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Meet Jerry Golub: Retail Visionary, Governance Expert, and Strategic Navigator

Wed, 22 Apr 2026 16:05:06 GMT

At SHG, we believe the best advice comes from those who have not only studied the markets but have actually steered multi-billion-dollar organizations through periods of profound transformation. Our newest advisor, Jerry Golub, embodies this "operator-first" mentality.

With nearly three decades of senior-level experience in the retail food sector, Jerry brings a rare blend of branding brilliance, operational discipline, and sophisticated governance expertise to the SHG team.

From Family Roots to CEO

Jerry’s career is a masterclass in leadership evolution. During his tenure at the Golub Corporation (Price Chopper Supermarkets/Market 32), he rose through the ranks to serve as President and CEO. This wasn't just about maintaining the status quo; Jerry was tasked with shepherding an 80-year-old legacy organization through a critical transition to a new generation of both family and non-family management.

His leadership was defined by a "re-imagining of the possible." He spearheaded the company’s rebranding to Market 32, a transformation that successfully captured the loyalty of younger shoppers while retaining the brand's core baby boomer segment.

M&A and Integration

For our clients navigating mergers and acquisitions, Jerry’s background is invaluable. He doesn't just understand the financial side of a transaction—he understands the human and operational side.

Jerry has led the due diligence, negotiation, and integration of numerous supermarket transactions and oversaw the strategic acquisition of fourteen independent pharmacies, consistently delivering ROIs exceeding 25%. His ability to balance marketing and merchandising talent with rigorous financial oversight makes him a formidable ally in any deal room.

Expertise in Governance

Beyond the retail floor, Jerry is a seasoned board member with a deep focus on strategic alternatives and corporate structure. Currently serving as Co-Chair of the Board of Northeast Grocery Inc. (the parent company of Price Chopper/Market 32 and Tops Markets), he has spent years refining the governance and leadership frameworks of multiple organizations.

Through his firm, Evolution Strategies LLC , Jerry has become a sought-after advisor for privately held and family-owned businesses. He specializes in helping companies streamline operations, improve governance, and develop brand-based mindsets designed for sustainable growth.

Community and Education

A firm believer in the power of community and culture, Jerry has served on the board of the Albany Symphony Orchestra for over twenty years, including a six-year term as Board Chair. He also lends his expertise to the advisory board of Butternut Mountain Farms, a respected Vermont-based manufacturer.

Jerry holds a Bachelor of Science in Business Administration from Boston University and an MBA from the Kellogg Graduate School of Business at Northwestern University.

Why SHG?

Jerry joins SHG with a focus on helping our clients achieve significant improvements in strategic planning and operational efficiency. His ability to eliminate millions in unnecessary expenses while simultaneously driving brand loyalty is exactly the kind of "Value Creation" SHG is known for.

Whether you are looking to scale a family business, navigate a complex merger, or revitalize a legacy brand, Jerry Golub’s strategic foresight and seasoned perspective are ready to work for you.

Are you preparing for a transition or looking to sharpen your company’s strategic edge? Connect with the SHG team toda y to learn how Jerry and our team of advisors can support your goals.

SHG's Valuation Philosophy

Tue, 03 Mar 2026 14:10:40 GMT

A Valuation You Can Use, Not Just File Away

If you have ever used a valuation tool and gotten a value that felt off, you’re not alone. Artificial intelligence (AI) can generate a fast estimate, and a Certified Public Accountant (CPA) firm can produce a transactional report. However, when the number has to hold up under real scrutiny, speed is not the point, and strategic insight into enhancing a company’s value may be overlooked by a typical CPA.

At Schwartz Heslin Group (SHG), valuation is built for high-stakes decisions . Our work is often used for tax audits, courtroom defenses, and company sales, and our methodology has supported successful outcomes for over 40 years.

Our valuation philosophy comes back to a few simple ideas. Start with the relationship. Take the time to understand how the business really works. Price the work fairly. Care about the outcome. That is how a valuation becomes more than a number and turns into something you can explain, defend, and use to move forward.

What Valuation Means Depends On Why You Need It

A business valuation is not one universal number. It is a conclusion built around a specific question. Before you talk about methods, you need to get clear on the purpose, the date, and who will rely on it. SHG treats that step as the starting point because it shapes everything that follows.

Take the standard of value. For many tax-driven uses, fair market value is based on a hypothetical deal between a willing buyer and a willing seller. No one is forced. Both sides have reasonable knowledge of the facts, as outlined in Internal Revenue Service (IRS) guidance tied to Revenue Ruling 59 60 .

Now change the use case. Buyers will read a valuation built for a sale process. Attorneys and a judge may read a valuation for a dispute. That audience changes the level of support, the documentation, and how the conclusion is communicated, under standards such as the American Institute of Certified Public Accountants (AICPA) Statement on Standards for Valuation Services (SSVS).

Why AI Estimates And Online Calculators Feel Fast, And Why They Often Miss The Point

Online tools and AI models move fast because they reduce a company to a small set of inputs. That can help you get a quick range. It can also create false confidence when the number gets repeated as if it is a conclusion.

Most private companies do not fit clean assumptions. Owner compensation may need normalization. One-time expenses may distort results. Risk can change with customer concentration or a recent shift in revenue quality. Those details rarely show up in a calculator.

When the outcome will be challenged by a buyer, an attorney, or a tax authority, speed stops mattering. You need supportable assumptions, clear documentation, and work prepared in accordance with accepted valuation standards.

Why A CPA Firm Valuation Can Still Come Up Short For Owners

CPA firms can produce strong valuation work, especially when the team follows the American AICPA Statement on Standards for Valuation Services.

The gap for owners usually comes down to scope. Many firms are hired for compliance or reporting so that the valuation may be framed as a calculation engagement with agreed procedures and a calculated value, rather than a full conclusion of value.

If you are preparing for a transaction or a dispute, you want work built to withstand pressure. That takes more support for adjustments, assumptions, and documentation. At SHG, valuations are built for tax audits, courtroom defenses, and company sales, backed by a methodology refined over decades.

SHG’s Valuation Philosophy

SHG’s philosophy is simple. A valuation should stand up to scrutiny and still be useful to the person running the business. That mindset comes straight from our values.

Client Relationship First

We start with trust and clear communication. You get straight answers and a team that stays close to the work, not a handoff and a final number with no context. That client-first focus also shows up in SHG’s guiding principles.

Understand Clients

A defensible valuation starts with how your company actually makes money. We take time to learn the drivers behind revenue, margins, and risk, then we build assumptions that fit the business, not a generic model.

Give A Damn

If a valuation is going to be used in a tax audit, a courtroom, or a sale, the support matters. We document the logic, pressure-test the inputs, and write the report so others can follow it. That is why SHG valuations are often used for highly scrutinized purposes.

Be Entrepreneurial

We think like owners because the goal is not just a number. It is clear what buyers will reward and what they will discount. When it fits the moment, we connect valuation work to evaluation thinking so you know what to defend today and what to improve next.

Fair Fees

Good work starts with the right scope. We align on the intended use, agree on the effort required, and price it transparently so there are no surprises.

Work Life Balance And Community Involvement

We build long-term relationships, and we show up consistently. Being rooted in the communities we serve keeps the work grounded in real outcomes, not theory.

The SHG Process

A valuation should never feel like a black box. SHG keeps it straightforward and collaborative, with support levels matched to how the work will be used. Many engagements run about 3 to 10 weeks , depending on complexity and how quickly information comes together.

Kickoff And Scope

We start by defining the purpose, intended use, valuation date, and the standard of value that fits the situation. This aligns the work with what stakeholders will actually rely on, whether that is sales, taxation, planning, or litigation.

Data Collection And Context

We gather the financials and key documents, then learn how the company runs through management interviews and, often, a site visit. This is where the real story shows up.

Financial Analysis And Adjustments

We analyze the statements and make thoughtful adjustments when needed, with clear support for every change. Professional standards call for adjustments to be described and supported, and we treat that as table stakes.

Valuation Modeling

We select methods that fit the business and the assignment, often using more than one approach to cross-check the result. SHG commonly references asset-based, income-based, and market-based approaches, including Discounted Cash Flow (DCF) when it fits.

Draft Report And Review

You receive a draft, we walk through the assumptions, and we tighten the narrative and support where it matters most.

Final Report And Support

We deliver the conclusion in a format that is easy to follow and ready for scrutiny.

A Clear Value You Can Stand Behind

A valuation should not leave you with more questions than answers. When the number is challenged, you need to work on how it ties back to how the business operates and holds up under review.

SHG builds valuations with that goal in mind. Our methodology has supported successful outcomes for over 40 years, and valuations are often used for highly scrutinized purposes, including tax audits, courtroom defenses, and company sales.

If you want a valuation that is clear, defensible, and practical, let’s talk. Start a conversation with SHG, and we will align on purpose, scope, timing, and fee. Our guiding principles keep the work client-focused, independent, and grounded in experience.

You can reach our team here .

From Adirondack Source To Market Launch

Wed, 18 Feb 2026 15:26:33 GMT

Realm Artesian Water is officially in market mode. Orders are now open, and the first 12 packs are shipping soon .

This is the kind of milestone we love to see because it is where the plan meets real demand. SHG partnered with the Realm team to build the business plan, sharpen the strategy, and pressure test the numbers so this launch could move forward with clarity.

Now the focus turns to execution. Realm has the product, the story, and a clear path to grow.

Meet Realm

Realm Artesian Water is built around a single artesian source in the Adirondacks region of New York State. It started with two brothers who found an ancient artesian well while camping and decided to share that water with people who care about its origin and taste. Realm positions itself as a premium option for moments where a clean, refined taste matters. The business plan is straightforward. Bottle perfectly balanced water; use glass and other non-porous containers; and keep the product true to its natural form without chemical engineering.

What Makes Realm Different

Realm leads with specifics, not hype. The water has a naturally alkaline pH around 8.0 and total dissolved solids (TDS) around 160, which gives it a clean taste and a balanced mineral profile that is easy to describe and defend.

The source story matters too. Realm is drawn from deep artesian aquifers tied to the Adirondacks preserve, and the brand positions the water as unfiltered and untreated with no artificial purification steps. It also makes a clear claim around perfluoroalkyl and polyfluoroalkyl substances (PFAS), stating the water is free of those artificial contaminants.

Then there is the packaging choice. Realm bottles in glass and backs it up with plastic-free, recyclable shipping materials.

Orders Are Open!

Realm is now taking orders for its 12-pack . Each case includes 12, 16-ounce bottles, which is about 473 milliliters per bottle. The listed price is $78. The Realm team notes that you should plan on about three weeks for delivery. Taxes and shipping are calculated at checkout.

Where SHG Comes In

Realm had a rare asset and a real green light. The brothers had the water tested and achieved success in receiving a bulk water license from the Department of Health to extract and sell it. However, they still needed assistance monetizing the business.

That is where our team stepped in. We were retained to develop a comprehensive business plan, build out the team, and hire a CEO. That foundational work led to the marketing, the branding, the capital raises, and Realm's recent success in securing a bottling facility license—a very different milestone from the initial bulk license.

This work is what we do best . We bring a transparent approach and an operator’s mindset, then work alongside owners as decisions get real. The goal is simple. Help a good business become a valuable one.

Why Early Orders Matter For A New Brand

Early orders do more than start revenue. They turn interest into a clear demand signal, so production and fulfillment follow real numbers. Orders help with inventory planning by forecasting the minimum quantities needed to fulfill orders. They can bring in cash before a product ships, helping fund early inventory purchases.

Ready For The First Wave

If you want to be part of the launch phase, Order Realm Artesian Water now. If you are building a product business and want sharper clarity around the plan and the numbers, talk to SHG! We work with owners and leadership teams to grow value and make the next move with confidence.

You can reach out to the SHG team here .

Choosing the Right Growth Partner: How iSimulate Found the Right Buyer With Schwartz Heslin Group

Fri, 06 Feb 2026 17:17:58 GMT

When growth is on your side, the toughest choice is the next one. iSimulate was thriving, but scaling to its full potential required significant reinvestment or the right buyer with deep resources. The owners turned to Schwartz Heslin Group (SHG) for a clear path forward. SHG ran a focused sales process that kept fit front and center. It ended with iSimulate’s sale to 3B Scientific, a portfolio company of J.H. Whitney Capital Partners.

The Company

iSimulate is a healthcare simulation software company founded in 2011 by Peter McKie and Dr Anthony Lewis. They built reliable, realistic simulation tools that support training outside traditional simulation centers. Over time, iSimulate grew into an international business with offices in the United States (US) and the United Kingdom (UK) and a global reach in healthcare education.

The Decision Point

iSimulate had real momentum. The products were gaining traction, and the team saw a bigger opportunity ahead. But the next step came with a tough choice. They could reinvest heavily to expand on their own, or they could find a buyer with more resources and a longer runway.

There was also a gap between interest and intent. Larger groups had reached out before. That did not automatically translate into the right partner, the right terms, or a clear path to close.

With operations spanning multiple countries, the process also needed to be clean and well-managed. A transaction can pull leaders away from running the business. iSimulate wanted a partner who could support growth while keeping the leadership team involved and focused on what comes next.

The Process

SHG started by getting close to the business. The team took time to understand what iSimulate did, where it was winning, and what a buyer would need to believe to lean in. That early work shaped the story and the materials used to approach the market.

From there, SHG built a focused buyer list rather than broadcasting the message everywhere. The goal was simple. Get in front of the right people, not just more people. Each target was ranked using a scorecard, keeping outreach disciplined and allowing the team to prioritize groups with both strategic fit and real intent.

Because iSimulate operated across multiple countries, the financial picture needed to be clean and easy to share. SHG worked with the company to consolidate the information into a format that buyers could digest quickly. That cut down on confusion and helped keep conversations moving.

As interest turned into serious engagement, SHG ran the process day to day. The team managed questions, coordinated diligence requests, and kept timelines tight. That mattered because leadership still had a business to run. Instead of getting caught up in email threads and data requests, the owners could stay focused on operations while SHG handled the deal flow.

When the process narrowed, SHG helped the owners compare options practically. The decision was not only about price. It was also about resources, partnership, and who would be best positioned to support the next stage of growth.

The Result

The process ended with iSimulate’s sale to 3B Scientific, backed by J.H. Whitney Capital Partners. The deal gave iSimulate a larger platform with more reach and added support for the next phase of growth.

Just as important, the leadership team stayed involved. The founders and key executives continued driving the business plan, now with access to broader distribution and deeper product and training expertise across the 3B Scientific group and Cardionics. Day-to-day operations continued in both Canberra and Albany, so the team could keep serving customers while the business moved forward.

For iSimulate, this was not a finish line. It was a smart handoff to a partner that could help scale what was already working.

Key Takeaways

iSimulate’s story is a good reminder that a deal is rarely just about price. It is about what comes next. When inbound interest appears, a structured process helps separate curiosity from commitment. A tight buyer list that aligns with the growth plan keeps outreach focused and momentum up.

Transparent financial reporting also matters. Buyers move faster when the story and the numbers align, mainly when a company operates across borders. Finally, the process works best when leaders can keep running the business. Strong performance during a transaction builds confidence and supports better outcomes.

Choosing the Right Next Step

If you are weighing a sale, a recap, or a growth partner , the proper process changes the outcome. SHG helps owners frame value, run a focused process, and choose a buyer that fits. If you want to talk through your options, connect with our team and start with a quick conversation.

If you are building toward a transaction, SHG can help connect forecasting, valuation, and deal prep so your numbers and your story stay aligned from kickoff through close. Contact us to discuss a valuation, evaluation, and a plan that fits your goals.

Business Exit Strategy Planning for Founders: Strategies & Benchmarks

Fri, 06 Feb 2026 17:01:22 GMT

Founders spend years building a roadmap, tracking the right metrics, and tightening what works. Exit strategy planning deserves the same mindset. It is not a last-minute scramble when a buyer shows up. It is a set of decisions and upgrades that make your company easier to buy and easier to run without you.

At SHG, we often see the strongest outcomes when owners start three to five years before a sale, with clear benchmarks across cash flow, customer mix, and founder dependency. That approach turns the exit into a value-building program. This post covers the routes founders use, the benchmarks buyers watch, and the steps that move you toward a cleaner deal.

Get Clear on Your Exit Goals

Exit planning gets simpler once you define what success looks like for you, not just for a buyer. For many owners, most of their personal wealth is in the business, so the target needs to be personal and specific.

Start with a few clear calls.

Your liquidity goal and timing
Your role after the close and what you still want to own
The tradeoffs you will accept on price, structure, and risk

Then back into the timeline. Building value often takes years, not weeks. That means it’s best to start three to five years before a planned sale, so you have room to strengthen the driver's buyer's reward, and fix weak spots that show up in diligence. If interest comes in sooner, you still want to lead the process, which is why engaging a mergers and acquisitions advisor before an offer can be the better play. A readiness evaluation can help by scoring areas that buyers closely examine, including financial reporting, contracts, customer mix, and founder dependency.

Choose the Exit Path That Fits Your Business

There is no single best exit route. The right one depends on how your company creates cash flow today, how much growth runway buyers can underwrite, and how involved you want to stay after close. In sell-side work , pricing still starts with cash flow, and the story only holds if your reporting and projections can stand up in diligence.

A strategic buyer is often another operator. They may pay more when your business fits their plan, and they can justify synergies or faster market access. A financial buyer is often a private equity firm. They tend to pay for durable earnings, repeatable growth, and a team that can run day to day with less founder lift.

Internal and hybrid exits can be a better fit when continuity matters. A management buyout (MBO) keeps leadership in place, though it often relies on debt and deal structure to bridge the gap. An Employee Stock Ownership Plan (ESOP) is a qualified retirement plan that invests primarily in employer stock, supporting a partial or complete liquidity event while retaining ownership with employees over time. A recap is another common middle ground. You sell a control stake, keep meaningful ownership, and roll some proceeds into the next chapter.

A practical benchmark question is which path rewards the value driver you already have, and which path rewards the value driver you can build in the next 24 to 36 months.

Benchmarks That Move Enterprise Value

Exit readiness is measurable. A simple scorecard helps you spot what buyers will press on, then fix it while you still have time to control the story. Sell-side diligence works best when you surface issues early and address them before you go to market.

Financial Quality

Buyers value what they can verify. That starts with a consistent monthly close, clean schedules, and a transparent bridge from earnings before interest, taxes, depreciation and amortization (EBITDA) to adjusted EBITDA. A quality of earnings (QoE) report is designed to present normalized cash flow and explain adjustments in a way that withstands buyer review.

Working Capital And Cash Flow Mechanics

Net working capital (NWC) gets negotiated because it affects the cash a buyer needs to run the business after closing. Many deals use an NWC target, often called a peg, and then adjust the purchase price based on how actual NWC compares at close. If you know your normal range and can support it, this part of the deal tends to move faster.

Revenue Quality

Revenue durability is where buyers look for hidden risk. Customer concentration is a straightforward metric that can drive structure and pricing because over-reliance on a small set of customers can create volatility after ownership changes. Track it, explain it, and show how you are reducing it over time.

Operating System And Founder Dependency

A buyer wants proof that the business runs as a system, not as a founder hero story. That means a weekly rhythm, a short key performance indicator (KPI) pack, and clear ownership across the functions that drive results. When the team can execute without constant founder decisions, buyers tend to underwrite growth with more confidence.

Risk and diligence readiness

Treat risk review as part of the build, not a late-stage scramble. A targeted pre-sale review of legal items, tax posture, and core agreements can surface issues early and protect momentum once diligence begins.

Strategies That Close The Multiple Gap

Make your numbers buyer-ready. Buyers start with cash flow, then test whether your reporting and projections hold up under diligence. Clean monthly reporting, a tight forecast, and a QoE view can keep the buyer from rewriting your earnings story in their favor.

Improve the quality of revenue. If you can shift work toward recurring contracts, buyers often view the business as easier to forecast. SHG has seen model shifts toward software-as-a-service (SaaS) and annual recurring revenue (ARR) translate into materially better outcomes when the company returns to market with steadier revenue.

Reduce concentration and key person risk. High customer concentration and founder dependency change how buyers price risk, even when earnings look strong. Research also links customer concentration to deal risk in mergers and acquisitions, which is why it shows up early in diligence questions. Building management depth and moving key relationships beyond the founder can narrow that discount.

Do a seller-side pre-check. A targeted sell-side diligence pass on financials and core documents can speed the process and protect momentum once you are in the market.

From Planning to Action

Exit strategy planning works best when you start early and treat it as a value-building program rather than a transactional task. Benchmarks keep the work grounded, but the payoff is simple. Fewer surprises in diligence and more leverage when buyers start pushing on price and terms.

If you are within a three to five-year window, pair a valuation with an evaluation so you know what to defend and what to improve. Then bring in an M&A advisor before an offer hits your inbox and sets the tempo.

If you are building toward a 2026 transaction, SHG can help connect forecasting, valuation, and deal prep so your numbers and your story stay aligned from kickoff through close. Contact us to discuss a valuation, evaluation, and a plan that fits your goals.

Adaptive Forecasting & Budgeting to Lead to a Successful Exit in 2026

Fri, 06 Feb 2026 16:26:19 GMT

If you want a successful exit in 2026, your numbers must look clean and tell a solid story. Buyers will ask where growth comes from. They will test your assumptions, cash flow, and your team’s ability to hit the plan.

That is why adaptive forecasting and budgeting matter. It is less about locking in a once-a-year budget and more about keeping a current view of what is next. When seasonality shows up, when pricing shifts, or when hiring changes, your forecast should change with it. You stay aligned. You make decisions earlier. You avoid the scramble that tends to surface just as diligence begins.

This guide looks at a practical way to develop that cadence, the indicators worth watching, and how to translate planning into a stronger value story. The goal is to enter a sales process with fewer surprises and more confidence.

Why Static Budgets Fail When You Are Exit Bound

A traditional annual budget is built on a set of assumptions that start aging the day the year begins. Demand shifts. Pipeline timing changes. Costs move. You end up managing a plan that no longer aligns with what is happening, then spend time explaining variances instead of making decisions.

That gap is costly when preparing for a 2026 sale. Buyers want a clear view of performance and a believable path forward. If your forecast only updates once a year, you react late. This can lead to rushed cost cuts, delayed hires, or missed reinvestment. Budgeting must keep up with uncertainty and align with the business’s actual cadence.

Static budgets also create internal friction. Teams negotiate targets, lock in spending, and defend the plan—even when facts change. An adaptive approach shifts the focus from defending a number to making quick adjustments that matter most. More adaptable budgeting with feedback loops is a big part of business agility .

When you are exit-bound, credibility is the most important asset. A current forecast that updates regularly gives you cleaner answers in diligence and a more believable value story.

What Adaptive Forecasting And Budgeting Mean in Practice

Adaptive planning is a simple idea. You take a forward view that stays tied to what is happening right now. When results shift, the plan updates and leaders get a clearer picture and can act sooner.

Rolling Forecasts That Stay Current

A rolling forecast is when you refresh and extend the forecast window over time, usually monthly or quarterly. Many teams project four to six quarters ahead, about 12 to 18 months. This range is long enough to anticipate changes but short enough to use real operating signals.

For an exit-bound business, this matters because you can speak to momentum with more confidence. You are not selling a story that was built on assumptions from last fall.

Driver-Based Planning That Ties Dollars To Actions

Driver-based planning starts with a few inputs that move results, then uses simple formulas to translate those drivers into financial outcomes. Essentially, it is forecasting performance based on variables within models that influence key financial results.

In practice, you might model revenue as a function of volume and price. Labor is modeled by headcount and utilization. When a driver changes, the model updates and reveals the downstream impact. This planning style also suits FP&A teams who need speed and rigor.

Scenario Planning With Clear Triggers

Scenario planning is the process of pressure-testing the forecast. You build a base case, an upside case, and a downside case. Then define what would cause you to shift from one to the other. Scenarios and sensitivities are also recommended as part of a rolling forecast process because they support what-if analysis as assumptions change.

The goal is not to predict every twist. It is to decide in advance how you will respond, so you can move quickly and stay credible when questions come from buyers and their advisors.

How Buyers Will Read Your Forecast In A 2026 Deal Process

Buyers do not treat your forecast like an internal planning file. They treat it like evidence. They want to see how you think, how you react, and how your numbers connect to cash. In tighter financing conditions , the credibility of a one- to two-year cash flow forecast can matter even more, as lenders look for a solid business case behind the deal.

Expect your forecast to be stress-tested during diligence. Buyers validate assumptions and compare them to historical results. They use past trading findings to form a view of what is next. Buyers look for gaps and unanswered questions. Due diligence tests deal with assumptions and help avoid hidden issues. It also helps separate beliefs from facts and builds a shared understanding of the business.

They will also look for a bridge between your forecast and sustainable earnings. That is where a quality-of-earnings review often comes in. The adjustments that surface can signal how clean the reporting is and how strong the finance function is. Baker Tilly notes that diligence adjustments may include items like accounting errors, unrecorded liabilities, and reversals of seller adjustments that do not hold up.

Finally, buyers pay close attention to working capital because it can affect the price after closing. Purchase price adjustments tied to net debt and working capital are common, and disputes often come from unclear definitions and methods.

A forecast that holds up usually has three things in common.

A clear link between operating drivers and cash
Assumptions that are written down and updated
A simple explanation of what changed and why

The Adaptive Planning System That Supports A Successful Exit

Adaptive planning is not just a spreadsheet—it’s your system for deal success. Lead with clean numbers, connect forecasts to drivers, set your update rhythm, and track cash as buyers do. Build rigorous discipline that buyers will respect.

Start With A Clean Baseline

Adaptive planning falls apart quickly if the starting numbers are shaky. Before you build a smarter forecast, tighten the basics.

Start with a consistent month-end close . You want leadership to use the same numbers, at the same time, every month. A close process that uses clear deadlines and checklists helps the team stay on pace and reduces last-minute cleanup.

Also, get your categories right. If expenses move between accounts month to month, your forecast will look like noise. Clean mapping makes trend lines more believable in diligence.

Build A Driver Tree That Matches How The Business Really Works

Driver-based planning is where adaptive forecasting becomes useful. Instead of tweaking last year by a percent, you tie the model to what actually moves results.

Pick a short list of drivers that leaders already manage. Volume, pricing, headcount, utilization, and retention are common starting points. Driver-based forecasting is built to focus the conversation on why results moved, not just what happened.

Keep the first version brutally simple. Add sophistication later. Your immediate objective: a forecast that reflects how revenue flows and costs scale, so you can answer every tough question with clarity.

Set The Cadence

A rolling forecast keeps a consistent time horizon and updates it on a recurring basis, often monthly or quarterly.

For a business preparing for a 2026 exit, cadence does two jobs at once. It keeps leadership aligned, and it builds a pattern of disciplined reporting that buyers respect.

A practical rhythm looks like this.

The monthly review focused on results, cash, and near-term decisions.
Quarterly refresh of assumptions and the full forward view
Clear owners for the big drivers, so updates do not stall in finance

A rolling forecast is your management weapon, not just a scorecard. Use it to steer, not just to track.

