily mean selling it at a discount.
John Wagner - working capital peg

Selling into an inflationary market

As always happens, we will cycle out of a down market and use the lessons learned to grow even more valuable companies in the future.
John Wagner - working capital peg

Parsing out deal elements as a percent of TEV

Buyers of LBM businesses are overwhelmingly private equity groups, and they think of deal elements (like senior debt, subordinate debt, seller’s notes, earn-outs, and escrows) as a percent of the total they pay for your company.
John Wagner - working capital peg

Congrats are in order! Your GPMs held steady!

A curious question has come up among some buyers we deal with who are acquiring LBM businesses.
John Wagner - working capital peg

Anatomy of a deal

There can be as many as four deal elements that make up an offer to acquire your company.
John Wagner - working capital peg

Five types of EBITDA

EBITDA is a term with a time-worn, clinical definition. It stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.
John Wagner - working capital peg

Three types of acquirers

There are three general classes of buyers that might acquire your company: 1) A Strategic Buyer (strategic), 2) a pure Private Equity Group (PEG), 3) a Merchant’s Bank.
John Wagner - working capital peg

The value of a good CPA

Fact is, a good CPA is worth their weight in gold, and well worth the expense to retain one.

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