Earlier this month, we released a special report on M&A activity in the audiology and hearing aid industry.  The report examines today’s buyer and seller activity, our outlook for the next 3-5 years, and an examination of some key trends impacting deals.  To download the full report (for free), click here.  The report intro is below:

Introduction

As the third quarter of 2013 comes to a close, it’s time to take the pulse of M&A activity in the audiology and hearing aid industry. Earlier this year we noted in our Year End M&A Report: Audiology Industry that 2012 was a banner year for sellers, Continue reading →

Interest rates are going up.  The rise began a few months ago and is likely to continue for the foreseeable future.  Earlier this summer, rates for 30-year fixed mortgages increased a full percentage point in less than a month.  The 30-year Treasury Note bottomed out at 2.82% on May 2, and sits at 3.75% today.

Changing interest rates create unique pressures in the M&A environment.  While they impact valuations in the long-term, they can impact buyer behavior in the short-term.  As interest rates rise, buying a company becomes more expensive.  Therefore, if someone who plans to buy a business believes that interest rates will continue to rise over the mid-to-long-term, then he or she will be motivated to complete a deal quickly rather than risk missing out on the best rate possible.  This can even lead to a “we just need to buy something, anything” phenomenon, as pressure mounts.
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The decision to incorporate – and how to do it – is one of the first important decisions most business owners make.  Most people seek advice from attorneys, accountants, or friends or relatives who own their own companies in order to decide which corporate structure best suits them, and the majority end up choosing a Sole Proprietorship, LLC, or S Corporation.  Every once in awhile, owners choose to incorporate as a C Corporation.

Through the course of our business at Bridge Ventures, we have the opportunity to observe how each of these structures impact an owner’s tax liability when selling their company.  Disclaimer: we are not attorneys or accountants, and you should seek the advice of one or both if you need incorporation or tax guidance.  That being said, if you own a small business then we have some words of advice: unless you are building the next high-growth tech start-up and you are going to attract millions of investment dollars from Venture Capital investors and your business will therefore require multiple shareholders and multiple classes of shares and a complex capital structure, do not choose the C Corporation.  The benefits are minimal, at best, to most small business owners while operating the company, and they come at a huge expense when you try to sell. Continue reading →

May 3, 2013

For Immediate Release

Bridge Ventures announced today that it assisted in the sale of Advanced Hearing Services of Chicago, IL to a regional competitor.  The transaction closed on April 30, 2013.  Bridge represented the seller on an exclusive basis in this transaction.  At the buyer’s request, their name will not be disclosed in this announcement.

Like most of Bridge’s clients, the seller operates in a rapidly consolidating industry.  Bridge’s experience with consolidating sectors and its extensive  industry contacts allowed it to attract multiple qualified and well-capitalized buyers.  The seller was able to choose among multiple competing offers and partner with a company that ultimately proved to be the best fit, both financially and for the future health and sustainability of the practice.

About Bridge Ventures

Bridge Ventures is a middle market merger and acquisition firm specializing in assisting privately held companies with revenues ranging from $500 thousand to $50 million. Bridge focuses on assisting business owners in rapidly consolidating industries, with an emphasis on the healthcare and business services sectors. If you are a business owner thinking about selling your company, contact Bridge Ventures directly to find out how they can make the sale of your business a success.

April 26, 2013

Craig Castelli

Bridge Ventures, LLC

Chicago, Illinois 60662

This story is about a stubborn old coot who thought he could sell his business without help. Big mistake. Having exhausted several attempts to sell my hearing aid practice from 2010 through 2012, I reluctantly dug out a business card from Craig Castelli of Bridge Ventures in Chicago. My last communication with Craig had gone something like this: “If things go south on the sale, I will get back to you.” It went all the way to the South Pole.

The first surprise came with the extraordinary and in-depth business valuation Craig generated. I received more information about the financial health of my business than during the course of my 23 year ownership. It underscored the reason I became an Audiologist and not an Accountant. When the time came to set the asking price my response was “Yeah, right!” Imagine my embarrassment when I was offered more than the asking price. Continue reading →