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family business

How Family Businesses Do M&A Differently

Over the years we’ve had a lot of experience working with family-owned businesses. Whether it’s on the sell-side or the buy-side of a transaction, we know that family businesses see mergers and acquisitions differently than other types of firms, making their approach to the process unique. The peculiarities of how family businesses handle M&A are […]

recapitalization

Recapitalization and Business Owner Flexibility

Many business owners find themselves approaching retirement age but their wealth is tied up in their largest and most important asset, their business. If this scenario sounds familiar to you, recapitalization is a great option. A recap is essentially an alteration of the company’s financial structure by adding debt, bringing on investors, or buying out […]

Independent Sponsor

The Growing Popularity of Independent Sponsorship

Over the last few years, we’ve noticed a significant growth in the popularity of the independent sponsorship model. While this model used to be seen as merely a stepping stone for those with experience in the middle market to start their own fund, it has now become a generally accepted alternative investment model. What is […]

Generational entrepreneurship

Generational Entrepreneurship and Baby Boomer Businesses

In one of our recent blogs, we discussed that with 10,000 baby boomers are reaching retirement age every day, the United States is going to see the largest intergenerational transfer of private businesses in our country’s history. You might assume that millennials or Generation X’ers will take the place of baby boomers as America’s entrepreneurial […]

Chad Byers Highlighted in the Philadelphia Business Journal

Chad Byers, Founder and Managing Partner of Symmetrical, was highlighted in a special section of the March 2nd issue of the Philadelphia Business Journal. He is an alumnus of the 2016 Outstanding Directors award for his service on the board of Hillside Acquisitions Group LLC.                     […]

recession

Is it Time to Consider a Recession?

We’ve enjoyed the third longest period of economic growth in U.S. history at 103 months. We’ve also enjoyed nine years of positive performance by the S&P 500, matched only once before from 1991-1999. So, the question that comes to mind is: how much longer will it last? Considering the answer to this question now will […]

medical practice

The Private Equity Demand for “Eyes, Skin, and Teeth”

It has never been a better time to be an owner of an ophthalmology, dermatology, or dental practice who is looking to sell. Over the last few years, demand for these types of medical practices among private equity firms has soared, causing a strong increase in valuations. Consequently, consolidation is the new reality as practice […]

M&A analysis

Symmetrical’s M&A Analysis – 2017 Review & 2018 Outlook

A cheerful attitude persists in the middle market M&A world. Despite a slightly down year in 2017, optimism remains high, and we expect a marked increase in activity in 2018. Key Observations 1) Because median valuation/EBITDA multiples continue to steadily rise, while at the same time monetary policies remain beneficial for financing deals, now is […]

what's your company really worth

What is Your Company Actually Worth?

A business owner’s decision to sell is typically based on his or her perceived value of the business. Based on our experience, this number is typically not accurate – it could be worth more or less. This mistake can be costly. Here’s what you need to know: Why Business Owners Misjudge Value The complexity of […]

DIY M&A

Should You Hire a Sell-Side Advisor or Do It Yourself?

It’s a new year and many of you may be thinking that this is the year that you’ll cash-in and sell your business. While the decision to sell the successful and valuable business you’ve built over the years can be taxing, you’ll immediately be faced with another, equally-important question. Should you handle the sale yourself […]

Tax Reform

What Tax Reform Could Mean for the Middle Market

The Senate and House of Representatives are working on reconciling their versions of tax reform in an effort to get a final bill to the President before Christmas. This means that the first comprehensive tax reform since 1986 is on the verge of being a reality. So, we thought you’re probably wondering what each chamber’s […]

co-investing

LP Co-Investing Is on the Rise and It’s Worth It

There is a new normal in private equity markets. Limited Partner co-investing has grown past the point of a trend to an established method for LPs to actively invest. LP allocations into co-investments have grown every year since 2012. In 2016, the total value of LP transactions was $103 billion by early December, which is […]

Divestitures cause growth

How Strategic Divestitures Spur Growth

What happens when you hear a rumor or read an article about a company making a divestiture? Usually, the news is met with a scoff and conversation about the difficulties the divesting company must be having. This is a flawed perception. In fact, divestitures are an undervalued tool in the middle-market because, contrary to popular […]

Tech Middle Market

Is Tech Reshaping the Middle Market? Two Questions You Need to Answer to Handle it.