Create Trigger Points And Decision Rules

A forecast is only helpful if it leads to action. The best teams define triggers in advance and agree on what happens when a trigger is triggered.

Keep triggers tied to the drivers that matter most to value.

Margin bands that prompt pricing, sourcing, or mix decisions
Pipeline conversion shifts that change hiring timing
Working capital signals that drive a tighter collections plan

With adaptive planning, you stop guessing; you execute with purpose and confidence.

Track Cash And Working Capital Like A Deal Team

In many private deals, the purchase agreement includes a working capital target and a purchase price adjustment tied to the method used to measure working capital at closing. Buyers want a normal level of working capital so the business can run without an immediate cash injection.

That means your forecast cannot stop at the profit and loss statement. It should also reflect how receivables, inventory, and payables behave as volume changes. It should also be clear about definitions. Net working capital definitions can include exclusions , and those choices can later drive disputes.

Track working capital monthly and surface issues before buyers do. Go into diligence ready, not scrambling for explanations.

Build A Narrative That Can Survive Diligence

Buyers are betting on what comes next. Make your future irresistible and your path obvious. Guide them there—leave no doubt about your trajectory.

That starts with documentation. Keep an assumptions log. When the forecast changes, note what changed and why. Tie major investments to drivers and expected outcomes. Keep it grounded in what you can measure.

Strong planning is not only about finance. It touches operations, go-to-market, and resourcing. When those pieces connect, the numbers read like a coherent story instead of a set of disconnected spreadsheets.

Turn Your Forecast Into Exit Readiness Artifacts

When you plan to go to market, forecasting becomes part of your deal package. Buyers and their advisors will ask for support for the story, then work through it line by line. The goal is to meet that moment with clean documentation and a model that ties to reality.

Prep For Quality Of Earnings And Buyer Diligence

A sell-side Quality of Earnings (QoE) review gives you a third-party view of earnings power before buyers start forming their own conclusions. It can validate adjusted earnings, surface friction points early, and help you take control of the narrative.

It also helps you move faster once diligence begins. Instead of reacting to every buyer request, you can point back to a vetted analysis and a consistent set of exhibits.

Normalize Ebitda And Keep Add-Backs Defensible

Earnings Before Interest, Taxes, Depreciation, and Amortization ( EBITDA ) gets adjusted in many deals to remove irregular or non-operational items. That adjusted EBITDA often feeds valuation work, so buyers will challenge every adjustment.

The fix is straightforward. Keep an add-back schedule that ties back to the general ledger, includes a plain language explanation, and has backup that a buyer can trace. If something is truly one-time, show why it will not repeat. If it is discretionary, show the policy and decision behind it.

Build a Diligence-Ready Data Pack

A Virtual Data Room (VDR) is a secure online repository that buyers use to review deal documents. The more organized it is, the fewer emails and fire drills you deal with later.

A practical pack usually includes

Monthly financials that tie out cleanly
A short KPI glossary so definitions stay consistent
The forecast model plus an assumptions log that explains what changed and when
Working capital schedules since purchase price adjustments often hinge on net working capital targets and how they are calculated

When these are ready early, you give buyers fewer reasons to slow down or discount the story. You also make it easier for your banker, attorney, and accounting team to stay aligned as the process moves.

The Advisory Team That Makes Adaptive Planning Pay Off

A forecast is only useful if it drives confident decisions. During a 2026 sale process, it also becomes a shared reference point across your advisors. When that team is coordinated, the story stays consistent from the first buyer call through diligence.

Think of the advisory team as a relay. Each role touches the same numbers, but for a different reason. A simple structure usually includes these specialists:

Investment banker . Runs the process, shapes positioning, and manages buyer conversations.
Financial due diligence advisor . Pressure tests earnings and supports a Quality of Earnings (QoE) review.
Tax advisor . Models deal with structural outcomes and after-tax proceeds.
Mergers and acquisitions (M&A) legal counsel . Negotiates terms and helps manage risk in the documents.
Wealth advisor . Connects the transaction to personal planning and next steps after close.

SHG works best as the connector across that group. We bring a valuation and transactional perspective, then collaborate with your Certified Public Accountant (CPA), attorney, and banker to keep the forecast, assumptions, and value narrative aligned.

That alignment also speeds things up. A sell-side QoE can reduce buyer back-and-forth by organizing and vetting the analysis in advance.

If 2026 is a year of transition for you, we are ready to help. Whether you are thinking about a sale, a buyout, or a longer-term succession plan, a clear view of value is a strong place to start.

Common Mistakes That Hurt Value And How To Fix Them

Forecasting issues rarely feel urgent at the moment. Then a sales process starts, and those gaps surface fast. This section covers common planning mistakes and the practical fixes that keep your forecast useful and your story consistent.

Treating The Forecast Like A Yearly Event

If the budget is revisited only once or twice, it becomes a scorecard. Buyers see that as slow decision-making. Build a rolling refresh that updates assumptions on a set cadence.

Assuming The Past Will Repeat Itself

Straight line forecasting ignores what is changing in the business and the market. Use drivers that leaders can influence, then run a base case with an upside and downside view.

Overbuilding The Model Until No One Trusts It

Too many drivers and exceptions make the forecast hard to maintain. Start with a small driver set, then add detail only where it changes decisions.

Forecasting Earnings And Forgetting Cash And Working Capital

Net working capital targets and purchase price adjustments show up in many private deals. If you are not tracking those levers monthly, you may be surprised late in the process.

Keeping Assumptions In People’s Heads

When assumptions are not documented, diligence turns into a scramble. Keep an assumptions log and prep sell-side diligence support to maintain a consistent, defensible story.

A Simple 30, 60, 90 Day Plan To Get Moving In 2026

Before you overhaul your planning process, start with a simple ramp. A 30, 60, and 90-day plan builds momentum quickly and creates a rolling forecast cadence that updates regularly. That early prep also reduces surprises once diligence begins.

First 30 Days

Lock down the baseline. Tighten the month-end close with clear owners and a repeatable checklist so results tie out consistently every month. Pick the handful of drivers that actually move performance, then build a simple driver-based model that leadership can understand and update. Set your rolling forecast horizon and commit to it. Many teams reforecast the next 12 months on a recurring cadence.

Next 60 Days

Run a monthly forecast refresh meeting that focuses on what changed, what it means, and what decisions follow. Create an assumptions log. Keep it plain language. Update it whenever the forecast changes. Layer in a cash view and a working capital view so the plan speaks to deal questions, not only profit.

Next 90 Days

Pressure test the package. Run a base case plus an upside and downside, tied to clear triggers. Start sell-side QoE preparation and organize support early so buyer diligence moves faster and with fewer surprises. Package your monthly reporting, key performance indicator (KPI) definitions, and forecast support in one place. It should read like a buyer-ready story.

A Forecast Buyers Can Trust

A successful exit in 2026 comes down to clarity. Not just clean historicals, but a forward view that ties to how the business actually runs. When your forecast updates with real inputs, you stop managing by surprise. You also show buyers that decisions are rooted in facts.

That matters in diligence. Buyers will look for answers on performance, assumptions, and what those assumptions mean for the next chapter. Working capital also tends to get attention late in the process because purchase price adjustments often turn on how the balance sheet is measured at close.

2025 Year-End Review Recap

Mon, 26 Jan 2026 18:55:32 GMT

2025 Year-End Review Recap: Schwartz Heslin Group

2025 was a busy year at SHG. We worked with owners and leadership teams who needed clear answers and practical next steps. Some were planning for retirement. Others were weighing a buyout, preparing for a sale, or tightening executive compensation ahead of bigger moves.

This recap highlights a few moments from the year and what they showed us about the decisions business owners are facing right now. It also marks a milestone for our firm. In 2025, SHG celebrated 40 years of advising clients through high-stakes transitions. We are grateful for the trust our clients place in us and proud of the work we have delivered together.

40 Years of SHG

In 2025, SHG marked 40 years of advising business owners through big decisions. That work has always come down to the same goal. Give leaders clear answers, a steady process, and a plan they can act on.

Over four decades, we have seen markets shift and deal expectations rise. What has not changed is how we show up. We listen first. We focus on the details that drive value. We stay practical, even when the situation feels complicated.

We are grateful to the clients who have trusted us over the years. This anniversary is a reminder that good outcomes start with good advice and a team that stays close to the work.

The Year in Focus

Across 2025, we kept hearing a familiar question from owners and leadership teams. What is this business really worth, and what does that mean for the next step?

For some clients, the goal was options. They wanted to compare an internal transition with a third-party sale, with real numbers behind each path. For others, it was deal readiness. That meant tightening financial reporting, pressure-testing assumptions, and getting ahead of questions that arise during diligence.

We also saw more attention on leadership alignment. Compensation plans, incentives, and decisions came up early, not at the end. When those pieces are clear, teams move faster and negotiate from a stronger position.

2025 Client Highlights

Below are a few client highlights from 2025. They show how owners and leadership teams used valuation, transaction support, and compensation guidance to move forward with confidence.

Sacandaga Outdoor Center

Sacandaga Outdoor Center is a whitewater rafting outfitter in the Southern Adirondacks that has operated since 1987. The owner was preparing for retirement and wanted clarity on value, with two options in mind. An internal sale to employees or a third-party transaction. SHG completed an enterprise valuation, identified the main value drivers, and surfaced the risk factors that mattered most in each path. The work gave the owner a clear baseline for decision-making and a practical starting point for next steps.

Winn Construction

Winn Construction is a heavy civil construction business serving residential and commercial clients. The operating stakeholder was weighing strategic planning options for the business's future direction. We performed an enterprise valuation, then walked through both scenarios and how each one could play out. That created a more direct way to compare timing, pricing, and execution steps without guessing.

Tire Conversion Technology

Tire Conversion Technology designs and manufactures sustainable rubber products. In 2025, the team pursued the acquisition of a West Coast company and sought experienced support throughout the process. SHG advised on valuation, deal structure, diligence planning, and financing considerations. The transaction closed in December 2025.

GrabAGun

GrabAGun is a multi-brand ecommerce retailer of firearms, ammunition, and related accessories with a large national customer base. After a recent initial public offering (IPO) and a period of rapid growth, the executive group sought a professional perspective on compensation. SHG developed compensation recommendations for the C suite, including base pay and incentive design. Those recommendations were prepared for the board's review.

What These Engagements Reinforced

A theme we saw again and again in 2025 was the value of options. When owners understand the tradeoffs between an internal transition, a buyout, or a third-party sale, the next step becomes clearer. Decisions move faster because the discussion is grounded in real numbers.

We also saw how much confidence comes from preparation. When financials are clean and the story is consistent, diligence tends to run smoother. Teams spend less time reacting and more time staying ahead of the process.

Another takeaway was the role of alignment inside the business. Incentives and decision rights shape how leaders act under pressure. When compensation is well framed and tied to the right outcomes, it supports execution and helps avoid friction at the worst possible time.

Finally, valuation work is rarely only about a price. It helps owners see what drives value, what creates challenges, and where focus can pay off. That clarity is often the difference between waiting and moving forward.

Looking Ahead to 2026

In 2026, we expect more owners to start planning earlier. Not because they have to, but because it creates leverage. When you have time, you can choose the right path instead of taking the only one.

We will keep focusing on work that brings clarity and momentum. That includes valuations that hold up under scrutiny, transaction support that keeps the process moving, and compensation guidance that aligns leadership with the business's goals.

If 2026 is a year of transition for you, we are ready to help. Whether you are thinking about a sale, a buyout, or a longer-term succession plan, a clear view of value is a strong place to start.

Closing Thoughts for 2025

To our clients, partners, and referral sources, thank you for a strong 2025. We value the trust you place in our team, and we do not take it lightly. The work is personal because the decisions are personal.

If you are heading into 2026 with a big question on the table, we can help you get to clarity. That might start with a valuation, a transaction plan, or a fresh look at executive compensation. It can also start with a simple conversation.

Reach out if you want to talk through your priorities for the year ahead.

Ready to get a clear understanding of your business value and next steps? Contact SHG to discuss a valuation, evaluation, and a plan that fits your goals.

Real-World Succession Planning Examples for Small to Mid-Sized Businesses

Wed, 14 Jan 2026 19:17:17 GMT

It’s easy to overlook succession planning. Your company is busy, your team is stretched, and the next chapter for your business can wait. But retirement dates come faster than expected, and leadership gaps can crop up overnight.

Succession planning is more than picking who comes next. It is a strategy that ties together leadership, ownership, and exit goals, enabling the business to transition with confidence and protect value along the way.

Still, many owners don’t have a clear plan for what happens when they step away. In fact, about half of the owners either expect to close their business or say they have no plan or are unsure. This post walks through real-world succession examples for small- and mid-sized businesses, along with the practical moves that made the handoff smoother.

The Framework Behind Every Good Succession Story

Succession planning works when you treat it like a strategy, not a last-minute handoff. You need to clarify your personal and business goals before you discuss successors or buyers. This means aligning ownership, leadership, and exit goals so the company can move through a transition with confidence . Separate management succession from ownership succession. One is who runs the company day to day. The other is who controls the equity over time.

Keep a long view and think about where you want the business to be in five to ten years. Put numbers around the plan with a formal valuation. This will become your baseline for structure and liquidity goals.

Example 1: The Surprise Leadership Gap

When a founder or senior leader steps away unexpectedly, the business does not have time to debate titles. The goal is to keep decisions moving and keep people calm.

Start with three moves.

Name an interim decision maker and spell out what they can approve today.
Pull together a simple playbook for roles you cannot afford to lose, with key contacts, access, and recurring deadlines.
Communicate early with your team and your top customers, and stick to what is known.

Many companies skip this preparation. In fact, only 39 percent of businesses have a formal development plan for future leaders. Transitions also tend to derail when trust and communication break down, and account for 60 percent of failures .

Example 2: Founder Retirement And A Management Buyout

A founder who has led the business for decades usually wants more than a clean break. They want continuity for customers and the team, plus a fair path to liquidity . A management buyout (MBO) can be a good fit when a trusted leadership group is ready to step up and carry the culture forward.

The smoothest transitions are staged. A phased retirement plan gives the founder time to coach the next leader, transfer key relationships, and capture how big decisions get made before they step back. It also gives the company time to tighten reporting and address gaps that buyers and lenders will ask about.

Financing is often the sticking point. Many MBOs rely on outside funding and can be more complex than a straightforward sale. That is why you should start planning three to five years before an anticipated sale.

Example 3: Family Succession

Some families want ownership to stay in the family, while leadership goes to the best-fit operator. That starts by separating management succession from ownership succession. It also keeps family relationships from carrying the full weight of operations .

In practice, a next-generation owner may step into a board seat while a non-family member chief executive officer (CEO) runs the day-to-day. The transition holds together when roles and authority are documented and discussed early on. Family succession needs structure and a clear leadership plan to avoid friction between generations .

Only 34 percent of US family businesses have a robust, documented, and communicated succession plan. The fix isn’t complicated. Build a leadership roadmap, invest in development, and maintain a steady governance and communication cadence.

Example 4: Employee Ownership Through An Employee Stock Ownership Plan (ESOP)

Some owners want liquidity while still keeping the business independent. They also want a transition that keeps the team invested in what comes next. An ESOP can accomplish this goal. ESOPs are an internal transfer option that can help preserve culture as an owner steps back.

At its core, an ESOP is a defined contribution retirement plan that invests primarily in employer stock. Employees build ownership through their plan accounts over time. It is also a federally regulated benefit plan with fiduciary oversight, which adds structure and accountability.

The Patterns Across All Four Examples

The best succession plans start with alignment. Ownership, leadership, and exit goals need to point in the same direction, or the plan becomes reactive. Clear objectives come first, then you map options and build a roadmap for who leads and how equity shifts.

The next common thread is proof. A formal business valuation gives you a baseline and keeps exit goals grounded in real numbers. Strong reporting and credible projections also matter because buyers and lenders price what they can trust.

Finally, clear governance and communication ensure a smooth handoff. Written authority and visible leadership development reduce uncertainty during the transition.

Putting the Plan to Work

Succession planning is a set of choices about people, ownership, and timing that keeps your options open as the business grows. Start with clear goals and back them up with a formal valuation. Then keep it practical. Build a roadmap, write down how authority shifts, and talk about it early and often.

Ready to get a clear understanding of your business value and next steps? Contact SHG to discuss a valuation, evaluation, and a plan that fits your goals.

Strong Coffee, Stronger Strategy: The Death Wish Coffee Story

Wed, 14 Jan 2026 14:21:25 GMT

On June 28, 2018, Death Wish Coffee gathered for a celebration. The brand’s coffee had been packed for a care package headed to astronauts aboard the International Space Station, and a small crowd marked the moment while the company’s story kept growing. SHG was there too, making an introduction that would later turn into years of advisory work.

That moment was symbolic for a brand built on ambition. Death Wish Coffee, founded in 2012 by Michael Brown in Saratoga Springs, New York, positioned itself around a simple promise. It was the “World’s Strongest Coffee,” built from arabica and robusta beans, and it was sold with attitude.

But the path from a local shop to a national shelf rarely follows a straight line. For Death Wish, one of the sharpest turns came from a long-shot bet.

The Ad That Changed Everything

In 2015, Death Wish entered Intuit QuickBooks’ Small Business Big Game competition for a chance at a Super Bowl commercial. The company later described it as a moonshot that became a hinge point for everything that followed, after it beat a field of thousands and earned the Super Bowl 50 ad spot.

About a year and a half after the Super Bowl commercial aired, Brown was managing fast expansion and looking for help valuing the business and steering growth decisions with clearer data. Brown’s first task was straightforward. He wanted a valuation to set a baseline for an employee equity plan. He got that, and then some. SHG’s valuation became a working tool that helped translate momentum into a plan. Brown described it as getting “a lot more out of the valuation than just a number.”

Cory Martin, an SHG Managing Director, framed it the same way, saying he doesn’t treat valuation as “just a number,” but as a tool that supports growth choices. SHG’s work for Death Wish included market and peer comparisons and operational benchmarks that helped the team spot gaps and map a longer-term plan.

Finding The Real Asset

Around the same time, SHG’s work expanded into a strategic asset review, pushing the team to identify what truly separated Death Wish from other coffee brands. The answer was not only the product. SHG believed the company’s edge lay in its culture. They identified what they called a movement toward unapologetically bold branding, summed up as “Coffee with Attitude,” and a younger audience that treated coffee as identity as much as routine.

From there, the brand’s marketing leaned into attention plays that punched above their weight, including earning free airtime tied to Super Bowl 50 buzz and turning the space milestone into a lifestyle statement.

The throughline was consistency. A brand that promised strength and attitude kept showing up in places where people weren’t expecting a coffee company to land.

When Growth Creates Its Own Risks

Fast growth can be a gift and a stress test. Martin remembers Brown managing new hires, new leaders, and more complexity, with the concern that uncontrolled growth can create failure modes that feel sudden. The advisory work, then, wasn’t only about capturing upside. It was about keeping the company stable enough to keep scaling.

Over roughly three years of ongoing valuation and advisory work, Brown’s thinking evolved from measuring value to deciding how to fund the next stage. Eventually, SHG says Brown chose to pursue outside investment to take the company into another phase of growth and retained SHG to manage the process, from building the partner list to negotiating the final deal.

The Partner Search And The Nine-Week Sprint

In the fall of 2021, Death Wish Coffee completed a “highly accelerated” process that closed in about nine weeks. The result was a strategic investment partnership with TA Associates, a global private equity firm focused on growth. SHG assisted Brown in identifying a strategic partner, and Brown selected TA Associates to help guide the strategic and tactical growth of Death Wish Coffee.

For Death Wish, the decision was less about an “exit” in the traditional sense and more about what comes next. Certain transactions are better understood as pivots that keep building momentum rather than endings that cash out. In that sense, the TA partnership became the next platform, not the finish line.

What The Death Wish Story Shows

It’s easy to explain Death Wish Coffee’s rise as a sequence of stunts. A Super Bowl commercial. Coffee in space. Bold brand voice. Those pieces mattered, but their growth is more disciplined than it looks from the outside.

The company translated attention into operational growth, then translated growth into valuation clarity, and then used that clarity to choose the right kind of capital partner. It treated the brand as an asset that could be analyzed, articulated, and scaled, not just expressed. It also moved quickly when timing aligned, closing an investment partnership on a compressed schedule once the decision was made.

For a brand that built its name on intensity, the most interesting part of the story may be the quieter one. Behind the loud coffee and the big moments, there was a steady shift from impulse to strategy, guided by numbers, positioning, and a clear view of what made the company matter to customers.

Ready to get a clear understanding of your business value and next steps? Contact SHG to discuss a valuation, evaluation, and a plan that fits your goals.

How to Create a 5-Step Succession Plan for Your Family Business

Tue, 06 Jan 2026 20:18:35 GMT

Family business succession is more than picking the next CEO. It’s a handoff of ownership, relationships, and responsibility. When the plan isn’t solidified or written down, even small choices can create tension and lead to rushed judgment. A written plan helps keep everyone aligned and keeps you focused on growing your business's value. Below are five steps that will help you clarify your desired outcome, define who does what, and map a transfer roadmap that fits your timeline. Start simple, then refine it as the business evolves.

Set The Outcome and The Timeline

Many family firms move forward without a written succession plan. In fact, only 34 percent said they had a robust, documented, and communicated succession plan in place.

To start, get clear on what you want the handoff to look like and when it needs to happen. Then write it down.

A good place to begin is with these four questions.

What do you want your role to be in one year and in five years?
What should stay in the family and what can change hands?
What does the next leader need to own, and what can be shared?
What events would speed up the transition?

Your timeline matters because it shapes the kind of work you do first . A valuation shows what the business is worth today, while an evaluation points to what can grow in value over the next few years.

Separate Ownership from Leadership Roles

Family business transitions get messy when ownership and leadership are conflated. Many families want the business to stay in the family, and the best way to do so is to separate ownership of the equity from day-to-day management.

Write down the roles you are actually handing off, like ownership rights, leadership authority, oversight and accountability. When responsibilities are clear, decisions move faster and conflict drops. Transitions are smoother when firms document how key decisions get made and map who is responsible for each leadership seat.

If the next CEO is not the next majority owner, that’s fine. Put it in writing and move forward.

Get Clear on Value and What Drives It

Succession planning is easier when you can point to a baseline value and explain what moves it. Start with a formal business valuation. That will answer what the company is worth today using accepted approaches, and it should include a report explaining the logic behind the number. It also shows how revenue trends, margins, customer mix, and risk factors shape your company’s value.

Pair the valuation with an evaluation . Instead of landing on a single value, an evaluation considers performance, risk, and value drivers to help you prioritize what to improve over the next few years. This work also helps close the valuation gap , which is the difference between what owners believe the business is worth and what the market will pay. 78 percent of businesses say protecting the business is their top long-term goal, and a value driver review turns that goal into a plan.

Build The Ownership Transfer and Funding Plan

This is where you get specific. Decide how ownership will move and when. It might stay with the next generation, be transferred to key leaders, or be distributed to employees through an employee stock ownership plan (ESOP) . A partial or staged transfer can also keep continuity while the next owner grows into the role.

Then pressure test the structure. Earnouts, working capital adjustments, and management rollovers can shift value and your after-tax outcome. Run scenarios with your tac, legal, and valuation team early.

Finally, map the money. Bank financing, seller notes, and investor partnerships can make an internal transfer workable. Deal structures like partial acquisitions or seller rollovers can help close the gap.

Communicate, Execute, and Review

Execution is where most plans stall out. Build a transition calendar and assign an owner for each milestone. Treat the handoff like a project with dates and check-ins. Decide which changes to implement now and which to leave with the owner until the final handoff. Tie down dates to leadership duties, signing authority, and key client relationships.

Communication is next . Start with family, then key leaders, then customers and partners. Customers will ask what your plan is. Consistent messaging reduces noise. Disciplined massaging keeps your team and customers informed. It’s also good to spot issues early so you can reduce surprises that can slow diligence or negotiation. Review the plan once a year and after major changes.

Step 5: Governance and Communication

Succession planning works best when someone owns it. In many companies, the succession leader works with a board or advisory group that reviews leadership and follows a written plan that names successors and explains how authority shifts, so the business can keep moving.

This sounds simple, but 43 percent of board directors have no formal succession plan for the chief executive officer. Also, around 60 percent of failed transitions stem from breakdowns in trust and communication, not technical tax or legal issues.

That is why governance and communication go hand in hand. Regular, open conversations with family members and key executives, backed by a written plan, help reduce uncertainty and support a smoother handoff.

What to Do Next

Succession planning works best when it is written, shared, and tied to dates. Too many families still rely on informal handoffs. A clear timeline, defined roles, and a baseline company valuation give you a starting point, while an evaluation points to what will increase value before the handoff.

Ready to get a clear understanding of your business value and next steps? Contact SHG to discuss a valuation, evaluation, and a plan that fits your goals.

PRESS RELEASE: Albany Med Health System Announces Leadership Transition

Mon, 29 Dec 2025 14:45:05 GMT

Albany Med Health System Announces Leadership Transition

Daniel T. Pickett III appointed President and Chief Executive Officer; Raimundo “Rai” C. Archibold Jr. named Chair of the Board of Directors

ALBANY, N.Y., Dec. 4, 2025 – The Albany Med Health System today announced that its Board of Directors has unanimously selected Daniel T. Pickett, III to replace Dennis P. McKenna, MD, as President and Chief Executive Officer, effective immediately. The Board expressed its gratitude to Dr. McKenna, who served Albany Medical Center and the Albany Med Health System for 28 years, including five years as CEO. The Board has also selected Raimundo “Rai” C. Archibold Jr. to serve as Chair of the Board of Directors.

Mr. Pickett has served as Chair of the Albany Med Health System Board since July 2025 and a member of the Board since 2012. He will continue working with the existing leadership team to advance the System’s long-term strategy, growth trajectory, excellence, and commitment to patient care.

The leadership transition comes as the System advances its transformation plan designed to position itself as the region’s most trusted, accessible, and highest quality integrated health system. The Albany Med Health System includes Albany Medical Center, Albany Medical College, Columbia Memorial Health, Glens Falls Hospital, Saratoga Hospital, and the Visiting Nurses Association. The Albany Med Health System is the region’s only academic health system and serves a population of three million people across northeastern New York and western New England.

A seasoned executive with deep experience in enterprise transformation, healthcare operations, technology innovation, and growth strategy, Mr. Pickett has led organizations through major scaling and modernization in complex environments. With more than a decade of governance experience at not-for-profit institutions, including the Albany Med Health System and Rensselaer Polytechnic Institute where he also serves as a trustee, he brings a perspective and skill set uniquely aligned to the needs of the CEO role.

“The Albany Med Health System has extraordinary strengths as an academic medical center, a respected medical college, aligned community hospitals, and an exceptional workforce,” Pickett said. “Our future will be built on deeper system integration, physician alignment, academic distinction, and innovation across our ambulatory and hospital care delivery network. I am honored to lead the System as we accelerate this strategy and work together across every hospital, specialty, and community to deliver the highest-quality, patient-centered care.”