Modern middle-market executives are a talented and determined group of individuals. They know their businesses well and many of them (especially Baby Boomers) have been experts in their industry for decades. However, an unconventional intruder that even the most seasoned professionals find difficult to control has found its way into every industry – digital. The […]

Merger Integration

How to Actually Be Good at Merger Integration

The U.S. just experienced the most active first half of a year in over a decade for middle-market M&A transactions, with 5,260 deals completed. As more and more companies realize the potential value of mergers and acquisitions, the number will likely only continue to climb. However, as the high number of failed M&A deals in […]

3 Reason Why an M&A Advisor is Worth the Cost

Are you thinking about selling your company?    Be warned – the process always comes with some degree of stress and uneasiness. But, the quickest way to mitigate those feelings is by hiring an M&A advisor. You may be hesitant to spend the money when you’re focused on bringing in profits from a sale, but outside help from an experienced professional […]

Due Diligence in Private Company Transactions

Acquiring a company always involves some level of risk. The best course foundation for a successful investment is a comprehensive due diligence process, which reduces the risk inherent to the transaction, facilitates more informed decision making, and leads to the potential for higher returns down the road. Before you move forward with an offer to […]

Understanding the Difference Between Private Equity & Venture Capital Firms

Late-stage business owners often talk to our team about Venture Capital (VC) firms having interest in acquiring their companies. At the same time, start-up businesses talk to us about seeking investments from Private Equity (PE) firms. If you’re a business owner and you’re looking to raise capital and/or sell your company – who should you […]

Baby Boomers and Their Businesses

In one of our latest blog posts, we discussed the impact that the Baby Boomer Generation has and will continue to have on our economy. This is especially true when it comes to their retirement. A study from Lindquist shows that since 2011, 10,000 Baby Boomers are turning 65 every day. This trend is set […]

Private Equity 101: New Platforms vs. Add-Ons

Over the past several years, private equity firms have been increasingly interested in investing in add-on acquisitions, rather than platform companies. While the current economy has solid footing, more businesses are returning to the mergers and acquisitions marketplace. This opens the door for acquiring new platforms and broader possibilities for supporting add-ons. What are Platform […]

Baby Boomers in Their Golden Years

“Baby Boomers,” those born between 1946 and 1964, have played a significant role in shaping the economy. So much so, in fact, that economists from Wells Fargo recently released a report analyzing the impact that the retirement of this generation will have on the economy in the near-future and beyond. Ultimately, the effects will be […]

Succession Planning for Family-Owned Businesses

Succession planning is the process of identifying and developing new leaders to replace current leaders when they leave or retire. This is crucial for all businesses, but especially for family-owned businesses, which typically need to consider the family legacy and values they want the company to sustain in the future. Succeeding with Succession Family-owned businesses […]

2017 Deal Update

Symmetrical Investment Group is pleased to announce a new platform investment, one portfolio add-on acquisition, one divestiture of a division, and two strategic real estate acquisitions of properties supporting operating companies. In February, Symmetrical backed an operating partner in the acquisition of Graboyes Commercial Window Company, a US Top-50 regional commercial window installer specializing in […]

Maximizing Value in a Transaction

As every business owner knows, there comes a time to sell. Whether it be years after starting your business or months after purchasing it, one of the main outcomes owners hope for is a high-value sale. While this may be a typical desire, many owners fail to put in the due diligence necessary to take […]

EBITDA – At a Glance

If you are considering selling your company or investing in another, you are likely familiar with the term “EBITDA,” which stands for earnings before interest, tax, depreciation, and amortization. In simplistic terms, EBITDA measures a company’s operating performance, including its ability to generate cash flow. EBITDA is almost always the key investment consideration, but it […]

What You Should Know About Self-Directed IRAs

You don’t need someone to tell you the critical role that financial planning plays in your future. Evaluating various retirement options and making investments now, no matter your age, will allow you the opportunity to build your wealth over the years to come. It is key to speak with your friends, partners, and advisors to […]

Build Your Business with Your Buyer in Mind

Shareholders, employees, clients – these are all important individuals to keep in mind at every stage of a business – but you should also be thinking about your buyer. When it comes time to sell your business, you want to be prepared. Investors expect to be given a clear vision for your exit, including when, […]

Business Loans vs. Business Line of Credit – What You Need to Know

Whether you’re in need of start-up funds for a new business, capital to expand a current company, or money to get you through the next quarter, knowing the difference between business loans and business lines of credit is key. Typically used to finance the purchase of a major asset, business loans allow you to add […]

Thinking of Buying a Company?

Regardless of your level of investment in a business, it’s imperative to educate yourself long before you enter the negotiation process, taking into consideration factors such as levels of sales, costs, profits, etc. Once you have evaluated your research and solidified your decision to move forward, only then can you go ahead and make an […]

Increase Your Efficiency: Top M&A Tools & Resources

A quick Google search reveals a plethora of tools designed to increase your efficiency. While having choice is a good thing – it’s easy to try out too many tools and feel overwhelmed. Our team has tested dozens of tools throughout our careers, and we’ve rounded up our top tools for the M&A industry. If […]

Now that You’re Ready – The Steps to Sell Your Business

In our last blog post, we reviewed the steps you should take to prepare your business for a sale. Once you have an understanding of the prep work that goes into a sale, you are ready to think of these steps in getting your company sold: Step 1 – Understand Your Realistic Range of Value […]

Getting Ready to Sell Your Business

If you’re considering selling your business – and want the best offer – the time to start preparing is now. There is a lot of work that goes into a successful sale, and we can help. This post will review the steps you should take to prepare your business for a sale, and our next […]

Why Only 10% of Businesses are Passed Down to the Next Generation

Guest Blog Post By: Rob Slee, Author of Time Really Is Money I grew up in a family that owned and operated businesses. My dad was a serial entrepreneur, with all of the good and bad that such a title bestows. Behaving as a functioning family is tough enough; throwing a business into the mix […]

What to Look for in an M&A Advisor

Finding the right M&A advisor is key to successfully meeting your goals. The first step in establishing such a relationship is to understand the role that an advisor plays. While the term varies from region to region, the typical advisor positions their client – a selling company – as a strategic fit for target buyers, […]

Negotiating the Sale of Your Business

Most business owners have had their fair share of practice in negotiation, between managing and finalizing contracts for vendors, clients, and even contractors and employees. But when it comes to negotiating the sale of your business, it’s best to take a step back and consider where you may need to brush up on your skills. […]

Who Should You Sell Your Business To?

For many business owners, there comes an appropriate time to step away and hand over operations to a new owner. If you decide that selling your business is the right exit strategy, you may find yourself with a variety of different buyer options – and then it’s decision time. Should you sell to someone within […]

Management Buyouts – Does it make sense for you and/or your managers?

Management buyouts have become a common exit strategy when selling a business, and there are two sides to the transaction. On one side, there is the owner looking to sell part or all of its company. On the other side, there is the buyer – an employee of the company being sold. While an MBO, is […]

Common Credit Mistakes Small Business Owners Make – and How to Avoid Them

Starting a new business is an uphill battle – there are many things to consider: who your target audience is, whether or not you want to enter into a partnership with another person or business owner, how many years you plan on being in the industry, etc. With so many decisions to make, it’s understandable […]

The Power of Recapitalization – What It Can Do for Your Business

A common misconception amongst business owners struggling to make ends meet is that they must give up their company completely in order to overcome the problem. While this may in fact be the case for some business owners, those who have a sound business strategy can remain in control of their business ventures when hard […]

Ease of Transferability Equates to Increased Valuation

Growing up we were constantly reminded of the importance of being organized and prepared and making sure that our responsibilities were being fulfilled. These two concepts have followed us now into our daily tasks both at home and in the workplace, but how well do we abide by them? These attributes are important for any […]

Why Every Business Owner Needs an Exit Plan

Business owners are often focused on the present moment, creating short-term goals to get them where they want to go fast; but what about a company’s long-term goal, as well as the owner’s future? An exit plan is one of the most overlooked components of owning a business. Aside from the initial start-up actions, you […]

2016 AM&AA Summer Conference

Symmetrical Managing Partner Chad Byers is the Chair of the 2016 AM&AA Summer Conference. Recently AM&AA asked Chad why this conference is a must-attend event for middle market M&A professionals. Read Chad’s letter to the AM&AA community below: From the Chair Dear Fellow M&A Professionals, On behalf of the AM&AA Conference Committee and the AM&AA Advisory […]

Five Reasons to Refinance Your Business

Middle-market business owners, investors, and their advisors turn to Symmetrical to address the complex transactional requirements that drive real value in today’s competitive world. Our experienced professionals have a track record of innovation and transactional expertise and help our clients achieve their desired outcome. A common question business owners and investors ask is “When is […]

Building Value in a Private Company

Most investors are aware of the intricacies of equity and building value when it comes to publicly-traded companies, however few can offer advice for private companies. When developing a plan for your private company, you should consider how your plan could help your company grow to reach your long-term financial goals. Here are a few […]

The Six Qualities High-Growth Companies Possess

When examining what makes high-growth companies so successful, we frequently refer to one of the largest and most rigorous performance benchmarking studies ever prepared on the middle market, “The Market That Moves America” performed by The National Center for the Middle Market, Ohio State University in March 2011, which measured 2,048 US businesses. Taking this […]

The Biggest M&A Deals so Far in 2016… And What They Reveal About the Mid-Market

  Every year billions of dollars in mergers and acquisitions take place. 2015 was the biggest year ever for mergers and acquisitions to date and 2016 has already seen seven “megadeals”, or deals greater than $1 billion. While most deals are fractions of this size, they can reveal insights about the mid-market level. The number […]