Mr. Archibold, who currently serves as Chair of the Albany Medical Center Board and has been a System Board member since 2012, brings more than 25 years of experience across technology, healthcare, governance, and capital markets to his new role. His leadership will support the System’s strategic objective of becoming a highly integrated system with aligned governance, shared vision, and coordinated operational models, which is a core “One Albany Med” goal.

“These appointments mark an important step forward as the Albany Med Health System executes its long-term strategy,” Archibold said. “Dan brings transformational leadership, deep knowledge of our system, and a commitment to excellence that aligns fully with our vision for the future. Working together across all System hospitals, our physician enterprise, and Albany Medical College, we will advance system integration, elevate academic excellence, strengthen quality and patient experience, and expand access and innovation for the region.”

About Albany Med Health System

Albany Med Health System is the largest locally governed, not-for-profit health system serving northeastern New York and western New England. The System is the region's largest private employer, and each member institution carries a century-long tradition caring for our communities. The Albany Med Health System has 1,520 hospital beds, more than 900 physicians, 125 outpatient locations, the region’s only Level 1 trauma center and children's hospital, and provides well over 3 million patient visits per year.

For media inquiries, contact:

Matt Markham
518-262-3421
markham@amc.edu

CONFIDENTIALITY NOTICE: This email and any attachments may contain confidential information that is protected by law and is for the sole use of the individuals or entities to which it is addressed. If you are not the intended recipient, please notify the sender by replying to this email and destroying all copies of the communication and attachments. Further use, disclosure, copying, distribution of, or reliance upon the contents of this email and attachments is strictly prohibited. To contact Albany Medical Center, Columbia Memorial Health, Glens Falls Hospital, or Saratoga Hospital, or for a copy of our privacy practices, please visit us on the Internet at https://www.albanymed.org/ .

The Executive's Guide to Strategic Succession Planning

Fri, 12 Dec 2025 20:31:31 GMT

Aligning Strategy, Leadership, and Valuation for a Confident Exit.

Succession planning never feels urgent until it is. Your business is growing, leadership is busy, and planning for a future handoff keeps sliding to the bottom of the agenda. Yet many privately held and family businesses have no documented succession plan. Even though a large share of your wealth is tied up in the company, disruption at the top can damage continuity and value.

Strategic succession planning is more than choosing a successor. It’s about aligning ownership, leadership, and exit goals so the company can move through a transition with confidence. This guide walks you through a practical framework for protecting enterprise value, supporting key stakeholders, and moving your business into the next chapter on your own terms.

What Strategic Succession Planning Means

Owners often think succession is picking “who comes next”. That is replacement planning. Strategic succession planning goes further. It ties leadership and ownership decisions to where you want the business to be in 5 to 10 years and to how you expect to exit or step back.

There are two things to consider. Management succession focuses on who will run the company day to day. Ownership succession focuses on who will control and benefit from the equity over time. Both pieces have to work together if you want a smooth transition, a stable team, and a business that holds its value when you step out of the lead role.

Step 1: Clarify Objectives Before You Pick a Path

Before you talk about successors or buyers, you need a clear picture of what you want for yourself and for the business. Many owners jump straight to tactics. They pick a path, then later realize it does not match their goals.

Start with your goals outside the company. How much liquidity do you need, over what period, and do you want to stay involved or step away? Your answers shape whether you pursue an inside transition, a staged exit, or a sale to an outside buyer.

Then set objectives for the company. Ownership, leadership, and legacy all belong on the list. When these priorities are written down, every succession option can be tested against them.

Step 2: Map Your Options

Once your objectives are clear, you can map paths to your exit. For most owners, the options fall into two groups: internal transfers, external sales and hybrid structures. Privately held companies also often have more choices than they first expect .

Internal options keep control in the hands of people who already know the business. These can include family succession, a sale to partners or key employees, a management buyout or an Employee Stock Ownership Plan (ESOP), which can help preserve culture.

External and hybrid paths look outward. Owners may sell to a strategic or financial buyer , bring in a partner through recapitalization, or combine outside capital with family ownership. Using a blended structure can also lead to better succession outcomes for management buyouts and employee ownership models.

Step 3: Build Your Leadership and Ownership Roadmap

Now you need to decide who will lead and how ownership will shift. Begin by listing the roles your business cannot afford to lose. That usually means the chief executive, finance leader, and key commercial or technical leads. Tie each profile to your strategy and to the leadership qualities that carry customers and employees.

Then test your internal bench. Many private firms lack a plan for future leaders, and only 45 percent have a formal development program in place. On top of that, most organizations still have no formal succession plan. That gap pushes owners into rushed outside searches when someone retires or steps down.

To stay ahead, set a timeline. Identify who could step in now, what development they need in the next few years, and where you may need an outside candidate.

Step 4: Put Numbers Around the Plan

Succession planning is easier when you know what the company is worth. A formal business valuation gives you a grounded picture of value and helps test whether exit goals are realistic. Valuation is a fundamental part of succession work because it informs decisions on capital, sales, and ownership transfers.

Still, many owners guess. In fact, about 60 percent of business owners have never had a formal valuation, and many lack a written exit plan even though most hope to exit within the next decade. A current valuation shapes deal structure and financing and supports tax and liquidity planning.

Step 5: Governance and Communication

From Intention to Action

Succession is not a one-time project. It is a series of choices about value, people, and timing. When you treat it as a strategic process, you protect the company you have built and give the next generation of leaders room to succeed. If you would like a partner in that work, Schwartz Heslin Group can help you connect goals, valuation, and structure. Start with a confidential conversation about your options and where you want to go next.

Ready to get a clear understanding of your business value and next steps? Contact SHG to discuss a valuation, evaluation, and a plan that fits your goals.

Can AI Really Tell You What Your Business Is Worth?

Wed, 03 Dec 2025 20:23:33 GMT

Where Automated Models Fall Short and When You Need Professional Judgment

AI tools promise instant answers. Type in a few numbers, and AI can tell you what your company is worth, right? Maybe. AI can be a practical valuation tool if you need fast, convenient answers or a quick check on value.

The problem is that a real business valuation has to stand up to buyers, lenders, auditors, and the IRS. They don’t just look at the final figure. They want to understand how you arrived at that number, what risks are built in, and whether the story behind the number makes sense.

Valuation is more than a number. It is data, context, and professional judgement working together. AI tools can help collect information and surface patterns faster. But you still need an experienced team that understands markets, regulations, and actual deal behavior to interpret the model's output.

This article walks through where AI can help in the process and where it falls short. You will see how to use AI valuations without being misled, and when it is time to move from an automated estimate to a defensible, advisor-led opinion.

What “AI Valuation” Really Means

When a platform offers an “AI valuation,” it is usually running models that crunch your basic numbers and compare them to large data sets of past deals. The software pulls financial statements, matches them to broad industry benchmarks, then applies standard valuation multiples to estimate a price.

Under the hood, many tools work a lot like automated valuation models in real estate , which use prior sales, property features, and location to estimate value. Business versions follow this same idea, just with revenue, earnings, and sector data instead of square footage.

For an owner, the appeal is clear. You upload data, answer a few questions, and get a neat value range on screen. It feels fast and objective.

In practice, these systems treat your company as if it were the average firm in a category. They lean on typical margins and growth patterns. They rarely pause for the details that drive value in the real world. Things like a one-off contact, a key employee, an upcoming product, or a local competitor entering your space.

An AI valuation can be a quick starting point. But it is not the whole story of your business's value.

Where AI Helps In The Business Valuation Process

Used well, AI is a powerful tool for valuation teams, not a shortcut around them. It handles repetitive tasks quickly so specialists can stay focused on judgment and strategy.

AI pulls data from many sources and organizes it consistently. It can tie financial statements to industry benchmarks and surface possible comparable companies in a few seconds.

AI can highlight trends in revenue and margins, point out odd swings in expenses, and feed those patterns into simple forecast models. It gives the team more ways to test different growth and risk cases without rebuilding every spreadsheet by hand.

Most importantly, these tools raise questions. They show where the numbers look off and where a human needs to dig deeper .

Valuation Is A Story, Not Just A Score

A reasonable valuation is more than a math exercise. It is the story of how your business makes money, where it might grow, and what could get in the way. Several advisors describe valuation as both art and science, not just a single output.

The number matters. Revenue, earnings, assets, and cash flow all feed into income, market, and asset-based valuation methods. Each method highlights a different angle on the same company. One approach relies on projected cash flows, another on comparable deals, and the third on what it would cost to replace what you own. Together, they create a fuller picture of risk, return, and growth.

Purpose shapes that picture. A valuation for a sale, a shareholder dispute, or an estate plan may use different valuation standards and assumptions. The purpose of a valuation helps drive the standard of value and the methods that follow.

At the end of the day, the report should explain why the business is worth a given amount, for whom, and under which assumption. It provides owners and other stakeholders a narrative they can test and discuss, not just a number to react to.

From Quick Estimate To Real Insight

Overall, AI can speed up work related to valuation. It pulls data quickly and highlights trends and outliers. Used that way, it is helpful. What it cannot do on its own is sit across from a buyer, explain your story, and defend the number.

A real valuation blends numbers, context, and judgement. It looks at how your company earns money, what might change, and what a buyer is willing to pay in the market you operate in. That story needs people who understand deals, risk, and the goals behind the assignment.

So treat AI valuations as a starting point, not the finish line. They are fine for early planning or curiosity. When you are making decisions about a sale, equity, or estate planning, you need an advisor-led view that can withstand scrutiny. If you are wondering where to begin, the next step is to have a conversation with a valuation team that lives their work every day.

Curious what your business looks like through a professional lens, not just an algorithm? Reach out and schedule a conversation with our valuation advisors.

What Is My Company Really Worth? Valuation vs. Evaluation Explained

Wed, 03 Dec 2025 14:44:46 GMT

Why Your Business Needs Both a Valuation and an Evaluation

What is my company worth, and why? It’s a common question all business owners ask. And it usually means you’re ready for a valuation. Sometimes, however, owners really need something slightly different. They want to know what the business is worth today and how they can grow that value over the next few years. This is where a business evaluation can help. Instead of stopping at a value, an evaluation assesses performance, risk, and value drivers to identify where the company can improve.

This article walks through both ideas in plain language. You will see how valuation and evaluation work together, when you need each, and how the right mix gives you a more straightforward path to a stronger business.

What Is a Business Valuation?

Let’s take a quick look at what a business valuation is and when it really matters.

What A Business Valuation Is

A business valuation is a structured way to answer a simple question. What is this company worth today? It is not a guess or a back-of-the-napkin estimate. A formal valuation uses accepted methods and a straightforward process to estimate the economic value of your company or a specific ownership stake.

How a Valuation Works

Advisors usually rely on three broad approaches.

An income approach looks at cash flow and the risk of achieving it.
A market approach compares your company to recent sales of similar businesses.
An asset-based approach focuses on what the company owns and what it owes.

Different methods may carry more weight depending on your industry, size, and valuation purpose.

When You Need a Valuation

Every valuation is tied to a specific purpose and an effective date. You might need a valuation for a pending sale, a partner buyout, a gift or estate plan, a divorce, or an employee stock ownership plan.

In each case, the standard of value and the primary assumption should match the reason you are doing the work. That is what gives the value weight with buyers, courts, lenders, or the IRS.

What You Get with a Valuation

A valuation gives you more than a number. You should receive a formal report that explains the methods used, the data used in the model, and the reasoning behind the value conclusion. You can also see how revenue trends, margins, customer mix, and risk factors influence that number.

For many business owners, this becomes a baseline. It is a starting point before you focus on the changes that can grow value over time.

What Is a Business Evaluation, And How Is It Different From a Valuation?

Now that we know what a valuation is, we can look at business evaluations and how they can help business owners.

What Is a Business Evaluation

A business evaluation looks at how your company is performing. It is a structured review of financial health, competitive position, and day-to-day operations.

Rather than aiming for a single value on a specific date, an evaluation focuses on strengths, gaps, and future potential. Many tools on the market describe this as a business health check or business assessment and use it to highlight where owners can improve results before a sale or significant change.

In simple terms, a valuation answers what your company is worth. An evaluation leans toward how it is working today and what needs attention.

How an Evaluation Works

Most evaluations start with data . Advisors review financial statements, customer information, and key performance indicators (KPIs). They also look at trends in revenue, margins, cash flow, and concentration risk.

From that, an evaluation usually moves into a broader health check. That can include questions about leadership, processes, staffing, technology, and competitive position. Many firms use structured questionnaires, value driver assessments, or business health-check templates to maintain consistency across reviews.

Some evaluations are built around exit readiness. These focus on what a buyer will see in diligence and where a buyer might discount the price because of risk. Owners receive scores or ratings across areas such as financial reporting, customer base, contracts, and founder dependency.

Compared to valuations, an evaluation blends numbers with practical judgment about how the business runs. Both use data, but only one is designed to guide day-to-day improvements.

When you need an Evaluation

Evaluations are helpful when the main goal is better performance or a smoother future exit . If you are three to five years from a sale and want to grow value before going to market, a detailed health check can show you where to focus.

Evaluations are also helpful when profits are flat or slipping, and the cause is not apparent. Reviews of cash flow, expenses, and operations can uncover pricing issues, weak processes, or poor-fit customers that do not show up in basic reporting.

In short, you need an evaluation when you want direction. You need a valuation when you want a number that others will accept and rely on.

What You Get with an Evaluation

A good business evaluation leaves you with more than a score. You get a clear summary of strengths, weaknesses, and value drivers that deserve attention. Many exit-readiness and value-driver frameworks turn this into a short list of focus areas rather than a thick report that sits on a shelf.

Some services go further and outline a step-by-step plan to improve results. That might include actions such as cleaning up financial reporting, diversifying customers, firming up contracts, or shifting owners out of day-to-day bottlenecks.

Business evaluations often complement a formal valuation. The valuation sets the baseline, and the evaluation shows you have to move the line.

How Valuation And Evaluation Work Together

A valuation and a business evaluation do different jobs, but work best side by side. A formal valuation sets a clear baseline for value. It pulls your numbers, risk profile, and market context into a single conclusion. That gives you a starting point before you make changes.

An evaluation then analyzes that picture. It assesses earnings quality, customer mix, operations, and leadership, and turns the findings into a short list of priorities. Instead of a thick report, you get a practical plan.

Over time, you can repeat the loop. Begin with a valuation. Use an evaluation to guide improvements. Come back to valuation later and see how far you have moved the needle.

Choosing the Right Next Step

Knowing the difference between a valuation and a business evaluation gives you more control over what happens next in your business.

If you are not sure which to do first, it might be time to talk with an advisor. The right partner will listen to your goals, help you decide whether you need a number, a roadmap, or both, and keep the focus on building a stronger company over time.

Ready to get a clear understanding of your business value and next steps? Contact SHG to discuss a valuation, evaluation, and a plan that fits your goals.

Forty Years Forward: A Toast to Our Roots and Our Future

Mon, 17 Nov 2025 20:11:48 GMT

The business world looked a lot different in 1985. Yet, the need for honest, expert advice hasn't changed a bit. That is the foundation Robert W. Schwartz built this firm on, and recently, we paused to recognize just how far that vision has come.

The Man Behind the Mission

It is impossible to tell our story without talking about Robert "Bob" Schwartz. When he launched this firm, he saw a clear gap in the local market. The Capital Region was growing, yet it lacked the high-level strategic planning and M&A guidance found in major financial hubs. Bob stepped in to fix that.

His influence goes deeper than business deals. As we toasted to his legacy, it was clear we weren't just honoring a CEO. We were celebrating a mentor, a father, and a friend. Bob has always believed that if you offer honest, smart advice, success follows. That simple belief remains the heartbeat of SHG today.

A Day to Remember

We gathered at The Hangar in Latham to celebrate four decades of this partnership. The "Forty Years Forward" event brought together our team, longtime clients, and community leaders like Senator Jake Ashby and Arrow Bank’s Dave DeMarco.

The energy was electric. We shared stories, enjoyed some great local food, and raised a glass with our signature "Forty & Forward" cider mocktail.

It wasn't just a party, though. It was a moment to honor the 1,100+ projects we have guided across the globe. Managing Directors Raimundo Archibold and Cory Martin took the stage to talk about where we are going next. From a local startup to a firm operating in 12 countries, the growth has been steady and strong.

But no matter how far we reach, our heart remains right here. Thank you to everyone who has been part of this story. We are just getting started.

Enjoy some photos of the event, below.

Beyond the Transaction: Why We Invest Our Expertise in Our Community

Wed, 05 Nov 2025 18:39:52 GMT

Sharing Our Most Valuable Asset

At Schwartz Heslin Group, our days are spent navigating high-stakes challenges. We guide business owners through major turning points, like valuations, transactions, and strategic turnarounds. Our focus is on maximizing value and building long-term financial health.

We believe that same strategic rigor is just as important for the organizations that form our community's bedrock.

Nonprofits, healthcare systems, and educational institutions face the same operational hurdles and financial complexities as any for-profit enterprise. Their "bottom line," however, isn't measured in profit, but in mission impact. As a firm deeply rooted in the Capital Region, we believe we have a responsibility to invest our most valuable asset, our team’s strategic and operational expertise, to help them succeed.

For us, this isn't just philanthropy; it's a core part of our philosophy. A thriving community, with world-class healthcare, vibrant arts, and robust educational opportunities, is the foundation for a strong economy. The two are, and always will be, symbiotic.

Leadership, Not Just Support

Our commitment starts at the top. We don't just sponsor events. Our leadership rolls up its sleeves and serves in the boardroom. We help guide strategy, protect financial stewardship, and navigate the same complex decisions we do for our clients.

This philosophy is embodied by our team:

Robert W. Schwartz, Founder, has long been a force for economic and social progress in the region. He has served as Chair of The 50 Group and is on the board of the Capital Region Chamber of Commerce. He is currently Chair of the Audit Committee for Northeast Grocers (NGI). NGI was formed by the merger of Golub Corp. (Price Chopper and Market 32) and Tops supermarkets. The board provides guidance to the management of this 300-store organization, which operates in 6 states and actively gives back to the community. His service on the board of Northeast Shared Services and his 20-year tenure teaching entrepreneurship in the MBA program at UAlbany demonstrate a career-long commitment to fostering innovation and building a stronger economic foundation for everyone.

Rai Archibold, Managing Director, dedicates his expertise to the region's key cultural and healthcare institutions. He currently serves on the boards of Albany Medical Center (13 years), Proctors Collaborative (8 years), and the Saratoga Performing Arts Center (SPAC). His past service also includes Big Brothers Big Sisters, the Albany Community Charter School, the Saratoga Hospital Foundation, and the Capital District YMCA. This work shows a deep, personal commitment to strengthening the organizations that care for our community.

Partners in the Mission

Our firm-wide support extends to the foundational pillars of our region. We are proud long-term partners for organizations that define the Capital Region. This includes healthcare partners like Albany Medical Center and Saratoga Hospital . We also support economic and educational opportunity through Junior Achievement , the HVCC Foundation , the University at Albany Foundation , and EO Albany . And we champion our local arts and community builders, The Prescott Foundation and The Albany Barn .

At SHG, we are more than trusted advisors for businesses. We are committed partners in our community. We invest our time and expertise to help build a stronger, more resilient Capital Region, creating a place where both people and businesses can succeed.

Because a stronger community isn't just a better place to live—it's the foundation for everyone's success.

Insights From Sell-Side Experts

Mon, 15 Sep 2025 17:45:04 GMT

Owners don’t just want a buyer; they want a great outcome. Two of SHG’s sell-side leaders, Cory Martin, CVA, and Rai (Raimundo) Archibold, CFA, explain how value is built, framed, and defended in today’s market.

Cory is a Managing Director who leads SHG’s valuation and consulting practice. He joined SHG in 2009 after earlier roles at Ayco, a Goldman Sachs business unit, and years of advising owners on valuation, M&A, and planning.

Rai is a Managing Director who heads SHG’s investment banking division. He has been with SHG since 2010, bringing over 25 years of experience in capital markets and equity research, with involvement in more than 20 IPOs and M&A transactions. This experience is now applied to sell-side processes for private companies.

How Buyers Actually Price Your Business

“For the small-business market, it’s predominantly driven by cash flow…we do a very detailed financial analysis…and then use discounted cash flow to give a present value to future cash flow,” Cory says.

That’s the foundation. Buyers project the cash your company can produce and discount it back to today. They’ll then check that against comparable deals in your industry. If your forecasts aren’t supported by clean monthly reporting, your story falls apart. Discounted Cash Flow (DCF) and precedent market transactions and market comparables are the cornerstones of private company valuation.

Change The Model, Change The Multiple

Sometimes, changing the business model can change the valuation. “We worked with a global trade software company. When they came to us their business model was a traditional software licensing model: revenue was non-recurring and transactional,” Cory explained. “We recommended a pivot to recurring SaaS/ARR. When we took them back to market, we sold them for about 2.5–3 times what they would have achieved five to six years earlier.”

Why did this work? Recurring revenue reduces volatility and reduces the uncertainty of a business. In software, buyers often consider revenue multiples because recurring revenue is easier to forecast. If you can convert project work into contracts or add subscription tiers, the quality of revenue improves, and buyers tend to be more interested in your offerings.

Don’t Trust Rumors

Rai cautions against cross-industry comps. “Owners hear about a deal in another industry and assume their same-size company should get the same value. Multiples vary by industry and growth outlook.”

Context matters. A fast-growing niche will not price like a slow-growth industrial. Risk reshapes price, too. Cory notes that two similar companies can diverge if one has heavy customer concentration, “say 75–80% with one client.” Buyers discount fragility. If this is you, consider expanding your base or locking in multi-year terms before you go to market.

What To Fix Before You Sell

Rai makes it simple. “Get the financials in order. Buyers will ask for monthly cash-flow projections. For many owners, that’s the first hurdle,” he said.

“Be ready for diligence. Gaps or delays can hurt value or kill a deal,” says Cory. “Look hard at revenue mix and management depth, especially if you plan to exit.”

Treat readiness like a project. A seller-prepared pack highlights any issues early, streamlines the buyer's work, and reduces surprises. It also sharpens the narrative around cash conversion and working capital.

SHG’s Sell-Side Approach

“We go beyond a transaction,” Cory says. “First, what are you worth today? Next, how do you become worth more? Then, how do you maximize value in the deal? We’re strategic with target lists to protect confidentiality and avoid disruption.”

Rai underscores the importance of readiness. “We’ll tell a client they’re not ready and outline the steps to get there. We’ve done that many times, then worked with them to reach readiness.”

Overall, you need to create value first, then capture that value. A well-defined buyer list and disciplined messaging keep your team and customers informed while you manage the process.

Current Market Snapshot

“Uncertainty gave some would-be sellers pause earlier this year, but those concerns are easing. We’re prepping for more market opportunities,” Rai notes.

Cory adds that owners should look for signs of the cost of capital easing, which can help close the gap between buyers and sellers. Prepared sellers will benefit first when financing becomes more accessible and buyer confidence improves.

What Buyers Now Ask About Tech And AI

“The core valuation work still centers on cash flow,” Rai says. “What’s changing is buyer questions: How is the company using AI? That can influence interest, especially in tech-oriented businesses.”

Expect diligence on how your team uses automation, data, and AI to support productivity, compliance, and retention. Buyers are also using AI to screen targets and review documents, so you should anticipate sharper questions and faster review cycles.

The Bottom Line for Sellers

Strong outcomes start long before you decide to sell your business. Clean monthly reports, credible projections, and a model buyers trust are what drive value. Change what you can before you sell, then market a story that holds up under diligence.

Your number should reflect your sector’s growth profile, your risk, and the durability of your revenue. Not what a friend heard in another industry. If client concentration or leadership gaps exist, address them proactively. You’ll get more attention and better terms when the business feels steady and ready.

SHG’s approach is built for this process. Clarify what you’re worth, create more value, then capture it with a tight, confidential process run by trusted advisors. This helps shape the story and defend it at the negotiation table.

If you’re considering timing or want a sanity check on your readiness, start small with a valuation-led business review and a concise action plan. From there, decide whether to prep for a near-term sale or keep building value and revisit the market later. SHG can map either path and keep you moving toward the outcome you want.

Insights From a Buy Side Expert

Mon, 15 Sep 2025 17:34:12 GMT

When you think about acquisitions, you might assume it’s only for large corporations or private equity firms. In reality, smart acquisitions can be the fastest way for growing companies to expand their reach, diversify offerings, and build long-term value.

To better understand the buy side of mergers and acquisitions (M&A), we sat down with Matt Montague, Senior Vice President at SHG . Matt has more than 30 years of experience in sales, marketing, communications, and M&A specializing in buy-side strategy for industries ranging from industrial manufacturing and medical equipment to logistics and engineered materials.

At SHG, he leads the critical front-end phases of acquisition helping clients cut through the noise to connect with high-value opportunities. Beyond work, Matt is deeply rooted in his community and has a genuine passion for service and human connection

A Day in the Life of a Buy Side Expert

For Montague, every day begins with staying informed. “A lot of times I start my day at 8:30 reading industry news, going through all the industry emails about trends and industrial markets, what’s new, what other firms are doing,” he explained.

By mid-morning, his focus shifts to relationship building. “My first couple of hours every day are engaged in business development, maintaining contact with both potential buyers and potential sellers I’ve talked to in the past.”

Consistency is a theme in his work. Even when emails seem to go unanswered, Montague knows persistence pays off. “I had someone turn up the other day who said, ‘I’ve been reading your emails for three years. Today is the day I decided I wanted to talk.’ There’s a lot of value in just being consistent and adhering to the process.”

Crafting Messages That Rise Above the Noise

In a competitive field, Montague stresses the need for credibility and specificity. “The way to rise above that generic buy side noise is to be very specific and credible,” he said.

Rather than casting a wide net, he tailors each outreach to show why his client has a real interest in a particular company. “My advantage is that I’m working for a specific buyer who owns a platform in the space and is specifically interested in your company, and here’s why. If I can make that argument, I can usually get someone to the table.”

The Role of Industry Knowledge

Montague’s familiarity with industrial manufacturing, service, and distribution businesses gives him a head start. But he doesn’t claim to be the expert in the room. His role is about credibility and connection. “I always spend a lot of time specifically looking into the niche of that industry and understanding my client’s interests as completely as possible. I’m the first contact, the first person the business owner speaks to. I have to be credible.”

Misconceptions About Acquisitions

One of the biggest myths Montague encounters is that acquisitions are out of reach for smaller businesses. “The most common misconception business owners have is that they can’t afford it,” he explained.

Just as homeowners use mortgages, businesses can leverage capital and partnerships. “Buying a business is not entirely different. You go to the bank, raise capital, and then pay back the bank. There are creative ways to structure deals like partial acquisitions, seller rollovers, or partnerships with investors that make acquisitions feasible for smaller companies.”

Signs You’re Ready to Acquire

When is the right time for a small or mid-sized business to consider buying another? Montague looks at it as the buy versus build equation. “Can I develop this capacity internally, with the resources I have at hand, in time to meet a market need? Or would it be faster to buy a company and, in one fell swoop, be ready to meet that need?” For example, acquiring a distributor in a new geography can be a quicker and more practical growth strategy than starting from scratch.

Preparing to Be M&A Ready

Before approaching a deal, Montague urges business owners to get their financials in order. “SMBs should go and get a valuation. A valuation gives the bank a third-party opinion on the value of your company. It’s just like going and having an inspector look at a house before you buy it.”

With clean books and an accurate sense of value, companies are far better positioned to raise capital and negotiate from strength.

Technology and the Softer Side of M&A

Montague sees technology, particularly AI-driven tools, reshaping how buy side advisors operate. “AI definitely accelerates the process. But, if you don’t start with a good, disciplined process, you can go wrong very quickly,” he said.

Montague cautions that acquisitions aren’t just about numbers. “One thing that a lot of M&A people miss is the softer side. Business owners care about their workforce and their community. If a buyer ignores those concerns, even a successful financial deal can sour quickly.”

What Business Owners Should Take Away

Acquisitions may seem intimidating, but with the right guidance, they can be an accessible and powerful growth tool for small and mid-sized businesses.

Looking for seasoned M&A advisors? With innovative strategies, personalized solutions, and unwavering dedication, SHG's advisors provide razor-sharp insight, creative ideas, and a wealth of network connections that only seasoned business experts can provide.

Matthew M ontague, Senior Vice President, joined SHG in 2019. With experience in mergers and acquisitions and more than twenty years in sales, marketing and communications, Matt has contributed to businesses ranging from multi-nationals to start-ups, working with corporate leadership and ownership to craft and execute acquisition strategies, drive sales, and promote brand and products in a diverse group of industrial technologies.

When to Bring in a Trusted Advisor for Specialized Valuation or Financial Analysis

Thu, 03 Jul 2025 16:25:01 GMT

When business owners start thinking about M&A, they turn to their lawyers, accounts, and financial advisors first. However, as the deal transitions from a hypothetical to a real possibility, new questions and challenges emerge. What is the company worth? How will buyers view the financials? What needs to be addressed before anyone sits down at the negotiating table?

This is where specialized advisors can help. Complex valuation and financial analysis require a level of precision that exceeds the demands of day-to-day financial work. Knowing when to bring in outside expertise can help protect the deal, avoid costly surprises, and strengthen the client relationship you've worked hard to build.

The Limits of General Expertise

Lawyers, accountants, and financial advisors are close to their clients' daily operations. They know the people, the numbers, and the story behind the financials. But things change when a deal starts to take shape .

Industry multiples vary and shift quickly. Earnouts may seem straightforward but carry risks if not structured carefully. Working capital adjustments can turn into sticking points if expectations aren't aligned early. Even the finances themselves may require normalization to reflect actual earnings.

Spotting these issues upfront helps keep the process moving. Waiting until diligence or negotiation to sort them out leads to surprises that stall or damage a deal. Early recognition opens the door to better preparation, cleaner terms, and smoother closings.

Key Moments to Bring in Specialized Support

Most client conversations start well before a formal deal takes shape. But certain moments need a deeper level of analysis to keep the process on track.

Early Stage Valuation Questions

When clients begin asking what their business is worth, it's often based on best guesses or rough multiples. A specialist brings structure to these early discussions. With clear, defensible valuation work, your client enters the market with expectations grounded in reality, not rumor.

Complex Ownership Structures

When ownership includes multiple classes of stock, debt layers, or incentive plans, the math gets complicated fast. Specialized advisors can break down how each layer impacts value and payouts. This work is even more important if the transaction includes management rollovers, earnouts, or other contingent payments.

Industry-Specific Drivers

Not every business fits neatly into a general model. Healthcare, technology, professional services, and manufacturing each carries unique valuation considerations. Specialists with sector experience know what buyers look for and where risks tend to surface.

Pre-Due Diligence Preparation

Buyers test every assumption behind the price. Having a specialist review the model ahead of time helps uncover weak spots and address them before negotiations begin. It's easier to resolve issues early than under the pressure of a buyer's timeline.

Deal Structure and Tax Impact

The structure of a deal affects both its value and after-tax proceeds. Specialized financial analysis can help model different scenarios, providing the client and advisors with a clearer view of how various structures unfold.

What to Look for in a Specialized Advisor

Choosing the right advisor is more than credentials. You need someone who brings real-world experience to the table. Deep valuation expertise matters, but so does a proven track record of navigating complex transactions. This is where technical knowledge meets practical judgment.

Industry familiarity is equally essential. Every sector has its unique drivers, risks, and valuation nuances. An advisor who understands the client's space can spot details others might miss. That insight shapes the deal in ways that protect long-term value.

Finally, no advisor works in a vacuum. The best ones collaborate with legal, accounting, and financial teams. They maintain tight communication, anticipate issues, and help move the process forward with fewer surprises.

Strengthening Your Client Relationships

Every deal brings its own set of questions. Some are straightforward. Others require a closer look at the financial drivers behind the business. That's where specialized valuation and financial expertise come into play. Bringing the right advisor in early helps protect the deal and gives your client a more straightforward path forward. When you know where your expertise ends and specialized insights begin, you put your client in the best position to make informed, confident decisions.

Expanding Your Business Through M&A – The Advisor's Advantage

Thu, 03 Jul 2025 16:12:06 GMT

Business owners are thinking about M&A earlier than ever. Some are looking for a path to retirement. Others need capital to fuel growth. Many are simply trying to stay ahead in markets that are constantly shifting. M&A conversations usually start with their lawyers, accountants, and financial professionals long before they speak with a buyer or hire an investment banker.

This early access puts advisors in a unique position. You have a window into your client's goals, concerns, and timing. These moments open the door to deeper relationships and expanded services. The opportunity goes beyond the transaction. It is about guiding the client through unfamiliar territory, protecting their interests, and helping shape the next steps.

Early Access, Deeper Insight

Advisors are in a unique position. Trusted relationships give them a front-row seat to the shifts and pressures business owners face long before an M&A conversation officially starts. You hear the early questions. What's next for the business? How do we fund expansion? Is now the right time to bring in a partner?

When growth slows, succession plans stall, or capital starts to tighten; advisors are the first to notice. These moments might not lead to a transaction, but they open the door to further opportunities. With early insight, you can guide your clients through options, helping them think through timing, structure, and strategy while the window is still open. By shaping discussions early, you help your clients secure the best possible deal.

The Advisor's Role

Business owners don't always announce their intentions. But behind closed doors, many are thinking about selling, merging, or expanding . Lawyers, accountants, and financial advisors are usually the first ones in the loop. You're the sounding board and trusted voice when decisions start taking shape. That early access puts you in a unique position to listen and guide.

When you're part of the conversation from the start, you can help your clients see what's possible. Whether it's spotting the right opportunity, flagging the risks, or knowing when to bring in outside help, your advice carries weight.

Expanding Services by Guiding M&A Conversations

M&A talks move fast. Clients often enter into discussions too early with brokers or bankers before understanding what they want or need. That's where you step in and add real value. By helping clients define their goals upfront, you provide them with a steady foundation before the process begins to pull them in multiple directions.

You don't need to have every answer, but you can connect them to the right people who do. Valuation specialists, due diligence teams, deal structuring professionals, and tax advisors all play key roles. With the proper introductions, you keep your clients surrounded by trusted advisors.

Most importantly, you can act as the coordinator. M&A deals are complex, and you can be a steady hand helping them navigate it. By simplifying the process, you reduce stress and help keep discussions grounded in what matters most to your clients.

Strengthening Your Client Relationships

Your role shifts when you start discussing M&A with your clients. You're not just the tax advisor, attorney, or financial planner. You're a guide helping them understand complex decisions. That fosters deeper trust and stronger bonds. Clients rely on you for technical answers and sound judgment. They need to know someone is looking out for their long-term interests, not just the deal itself.

By stepping into this role early, you protect your position as other advisors join the process. Brokers, buyers, and outside experts come and go, but your relationship will stay intact. In many cases, it grows stronger.

Handled well, one transaction can create new advisory needs that extend well beyond the closing, as business owners will face new tax structures, wealth planning needs, or legal questions after a sale or acquisition. The conversations you start now can turn into ongoing opportunities.

Don't Wait for the Deal to Find You

M&A conversations don't start at the closing table. They start quietly over coffee, during tax season, or in year-end planning meetings. As an advisor, you are in a position of trust long before owners make their next move. That early access creates an opportunity. You can help clients clarify goals, weigh options, and move forward with confidence.

By stepping into these conversations sooner, you protect the relationships you've built and expand the value you bring to them.

SHG Provides Valuation Services to AES Logistics, Inc.

Wed, 11 Jun 2025 20:09:07 GMT

SHG is pleased to announce that it has provided a benchmark valuation for AES Logistics, Inc. for the purpose of internal strategic planning among their leadership and advisors. This analysis will provide guidance to the organization and its leadership.

About AES Logistics, Inc.:

AES Logistics, Inc. was founded in 2000 and is based in the state of Washington. AES provides a range of logistics management consulting services and is a NVOCC, FMCSA and USDOT licensed Domestic Freight Broker.

America's Long Term Potential: Why International Investors Need to Look Beyond Today's Ugly Climate

Thu, 05 Jun 2025 20:34:15 GMT

Download Now: America's Long Term Potential: Why International Investors Need to Look Beyond Today's Ugly Climate

The current economic climate may seem chaotic, but America's long-term potential remains strong. SHG has provided this strategic guide for international investors and business leaders to navigate short-term uncertainties and capitalize on the enduring strengths of the U.S. economy.

Learn how reassessing operations, understanding market dynamics, and leveraging strategic advisory can position you for future growth.

Download Now to uncover America's long-term potential!

Don't Wait: Why This Economic Climate Demands Strategic Business Prep

Thu, 29 May 2025 17:25:31 GMT

The economy is changing. High interest rates, tighter capital, and unpredictable demand are part of today's reality. It's easy to get caught up in headlines and try to wait for some clarity, but failing to plan is a risk.

Companies that survive uncertain times don't wait for the perfect moment. They prepare for what's next by focusing on the fundamentals: cash, operations, talent, and direction. Whether you're bracing for change or looking to grow, now is the time to build a stronger business foundation.

Today's Economic Climate

Understanding the current economy requires a clear look at what's moving markets. While easing to 2.8% in April 2025 , inflation remains sticky in key sectors. Housing, healthcare, and wages continue to push up baseline costs.

At the same time, interest rates have climbed and stayed higher longer than expected, with the Federal Reserve signaling a wait-and-see approach that reshapes everything from borrowing to business expansion. Supply chains, once front-page news, have mostly stabilized, with the New York Fed's Global Supply Chain Pressure Index falling to -0.29 in April . Despite this, they remain exposed to geopolitical tensions and pricing swings.

For business leaders, this uncertainty can be an opportunity. Rising costs and shifting capital can reveal inefficiencies or uncover new avenues to growth. Whether it's rethinking pricing, revisiting your vendor mix, or adjusting where and how you hire, volatility will reward prepared businesses.

Waiting for the economy to settle means missing the moment. In economies like this, accurately reading the signs and moving with purpose gives you an edge.

The Cost of Inaction

Waiting to act can feel safe, but that pause costs more than you think. It forces you to react instead of lead while competitors prepare, position, and adjust.

Opportunities don't stay put. When new markets open or customer needs shift, early movers set the pace. If you hesitate, you'll either be too late or pay more to catch up. Whether it's expanding a service line or streamlining operations, delayed decisions come with a high price tag.

There's also a risk you'll lose top performers. Talented teams want clarity and direction. They'll start looking elsewhere if they sense your business is stalled or unsure. In fact, over half of U.S. employees are watching opportunities or actively seeking new jobs. This puts turnover risk at the highest it has been since 2025. The longer you wait to set a clear direction, the harder it is to hold onto the people who can drive you forward.

Margins take a hit, too. Scrambling to adjust under pressure without a plan leads to rushed spending and short-term fixes. It's also harder to negotiate, manage costs, and keep things steady when the next challenge hits.

Waiting isn't a neutral act. It puts you at a disadvantage.

Five Pillars of Strategic Business Preparation

Successful preparation starts with focus. Looking at these five areas will help you make clear, confident decisions.

Scenario Planning

Start with a few projections. Don't try to predict everything; just map out what's likely, what's possible, and what could catch you off guard. Use those outlines to shape your decisions. If sales drop 15%, what's the plan? If supply costs spike, where can you shift? Being ready doesn't mean knowing exactly what will happen. It means knowing what you'll do when it does.

Cash Flow

Now's the time to take a hard look at liquidity. Can you make it through six months of disruption? How much flexibility do you have if revenue dips or customers delay payments? Even if things are steady now, buffers matter. Have conversations with lenders before you need to, and build some breathing room while you still have options.

Operational Agility

You should know where you can move fast and where you can't. You don't need to overhaul your business, but you should look at processes or workflows that tie up too much time or budget. Fix those first. The goal is to move with purpose, not react under pressure.

Talent and Culture

Teams want clarity. In uncertain times, your people are watching how you lead. Are you focused? Are you thinking ahead? Make sure roles are clear, and communication is steady. Build confidence by showing you're planning, not guessing. It's also good to see who's ready for more responsibility.

Digital and Data Readiness

Too many companies wait to update systems until something breaks. Get ahead of that. Are your tools helping or holding you back? Do you have the data to track what's working and what isn't? You don't need to invest in every data platform; you need clean, usable information. That's what helps you make smart moves instead of flying blind.

Waiting Isn't a Strategy

Uncertainty isn't going anywhere, but that doesn't mean you have to stand still. Taking the time now to assess where you are and where you're going helps you stay in control while others scramble to catch up. Solid prep work protects what you've built and better positions you to grow, pivot, and seize new opportunities.

At SHG, we work with business owners who understand that waiting rarely pays off. If you're ready to turn caution into clarity, we can help you make the most of this moment. With innovative strategies, personalized solutions, and unwavering dedication, SHG's executive advisors provide razor-sharp insight, creative ideas, and a wealth of network connections that only seasoned business experts can provide.

From Uncertainty to Opportunity: Refocusing Your Business for the Future

Thu, 29 May 2025 17:14:27 GMT

Uncertainty is the only constant in today's business climate. 84% of executives across sectors express concern about current political and legal unpredictability. It's natural for business owners to wonder how to adapt and move forward.

Uncertainty doesn't have to slow you down. Instead, it can be an opportunity to pause, refocus, and position your business strategically for long-term success. You can transform today's challenges into tomorrow's opportunities by assessing your goals, strengths, and growth potential. Here's how to turn uncertainty into your competitive advantage.

Don't React, Rethink

It's easy to fall into the trap of chasing certainty when markets shift. However, short-term decisions made under pressure carry long-term costs. Companies that make short-term decisions are more volatile than the market and face a 0.42% higher cost of capital . Business owners who cut too quickly, pivot too sharply or chase the moment find themselves solving the wrong problems or creating new ones.

Now is not the time to tighten the belt for the sake of optics or to pursue every new idea that promises fast results. It's time to pause, look at the whole picture, and ask what's working and driving value.

Resisting the impulse to react doesn't equal inaction. It means choosing to act with clarity. That comes from taking a breath, gathering the correct input, and weighing each move with intent. Companies that do this come out of uncertainty poised for success.

Clarify Your Long-Term Objectives

Start with your mission. Does it still reflect who you are and what you do best? Has it been affected by short-term pressures? 85% of high‑performing teams say that a clear mission and shared values directly improved collaboration and decision-making. Next, revisit your vision. Is your direction clear, or have market shifts raised new questions? Finally, take a hard look at your goals. Are they grounded in today's reality and aligned with the future's potential?

A focused planning session helps reset the foundation of your business. Hold candid leadership meetings and re-examine why you started and what you want to build over the next five or ten years. This exercise helps you reconnect with your purpose and hone your response to market shifts.

Think of uncertainty as a live-fire test of your strategy. If your direction is unclear or your priorities waver under pressure, that's an insight worth acting on. Stress reveals weakness and uncovers strength. Clarity comes from doing the work, asking the right questions, and committing to what matters most.

Identify Hidden Growth Drivers

Economic uncertainty pushes businesses into survival mode. But, while many focus on cutting back, others can find growth hiding in plain sight. Some of the most promising opportunities don't come from sweeping changes. They come from better use of what's already there.

Niche markets are a good example. They sit outside your core focus, too small to chase during boom times, but steady and loyal when things get tight. Recessions produce 47% more "rising star" companies , suggesting downturns are fertile ground for new niche leaders. The same goes for underutilized talent. Employees already on the payroll may have skills that aren't being tapped. Reworking internal processes can also expose cost savings or increase capacity without adding overhead.

Realign Resources to Future-Focused Strategies

Periods of uncertainty demand a smarter reallocation of what you already have. When your focus shifts toward what's working or where demand is headed, you can uncover areas that are resilient and ready to grow. Realignment starts with hard questions. Where is your capital earning? Which teams are driving outcomes? What operations are overdue for a rethink?

Legacy systems and outdated routines impede progress. Moving to a more agile model doesn't mean tearing everything down. It means gradually shifting toward what's adaptable, measurable, and delivers. Companies making agile shifts see improvements in customer satisfaction, employee engagement, and operational performance gains.

The future is always uncertain, but businesses that act with purpose now will be best positioned to capitalize on new opportunities.

Seize the Moment

Periods of uncertainty test your strategy and your focus. The companies that come through stronger are the ones that step back, reassess, and take deliberate steps forward. This means avoiding the impulse to rush into a reinvention and looking at what's in front of you with fresh eyes.

Now is a smart time to pause, clarify your direction and prioritize what drives real value. Whether that means revisiting your goals or changing how your team works, success starts with a clear focus.

If you're looking to move with purpose, we're here to help you map out the next phase of your business. With innovative strategies, personalized solutions, and unwavering dedication, SHG's executive advisors provide razor-sharp insight, creative ideas, and a wealth of network connections that only seasoned business experts can provide.

SHG Provides Valuation Services to FALA Technologies, Inc.

Thu, 22 May 2025 17:43:46 GMT

SHG is pleased to announce that it has provided a benchmark valuation for FALA Technologies, Inc. for the purpose of internal strategic planning among their leadership and advisors. This analysis will provide guidance to the organization and its leadership.

About FALA Technologies:

FALA Technologies is a New York Corporation founded in 1946 and provides high-precision contract manufacturing primarily in the semi-conductor industry and also manufactures a proprietary line of cleanroom grade bearings. To learn more, visit Fala Technologies | Engineering | Manufacturing | Build & Test .

SHG Provides Annual ESOP Valuation Services to Bank of Richmondville

Thu, 22 May 2025 15:00:21 GMT

SHG is pleased to announce that it provided an ESOP valuation analysis for The Bank of Richmondville, Inc. for its Board of Directors, management, and advisors, specifically for annual ESOP reporting purposes.

About The Bank of Richmondville: The Bank of Richmondville is an independent community bank with a rich history, serving Schoharie County, New York. It operates branches in Richmondville, Cobleskill, and Schoharie. The Bank has shown significant growth, with total assets exceeding $100 million and over $10 million in capital, and employs 38 local staff members. As of March 31, 2025, their total assets stood at $185,019,207. The Bank requires annual valuations and has been a valued client of SHG since 2010.

For more information, you can visit the Bank of Richmondville website

SHG Provides Strategic Advisory Services to Paidly, LLC

Thu, 22 May 2025 14:46:07 GMT

SHG is pleased to announce that it has provided a comprehensive market opportunity analysis for Paidly, LLC for the purpose of strategic planning among their leadership and advisors. This will help provide guidance to the organization as it seeks investors.

 About Paidly, LLC: Paidly, LLC is a company dedicated to helping students pay off their student loans faster. They achieve this through a software platform that assists employers in offering student loan repayment and 529 payments as benefit solutions. This employer-provided benefit aims to attract top talent, enrich employees, improve engagement, and increase loyalty. Paidly's cloud-based platform is designed for ease of use for both employers and employees. The supplemental payment made by employers contributes directly toward the student loan principal, effectively reducing the overall interest paid and the loan's payback period.

To learn more, visit Paidly | Student Loan Repayment Benefit .

Meet Randall Hooper, CVA: From Entrepreneur to Strategic Advisor

Thu, 24 Apr 2025 20:58:14 GMT

Randall Hooper, CVA, brings a dynamic blend of financial acumen, strategic insight, and entrepreneurial spirit to his role at SHG. Starting as a young entrepreneur in Los Angeles, he is a seasoned advisor committed to understanding and increasing business value.

Early Entrepreneurial Ventures

Randall's journey began at 12 when he developed a business plan for a chicken farm to fund his first cell phone. By 15, he worked with his father's family office, gaining hands-on experience in financial modeling, deal sourcing, and strategic planning. This early experience laid a solid foundation for his finance and business future.

A Competitive Edge

Randall attended a top-20 university, where he rowed competitively, deepening his appetite for growth in both sport and business. During his summers, he trained with various rowing clubs while gaining private equity experience through internships with Lexington Partners and Pomona Capital in New York City.

From Private Equity to SHG

After graduating, Randall entered private equity at Solum Partners, an ag-focused PE firm. He later relocated to Albany to be closer to his wife and connected with the SHG team. Since joining SHG, he has expanded his focus on valuations and client-facing advisory work, helping executives navigate ownership transitions and strategic planning initiatives.

Hands-On Experience

Randall is a Certified Valuation Analyst (CVA) and has led numerous business valuations and sell-side projects. His work isn't limited to the boardroom, partnering with the founders of Realm Artesian Water to build financial models, secure investors, and support their go-to-market strategy with boots-on-the-ground involvement.

Approach and Outlook

Randall thrives on solving real-world business problems and brings sharp analysis to every engagement. SHG has provided the right platform for him to keep growing while helping clients move forward with clarity and confidence. Contact us today to see how he can help you achieve successful business outcomes.

When Should Companies Engage with an M&A Advisor

Mon, 21 Apr 2025 18:34:28 GMT

Timing is critical for mergers and acquisitions (M&A), and knowing when to bring in an M&A advisor shapes the process and the result. Still, many business owners wait until a deal is on the table. By then, much of the leverage has already shifted.

An experienced advisor can help assess your position, prepare your business, and guide the transaction. The earlier the relationship begins, the more time to prepare, helping you strengthen your market position and make better decisions. So, when should you start talking to an M&A advisor?

Before You Receive an Offer

The best time to engage with an M&A advisor is before a buyer contacts you. Waiting until an offer lands on your desk forces you to react instead of lead.

An advisor will help you understand what your business is worth in the current market and why. They'll assess financials, growth potential, and operational strengths, uncovering hidden value. This process shapes your exit strategy and helps maximize your business's value . In fact, M&A advisors can increase deal success rates by up to 3.7% .

Getting a head start also gives you time to address weaknesses that will lower your valuation. Making these adjustments before talks begin is much easier than when under pressure. Talking to an advisor early helps you go into negotiations with confidence and the best information. You'll walk in knowing what matters to buyers and where you stand.

During Periods of Strong Performance

When your business shows steady growth, clean books, and solid margins, it becomes more attractive to serious buyers. An M&A advisor helps you take advantage of this window. They know how to capitalize on your momentum, drawing in the right buyers before market conditions shift. Waiting too long can turn an ideal opportunity into a tougher sell.

Selling from a position of strength shifts the balance in your favor. Buyers compete harder, and you have room to push for better deal structures. Strong performance gives you leverage, and advisors help you use it wisely.

When Facing Operational or Industry Challenges

It's difficult to understand the next step when your company is under pressure. An experienced M&A advisor can help you evaluate your options and find ways forward that may not be immediately visible from inside the business. They can help you sort through the noise and focus on solutions that preserve value.

M&A advisors also bring an informed outside voice to high-stakes negotiations. They know how to manage conversations with buyers, creditors, and stakeholders when timing, positions, and presentation matter most. Their involvement helps prevent avoidable losses and keeps deals from stalling out.

Before Raising Capital or Restructuring Debt

It's worth considering the broader strategic picture before raising capital or restructuring debt. An M&A advisor can help identify whether alternative options like a recapitalization, partial sale, or merger might better align with your company's long-term goals.

Advisors also open doors to potential equity partners or acquirers that might not be on your radar. More importantly, their guidance can help avoid short-term decisions that can create problems in the future.

Before a Generational or Ownership Transition

Timing a preparation matter before a generational handoff or ownership change . M&A advisors help structure what might become an emotional and disorganized process. They allow you to map a clear path to success, aligning goals between family members, partners, and other key players.

You can avoid rushed exits or internal disputes by involving an advisor early. The process becomes less reactive and more forward-looking. You can also get peace of mind knowing your legacy and the business are set up for future success.

Engaging early with an M&A advisor ensures you're ready long before a deal is on the table. Their involvement gives you a clearer view of your options and more control over the outcome. The best deals are rarely rushed. They're built on preparation and timing. Talking to an M&A advisor early lets you shape the strategy on your terms before others start setting the pace.

Looking for seasoned M&A advisors? With innovative strategies, personalized solutions, and unwavering dedication, SHG's advisors provide razor-sharp insight, innovative ideas, and a wealth of network connections that only seasoned business experts can provide. Contact us today to learn more.

eBook: How Compensation Studies Provide Stability in Volatile Markets

Thu, 03 Apr 2025 19:44:30 GMT

Download Your Free eBook

Markets move fast these days. Inflation spikes and talent shortages create uncertainty that many businesses are not ready for. You might feel pressure to raise pay across the board just to keep your best people. That acts as a quick fix but it can hurt your budget if you are not careful.

Generic surveys and AI formulas often miss the mark. You need deep and human verified data to build a pay strategy that truly works.

This guide shows you how to benchmark your roles accurately. It helps you spot pay gaps before you lose talent to competitors. You will also learn where to target your budget so you can reward top performers without overspending.

Get the insights you need to make smart pay decisions.

Meet Edward Heslop: Entrepreneur and Sustainability Strategist

Wed, 02 Apr 2025 14:38:57 GMT

Edward Heslop brings a powerful combination of entrepreneurial drive, senior leadership experience, and a lifelong commitment to environmental innovation. With over three decades of experience building companies and guiding projects in agriculture, bioenergy, and climate change, Ed has turned university research into real-world impact.

Ideas into Action

Ed founded and led multiple non-medical life science ventures at the intersection of academic research and commercial opportunity. From innovative wastewater treatment solutions to carbon credit trading platforms, He’s consistently ahead of the curve, pioneering technologies that serve both business goals and environmental progress.

Experience with Industry Leaders

Throughout his career, Ed has helped companies from concept to exit, including high-profile collaborations with organizations like Constellation Brands, Coca-Cola, and Anglian Water in the UK. His expertise spans M&A, financial diligence, and project leadership with a focus on detail, clear communication, and trust.

Advancing Climate and Agricultural Solutions

Ed is passionate about projects that tackle climate change head-on. He helped develop agricultural initiatives aimed at reducing CO2 emissions and launched a recirculation aquaculture system to raise Coho Salmon indoors that reduces the environmental impact of farm-raised fish while supporting more efficient food production.

Meet Jim O’Keefe: Deal-Maker, Strategist, and Seasoned Operator

Thu, 27 Mar 2025 17:43:45 GMT

Jim O’Keefe brings a practical, hands-on approach to ownership changes, strategic divestitures, and long-term value creation. Drawing on his experience at General Electric (GE) and a proven record of successful outcomes, Jim works closely with business owners, investors, and corporate leadership to guide companies through change with clarity and purpose.