Alyan Pump has been acquired by Hillside Acquisitions Group

Symmetrical Advisory, Inc. served as the exclusive advisor to Hillside Acquisitions Group which has added Alyan Pump, LLC to their growing list of portfolio companies. Symmetrical Advisory enabled the acquisition of Alyan Pump, a leading pump systems manufacturer and service provider. Headquarted in Folcroft, Pennsylvania, Alyan Pump is a designer and manufacturer of pumps and […]

Independent Sponsors in Today’s Market

In recent years, the Independent Sponsor business model has become quickly accepted in the industry. This hybrid model pairs the rigor of a traditional private equity firm and stronger LP investor alignment to create a successful and popular model. With the onset of these models however, there is an opening for new and less established […]

Symmetrical Donates $10,000 to Local School

Symmetrical Donates $10,000 to St. Matthew’s School in Chester Springs for families in need. This donation through the Educational Improvement Tax Credit Program, offers the corporation’s tax credit to low- and middle-income families’ private school and prekindergarten scholarships. In the past year this program has awarded over 51,000 scholarships to students across Pennsylvania. With donations […]

Transaction Structuring: Types of Debt in a Leveraged Buyout

  In a leveraged buyout (LBO), the company uses leverage, or debt, in order to acquire another company or one of its parts. In an LBO, private equity funds can use multiple types of debt or capital as leverage. The most common types of capital or debt used are a Revolver, Bank Debt, and High […]

Transaction Structuring: A Roundup of the Three Most Common Structures

Transaction Structuring When contemplating any kind of merger or acquisition, it is important to consider what type of transaction you will move forward with.  In order for a deal to be considered successful, it must be mutually beneficial for both the Buyer and the Seller. In today’s market, there are three common structures used in […]

Chad Byers Named Outstanding Director by the Philadelphia Business Journal

Managing Partner Chad Byers has been named an Outstanding Director by the Philadelphia Business Journal, for his service on the board of Hillside Acquisitions Group LLC . Byers and his two partners acquired the company in April 2014. Byers was instrumental in the implementation of a new ERP system as well as investments in technology, […]

Your Guide to an Effective Leveraged Buyout

  First of all, what is a Leveraged Buyout (LBO)? A leveraged buyout (LBO) is when a company uses leverage, mostly debt, to acquire another company or one of its parts. Private equity groups generally invest a portion of their equity and then use leverage, like debt, to fund the remainder of the purchase. While […]

What is Working Capital and how does it Affect an M&A Transaction?

In the simplest terms, working capital can be defined as current assets less current liabilities but ultimately it is the amount of operating liquidity or cash available to a business at a given point in time. Working capital is an essential part of the day to day operations of a business and is just as […]

The First Step in the Process: Recasting to EBITDA

Thinking about buying a business? Thinking about selling a business? No matter which side of the fence you are on, it is important for you to start by understanding the true range of value for the business. The market value of a small business can vary greatly from the book or tax mitigated value because […]

Why Now is the Best Time to Borrow and Invest in Your Business

The predominant thinking over the past few years has been that new regulations resulting from the Dodd-Frank Act have crippled small community banks and their ability to lend to small businesses, while large enterprises have continued to easily borrow from the capital markets. Although the commercial and industrial loans of community banks may have been […]

A Manager’s Guide to a Successful Management Buyout

So what is a Management Buy-Out (MBO)? An MBO is a transaction where a company’s management team purchases the assets and operations of the business they manage. The MBO became a popular option in the 1980’s in the United States and the trend quickly spread across the globe. An MBO can be beneficial to everyone […]

3 Reasons Why Majority Recapitalizations Work

Recapitalizations are the way of the future. It is no longer acceptable for an owner to sell their business one day then turn around and go to the shore the next. Private equity investors and strategists alike can bring down their risk profile and increase valuation by keeping owners engaged for some period of time […]

How to Proactively Read and Engage Your Audience to Achieve Your Business Objectives

In recent years, the corporate landscape and the way we all do business has changed in nearly every industry. While employers continue to embrace virtual workplaces, web conferences and focus more on email etiquette, we cannot minimize the importance of live meetings. The biggest deals are always handled face-to-face and we must be appropriately armed […]

Inside the Deal | Selling Upstream

In today’s market, many big firms are only interested in acquiring businesses with at least five million dollars in earnings before interest, taxes, depreciation, and amortization (EBITDA). Many opportunities fall a bit short of the $5M EBITDA mark although this doesn’t mean that investors shouldn’t take a harder look. Here, we’ll go inside the deal […]

Symmetrical at AM&AA Summer Conference

Symmetrical will be attending AM&AA’s Summer Conference in Chicago, July 7-9. In response to today’s shifting M&A environment, the 2015 Summer Conference will focus on how private equity firms and other dealmakers are responding to today’s new pressures and what is expected going forward. Be part of this year’s most anticipated industry event for a […]