Turning Divestitures into Opportunities

Since stepping away from GE, Jim has acquired three non-strategic businesses from the company. These were strategic moves shaped by understanding how major corporations handle legacy assets.

Jim also recognizes the human side of divestitures. Employees, leadership teams, and communities all feel the impact, and that’s where he adds unique value. By approaching each acquisition with empathy and insight, Jim creates outcomes that benefit everyone.

Representing Sellers with Purpose

Jim also represents businesses, acting as a principal or as an advisor. He has helped owners navigate the transition to new ownership more than a dozen times. With a strong sense of what both sides need to be satisfied, his approach is grounded in clear communication and practical deal structuring.

Fueling Growth Where It Counts

When customers succeed, so do the companies that serve them. Since 1995, Jim has supported high-tech manufacturing firms and software providers with strategies that reduce churn and support expansion. His work has built online user communities that create value across industries.

Bringing Strength to the Table

Jim’s experience and expertise help business owners navigate pivotal moments. Whether working with venture capital, private equity, or large corporations, Jim brings insight and strength to every negotiation. Contact us today to see how he can help you achieve successful business outcomes.

Keegan Bailey: Senior Advisor, Growth Strategist, and Adventurer

Thu, 27 Mar 2025 17:33:41 GMT

At SHG, great advice starts with great people. Keegan Bailey brings both expertise and energy to the table. A Senior Advisor with a track record of building businesses and scaling innovative solutions, Keegan is equal parts strategist, investor, and adventurer. His career is rooted in driving impact across healthcare, technology, and value-based business models, where data and innovation go hand in hand.

From C-Suite to Strategy Consulting

Before joining SHG, Keegan was CEO of Acuitas Health, leading one of New York’s most ambitious healthcare data and analytics efforts. His leadership helped bring actionable insights to healthcare organizations throughout the Capital Region.

He also founded Navaste Health, a consulting firm focused on leadership, innovation, and transformation at the intersection of health and tech. Whether shaping strategy or scaling new ventures, Keegan always thinks three steps ahead.

Passion Beyond the Business Plan

When he’s not guiding clients through complex business decisions or analyzing market trends, Keegan is likely chasing fresh powder on a snowboard or exploring trails on foot or bike. He’s also known to unwind with an acoustic guitar or ukulele.

Keegan’s passion for community and creativity also inspired a delicious side venture, Send Me Waffles. He and his wife started the food gifting business to spark connection through warm, meaningful experiences. Sometimes, the best way to build community is one waffle at a time.

Helping Clients Navigate What’s Next

At SHG, Keegan brings a forward-thinking mindset to every engagement. His specialties include capital markets, M&A transactions, financial analysis, and business valuations. Clients count on him for insight, strategy, and real-world results. Contact us today to see how his insight and strategic expertise drive real-world results.

The ROI of a Compensation Study: Quantifying the Value of Strategic Pay Practices

Thu, 27 Mar 2025 15:10:08 GMT

Attracting and retaining the best talent demands fair and competitive compensation. But how can you know if you're paying people what they're worth? A compensation study takes the guesswork out of pay decisions, helping you align compensation with market standards. When employees feel valued, morale improves, and hiring is easier. Misaligned pay structures, however, increase turnover and disengagement.

A compensation study provides the data needed to make informed decisions. It helps pinpoint where pay can be adjusted, driving better outcomes.

The Role of Compensation Studies

A compensation study helps you evaluate your pay structures by comparing them to industry benchmarks. They collect data on salaries, benefits, and incentives across similar roles and industries. By analyzing this information, you can determine whether your pay rates are competitive or fall short of market expectations.

These studies also examine gaps in your organization's pay structure. Salary differences between employees in similar roles point to inconsistencies that need fixing. Addressing these gaps helps promote fairness and strengthens employee trust. When pay practices align with clear, objective criteria, your company will develop a more transparent culture, leading to happier, long-term employees.

Common Compensation Categories

Pay goes beyond salary and falls into three main categories. Each category plays a role in attracting, motivating, and retaining employees.

Base Salary

This is the foundation. It is the fixed, recurring pay employees receive for doing their jobs. It’s the most straightforward component of compensation, and the one employees consider first when evaluating their overall compensation package.

Short-Term Incentives

These are usually performance-based bonuses paid annually or quarterly. They are usually tied to individual, team, or company performance. They help reinforce short-term goals and drive results in the near term.

Long-Term Incentives

Long-term incentives are designed to retain key talent, aligning their interests with the future of the business. Equity awards like stock options or restricted stock units are common forms of long-term incentives. Overall, this type of compensation rewards loyalty and creates a sense of ownership in the business.

The ROI of Compensation Studies

Investing in a compensation study helps drive your business's long-term success. Aligning salaries with market rates retains talent, boosts performance, and attracts top talent. Here's how a well-structured compensation strategy delivers measurable results.

Employee Retention and Cost Savings

Inadequate total compensation is the number one reason employees leave their company. Aligning compensation with market rates reduces turnover. Employees who feel fairly compensated are less likely to look for other opportunities. On average, recruiting, hiring, and training a replacement costs 21% of an employee's annual salary . It also doesn't take a huge pay increase to boost retention, with a 10% increase in base pay resulting in a 1.5% increase in retention.

Lower turnover reduces costs associated with recruiting, onboarding, and training new hires. Organizations that keep experienced employees also benefit from institutional knowledge, improving overall efficiency.

Performance and Productivity Gains

Fairly paid employees are motivated, and higher employee engagement leads to increased productivity and better overall performance. 81% of employees say they are more productive and loyal to their employer when their compensation is fair. Conversely, 54% of employees who are paid less than people in similar roles reported a drop in work motivation and 59% started looking for a new job within a year.

Competitive Pay and Talent Acquisition

Companies offering competitive salaries find top talent faster, with candidates 75% more likely to apply to an employer with a reputation for fair compensation. There is also a real dollar ROI to getting talent in the door faster since the average cost per hire for U.S. companies was about $4,700 in 2023 . Prolonged vacancies and repeated recruiting cycles compound these costs. A strong compensation strategy helps shorten hiring times, reducing the cost of vacant roles.

Implementing Effective Compensation Strategies

Organizations can build compensation plans that support long-term success by using data-driven insights, conducting regular reviews, and offering a well-rounded mix of financial and non-financial benefits.

Data-Driven Decision Making

Building a strong compensation strategy starts with reliable data. That means using market research, industry benchmarks, and internal analytics to structure competitive pay scales. Data helps you stay competitive while keeping payroll costs in line with financial goals. You risk overpaying, underpaying, or misallocating compensation budgets without accurate information.

Regular Compensation Review

Wages and benefits should not be static. Market conditions shift, cost-of-living adjustments occur, and industry standards evolve. You need to assess compensation regularly so you can make adjustments that keep pay competitive and aligned with employee expectations. Without periodic reviews, you will struggle to retain current employees and attract new hires.

Comprehensive Compensation Packages

A strong compensation plan is more than a salary. Employees look at total rewards, including healthcare, retirement plans, paid time off, and professional development opportunities. Offering a mix of financial and non-financial benefits helps you appeal to a broad range of employees. It also increases job satisfaction and reduces turnover.

Strategic compensation is essential for building a committed, productive workforce. Investing in a compensation study gives you clear data on how your pay compares to competitors'. This helps you make better decisions and keeps wages competitive and fair.

Ignoring compensation risks losing talented employees. Businesses that proactively manage their pay practices have stronger employee relationships, better operational efficiency, and lower recruitment costs. Ultimately, compensation studies helps you shape a healthier, more profitable organization.

Need help with a compensation study? SHG provides our clients with expert compensation studies based on extensive industry knowledge and experience. Contact us today to learn more.

What Is The Role of an M&A Advisor?

Thu, 27 Mar 2025 14:58:18 GMT

Mergers and acquisitions (M&A) can reshape your business's future, but the process isn't simple. Whether buying or selling, M&A involves complex financial evaluations, legal considerations, and strategic decisions. Missteps along the way can lead to lost value or failed deals.

An M&A advisor can help. They help guide your business through each stage, from identifying opportunities to closing a transaction. Their expertise helps guide negotiations, structure deals, and avoid common pitfalls. By acting as a bridge between buyers and sellers, they streamline the M&A process and improve your chances of success.

What Is an M&A Advisor?

An M&A advisor is a professional who helps businesses buy, sell, or merge with other companies. They analyze financials, assess market conditions, and develop strategies to get the best possible deal. Their expertise typically involves valuation, negotiation, and the legal and financial requirements of transitions.

M&A Advisor vs. Traditional Business Broker

While both M&A advisors and business brokers help with business transactions, their roles and expertise differ. A business broker focuses on smaller transactions, usually working with local businesses and individual buyers. Their approach is more transactional, centered on finding buyers and facilitating sales.

An M&A advisor typically handles more significant, more complex deals. Their role involves deeper financial analysis and strategic positioning. They also offer more in-depth advisory services, helping you maximize value .

Strategic Guidance and Valuation

Advisors assess a business's value by analyzing financial performance, market conditions, and growth potential. This helps them develop realistic strategies to maximize the business's value while maintaining a fair and defensible valuation.

Financial Analysis and Due Diligence

Advisors evaluate cash flow, debt obligation, and asset values to help uncover risks and potential opportunities. Similarly, due diligence involves identifying liabilities, reviewing contracts, and assessing market positioning. Accurate financial analysis and thorough due diligence help strengthen negotiations and reduce the likelihood of surprises during the transition.

The Importance of Accurate Valuations

Simply put, a well-supported valuation improves the chances of a successful deal. Buyers and investors rely on precise financial data when assessing any opportunity. Overpricing leads to prolonged negotiations or lost interest, while undervaluing leaves money on the table. Precise evaluations help establish trust between both parties and create a foundation for productive discussions.

Buyer and Seller Identification

M&A advisors use a structured approach to find and assess potential buyers or sellers. For sellers, advisors look for buyers with the financial resources and long-term interest to complete a deal. For buyers, they search for businesses that align with growth objectives and operational strengths.

Qualifying prospects involves more than financial vetting. Advisors evaluate intent, industry experience, and deal-making ability. A buyer must have the funding and a realistic acquisition plan, and a seller must be prepared for due diligence and negotiations.

Targeted Market Outreach Techniques

Finding the right buyer or seller requires more than broad advertising. Advisors use direct outreach, industry connections, and market research to pinpoint ideal candidates. They leverage existing networks, analyze comparable transactions, and use financial modeling to match opportunities.

Instead of casting a wide net, advisors focus on prospects likely to engage in serious discussions. A carefully crafted outreach strategy improves efficiency and raises the likelihood of a successful deal.

Transaction Structuring and Negotiation

M&A advisors play a key role in shaping the structure of a transaction to align with their client's financial and strategic goals. They help you determine whether a stock sale or asset sale is more beneficial, taking into consideration tax implications , liability concerns, and buyer preferences. They also structure earn-outs, seller financing, and other deal components. This helps bridge valuation gaps and attract buyers while protecting the seller's interests.

Negotiating Favorable Terms

Advisors focus on securing terms that provide the best outcome for their clients. Their experience allows them to push for favorable pricing, payment structures, and contingencies while addressing potential risks. Anticipating objections and preparing solutions strengthens your position at the bargaining table.

Managing Expectations and Keeping Deals on Track

M&A transactions can be unpredictable. Advisors help guide you through each stage of the M&A, setting realistic expectations while driving the deal forward. They also help facilitate communication between all parties, resolving disputes before they threaten the agreement. Their role extends beyond negotiation, ensuring that both parties stay engaged and move toward a successful close.

Without expert support, navigating an M&A is challenging. Every step of the process requires careful planning and execution. An experienced M&A advisor brings knowledge, strategy, and industry connections to the deal that helps you get the best possible outcome.

Whether you're preparing to sell or looking for acquisition opportunities , the proper guidance can make all the difference. Overall, working with a trusted M&A advisor can help you move forward confidently.

Thinking about an M&A? With innovative strategies, personalized solutions, and unwavering dedication, SHG's advisors provide razor-sharp insight, innovative ideas, and a wealth of network connections that only seasoned business experts can provide. Contact us today to grow your business's value.

Meet Matt Montague: M&A Advisor, Industry Expert, and Passionate Community Member

Wed, 12 Mar 2025 13:58:03 GMT

Meet Your Advisor: Matt Montague

At Schwartz Heslin Group, success starts with expertise, strategy, and relentless execution. That's where Matt Montague, Senior Vice President and Advisor, makes a difference. With over 14 years of corporate development experience, Matt specializes in buy-side M&A and helps clients navigate complex acquisitions.

A Proven Approach to M&A Success

Matt's role at Schwartz Heslin Group (SHG) is centered on the critical early stages of a successful acquisition strategy. From front-end research, outreach, and qualification, he works with clients to:

Refine acquisition theses and research actionable targets that align with strategic goals.
Execute professional outreach, cutting through generic buy-side noise to engage key decision-makers.
Vet and qualify opportunities, ensuring clients connect with serious, high-value acquisition prospects.

Matt's skill in crafting and presenting business theses helps our clients stand out.

Beyond the Office: A Life Rooted in Family and Service

Matt is deeply committed to his family, faith, and community outside of work. He has been married to Christine Roos Montague, a cellular physiologist researching tuberculosis treatments at Cornell University for 32 years. Together, they share a love of traveling, cooking, and hiking with their three adult daughters.

Community service is a central part of Matt's life. He teaches religious education, chairs his pastoral council, and volunteers weekly at Loaves and Fishes in Ithaca, a nonprofit providing meals to those in need.

Hobbies & Passions

When he's not advising on deals or giving back to his community, Matt enjoys fly fishing, sailing, and tackling home improvement projects. He appreciates history and spends time reading whenever he can. He also plays guitar in what he describes as a "pretty bad dad band." Born and raised in Buffalo, he's been a dedicated Bills fan since birth, staying loyal through every season's ups and downs.

Need help getting your business ready for 2025? With innovative strategies, personalized solutions, and unwavering dedication, SHG's advisors provide razor-sharp insight, innovative ideas, and a wealth of network connections that only seasoned business experts can offer. Contact us today to grow your business's value and learn more.

Mark Alexander: Driving Innovation and High-Value Investments at SHG Group

Tue, 11 Mar 2025 18:28:59 GMT

Meet Your Advisor: Mark Alexander

Mark Alexander, operating out of Southern California, leads the firm’s expansion efforts into the startup world, particularly ventures of extreme promise in frontier technologies. He is currently cultivating a grouping of promising disruptors in Adaptive Retail, Experiential Commerce, Remote Patient Care, and Next-Level, Token-Compression-Enabled CyberSecurity — each with the potential to significantly shape, reshape and rewire what’s next in the digital economy.

As an entrepreneur and founder himself, Mark naturally gravitates to a very deep level of involvement and engagement in virtually each assignment he invests his time, attention, effort and resources in. Total immersion is his hallmark. His depth and breadth of experiences range from startups to global enterprises where he partners with visionary leaders to transform innate market promise into top financial performance.

Previously, Mark headed up Business Development and Strategic Alliances for US Interactive, an early phase e-business professional services company, where he tripled revenues in three years through new business gains from Toyota and Adidas as well as startups (at the time) such as Wholefoods and AOL, leading to a successful IPO.

He has played key roles throughout his storied career in generating substantial gains in profitable growth and market share for a variety of media and marketing companies facing challenging transitionary pressures including Playboy, Hearst, IPG and The New York Times. He was also the team lead in his own branding startup that spearheaded high-profile deals pairing star celebrities to global brands — including Michael Jackson and Pepsi.

Mark unwinds through mostly active, outdoor pursuits — hiking, climbing, biking, show skiing, attempts at surfing — taking full advantage of the bounty and beauty of his Southern California surroundings, still a source of fascination for this New Jersey transplant.

Always open to creative brainstorming with visionary founders and their teams, a process that often leads to new perspectives and discoveries worth a closer look.

Specialties:

Business Transformation, Market Expansion, Strategic Guidance, Content Creation

CONTACT:

Office: 1.518.786.7733

Mobile: 1.323.839.2057

Email: malexander@shggroup.com

SHG Provides Valuation and Compensation Advisory Services to The Rawson Group

Fri, 21 Feb 2025 18:35:12 GMT

SHG is pleased to announce that it has provided a benchmark valuation and compensation analysis for The Rawson Group for the purpose of strategic planning among their leadership and advisors. This will help provide guidance to the organization as it continues to achieve substantial growth.

About The Rawson Group.:

The Rawson Group was founded in 1983 and began as a franchise of five Wendy's restaurants. Today The Rawson Group operates 20 Wendy's franchises in the Staten Island, New York and Central New Jersey markets and boasts some of the highest sales numbers in the NY metropolitan market. To learn more, visit The Rawson Group

SHG Prepares Valuation for CA Group

cmartin@shggroup.com — Fri, 21 Feb 2025 15:24:23 GMT

SHG is pleased to announce that it has provided a benchmark valuation for CA Group, LLC. for the purpose of strategic planning among their leadership and advisors. This will help provide guidance to the organization as it continues to achieve substantial growth.

About CA Group, LLC:

CA Group, LLC was formed in 2008 in New York State and is a leading provider of heating, ventilation and cooling services to residential and commercial customers throughout the Northeast New York. To learn more, visit www.cagrouphvac.com.

SHG provides Business Valuation services to Gurley Precision Instruments, Inc.

Fri, 21 Feb 2025 15:02:40 GMT

SHG is pleased to announce that it has provided a benchmark valuation for Gurley Precision Instruments, Inc. for the purpose of internal strategic planning among their leadership and advisors. This will help provide guidance to the organization as it continues to achieve substantial growth.

About Gurley Precision Instruments, Inc.:

Gurley Precision Instruments, Inc. develops and produces measuring measuring devices such as optical encoders, optographic products, hydrological equipment and paper testing instruments. To learn more, visit Gurley Precision Instruments .

SHG Prepares Intangible Asset Valuation for CHA Consulting, Inc.

Fri, 21 Feb 2025 14:52:12 GMT

SHG has prepared an analysis of the value of the intangible assets related to the acquisition of A&P Consulting Transportation Engineers Corporation by CHA Consulting, Inc. The analysis will be used in financial reporting and will be used by CHA management and its advisors.

About CHA Consulting, Inc.

CHA is an innovative, full-service engineering consulting and construction management firm delivering sustainable, integrated solutions to the world's most challenging infrastructure projects. To learn more about CHA please visit CHA - About (chacompanies.com) .

About A&P Consulting Transportation Engineers Corporation

A&P was founded in 2000 and operates as a full-service multi-disciplinary consultant in South Florida with expertise in civil engineering, transportation, water resources, environmental, structural, lighting, electrical, traffic studies, and construction engineering and inspection. As of February 2022 A&P is now a business unit of CHA Consulting.

Business Outlook 2025: Top Challenges Facing SMBs

Fri, 14 Feb 2025 19:00:19 GMT

Download Now: Business Outlook 2025: Top Challenges Facing SMBs

2025 will be a challenging year for small and mid-sized businesses (SMBs) due to dynamic and uncertain market conditions.

We reveal how to overcome these key challenges:

Go-To-Market Strategy: Develop effective strategies to stand out in a crowded market and attract customers.
Operational Efficiency: Streamline processes and utilize technology to maintain profitability amidst rising costs and supply chain disruptions.
Adaptability: Implement flexible plans to navigate economic pressures and unpredictable market conditions.

Business Valuations: Why Experienced Teams Outshine Software

Tue, 28 Jan 2025 19:49:19 GMT

Business valuations are vital for decision-making. While valuation software is fast and convenient, it often falls short. Software relies on standardized algorithms that can overlook nuances unique to each company. Experienced valuation teams, by contrast, have a deep level of expertise.

They analyze financial data alongside industry trends and business complexities, offering insights that software alone cannot provide. Valuation teams can navigate unique scenarios, provide personalized guidance, and adapt to rapidly changing market conditions. Their ability to contextualize and interpret data ensures valuations are accurate and actionable.

Although software can be a helpful tool, it cannot replace the strategic value professionals bring to the valuation process. Here’s why human expertise outshines technology in business valuations.

How Do Business Valuations Work?

Business valuations determine the economic value of a company, guiding decisions related to sales, mergers, acquisitions, and tax planning. They are the foundation for assessing a company’s worth and are critical in strategic planning and negotiations. Several factors influence valuations.

Metrics like revenue, profit margins, and cash flow all impact a valuation. Market conditions and industry trends also shape valuations, reflecting economic dynamics and sector-specific growth potential. Together, these factors create a comprehensive view of a business’s value.

Limitations of Valuation Software

Valuation software has gained popularity for its ability to streamline business valuation processes, but it comes with notable limitations. While these tools are useful for standard scenarios, they rely heavily on algorithms and templates that lack the flexibility to address the nuances of individual businesses. This standardized approach can overlook the qualitative factors that play a crucial role in determining a business’s true worth.

These tools also have difficulty interpreting non-standard financial data effectively. Companies operating in niche markets or facing rapid changes may find that valuation software struggles to keep up, leading to inaccurate results. These tools also lack the depth to analyze unique business characteristics like brand reputation or customer loyalty, which can heavily influence a business’s value.

Without expert oversight , valuation software can produce outputs that oversimplify complex financial scenarios. This creates the risk of errors, particularly when dealing with incomplete or inconsistent data. While these tools are valuable for preliminary valuations, expert input remains essential for refining the results and addressing gaps in analysis.

The Role of Experienced Teams in Business Valuations

Experienced valuation teams play a pivotal role in delivering accurate and insightful business valuations. They combine technical expertise with a deep understanding of industry trends and business-specific factors. This enables them to uncover hidden value drivers and risks that might go unnoticed.

By contextualizing data within market conditions, experienced teams provide valuations that reflect the numbers and the broader business story. For example, seasoned valuators might evaluate a startup’s growth based on market potential or assess how a distressed business can regain value through untapped assets.

These teams are particularly skilled at navigating complex situations like companies with limited historical data, distressed businesses, or mergers and acquisitions (M&A). In essence, experienced valuation teams don’t just analyze financials. They provide context, insights, and solutions that help stakeholders make informed decisions with confidence.

When to Use Software and When to Opt for a Team

Choosing between software and an experienced team depends on the complexity of the task and your business needs. Software is a good fit for straightforward tasks or small-scale operations. It’s cost-effective and efficient for simple financial reporting, early estimates, or routine processes that don’t require extensive customization or human insight.

When dealing with more complex scenarios like M&A, litigation, or businesses with complex ownership structures, a dedicated team is essential. Professionals bring judgement, adaptability, and the ability to interpret nuanced situations that software cannot handle. For example, M&A transitions require the evaluation of intangible assets, liabilities, and future earnings. Litigation support demands precise analysis and defensible conclusions. Similarly, navigating the tax and regulatory challenges of multi-entity ownership structures requires strategic expertise.

In short, software is ideal for tasks that prioritize speed and simplicity. A team, however, is better suited for situations requiring detailed insight and adaptability. For decisions that impact your business’s future, human expertise will often be the best choice, offering clarity and actionable insights that software alone cannot match.

Looking for seasoned business valuators? With innovative strategies, personalized solutions, and unwavering dedication, SHG’s advisors provide razor-sharp insight, innovative ideas, and a wealth of network connections that only seasoned business experts can provide. Contact us today to grow your business's value. Contact us today to learn more.

The Value of Regional Partners: Why Partnering With Local Business

Wed, 22 Jan 2025 14:19:49 GMT

From financial powerhouses in Manhattan to fertile agriculture in the Finger Lakes, New York State has a varied and diverse business environment. Understanding this environment is essential for business owners, especially as they try to determine the value of their business. That’s why choosing a partner familiar with the nuances of New York is essential.

Regional business valuators have a unique advantage. They understand New York's economy, tax regulations, and market trends in ways national firms simply cannot. In this article, we’ll look at the specific benefits of working with a local valuation partner like SHG and why it is invaluable for businesses in New York.

Why Local Expertise Matters in Business Valuations

Local valuators have insights that go beyond a simple Google search. They know how local regulations impact valuation metrics like property taxes or state-specific incentives that can influence a company’s profitability and growth potential. For example, in New York, valuators must understand complexities like the state’s progressive income tax structure and ever-changing corporate tax policies. A deep understanding of these things allows them to produce better, more accurate valuations.

A regional valuation partner can also identify unique factors that more generic valuators might overlook. For example, proximity to major transportation hubs, workforce characteristics, and real estate trends differ significantly in New York when compared to other regions in the U.S. These distinctions matter when evaluating assets or projecting revenue.

Navigating Local Tax and Regulatory Requirements

Navigating New York’s tax and regulatory requirements can be challenging due to complex laws and frequent updates. Unique provisions, like the corporate tax and varying sales tax rates, require precise calculations and compliance. Mistakes can be costly, leading to penalties, audits or legal disputes.

Local valuators understand New York’s specific tax rules and legislative changes. This helps businesses minimize liabilities and avoid costly errors. Their knowledge ensures accurate valuations, compliance with state-specific regulations, and guidance through audits or disputes.

Personalized Service and Relationships

Partnering with a local business valuator is about more than accurate valuations. It’s about building a relationship grounded in trust and understanding. Local valuators prioritize personalized attention, tailoring their approach to your business’s specific needs.

Unlike national firms that rely on standardized models, regional valuators take time to understand your goals and challenges. Their proximity allows for face-to-face interactions and faster response times. This ensures you get support when you need it. This direct communication helps create insights that more accurately reflect your business’s unique circumstances.

How to Find the Right Local Valuation Partner

Finding the right business valuator in New York requires more than a quick Google search. First and foremost, you should prioritize experience. Look for a partner who has worked with businesses similar to yours. Referrals can also be valuable. Talk to other business owners in your network to find professionals they trust. Online reviews can also offer some insight into a valuator’s track record and client relationships.

Overall, local business valuators can offer you insights shaped by a deep understanding of New York’s unique business environment. From navigating state specific tax laws to providing personalized service, regional experts bring value that national firms cannot match.

For businesses in New York, these advantages lead to more informed decisions and better long-term outcomes. Whether you’re preparing for a sale, expansion, or succession planning, working with a local partner ensures your valuation aligns with your goals and the realities of the regional market.

Looking for a business valuator in New York? With innovative strategies, personalized solutions, and unwavering dedication, SHG’s advisors provide razor-sharp insight, innovative ideas, and a wealth of network connections that only seasoned business experts can provide. Contact us today to grow your business's value. Contact us today to learn more.

eBook:The Changing M&A Environment in 2025

Tue, 21 Jan 2025 21:05:30 GMT

Download Now: The Changing M&A Environment in 2025

Download our eBook to explore the unique challenges and opportunities shaping the M&A landscape this year. Understand the economic, technological, and regulatory factors that will impact your strategic decisions.

What's Inside:

Economic influences like stabilizing inflation and fluctuating interest rates
The role of AI in revolutionizing M&A due diligence
Key trends in environmental, social, and governance (ESG) compliance
Emerging market opportunities in Southeast Asia and Africa
Financial strategies, including the resurgence of leveraged buyouts

eBook: Implications of The New Administration on Business Valuations & Transactions

Thu, 16 Jan 2025 15:19:26 GMT

Download Now: Implications of The New Administration on Business Valuations & Transactions

As we transition into a new year with a new presidential administration, it's crucial to consider how upcoming policy changes might impact business valuations and transaction strategies. Staying informed about policy discussions now and in the months ahead can be vital for maintaining a competitive edge.

What's Inside:

Insights on potential policy changes and their impact on business valuations.
Strategies to navigate the evolving economic landscape.

Download our ebook to gain insights into how the new administration's policies could reshape your business landscape and help you stay ahead of the curve.

Top 5 Business Priorities for 2025: Strategies for Success

Mon, 13 Jan 2025 16:39:49 GMT

2025 promises to be an exciting year for businesses. With new developing technologies, shifting consumer preferences, and growing global competition, businesses will be faced with new challenges and new opportunities. To stay competitive, you’ll need to adapt fast and take a forward-thinking approach.

Here are five areas that you should devote time and energy to in 2025 to ensure success and growth.

1. Strategic Business Planning

Technology is changing fast. Digital transformation and new business models are pushing business leaders to think beyond day-to-day operations. On top of that, AI tools are creating new data-driven insights that are helping companies interpret customer behaviors and stay ahead of emerging trends. Regulatory standards are also changing . This makes it even more important to spend some time on strategic planning. You can strengthen your company and gain a competitive advantage if you plan and adapt quickly to these shifts.

2. Operational Improvement and Optimization

Operational improvement and optimization strengthens your ability to adapt, compete, and grow. By refining processes, you can streamline workflows, save resources, and invest in new ideas. It also allows you to win customer loyalty and respond to disruptions quickly and efficiently. With economic changes and shifting consumer expectations , optimized systems help reduce risks and make your business more resilient. Continuous improvement will help you drive success and spark future innovation.

3. Sales and Marketing Strategy

In 2025, a well-planned marketing and sales strategy is vital. Online engagement increases daily, forcing companies to stand out or fade away. Businesses that develop a clear, consistent approach will rise above crowded channels. Businesses that don’t will get lost in the noise. A unified message drives loyalty and repeat business, especially when you use data-driven insights to guide your sales and marketing approach. Without strong planning, you run the risk of becoming irrelevant. By embracing an integrated sales and marketing approach, you can adapt to changing trends and customer expectations. This will position you for growth and keep your business visible in a competitive market.

4. Executive and Board Compensation

Good pay packages attract and keep leaders who can steer your organization through market volatility and drive innovation. Stock-based incentives increasingly tie executives’ success to long-term results, encouraging accountability. Clear communication of compensation develops trust among employees, investors, and the public, especially as more and more people are questioning corporate responsibility . Frequent reviews of pay structures support long-term growth and help businesses adapt to new challenges, reinforcing stability and confidence in leadership decisions.

5. Financial Planning and Forecasting

In 2025, financial planning will play a crucial role in helping you deal with unexpected changes and challenges. It helps you map expenses, assess revenue drivers, and anticipate external threats. Accurate forecasts guide resource allocation and minimize unexpected roadblocks. Tools like cash flow projections and stress testing help align your strategy with shifting market demands. By leveraging reliable data, you can maintain steady growth and adapt with confidence. Effective planning provides a clear roadmap, helping you invest wisely, seize opportunities, and sustain success even in uncertain conditions.

Focusing on strategic priorities isn’t optional. It’s essential for growth and long-term success. By focusing on these core areas, you can build a strong framework to adapt, innovate, and thrive in an unpredictable environment. The key lies in integrating these efforts into a cohesive strategy that drives long-term success. The companies that act decisively today will lead tomorrow.

Now is the time to take stock, refocus priorities, and invest in the future. Start by assessing where your business stands and make the changes needed to position yourself for sustained success in 2025 and beyond.

Need help getting your business ready for 2025? With innovative strategies, personalized solutions, and unwavering dedication, SHG’s advisors provide razor-sharp insight, innovative ideas, and a wealth of network connections that only seasoned business experts can provide. Contact us today to grow your business's value. Contact us today to learn more.

eBook: Your Ultimate Exit Strategy Playbook

Tue, 03 Dec 2024 21:03:14 GMT

Download Now: Your Ultimate Exit Strategy Playbook

Unlock the Secrets to a Successful Business Exit

Are you ready to transition your business to its next chapter? Whether you're planning to sell, merge, or retire, our comprehensive eBook, "Your Ultimate Exit Strategy Playbook," is your go-to guide for navigating the complexities of exiting your business.

What's Inside?

Proven Strategies: Discover effective exit strategies that have worked for top business leaders.
Step-by-Step Guidance: Follow our detailed roadmap to ensure a smooth transition.
Expert Insights: Gain valuable advice from industry experts to maximize your business value.
Real-World Examples: Learn from case studies of successful business exits.

Who Should Read This eBook?

Business Owner s: Understand the key steps to preparing your business for sale.
Entrepreneurs : Learn how to maximize the value of your business before exiting.
Investors : Get insights into evaluating business opportunities and exit strategies.
Advisors : Equip yourself with the knowledge to guide your clients through the exit process.

Ready to take the next step? Download " Your Ultimate Exit Strategy Playbook " now and start planning your successful business exit. Simply fill out the form below to receive your free copy.

Business Valuations and Taxes: Critical Insights for Buyers and Sellers

Fri, 15 Nov 2024 19:39:35 GMT

Buying or selling a business is complex, especially when it comes to taxes. Taxes can alter the perceived value of a business in numerous ways. That said, they are often an afterthought. Understanding how taxes influence business valuations is vital for both buyers and sellers.

For buyers, tax implications can affect future profitability and the return on your investment. For sellers, taxes can impact your net profit from the sale. By understanding the tax nuances of buying and selling a business, you can make informed decisions that optimize your financial outcomes.

Tax Implications in Business Valuations

Taxes reduce the available cash flow of a business. As such, buyers often consider the tax obligation they will inherit, which can influence the price they are willing to pay. A business with high tax liabilities may appear less attractive than one with tax-efficient strategies in place.

Types of Taxes Involved in Business Transactions

There are several taxes that may apply depending on the structure and nature of the business sale.

Income Tax: Income tax applies to the earnings from the business. Understanding future tax obligations is critical to estimating cash flow projections for buyers. Sellers may also face income tax on the sale proceeds if structured as regular income.
Capital Gains Tax: Capital gains tax is applicable when an asset or ownership interest is sold at a profit. Structuring the sale to benefit from long-term capital gains treatment can lower tax liabilities for sellers. Capital gains tax rates vary and can notably influence sale price and timing.
Sales Tax: In some states, sales tax may apply to tangible assets sold as part of a business. Although typically less impactful than income or capital gains taxes, buyers and sellers must still be aware of regional tax requirements.

Tax Considerations for Different Business Structures

There may be additional taxes that apply to the sale of a business, depending on the structure of that business.

Sole Proprietorships: Sole proprietors face taxes at the individual level since business income passes through to their personal income tax. There is no separate business tax, which simplifies things. It can, however, increase your tax bracket upon sale.
Partnerships: Similar to sole proprietorships, partnerships are pass-through entities. This means income flows to individual partners and is taxed at their personal rates. Capital gains and other transaction-specific taxes may still apply however.
Corporations: Corporations face double taxation. Typically, earnings are taxed at the corporate level, and dividends distributed to shareholders are taxed as income. This can complicate business valuations since buyers have to consider both entity and shareholder taxes. There are some strategies that can minimize the impact of double taxation.
Limited Liability Companies (LLCs): Taxes for LLCs can be flexible, often taxed as pass-through entities like partnerships. However, they can also opt for corporate tax treatment. The chosen tax structure affects valuation and tax liabilities during sales or transfers. This adds an additional level of strategic planning for LLCs.

Critical Insights for Buyers

As a buyer, you need to carefully consider the tax implications of your purchase.

Tax Strategies to Minimize Liabilities

Effective tax planning is essential in mergers and acquisitions (M&A). As a buyer, you should assess the target company’s tax attributes like net operating losses and tax credits. Structuring the deal well can also lead to tax efficiencies. For instance, choosing between an asset purchase and a stock purchase can have different tax implications. Also, consider the timing of the transaction since some tax laws and rates may change over time .

Due Diligence Matters

Conducting comprehensive tax due diligence is crucial to identify potential tax risks and liabilities. This process includes reviewing the target company’s tax compliance history, outstanding tax obligations, and any ongoing or past tax audits. Understanding these factors helps buyers anticipate future tax exposures and plan accordingly. Evaluating the target’s tax positions and strategies also provides insight into potential areas of concern or potential opportunities.

Negotiating Purchase Price with Tax Implications in Mind

Tax considerations play a significant role in determining a company's purchase price. Identified tax liabilities or exposures can serve as leverage for buyers to negotiate a lower price or demand indemnities. Conversely, favorable tax attributes may justify a higher valuation. It is also essential to consider the tax treatment of transaction costs and how they will be allocated between the buyer and seller.

Critical Insights for Sellers

Much like buyers, sellers also need to make sure they are structuring deals in the most tax-advantaged way possible.

Understanding Tax Implications

When selling your business, you must fully understand all the tax implications. Depending on how your business is structured, sales can be assets or stock sales. Each has distinct tax treatments. In an asset sale, individual assets are sold which can lead to a mix of capital gains and ordinary income taxes. A stock sale, however, involves selling ownership interests, which usually leads to capital gains taxation.

Preparing for Tax Consequences

Before initiating the sale, you should assess your business’s financial health. This includes understanding debts, assets, liabilities, and profits. This helps determine the most tax-efficient sales strategy.

Structuring the Sale for Tax Efficiency

The structure of your sale significantly influences tax outcomes. For instance, an installment sale allows you to receive payments over time, potentially spreading tax liabilities across multiple years. This approach can help manage cash flow and tax burdens.

Timing the Sale for Optimal Tax Benefits

Like most things, timing is essential. For example, selling during a year when your income is lower might put you in a lower tax bracket. This helps reduce the tax rate on the profit of your sale. Being aware of upcoming tax law changes can also inform the timing of your sale.

Overall, navigating the complexities of business valuations and taxes is essential for buyers and sellers. A deep understanding of how taxes impact a business's value can make a massive difference in the outcome of a transaction. For buyers, being aware of potential tax liabilities helps you make informed offers and avoid unforeseen costs. Sellers need to consider the tax consequences of their sale to maximize financial returns and minimize burdens.

Need help developing tax strategies for your business sale? SHG provides our clients with expert guidance based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first.

Your business is your most valuable asset. Our innovative methodology has driven successful outcomes for over 40 years. Contact us today to grow your business's value. Contact us today to learn more.

4 Examples of How Company Exits Reshaped Industries

Mon, 28 Oct 2024 19:54:36 GMT

Exiting a business is a big moment. Not only do owners realize financial gains from their stake in the company, but entire markets can be reshaped. Exits take various forms, each serving a different purpose based on strategy and market conditions. The chosen exit method can have significant ramifications on your company’s future operations.

In this article, we’ll look at four high-profile company exits that showcase the opportunities and challenges present when exiting a business.

Google’s Acquisition of YouTube (2006)

In October 2006, Google officially acquired YouTube through a strategic stock deal valued at $1.65 billion. YouTube was a rapidly growing platform at the time. Thanks to its simple user interface (UI) and user-generated content, It was a significant platform for online videos despite only being launched in 2005.

Google pursued the acquisition to strengthen its position in the digital video space. Their goal was to secure a foothold in user-generated video content and capitalize on the emerging trend of digital media consumption.

Following the acquisition, YouTube continued to operate independently, retaining its brand and platform identity. It also benefited from Google’s technology infrastructure and advertiser relationships. This partnership allowed them to scale the platform, enabling YouTube to become the dominant force in video streaming and content creation. The deal transformed YouTube into a global powerhouse and increased Google’s revenue.

Apple’s Acquisition of Beats Electronics (2014)

In its largest acquisition to date, Apple bought Beats Electronics for $3 billion dollars in 2014. Beats was known for its premium headphones and audio products. They had also recently launched Beats Music, a streaming service that complemented Apple’s growing interest in music streaming and lifestyle technology.

The acquisition had strategic value for Apple. Beats’ strong brand in audio hardware and music streaming aligned well with Apple’s goals to enhance its music ecosystem. By acquiring Beats, Apple strengthened its position in the music industry, leading to the development of Apple Music, a major player in the streaming market. Overall, this acquisition helped Apple compete more directly in both the audio hardware markets and the streaming market.

Amazon’s Acquisition of Whole Foods (2017)

By 2017, Whole Foods had grown to become a leading health-conscious grocery chain known for its focus on organic and natural foods. However, this growth also led to increased competition and pressure from other grocers. This led the company to explore partnerships and acquisitions.

Amazon, seeking to expand its presence in physical retail, made a strategic move by purchasing Whole Foods for $13.7 billion . This acquisition reflected Amazon’s intent to disrupt the grocery sector by integrating e-commerce capabilities with a physical store network. Through the deal, Amazon sought to blend the convenience of online shopping with the experience of in-store retail. A move that reshaped both industries, leading competing grocery stores to ramp up their own online grocery services to remain competitive.

Amazon’s move was about more than groceries, showcasing the company’s strategy of diversification. With Whole Foods in its portfolio, Amazon could now experiment and innovate new models that could transform traditional grocery models.

Salesforce’s Acquisition of Slack (2021)

Salesforce completed its acquisition of Slack for $27.7 billion in 2021. It aimed to strengthen Salesforce’s offerings by integrating Slack into its ecosystem, particularly to compete more effectively with Microsoft Teams in the growing collaboration software market.

Salesforce was motivated by the need to expand beyond its core customer relationship management (CRM) capabilities and offer more robust collaboration solutions. With Slack integrated into Salesforce’s Customer 360 platform, Salesforce positioned itself to deliver a comprehensive digital workplace experience.

Post acquisition, Slack continued to operate under its original brand and leadership. The deal, however, reshaped the SaaS world by aligning enterprise collaboration more closely with CRM and other business operations software. Effectively, it cemented Salesforce’s position against competitors like Microsoft.

Each of these exits shows how strategic foresight and adaptation define the path to business success. Ultimately, successful exits shape entire industries and influence business trends for years. Using these examples, you can chart a path toward exit that fits your unique goals.

Strategic Exits Can Be Transformative

A strategic exit can reshape a company's future in big ways. By partnering with organizations that complement your strengths, businesses can access new resources, technologies, and markets. This synergy often leads to accelerated growth, innovation, and a stronger competitive position.

Effective exit strategies can also influence entire industries. When companies align or merge, they have the potential to drive market trends and reshape industry dynamics. Ultimately, a well-planned exit can unlock opportunities that might have been unattainable, transforming the company's trajectory for the better.

Need help developing your exit strategy? SHG provides our clients with expert guidance based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first.

Your business is your most valuable asset. Our innovative methodology has driven successful outcomes for over 40 years. Contact us today to grow your business's value. Contact us today to learn more.

Case Study: Content Enablers’ Successful Exit Strategy with Schwartz Heslin Group

Fri, 18 Oct 2024 19:01:14 GMT

Client Overview : Content Enablers, led by President and CEO Brad Kabanuk, is a premier global provider of web-based compliance training for the international trade arena. Their services focus on export, import sanctions, embargoes, and other related regulatory regimes.

Challenge : Content Enablers was on the verge of a significant growth opportunity and needed a strategic partner to help navigate their exit strategy. They required a firm that understood their unique industry and market space, and could effectively communicate their value proposition to potential buyers.

Solution : After a comprehensive global search, Content Enablers chose Schwartz Heslin Group (SHG) for their expertise and local perspective. SHG’s deep understanding of the small and mid-market operations, combined with their substantive qualifications, provided the necessary comfort and confidence to Brad Kabanuk and his team.

Implementation : SHG worked closely with Content Enablers to:

Understand their business, which has grown over 24 years by securing key accounts from globally recognized brands.
Communicate the opportunities and potential of Content Enablers to prospective buyers.
Guide them through the entire process, culminating in the successful sale of Content Enablers in February of this year.

Results : The partnership with SHG not only facilitated a successful exit but also opened new avenues for future growth and partnerships. Brad Kabanuk highlighted the strong relationship built with SHG, both from a corporate and personal perspective, which has been instrumental in their ongoing success.

If you’re interested in learning more about how SHG helped Content Enablers, you can view an interview with Brad Kabanuk here .

Meet the Team Who Helped in the Successful Sale of Content Enablers.

Discover the SHG Advantage

Partnering with Schwartz Heslin Group can transform your business’s strategic journey, just as it did for Content Enablers. Our expertise in transaction advisory services and commitment to building strong, personal relationships ensure your success.

Ready to take the next step? Contact us today to learn how we can help you achieve your business goals.

Exit Planning Advisory - How to Maximize Business Values for an Exit

Wed, 16 Oct 2024 20:58:38 GMT

Selling your company is a tremendous decision, and it is easy to underestimate how complex the process can be. As you gear up for the sale, you can miss vital opportunities to maximize the value of your business. Exit planning can help.

Exit planning is more than simply finding a buyer. It’s a process that shapes your business into an appealing prospective investment for buyers. A comprehensive exit strategy involves evaluating every part of your business, from financial performance to intangible assets. It’s a proactive approach that positions your business for a successful transaction. Understanding the elements of exit planning is key to increasing the value of your business and ensuring a smooth transition.

What is Exit Planning?

Exit planning is a strategic process that prepares a business for sale. It involves optimizing financial performance and increasing operational efficiency in order to attract a buyer. Exit planning is also not something you should put off.

Ideally, you should start the process 3 to 5 years before the anticipated sale. This time frame allows you to implement the right value-building strategies and address weaknesses. Early planning also gives you enough time to optimize things like cash flow and strengthen customer relationships. The longer you wait, the less chances you’ll have to maximize your business’s value.

Planning for a sale isn’t easy. You’ll more than likely need a team of professionals with specialized transaction expertises to help . A well-rounded advisory team usually includes business attorneys, certified public accounts (CPA), and financial advisors. This team collaborates with you to build a comprehensive exit strategy that covers everything from potential legal issues to operational efficiency. Assembling the right team early helps shape a successful exit strategy, increasing the value of your business and preparing the company for a smooth transition.

Key Strategies for Maximizing Business Value

Before selling, your goal is to present a company that is financially strong and operationally sound to attract potential buyers. There are many ways of doing this, but there are a few key strategies that you should consider.

Improve Financial Performance

Profitable businesses are usually valuable businesses. One of the best ways to increase the value of your business is to increase cash flow and profitability. Start by doing a detailed review of your financial records. Specifically, look for areas where expenses can be cut without compromising your core operations.

Regular financial audits are also necessary. They help improve transparency and produce clean, organized financial statements. Potential buyers will scrutinize all your financial records during due diligence. Unorganized, messy bookkeeping can be a major red flag that, at best, reduces the value of the business.

Optimize Operations

Operational inefficiencies diminish the value of your business . This is especially true if they cause excessive costs or slow production times. Eliminating production bottlenecks and standardizing processes signals to buyers that your business runs smoothly and can easily transition to new leadership.

Strengthen Your Customer Base

Customers are the core of your business. A well-balanced customer base reduces risk and increases your business’s stability. Too much revenue from too few clients can raise concerns about revenue stability. In fact, companies with a broad, diverse customer base typically receive higher valuations. Strengthening customer relationships and looking for new market segments helps build this diverse base. This makes your business more resilient and more appealing to potential buyers.

Choosing the Right Exit Strategy

There are many different exit strategies. Selecting the right one involves aligning the current state of your business with your personal and business goals. Depending on your specific circumstances, some strategies may optimize value better than others.

Third-Party Sale

This strategy involves selling your business to an external buyer. Typically these buyers are competitors, private equity firms, or another company looking to expand. In this type of sale, value is usually determined by how well the business aligns with the buyer’s strategic goals. Preparing your business for a third-party sale typically means building a strong equity story that highlights long-term growth potential and minimizes operation risks.

Family Succession

Transitioning your business to a family member maintains family control. It also requires careful planning to address potential conflicts and a clear leadership transition plan. Without the right structure, selling to a family member can cause friction between generations and lead to decisions that aren’t in the company’s best interest.

Management Buyout (MBO)

An MBO means selling to the current management team. Since this team already has a deep understanding of your company’s operations, it can help maintain continuity. However, financing can be challenging. Often, MBOs are structured with external funding. This can make them more complex than a straightforward sale.

Maximizing the value of your business during an exit requires careful planning and adjustments. It’s about making your business as attractive as possible before the sale. Exit planning is a complex process requiring time, effort, and collaboration with the right advisory team. Starting early and approaching the exit with a clear strategy helps secure a good deal and leaves a legacy aligned with your vision.

Your business is your most valuable asset. Our innovative methodology has driven successful outcomes for over 40 years. Contact us today to grow your business's value. Contact us today to learn more.

What Are The Benefits of a Trusted Advisory Team

Fri, 04 Oct 2024 16:55:04 GMT

In business, navigating complex challenges and making critical decisions requires more than expertise. It needs trusted guidance. That's why an advisory team can be an invaluable asset for your business. This group of seasoned professionals can offer strategic insights and objective advice tailored to your unique business needs.

A robust advisory team acts as a sounding board, helping you see the bigger picture and identify new growth opportunities. From steering the company through critical transitions to refining long-term strategy, they serve as a pillar of support for achieving your goals.

Strategic Guidance and Expertise

One of the most significant benefits of a trusted advisory team is the strategic guidance they can offer. This guidance can align the entire organization toward a shared vision and help prioritize resources, creating a unified effort toward achieving your business goals.

Advisory teams can also help counterbalance biases and flawed logic. Because they are objective, team members can see potential opportunities and threats more clearly. Involving advisors in the strategic planning process allows for a comprehensive analysis, avoiding common pitfalls hindering an effective strategy.

Better Decision Making

An experienced advisory team comes with diverse perspectives that can enhance your decision-making process. When advisors with varied backgrounds and experiences collaborate, they provide a broader range of ideas. This helps reduce the risk of groupthink and leads to more innovative business solutions. Overall, teams with diverse viewpoints are better equipped to anticipate the impact of decisions from multiple angles, ultimately leading to better business outcomes.

Improved Business Performance

A trusted valuation advisory team helps drive operational efficiency and fosters better collaboration. With their knowledge and expertise, they are able to quickly identify inefficiencies, streamline operations, and increase overall productivity. In fact, organizations that adopt a team-based advisory structure have seen a 53% increase in performance by promoting more agile processes and cross-functional collaboration.

Effective advisory teams can also introduce structured frameworks that enable continuous process improvement. Leveraging their expertise, they can help you identify key production bottlenecks, reduce wasted time, and ensure that all departments are aligned toward achieving the same goals.

Building Long-Term Relationships

Long-term relationships are essential for long-term business success. Strong relationships foster trust, loyalty, and open communication. All these things make it easier to collaborate on complex projects and navigate difficult business challenges. Building these connections can increase organizational performance.

Effective long-term relationships require consistent communication. Businesses that invest time and resources into cultivating these partnerships are better positioned to manage risk and take advantage of new opportunities. An advisory team that emphasizes building long-term relationships helps support the business’s immediate needs and contributes to long-term growth.

Support During Critical Transitions

Advisory teams are invaluable during times of significant business transitions. This is especially true for things like mergers and acquisitions (M&A). During these periods, they provide crucial insights and stability, helping businesses overcome any internal or external challenges. Having an experienced advisory team ensures that businesses can assess risks accurately and implement changes in order to minimize disruptions.

Access to a Broader Network

A broad network is a powerful resource that drives business growth. Advisors often bring with them established relationships that enable businesses to tap into new markets or secure strategic alliances. This expanded network accelerates business development and strengthens your ability to identify and capitalize on emerging opportunities.

Partnering with a trusted advisory team offers businesses many advantages. From strategic guidance to a broader network of industry contacts, these benefits collectively drive better performance. A skilled advisory team helps you overcome obstacles with confidence and helps position you for success.

Looking for a valuation advisory team? SHG provides our clients with expert guidance based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first.

Your business is your most valuable asset. Our innovative methodology has driven successful outcomes for over 40 years. Contact us today to grow your business's value. Contact us today to learn more.

The ESOP Advantage: Ensuring a Smooth Transition in Business Ownership

Thu, 03 Oct 2024 17:39:30 GMT

Transitioning company ownership is one of the most challenging decisions for a business owner to make. For many, the goal is more than maximizing the value of the business. It’s about ensuring the company’s continued success. This means preserving the culture and rewarding the employees who contributed to the business’s success.

An employee stock ownership plan (ESOP) can be the best way to do this. Unlike traditional sales that often result in structural changes, ESOPs keep the company intact. It also empowers your employees and enables you to maintain a lasting legacy.

What Is an Employee Stock Ownership Plan?

ESOPs are retirement plans that allow employees to own shares in the company they work for. They are qualified, defined-contribution employee benefit plans designed to invest primarily in the stock of the sponsoring employer. Through this plan, employees receive ownership interests, typically as part of their compensation package. ESOPs can boost employee engagement and loyalty, aligning employees’ interests with the financial health of the company.

They function through a trust fund where the company either contributes cash to buy shares or contributes its own shares directly to the ESOP. The shares in this trust are allocated to employees’ accounts, typically based on compensation or tenure. Employees gain the rights to the shares incrementally, and then when they retire or leave the company, they can sell their shares back to the company.

The ownership structure varies depending on the type of ESOP . For example, in a full ESOP, employees own 100% of the company’s stock through the trust. Here are a few other ways that ESOPs are typically structured.

Partial ESOP - Employees own a percentage of the company, often coexisting with other shareholders.
Leveraged ESOP- The company borrows money to fund the purchase of shares for the ESOP. The ESOP trust repays the loan over time using company contributions.
Non-Leveraged ESOP: The company contributes its stock or cash to buy shares without borrowing funds.

Why Choose an ESOP for Business Succession?

ESOPs are designed to minimize disruptions that accompany traditional sales by transferring ownership to the employees. This structure makes it so the existing leadership team can remain in place. Keeping the leadership team intact post-sale helps preserve business operations, customer relationships and the overall stability of the company.

Because they allow the business owner to transfer ownership to employees, ESOPs also help preserve the company’s unique culture and values. This is particularly beneficial for companies that prioritize a strong culture, ensuring the new owners are familiar with the business ethos and values. With an ESOP, business owners can pass the company on to people who understand the business and value its long-term success. This helps keep their legacy alive well into the future.

Financial Benefits of ESOPs

Tax benefits are one of the main financial benefits of ESOPs. When a seller sells shares of a C Corporation to an ESOP, they can differ capital gains taxes under Section 1042 of the Internal Revenue Code by reinvesting proceeds in Qualified Replacement Property (QRP). This allows sellers to postpone tax liabilities until the QRP is sold, giving the seller significant tax savings and flexibility in managing their financial strategy.

The other big benefit to selling to an ESOP is flexibility. Sellers can opt for a partial or staged sale. This lets them transition company ownership gradually. A partial or stage sale can help owners who want to maintain some level of control or involvement in the company during the transition period. Even better, they can still take advantage of the 1042 tax deferral on the proceeds of each sale.

Challenges and Considerations

ESOPs can be complicated. It typically involves a web of legal and financial complexities like compliance with the Employee Retirement Income Security Act (ERISA) and meeting all the qualifications under Section 401(a) of the Internal Revenue Code . Structuring ESOPs to ensure all the necessary legal and financial compliance requirements can require extensive planning and legal expertise.

Employee-owned companies also have to complete regular business valuations to determine the fair market value of the shares allocated to employee accounts. These valuations are crucial for ensuring the ESOP meets all the compliance requirements and accurately reflects employee ownership stakes. This process involves using generally accepted valuation methods and requires a deep understanding of financial metrics and the specific business context.

Overall, ESOPs are strategic solutions that can create a seamless ownership transition. With an ESOP, you can safeguard your legacy and give employees a direct stake in the company’s future. While establishing an ESOP involves careful planning, the long-term benefits make it a good choice for companies wanting sustained success.

Need help setting up an ESOP? SHG provides our clients with expert guidance based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first.

Your business is your most valuable asset. Our innovative methodology has driven successful outcomes for over 40 years. Contact us today to grow your business's value. Contact us today to learn more.

Defining Your Valuation Advisory Team

Fri, 27 Sep 2024 19:48:10 GMT

Valuations can be complex. Many financial, market, and operational variables must be considered to produce an accurate value for your business. That's why putting together the right advisory team is critical. This team plays a vital role in helping you understand the true worth of your business . The right team can even uncover hidden opportunities and help you make better business decisions that drive growth.

Building the right team isn't about having good financial experts on board. It’s about assembling a group of specialists with the experience and industry knowledge needed to create a comprehensive and accurate valuation.

Who Should Be on Your Advisory Team?

A well-rounded valuation advisory team consists of specialized professionals with distinct skills. Having an advisory team with diverse backgrounds ensures a comprehensive and accurate business valuation. Here are some of the key roles you should think about filling.

Valuation Specialist

Valuation specialists are a central part of any valuation team. They lead the process and have deep knowledge of financial analysis, market trends, and valuation methodologies . Their role is to determine your company’s worth by assessing assets, income streams, and growth potential. Essentially, they synthesize relevant financial data with industry benchmarks and economic conditions to create a precise valuation.

Financial Analysts

Financial analysts support the valuation process by interpreting vast amounts of financial data like balance sheets and cash flow reports. Their analysis identifies key growth patterns and operational efficiencies that impact your company’s value.

Legal Advisor

Valuations often have legal and regulatory implications. Legal advisors ensure the valuation adheres to any applicable laws and regulations. They also help manage contracts and provide insight into any compliance issues. Overall, they ensure that all legal issues, such as ownership structures, intellectual property, and liability risks, are considered.

Industry Expert

An industry expert brings an in-depth understanding of your business’s industry to the table. They understand how your specific market, competition, and customer behavior affect the overall value of your business. They provide the context that helps your valuation team account for industry-specific variables.

Tax Advisor

Like most things, valuations come with tax implications . A tax advisor assesses the tax structure of the business, evaluates potential liabilities, and identifies strategies to minimize tax burdens. They also help evaluate how current and future tax obligations impact your company’s value.

Risk Management Professional

Risk management is essential in determining your company’s stability and future performance. A risk management professional identifies these risks and helps mitigate them through strategies that enhance your company’s value.

Building a Well-Rounded Team

A well-rounded team requires cross-functional expertise . Cross-functional teams incorporate diverse skill sets, providing a comprehensive approach to problem-solving. This diversity encourages innovation and allows the team to anticipate any potential issues.

Technical expertise is a must-have for valuation teams, but without an understanding of industry-specific trends and challenges, that expertise is limited. Striking a balance between technical skills and industry insight is critical. A valuation team should always align their technical expertise within a broader business context. This ensures that solutions are relevant and actionable.

Communication is what holds a cross-functional team of experts together. Differences in professional language or priorities can create barriers between team members. Establishing clear communication channels and a common language keeps everyone on your team aligned. Tools like project management software or regular meetings help break down any communication silos, helping to foster collaboration.

Building your valuation advisory team is critical to an accurate and reliable business valuation. With the right combination of professionals, your team will have a well-rounded perspective that delivers strategic value. An experienced valuation advisory team helps you navigate the valuation process with confidence. By carefully selecting a team that aligns with your business goals and understands your unique industry challenges, you will position yourself to make better business decisions and ensure long-term success.

Need help building a valuation team ? SHG provides our clients with expert guidance based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first.

Your business is your most valuable asset. Our innovative methodology has driven successful outcomes for over 40 years. Contact us today to grow your business's value. Contact us today to learn more.

Succession Planning Examples: 4 Common Scenarios and Solutions

Fri, 20 Sep 2024 14:53:03 GMT

In business, leadership changes are inevitable. Whether it’s the sudden departure of a key executive or the planned retirement of a long-serving leader, you need to prepare for succession. A comprehensive succession plan enables your business to continue running smoothly during the transition.

Not all leadership changes are the same. Each situation presents its own set of challenges that require tailored solutions to maintain stability and growth. In this post, we’ll go through four common succession planning scenarios and their solutions. This will better equip you to safeguard your company’s future no matter what changes lie ahead.

Scenario 1: Sudden Departure of a Key Executive

An unexpected resignation, illness, or death of a top executive can leave an organization scrambling for leadership. Without preparation, this can result in confusion, decreased morale, and lost productivity. Even worse, it can put the long-term success of the business at risk.

Establishing a strong succession plan is the first step to insulating your business from sudden leadership losses. It ensures that leadership gaps are immediately filled by well-prepared candidates. The plan should identify potential successors and outline the process of transitioning leadership in times of crisis.

Cross-training multiple senior leaders or managers can also be effective. It ensures that multiple individuals are familiar with the key functions of top executives. This helps minimize disruptions, allowing other leaders to temporarily fill the gap.

You can also establish a temporary leadership team made up of multiple senior leaders. They can help guide the organization during the transition period. This collective approach reduces the strain on any single person and creates a more balanced decision-making process.

Scenario 2: Retirement of a Founder or Long-Time Leader

Transitioning from a founder or long-serving leader is challenging. They have deep institutional knowledge, influence, and personal ties to the company. When these leaders step down, your organization risks losing critical know-how. You also run the risk of leadership disputes, culture breakdown, and decreased operational efficiency.

A phased retirement plan can help offset these risks. It allows the founder or leader to gradually step back, giving your company time to adjust. During this period, they can still provide guidance and support, helping reduce the shock of their departure.

You can also try creating a mentorship program to groom potential successors. This allows the outgoing leader to pass on knowledge, skills, and relationships to potential successors. It also ensures continuity by helping future leaders understand the nuances of your business.

Leaders often make decisions based on experience and intuition. If these decision making processes aren’t documented, they can be difficult to pass along. Before the transition, all decision making frameworks and business strategies should be recorded. This helps preserve institutional knowledge and makes it accessible to incoming leadership.

Scenario 3: Underperformance of Current Successor Candidates

In many companies, potential successors might show promise but fail to meet the competencies needed for leadership. This gap can jeopardize your company’s future. This is particularly true in times of transition.

Leadership development programs can help close this gap. This means offering structured training programs focused on enhancing critical leadership skills. These programs should be tailored to meet the specific needs of the successors and align with your company’s strategic objectives.

External transition consultants or coaches can also help by providing personalized and targeted guidance. Mentorship programs involving external experts can help potential successors develop new perspectives outside of their usual experience. This can accelerate their readiness and prevent potential gaps when a leadership transition occurs.

Sometimes, the internal talent pool may not be sufficient. In that case, you should consider bringing in external talent. This may mean you need to reevaluate the skills your company needs for the future and refresh the leadership succession criteria.

Scenario 4: Merger or Acquisition Changes Leadership Structure

Mergers and acquisitions (M&A) are known to create leadership disruptions like overlapping roles or conflicting management styles. These issues can create inefficiencies, confusion, and a potential culture clash between the merging organizations.

To avoid this, you should develop a clear transition plan. Start by identifying key leaders from both organizations who will contribute to the merged company’s success. This plan should ensure that leadership roles are clearly defined with specific responsibilities assigned.

You should also create structured communication channels to align leadership on goals, strategy, and expectations. Regular meetings and transparent communication across departments can also help minimize confusion.

Investing in leadership coaching and workshops can help align the management teams on both sides. These sessions can help address cultural differences, foster collaboration, and improve decision-making across the newly formed leadership group.

Transitions are difficult times for businesses. Effective succession planning can make it a lot easier. It is the key to ensuring your business survives leadership changes and thrives in the aftermath. By preparing for various scenarios you can create a seamless transition and maintain operational continuity.

Need help with succession planning? SHG provides our clients with expert guidance based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first.

Your business is your most valuable asset. Our innovative methodology has driven successful outcomes for over 40 years. Contact us today to grow your business's value. Contact us today to learn more.

What Is the Role of a Valuation Consultant?

Fri, 13 Sep 2024 17:29:05 GMT

Valuing a company can be tricky. There are many different methods for determining value, each with different strengths and weaknesses. You also need to consider various external factors like current market conditions. Beyond that, it involves a range of specific experience, expertise, and skills. Nonetheless, it is vital to understand the value of your business. Valuations play a critical role in everything from strategic planning to mergers and acquisitions (M&A). Engaging a valuation consultant can make the valuation process more manageable and ensure you are accurately valuing your company.

What Is a Valuation Consultant?

A valuation consultant specializes in determining the economic value of a business, its assets, or its financial instruments. They provide independent, objective, and well-documented valuation assessments. Their expertise is used to ensure valuations are accurate, consistent, and in compliance with regulatory standards.

While both valuation consultants and appraisers provide value assessments, there are some key distinctions. For instance, valuation consultants focus on the overall value of a business. Their work usually supports strategic business decisions or M&As. They also use financial analysis methods and techniques to determine value. Overall, valuation consultants deliver multi-faceted reports tailored for a broad range of purposes. Appraisers, however, generally focus on valuing specific tangible assets. Their methods of analysis usually follow established guidelines like the Uniform Standards of Professional Appraisal Practice .

What Are the Key Responsibilities of a Valuation Consultant?

Valuation consultations start by analyzing any relevant financial data, market trends, and legal documents. They will evaluate this data in order to understand your business’s financial health, growth potential, and the competitive landscape. Based on their analysis, they will then choose the most appropriate valuation method for your business.

After all the relevant data has been analyzed and the valuation method chosen, they will prepare a comprehensive report. These reports are usually prepared following industry standards like the ones outlined by the International Valuation Standards Council (IVSC) .

After the report is generated, valuation consultants will help you understand how their valuations impact different aspects of their business. Consultants also play a crucial role in M&As by helping all the parties determine fair market value and negotiate deals.

Skills and Qualifications of a Valuation Consultant

Valuation consultants need a diverse set of skills. For example, they must be highly analytical since their work involves interpreting and synthesizing complex data from a range of sources. Consultants also need to be adept at creating detailed financial models that predict cash flows and estimate future growth.

They need to be excellent communicators in order to convey complex financial concepts in a way that is accessible to non-expert stakeholders. Valuing companies involves great attention to detail. This means consultants also need to be meticulous in their analysis and report preparation to ensure every detail is correct.

The Benefits of Hiring a Valuation Consultant

One of the biggest benefits to hiring a valuation consultant is it provides an unbiased assessment of your business. Since they are independent third-parties, their evaluations are free from internal biases or conflicts of interest that might otherwise affect the accuracy of the valuation.

Insights provided by consultants also help enhance strategic decision making. They provide a clear understanding of your business’s current value, helping to inform decisions on capital allocation, restructuring, or expansion strategies. Accurate valuations also help you identify growth opportunities, mitigate potential risks, and optimize financial performance.

By leveraging the skills and knowledge of a valuation consultant, you gain access to a wealth of experience and expertise that helps you understand the true value of your business. Whether you are looking to expand through acquisition, prepare for a strategic sale, or simply ensure compliance with financial reporting standards, a valuation consultant can provide the precise guidance you need.

SHG provides our clients with expert guidance based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first.

Your business is your most valuable asset. SHG helps you determine and maximize that value. Our innovative methodology has driven successful outcomes for over 40 years. Contact us today to grow your business's value.

Client Testimonial: Content Enablers

Wed, 11 Sep 2024 18:10:30 GMT

Content Enablers is the premier global provider of web-based compliance training for the international trade arena, specifically export, import sanctions and embargoes and other related regulatory regimes.

Hear what President, Brad Kabanuk has to say about his time working with SHG.

Addressing Your Valuation Gap with Strategic, Financial & Operational Expertise

Tue, 03 Sep 2024 17:35:32 GMT

Business owners often face a significant challenge when trying to sell their business - the valuation gap. The valuation gap is the difference between what owners believe their business is worth and what the market is willing to pay. While this gap can be difficult to overcome, business owners can effectively close it by leveraging strategic, financial and operational expertise.

Understanding the Valuation Gap

The valuation gap is a common issue for business owners. This is especially true in volatile markets or competitive industries. It happens when the perceived value of a business does not align with the market’s assessment. Several factors contribute to the valuation gap, including financial performance and market conditions.

For example, owners may overestimate the value of their business based on past performance or emotional attachment to the business. Potential buyers or investors, however, may be more concerned with current market trends or growth potential. Understanding the root causes of the valuation gap is the first step toward closing it.

Common Methods of Valuation

There isn't a single way to determine a business's value, which can lead to different valuations from both the seller and the buyer. Here are some common methods of evaluating a business's value.

Discounted Cash Flow

The discounted cash flow method determines value using cash inflows and outflows the business generates. These cash flows are then discounted into a present value. The discount is determined by a discount rate, an assumption about interest rates or a minimum rate of return assumed by the buyer.

Comparable Company Analysis (CCA)

CCA compares similar companies to the company being sold using metrics like P/E ratios and EBITDA multiples. This market-based approach is designed to reflect current market conditions and buyer sentiment.

Asset-Based

The asset-based method calculates a company's value based on net assets. This can be through either book value or liquidation value. Asset-based valuations are often used for asset-heavy companies like manufacturers, utility companies, or real estate firms.

Precedent Transaction Analysis

A precedent transaction analysis examines past transactions of similar companies to determine a valuation multiple. This method considers acquisition premiums and market conditions at the time of the deal.

The Role of Financial Expertise in Closing the Valuation Gap

Financial expertise is crucial in addressing valuation gaps since one of the primary ways to close the gap is through financial analysis. By examining key financial metrics, business owners can identify areas for improvement that can increase the company’s value.

Strategic financial planning is another key element. Aligning financial strategies with long-term business goals can help increase the value of a company. For example, reducing debt levels and improving cash flow stability can make a business more attractive to potential buyers or investors.

The Impact of Operational Expertise on Valuation

Operational expertise is equally important when trying to close the valuation gap. Improving operational efficiency can directly increase a company’s profitability and its valuation.The adoption of new technologies and innovative practice can further increase operational performance. Businesses that embrace digital transformation, for example, often see significant improvements in productivity and cost efficiency. This ultimately leads to higher valuations.

Combining Financial & Operational Expertise for Maximum Impact

A holistic approach that integrates both financial and operational strategies is necessary to maximize the value of your company. Financial and operation elements of a business are often interlinked and addressing them together can provide a comprehensive solution.

For instance, a company that improves its financial metrics without addressing underlying operational inefficiencies may still struggle to close the valuation gap. Similarly, operational improvements without financial restructuring might not be sufficient to attract buyers or investors. By combining financial analysis, strategic planning, and operation optimization, businesses can present a stronger, more cohesive value proposition.

Closing the valuation gap requires a holistic and strategic approach that combines both financial and operational expertise. Understanding this, you can increase your company’s value and achieve your financial goals. Experienced financial advisors and operational consultants can help by providing tailored guidance. The result is a more attractive business profile that resonates with potential buyers or investors.

Key Strategies for Acquiring Businesses

Tue, 03 Sep 2024 17:26:02 GMT

Acquiring a business is one of the most effective ways to accelerate the growth of your company. It enables you to expand into new markets or acquire valuable assets and talent. A successful business acquisition is about more than having the capital to make a purchase. Before any acquisition, you need a strategic plan that aligns with your business goals. Here are some key strategies and things to think about before you make an acquisition.

Understand Your Acquisition Goals

Before you begin shopping for businesses to acquire, you need to clearly define your acquisition objective. For example, are you looking to expand into a new market or gain new technology? Well-defined objectives help guide the acquisition process and align your objectives with your long-term strategy, ensuring the acquisition contributes to the growth of your business.

IBM and Apple are two examples of companies that have used acquisitions strategically to expand their product lines and enter new markets. IBM acquired 43 companies between 2010 and 2013 to enhance its software business, while in 2010 Apple acquired Siri to strengthen its voice recognition technology.

Conduct Thorough Due Diligence

Due diligence is a critical step in the acquisition process. It helps buyers make informed decisions and assess the true value and potential risks of the acquisition. Due diligence is more than making sure the numbers are good. It also involves identifying any legal or operational risks associated with the acquisition.

You should also thoroughly evaluate the target company’s customer base and market position. This will help you gauge future revenue streams and provide insight into the company’s competitiveness and potential for expansion.

Evaluate Cultural Fit

No two companies have the same culture. When you acquire a company, it comes with its own values and ways of doing business. Successful acquisition can hinge on the cultural compatibility of your company and the target company. If your cultures are misaligned, it can lead to management conflicts or the loss of key talent.

AOL's take over of Time Warner is a good example of how cultural mismatch can affect a merger or acquisition. In 2001, the two companies merged to create a new entity valued at an estimated $361 billion.Things fell apart shortly after the merger mainly due to the incompatibility of old media and new media cultures. The failed acquisition ultimately damaged the reputation and finances of both companies.

Understand Deal Structures

There are several structures commonly used for acquisitions. Each has unique characteristics and can affect the buyer and seller in different ways. Here are a few.

Asset Purchase

Asset purchases allow the buyer to acquire specific assets and liabilities from the target company instead of buying the company itself. This allows the buyer to be selective about which assets and liabilities to assume. Asset purchase offers the buyer flexibility but can be complex and time-consuming.

Stock Purchase

As the name suggests, this type of acquisition involves buying shares of the target company directly from its shareholders. This effectively transfers ownership of the entire company, including all assets and liabilities. This is simpler and faster than most deal structures. However, because the buyer assumes all liabilities, it can also increase overall risk.

Merger

A merger combines two companies into a single entity. This can be structured as a statutory merger, where one company absorbs the other, or a consolidation, where both companies combine to form a new entity. Mergers can create synergies, increase market share, and reduce costs through economies of scale. They can also involve complex regulatory, financial, and cultural integration challenges.

Develop a Post-Acquisition Integration Plan

A post-acquisition plan outlines how the two companies will merge their businesses to achieve the desired financial and strategic objectives. A clear integration keeps day-to-day operations running smoothly by providing a roadmap for merging processes and systems. It also identifies areas where the combined companies can create value or cost savings. An integration plan can also address employee concerns, minimizing decreases in productivity or attrition.

Mitigate Risks and Ensure Compliance

Acquiring a business isn’t just about closing a deal. You need to make the right moves at every step of the process, from setting clear goals to structuring a smart deal. Each of these decisions can be the difference between a successful acquisition and a failed one. You need to think beyond the purchase. Focus on what happens after the acquisition and determine how you can drive growth together. You should approach every acquisition with a plan and be ready to adapt. When done right, an acquisition can be a game-changer, opening new doors and unlocking new potential.

Need help with a potential acquisition? We can help. SHG provides our clients with expert transaction advisory based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first.

Why Compensation Studies Are Critical in 2024 (And Beyond)

Fri, 23 Aug 2024 20:05:21 GMT

The debate around executive pay transparency has gained traction in recent years. This is due largely to growing income inequality and increased public scrutiny over the disparity between executive and employee compensation. The gap between executive compensation and average employee wages has significantly widened over the years. In fact, CEOs were paid 399 times as much as a typical worker in 2021. This is a staggering increase of 1,460% since 1978. As income inequality becomes more pronounced, there’s an increasing demand for greater transparency in executive pay.

Companies with greater pay transparency tend to have smaller pay gaps and higher employee satisfaction . Transparency can even serve as a deterrent against excessive pay packages that are not aligned with the company’s performance. This leads to a more balanced compensation approach. As more stakeholders call for more openness, you may need to rethink your compensation practices. Compensation studies are critical to ensure that executive pay is transparent and equitable.

Pay Transparency: Claims vs. Reality

While many companies claim pay transparency, highlighting their adherence to disclosure regulations and corporate governance standards, this is frequently not the case. Companies may provide some information about executive pay but they often obscure entire compensation packages with complex and opaque practices. Things like stock options, bonuses, and perks can inflate the total value of an executive’s compensation and make it difficult to fully evaluate executive compensations. This lack of transparency has several negative impacts.

For example, when employees perceive that executives are receiving outsized compensation not aligned to company performance, it can lead to dissatisfaction and disengagement. It can also impact investor relations. When companies fail to fully disclose executive compensation, investors may be misled about the true costs and risks associated with these packages. This can result in misallocated capital and undermine shareholder value.

Meritocracy: Fact vs. Fiction

The idea of meritocracy has long been used to justify the high salaries and bonuses given to executives. However, this narrative is often overstated and the link between executive compensation and actual company performance is tenuous at best . In reality, many external factors contribute to a company’s performance. The metrics used to determine executive compensation are also subject to manipulations. For example, stock buyback can artificially inflate earnings per share , leading to higher executive bonuses even when long-term value is not being created.

Regulatory Efforts to Control Executive Pay

The issue of executive compensation has been a focal point of regulatory scrutiny for decades. Various legislative and regulatory efforts have been introduced to curb excessive executive pay with varying degrees of success. These regulations have made strides in promoting transparency and giving shareholders a voice in executive pay decisions, but their overall effectiveness in curbing excessive compensation and promoting equity has been mixed. Loopholes, corporate resistance, and complex executive compensation have all presented challenges in fully realizing the goals of these regulations.

The Case for Genuine Pay Equity

The discussion about executive compensation has evolved beyond transparency into a broader discussion about genuine pay equity. As income inequality grows, the ethical and business imperatives for reducing the pay gap have become increasingly clear. Achieving genuine pay equity is not only a matter of fairness but also a strategic decision that can lead to tangible benefits.

At its core, pay equity is about fairness and justice. The disparity between executive pay and employee wages often reflects and perpetuates broader social inequalities. From a business perspective, equitable pay structures can enhance organizational performance in several ways. For instance, employees who perceive their compensation as fair are more likely to be satisfied with their jobs and less likely to leave, reducing turnover costs and maintaining organization stability. Companies with equitable pay practices are also often viewed more favorably by the public. This can enhance brand reputation and customer loyalty.

How Compensations Studies Help

A compensation study can be a powerful tool for ensuring equitable pay. It helps you identify pay discrepancies between employees performing similar roles. Compensation studies can also benchmark against industry standards and competitors. This makes sure your company’s pay rates are competitive, helping to attract and retain top talent. Data collected during a compensation study can also be used to develop or refine transparent pay structures. By establishing clear criteria for pay grades and salary ranges, organizations can ensure that all employees are compensated fairly for their work.

Need help with a compensation study? SHG provides our clients with expert compensation studies based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first.

eBook: Why 2024 is an Important Year for a Business Valuation

Fri, 02 Aug 2024 18:36:13 GMT

Download eBook: Why 2024 is a Important year for a Business Valuation

Tax law is ever-changing. For businesses, these changes can significantly impact their financial planning. One of these changes is on the horizon and has profound implications for business in the lower-middle market.

Download our ebook to learn exactly why 2024 is an important year for a business valuation.

What Is The Difference Between a Business Appraisal and a Business Valuation?

Fri, 02 Aug 2024 17:52:24 GMT

Knowing the true value of your business is crucial. An accurate valuation provides a solid foundation for strategic decisions and is essential for securing financing. Understanding the value of your business also ensures transitions are fair, whether you’re buying or selling a business, merging with another company, or bringing in new partners.

There are two main ways to assess the value of your business: business appraisals and business valuations. In this article, we’ll look at the differences between the two and why you should choose one over the other.

What is a Business Appraisal?

A business appraisal is a systematic process used to determine the economic value of a business or specific business assets at a given point in time. The process involves evaluating various business factors like financial performance, market conditions, and the value of tangible and intangible assets. This helps you arrive at a fair market value. The scope of a business appraisal typically includes an analysis of the company’s financial statements, industry conditions, market comparisons, and the overall economic environment.

What is a Business Valuation?

A business valuation is another process that determines the economic value of a business or company. The valuation process involves a thorough analysis of a company’s financial statements, market conditions, assets, liabilities, and other relevant factors.

Key Differences Between Appraisals and Valuations

The terms business appraisal and business valuation are often used interchangeably. Despite their similarities, however, there are distinct differences between them.

Purpose

A business appraisal typically focuses on estimating the value of specific assets within a business. This can include things like real estate, machinery, or intellectual property. Appraisals are often used to secure loans, insurance, or for tax assessments.

Valuations are more comprehensive. The goal of a valuation is to determine the overall economic value of an entire business. Valuations are often required for things like selling the business, mergers and acquisitions (M&A), legal disputes, or estate planning.

Scope

Appraisals are limited in scope. They tend to focus on individual assets or specific parts of the business. Conversely, valuations are broader in scope. They usually encompass all aspects of the business, including tangible and intangible assets, financial performance, market position, and future earning potential.

Methodology

Business appraisals often use methods like a cost approach (replacement cost of the asset), a market approach (comparable sales of similar assets), or an income approach (income generated by the asset). For valuations, more comprehensive methods like a discounted cash flow (DCF) analysis, an earning multiplier, market comparables, or an asset-based approach are used to evaluate the overall business value.

Legal and Financial Context

The results of an appraisal are typically an estimate. Often, this is used for internal purposes and is not always legally binding. Valuations are meant to provide a definitive value that can be used for legal and financial transitions, including court cases and regulatory requirements.

Choosing Between an Appraisal or a Valuation

Choosing between a business appraisal and a business valuation depends on your specific needs. It also depends on the scope of the assessment required and the context in which the results will be used.

For example, if you need to determine the value of specific assets in your business (real estate, machinery, or intellectual property), then an appraisal is appropriate. If you need a comprehensive assessment of the entire business to sell the business, complete an M&A, resolve legal disputes, or do estate planning, then you'll want to perform a business valuation.

A business appraisal is also appropriate if you need a focused evaluation of individual parts of the business. A valuation is better suited if you need a broad assessment that includes financial performance, market position, and future earning potential.

Appraisals are better if the results will be used internally and do not need to be legally binding. Valuations, however, are better if you need to know the value of your business for legal purposes, financial transitions, or regulatory requirements.

How SHG Helps

SHG provides our clients with expert valuation guidance based on extensive industry knowledge and experience, whether you are looking for an appraisal or a valuation. Our team represents a balance of seasoned business operators and astute financial experts. We have built strong relationships with all our clients because we put your goals and priorities first.

How Long Does a Business Valuation Take?

Wed, 24 Jul 2024 14:55:16 GMT

Understanding a business's true value is critical for strategic, financial, and legal purposes. The only way to determine that value accurately is through a business valuation. Business valuations are a process, and they take time. How much time can depend on many different variables. In this article, we'll look at business valuations and what factors play a role in determining how long they can take.

What is a Business Valuation?

Business valuations determine the economic value of a business or company. They involve analyzing all aspects of a business to estimate its overall worth. There are a few common reasons to conduct a formal business valuation .

Mergers and Acquisitions (M&A)

Business valuations for M&A purposes provide a basis for negotiations by establishing a company's worth.

Taxation

The Internal Revenue Service (IRS) requires businesses to be valued at their fair market value for tax reporting purposes.

Strategic Planning

Knowing a business's value helps stakeholders make investment decisions and plan for future growth by providing a clear picture of the company's financial standing.

There are also a few different ways to value your business. The method you choose ultimately depends on why you're doing the business valuation and the kind of company you own. Here are a few common approaches.

Asset-Based

This approach calculates the total value of the company’s assets and subtracts liabilities. It is typically used for businesses with significant tangible assets.

Income-Based

Income-based valuation methods focus on the company’s ability to generate future income, often using models like Discounted Cash Flow (DCF).

Market-Based

This method compares the business to similar companies that have sold recently, using metrics like price-to-earnings ratios.

Factors Affecting the Duration of a Business Valuation

Several factors can affect the duration of a business valuation, making the process more or less time-consuming. Here are some key factors.

The Complexity of the Business

Businesses with multiple divisions, diverse product lines, or international operations require more extensive analysis. This increases the time needed for valuation. The company's financial structure also plays a role. Companies with complex financial structures like multiple subsidiaries or multiple types of debt instruments require detailed financial analysis. This prolongs the valuation process.

Availability and Quality of Financial Data

The availability of accurate and comprehensive historical data is crucial for a business valuation. Incomplete or disorganized financial records can significantly delay the process. Preparing realistic financial projections and forecasts is also essential for valuation methods like the DCF analysis. This process often involves detailed market research and assumptions, which can be time-consuming.

Valuation Methodology

Different valuation methods require different levels of effort and time. For example, the DCF method generally takes longer, while market-based approaches might be quicker. Combining methods to cross-verify results can also increase the time needed to complete the valuation.

Purpose of Valuation

The purpose of the valuation can affect the level of detail and rigor required. Valuation for litigation, for instance, may necessitate more detailed documentation and expert testimony. For M&A purposes, the valuation results typically serve as a basis for negotiation. This may require both parties to request multiple revisions and scenarios to support their positions.

Industry and Market Conditions

Valuations in highly volatile industries or uncertain economic conditions require more in-depth and frequent updates. Some industries also have stringent regulatory requirements that need additional compliance checks, extending the valuation timeline.

Timeline for a Business Valuation

So how long does a business valuation take? It depends. However, most business valuations follow some general steps.

Initial Consultation and Engagement
Data Collection and Analysis
Site Visit and Management Interviews
Financial Analysis and Valuation Modeling
Draft Report Preparation
Review and Finalization

Overall, a typical business valuation takes 7 to 14 weeks. This is just a rough estimate, and it can change drastically depending on various factors and issues that arise during the valuation.

How to Speed Up the Business Valuation Process

While you can't control all the variables that determine the length of a business valuation, there are some steps you can take to speed up the process.

Preparation and Organization

Before the valuation begins, assemble all the necessary financial documents, including historical financial statements, tax returns, business plans, and any relevant legal documents.

Effective Communication

Maintain regular communication with the valuation team to provide updates and address any questions quickly. It can be helpful to assign a dedicated person within your company to coordinate with the valuation team, ensuring information is exchanged efficiently.

Engage Experienced Professionals

Working with experienced valuation professionals who are familiar with the industry and valuation methodologies significantly reduces the time required. They can quickly identify key areas of focus and avoid common pitfalls.

Choosing the Right Partner

With expert guidance informed by extensive industry knowledge and experience. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first.

How Companies In The Lower-Middle Market Can Maximize Their Value

Tue, 23 Jul 2024 20:06:51 GMT

For companies in the lower-middle market, maximizing the value of your business is critical. Historically, lower-middle market companies have a high potential for merger and acquisitions (M&A). Optimizing your business to increase value helps attract the best possible offers from potential buyers.

As a business owner, you should focus on the key areas that drive value. By improving these areas, you can optimally position yourself for significant events, ensuring maximum return on investment (ROI). Here are a few ways that you can begin to make your business more valuable.

Strategic Planning

Strategic planning is a crucial part of any business. If done right, it builds the foundation for creating more value. It gives you a clear picture of your core competencies and sets a roadmap for growth.

The process typically involves understanding your company’s internal strengths and external opportunities, and defining actionable goals and objectives. Good strategic planning leads to better decision-making, enhanced market responsiveness, and increased operational efficiency. Overall, companies that do strategic planning adapt quicker and more effectively to new challenges. This helps them achieve long-term sustainability and success.

Streamline Operations

Operational efficiency is critical for maximizing the value of your business. Increasing the efficiency of your operations lowers the cost of production and service delivery, effectively boosting your bottom line. Improving your operational efficiency also leads to faster service and product delivery. This increases customer satisfaction and satisfied customers are likely to be repeat customers.

Improve Your Financial Health

Companies with robust financial health typically have better liquidity. This allows them to respond more effectively to opportunities and challenges. Maintaining a healthy cash flow enables your company to invest in growth initiatives, manage unexpected expenses, and sustain operations during downturns. Financially healthy companies also are more likely to obtain favorable credit terms. This is vital for supporting expansion or bridging financial gaps during slow periods.

Strong financial health provides the necessary data and resources for informed decision-making. It enables companies to invest in new markets, technologies, and innovations with confidence, and ultimately, increases the value of the company.

Invest in Technology and Innovation

Companies with cultures that focus on innovation significantly outperform their less innovative peers. Prioritizing innovation helps you leverage technology to create distinct advantages over your competition. This includes adopting advanced technology solutions like AI to enhance operational efficiency and improve customer interactions.

Technology investments also enable companies to respond more quickly to market changes and customer needs. Companies that integrate technology into their operations also fare better in the long term. Fast-growing lower-middle market businesses often attribute their success to forward-focused technology investments that enable them to innovate continuously and enter new markets more effectively.

Build a Strong Management Team

Putting the right people in leadership positions can drastically improve the value of a business. Lower-middle market companies require robust leadership to help navigate growth phases, manage complex operations, and ensure the company is aligned strategically. A competent management team helps you optimize your resources and streamline your operations, ultimately increasing your business’s value. Effective leaders are also pivotal in building a corporate culture that promotes employee engagement and retention, key factors for maintaining operational stability.

Overall, a good management team drives the business toward clear, strategic objectives and increases the company's value.

Expand Your Market Reach

Entering new markets helps companies diversify their revenue stream. This can stabilize cash flows and reduce the dependence on a single market. Market expansion also enhances a company’s brand recognition and presence, giving it a competitive edge in new and existing markets. Strategic expansions often lead to operational synergies and increased efficiency. This in turn helps boost the overall value of the company.

Expanding into new markets demands careful planning and execution. If done right, however, it can substantially improve your company’s growth trajectory and profitability. For lower-middle market companies, market expansion paves the way for increased revenues and strengthens your business’s overall market position.

Proven Business Valuators

SHG provides our clients expert business valuation guidance based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first.

Who Performs Business Valuations?

Thu, 11 Jul 2024 19:24:07 GMT

Business valuations help determine a company's economic value. They often involve a complete analysis of many different factors, including financial performance, market conditions, assets, liabilities, and future earnings potential. Accurate business valuations can impact a variety of business decisions, such as securing financing, negotiating sales, or planning strategic growth. A precise valuation, for example, can facilitate a successful sale by providing a fair and objective assessment of the business's worth.

Choosing the right professional for your business valuation is essential for ensuring accuracy and making informed decisions. Different professions bring different expertise to the valuation process, and by understanding their qualifications and roles, you can select the best expert to meet their valuation needs.

Professionals Who Perform Business Valuations

Several types of professionals are qualified to perform business valuations, each bringing specific expertise and credentials.

Certified Valuation Analysts (CVAs)

Certified Valuation Analysts are accredited by the National Association of Certified Valuators and Analysts (NACVA). It requires rigorous training and examination that emphasizes practical experience. CVAs can handle various valuation assignments, from small businesses to large corporations.

Chartered Financial Analysts (CFAs)

Chartered financial analysts are experts in investment management and financial analysis. The CFA Institute awards this certification which signifies a high degree of competence and ethical standards. CFAs often perform valuations for potential acquisitions or investment opportunities.

Certified Public Accountants (CPAs)

CPAs are licensed professionals with extensive knowledge in accounting and finance. They often perform valuations, especially when you need a detailed financial analysis and when there are tax considerations. While the requirements to become a CPA vary from state to state, most will have had to pass a rigorous examination and meet continuing education requirements to maintain their certification.

Accredited in Business Valuation (ABV)

This credential is offered by the American Institute of CPAs (AICPA) and is specifically for CPAs who specialize in business valuations. Accreditation requires CPAs to undergo additional education and pass a specialized exam, ensuring that ABVs have the expertise to conduct complex valuations.

Business Appraisers (ASA)

This accreditation is given by the American Society of Appraisers (ASA). ASAs are experts in valuing businesses and other assets. The ASA designation involves comprehensive education, testing, and peer review. This ensures that appraisers adhere to the highest standards of professionalism and accuracy.

Selecting the Right Professional for Your Business Valuation

When looking for the right professional for your business valuation , you want to ensure they have the relevant certifications. You also want to ensure they have a solid educational background in finance, accounting, or business. Advanced degrees like an MBA or a master’s in finance can also be a plus.

Valuation methods can vary from industry to industry. That means you’ll want to look for professionals who have experience in your specific industry. Their industry-specific knowledge can be critical for understanding market dynamics and for accurately assessing your business’s value. Along similar lines, you want to make sure they use appropriate and recognized valuation methods. The choice of valuation method should align with your business type and valuation purpose.

It is crucial to get an unbiased and objective valuation. When hiring a valuation professional, you need to ensure there are no potential conflicts of interest. You also need to verify that they adhere to high ethical standards. Membership in professional organizations like the AICPA or the CFA Institute often requires that members follow strict ethical guidelines.

There’s no substitute for experience. Reviewing past valuations and client testimonials helps you determine if it is a good fit. A proven track record of successful valuations and satisfied clients is a good indicator of reliability.

Proven Business Valuators

SHG provides our clients expert guidance based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first.

Filling the Valuation Gap Between Buyers & Sellers

Wed, 03 Jul 2024 14:54:24 GMT

Download Guide: Filling the Valuation Gap Between Buyers & Sellers

When it comes to buying and selling businesses, accurate valuation is crucial. But navigating this process isn’t always straightforward. Download our comprehensive guide to learn how to close the valuation gap and achieve better outcomes in business transactions.

The Valuation Gap: What You Need to Know

What is it? The valuation gap represents the difference between what buyers are willing to pay and what sellers are willing to accept.
Why does it matter? Understanding the valuation gap is essential for successful negotiations and smoother transitions.
How can you bridge it? Explore the contributing factors, various valuation methods, and the impact of the current economic climate.

SHG + RenderTribe = A Unique Approach to Business Growth

Tue, 25 Jun 2024 19:28:40 GMT

About Our Partnership

SHG is thrilled to announce a strategic partnership with RenderTribe. Complementary to our strategy-led advisory and valuation services, RenderTribe helps B2B companies generate predictable revenue by building a sales and marketing framework that creates more qualified sales conversations.

Navigating the complexities of B2B sales engagement isn’t easy. We will empower your company with proven B2B growth strategies to achieve measurable and sustainable growth.

How RenderTribe Works

RenderTribe’s account-based approach to pipeline development is rooted in personalization and organizational alignment - from strategy to measurement. Our approach includes:

B2B Revenue Operations

Create efficiencies, streamline processes, and drive alignment across your entire revenue team.

ABM & Sales Orchestration

Orchestrate a unified and personalized account-based marketing and sales motion.

Go-To-Market Strategy

Design and implement a cohesive, repeatable go-to-market strategy.

Channel Execution

Build and execute multi-channel campaigns to reach prospects more effectively.

Ready to Accelerate Your Business Growth?

Find out more about RenderTribe and discover how they can help you achieve pipeline growth and sustainability.

How to Maximize Your Business Value

cmartin@shggroup.com — Wed, 05 Jun 2024 19:29:04 GMT

As business owners, it’s only natural to want to increase the value of your business . A more valuable business benefits stakeholders, makes you more competitive, and helps create long-term stability. Increasing value is especially important if you are looking to sell your business.

Maximizing value can be difficult. There are, however, some good places to start.

Strengthening Management and Operations

People and processes are the cornerstones of successful businesses. A valuable company has qualified, competent management that understands the business and is focused on improving it. Importantly, management should be able to function independently of the owner. A valuable company also has operational processes that are efficient and focused on reducing waste and redundancies. Buyers will not want to invest in a company that can’t function without the owner and has inefficient processes. At best, the value of your company will suffer. At worst, it will be impossible to sell it.

If you’re worried about the strength of your management team, you can invest in employee development. This helps build a knowledgeable and skilled workforce that enhances company value. It will also go a long way to increasing operational efficiency. There are also several ways to improve operation efficiencies like documenting and reviewing processes, automating repetitive tasks, and establishing Key Performance Indicators (KPIs) to track improvements.

Diversification and Risk Management

Diversification and risk management are essential for maximizing the value of your business. They enhance its resilience and increase its performance in a variety of market conditions. Diversification involves expanding the range of products or services your company offers, allowing you to reduce the dependence on a single source of revenue and enter into new markets. This mitigates your financial risk if one sector or market underperforms.

Effective risk management identifies, assesses, and controls risks to your business. This helps prevent potential losses and improves your company’s reputation and credibility. Implementing a comprehensive risk management framework can lead to increased value by stabilizing cash flows and reducing the volatility of returns. Companies that adopt quality risk management practices are more attractive to buyers and tend to achieve higher valuations.

Long-Term Strategic Planning

Long-term strategic planning can significantly increase the value of your business. It helps set a clear, cohesive direction, preparing your company to overcome future challenges and capitalize on opportunities. You need to start by aligning your company’s vision with day-to-day operations. This ensures that all efforts are in service toward your long-term goals. This alignment increases organizational efficiency and drives everyone to work towards common objectives.

A long-term strategic plan also needs to be flexible and evolve over time . It’s best to regularly revisit and revise your strategy, keeping your business agile and adaptable to market changes, technological advancements, or shifts in consumer preferences. Adaptialby is key for sustaining competitiveness and relevance in a rapidly changing business environment.

A good long-term strategy isn’t just about increasing value. It’s about defining your company’s purpose, clarifying its role in society while identifying profitable opportunities. Companies that use a purpose-driven strategic approach tend to perform better financially and have a competitive edge in the market.

Marketing and Customer Relations

Marketing and customer relations are pivotal in maximizing the value of your business. It increases customer loyalty, improves brand perceptions, and drives revenue growth. It all starts with a strong brand. A well-established brand can command higher prices for its products or services when compared to competitors with a lesser-known brand, even if the products are similar. A strong brand enhances the perceived value of its offerings, making customers willing to pay more. It can also shorten the sales cycle due to an increase in trust and familiarity.

Establishing a strong, long-term relationship with customers also helps the value of your business. It can lead to increased customer lifetime value, higher engagement, and greater loyalty. These relationships are built by providing a superior customer experience . This involves understanding and addressing customer pain points, personalizing communications, and ensuring every interaction adds value to their customer journey. By focusing on what matters most to customers and delivering consistent products and services, your business can significantly improve customer satisfaction and loyalty.

Your Business is Your Most Valuable Asset

Maximizing the value of your business is a process. It won’t happen overnight, and these are just a few ways you can increase the value of your business. However, each company is different and faces unique challenges. There is no one-size-fits all approach to building value.

That’s why SHG employs a unique and innovative approach that uses a unique blend of operational and financial expertise. We are more than business advisors. We are partners in your journey to success. With innovative strategies tailored to your unique needs. Our team empowers you to seize opportunities and maximize the value of your business .

Your business is your most valuable asset. At SHG, we help you determine and maximize that value. Our innovative methodology has driven successful outcomes for over 40 years. Contact us today and grow the value of your business.

SHG Provides Sale Advisory Services leading to the Acquisition of Content Enablers

cmartin@shggroup.com — Thu, 07 Mar 2024 14:18:48 GMT

SHG is pleased to announce that it has provided sale advisory services to Content Enablers , a go-to provider of trade compliance training solutions for more than two decades; leading to their acquisition by Skill Dynamics , an established player in digital training for supply chain and procurement professionals.

Click here to learn more.

About Content Enablers

For more than 20 years, Content Enablers has delivered the industry’s most effective and intuitive online trade compliance training solutions to millions of employees globally. The company has revolutionized and simplified the training process allowing the world’s leading organizations to deliver, and document, impactful and engaging training to all levels of learners.Content Enablers’ suite of services includes consulting from its experienced team in the Trade Advisory Services division as well as practical and interactive live training seminars.

www.contentenablers.com

SHG Provides IP Valuation Services to Acqua Angel, LLC

Thu, 25 Jan 2024 13:48:16 GMT

SHG is pleased to announce that it has provided a benchmark IP valuation analysis for Acqua Angel, LLC for the purpose of strategic planning among their leadership and advisors. This will help the organization as it seeks investors to launch it's new product.

About Acqua Angel, LLC:

Acqua Angel, LLC is a subsidiary of Vegliante IP Technologies, LLC. The Company owns a patent for a pool safety device, which utilizes an integrated light and alarm system to alert users of unauthorized pool entry.

SHG Provides Valuation Services to Plastic Design International, Inc.

Wed, 20 Dec 2023 21:26:24 GMT

SHG is pleased to announce that it has provided a benchmark valuation for Plastic Design International, Inc. for the purpose of internal strategic planning among their leadership and advisors. This analysis will provide guidance to the organization and its leadership.

About Plastic Design International, Inc.:

Plastic Design International, Inc. is a manufacturer of plastic injection molds, plastic parts and components for a wide variety of applications. The Company was founded in 1977 and is based in Middletown, CT. To learn more, visit Plastic Design International, Inc .

SHG Provides Business Valuation Services to The Daily Gazette

Thu, 14 Sep 2023 12:25:33 GMT

SHG is pleased to announce that it has provided a benchmark valuation for The Daily Gazette for the purpose of internal strategic planning among their leadership and advisors. This analysis will provide guidance to the organization and its leadership.

About The Daily Gazette:

The Daily Gazette was incorporated in 1894 and is headquartered in Schenectady, New York. The Gazette publishes a daily newspaper and sells newspapers, retail, and classified advertising, provides outside printing services and online subscriptions.

To learn more, visit dailygazette.com .

Schwartz Heslin Group Secures Working Capital Financing for Strategic Global Aviation

Thu, 24 Aug 2023 13:50:59 GMT

SHG has sourced working capital financing for Strategic Global Aviation from Cephas Capital Partners . The financing will allow SGA the financing necessary to support substantial growth.

About Strategic Global Aviation:

Strategic Global Aviation is a world-class military aerospace maintenance, repair, and overhaul (MRO) facility based in Rome, NY. The Company provides the gold standard in processes for C-130 heavy maintenance and service life extension. For more information, visit strategicglobalaviation.com .

About Cephas Capital Partners:

Cephas Capital Partners was founded in 1997 and has assisted over 60 small businesses in upstate New York fund rapid growth, recapitalize, or assist with buy-outs. Cephas is actively seeking investments for its third fund and is a licensed Small Business Investment Company (SBIC). For more information, visit cephascapital .com .

SHG completed Analysis and Evaluation of RevIVa Wellness

Thu, 03 Aug 2023 12:16:10 GMT

SHG is pleased to announce that it has provided a comprehensive analysis and business review of RevIVa Wellness , an IV Therapy company purchased by Dr. Jackcy Jacob from Dr. Alain Polynice, and funded by local entrepreneurs Bobby Syed and David Prescott. Mr. Syed is known for Bullex and iSimulate exits and Mr. Prescott is known for Integra Optics and the owner of Hangar 743 in Albany, NY.

About RevIVa Wellness

RevIVa Wellness is located in Latham, New York and provides IV Therapy and other wellness services. To learn more, click here .

SHG provides Business Valuation Services to Mass Brigham General Hospital

cmartin@shggroup.com — Fri, 07 Jul 2023 11:48:45 GMT

SHG is pleased to announce that it has provided a benchmark valuation for a Mass General Brigham acquisition target for the purpose of transaction support among their leadership and advisors. This will help provide guidance to the organization as it continues to achieve substantial growth.

About Mass Brigham General Hospital.:

Mass General Brigham is a Boston-based non-profit hospital and physician network that includes Brigham and Women's Hospital (BWH) and Massachusetts General Hospital (MGH), two of the nation's most prestigious teaching institutions. It was founded in 1994 with H. Richard Nesson, MD, former president of Brigham and Women's Hospital as CEO of Mass General Brigham and Samuel O. Thier, MD, formerly president of Massachusetts General Hospital as president. To learn more, visit Mass General Brigham | Integrated Health Care System .

SHG provides valuation services to Integre Technologies, LLC

Thu, 20 Apr 2023 12:03:33 GMT

SHG is pleased to announce that it has provided a benchmark valuation for Integre Technologies, LLC. for the purpose of strategic planning among their leadership and advisors. This will help provide guidance to the organization as it continues to achieve substantial growth.

About Integre Technologies, Inc.:

Integre Technologies was founded in 2002 in Rochester, NY where it's headquarters resides, with offices in Washington State and Virginia. The Company architects, design and verify integrated electronic systems supporting ASIC, FPGA and PCB circuit board designs.

To learn more, visit https://www.integretek.com/

SHG provides compensation analysis for senior leadership team at Jupiter Wellness, Inc.

Fri, 31 Mar 2023 12:14:44 GMT

SHG is pleased to announce that it has provided a compensation study for Jupiter Wellness, Inc. for the purpose of internal planning among their leadership and advisors and future recruitment. This will help provide guidance to the organization as it continues to achieve substantial growth.

About Jupiter Wellness, Inc.:

Jupiter Wellness, Inc. is a cutting-edge, publicly traded (Nasdaq) developer of CBD based medical therapeutics and wellness products. The Company was formed in 2018 and is based in Jupiter, Florida. To learn more, visit: www.JupiterWellness.com .

SHG provides valuation services to American Petroleum Equipment and Construction, Inc.

cmartin@shggroup.com — Thu, 02 Feb 2023 15:56:31 GMT

SHG is pleased to announce that it has provided a benchmark valuation for American Petroleum Equipment and Construction, Inc. for the purpose of strategic planning among their leadership and advisors. This will help provide guidance to the organization as it continues to achieve substantial growth.

About American Petroleum Equipment and Construction, Inc.:

American Petroleum Equipment & Construction Company, Inc. (APECCO) is a full service environmental and construction firm specializing in petroleum tank system installations and removals. APECCO is among the largest environmental maintenance and construction companies in the NY/NJ/CT Tri-State Area. To learn more, visit www.apecco.biz .

SHG Provides Valuation Services to Mario's Home Center for internal planning.

cmartin@shggroup.com — Thu, 12 Jan 2023 15:06:29 GMT

SHG is pleased to announce that it has provided a benchmark valuation for Mario's Home Center for the purpose of strategic planning among the leadership and advisors of Mario's. Our report will be used among the shareholders.

About Mario's Home Center:

Mario's Home Center, Inc. began in 1962 as a small hardware and paint store in Valatie, NY. Today the Company is a full service lumber yard, hardware store, and rental center. To learn more visit www.mariostruevalue.com .

SHG Provides Compensation Analysis to GB Sciences, Inc.

cmartin@shggroup.com — Fri, 18 Nov 2022 13:34:16 GMT

SHG is pleased to announce it has completed a detailed compensation analysis for GB Sciences, Inc., for the benefit of attracting and retaining the senior leadership team. Our analysis was used among management and its advisors.

About GB Sciences, Inc.

GB Sciences is a biopharmaceutical and cannabinoid-based drug development company whose goal is to create patented formulations for safe, standardized, cannabinoid therapies that target a variety of medical conditions in both the pharmaceutical and wellness markets. To learn more about GB Sciences please visit Home - GB Sciences .

SHG sources McDanel Advanced Ceramic Technologies for Artemis Capital Partners

Wed, 26 Oct 2022 15:25:16 GMT

SHG has sourced McDanel Advanced Ceramic Technologies as an acquisition for Artemis - identifying McDanel as a match for Artemis' acquisition criteria and priorities, conducting outreach, introducing the two parties, and facilitating discussions leading to a September 30, 2022 closing.

McDanel represents the latest acquisition with Artemis' Advanced Materials practice.

About Artemis Capital Partners:

Headquartered in Boston, MA, Artemis is a specialized private equity firm focused on partnering with differentiated Industrial Tech companies, whose people and products enable a healthier, safer, more connected, productive, and equitable world.

For more information on Artemis, visit www.artemislp.com

SHG provides ESOP valuation services to Bank of Richmondville

cmartin@shggroup.com — Thu, 08 Sep 2022 12:17:08 GMT

SHG provided an ESOP valuation analysis for The Bank of Richmondville, Inc . for the Board of Directors, management and its advisors for purposes of annual ESOP reporting.

Bank of Richmondville:

The Bank of Richmondville is an independent community bank serving Schoharie County, New York, with branches in Richmondville, Cobleskill and Schoharie. The Bank requires annual valuations and has been a client of SHG since 2010.

SHG Provides Valuation Services to Crown Point Telephone

cmartin@shggroup.com — Thu, 25 Aug 2022 11:32:52 GMT

SHG is pleased to announce that it has provided a benchmark valuation for Crown Point Telephone Corporation and its subsidiaries for the purpose of strategic and estate planning. Our report will provide guidance to the Company and the family as it plans for the next stage of the business.

About Crown Point Telephone Corporation:

Crown Point Telephone Corporation is an independent telephone company providing access, billing and collection services to interexchange carriers as well as the sale and lease of telecommunications equipment. The Company also provides broadband DSL and long-distance services and constructs fiber-optic infrastructure over which it provides VoIP services. To learn more, visit www.cptelco.net.

SHG Provides Valuation Services to Double L Group, LLC

Thu, 21 Jul 2022 11:48:16 GMT

SHG is pleased to announce it has completed a comprehensive business valuation of Double L Group, LLC for the purpose of transaction support. Our report will be used among the management team and it's advisors.

About Double L Group, LLC

Double L Group, LLC is a leading manufacturer and distributor of high-quality environmental control equipment for pig and poultry animal confinement facilities. The business has been around for over 45 years. To learn more about Double L Group please visit Double L | Poultry and Swine Ventilation and Flooring Products .

SHG Provides Strategic Advisory Services to Beestera Sports

cmartin@shggroup.com — Thu, 23 Jun 2022 12:40:28 GMT

SHG provided strategic advisory services for Beestera Sports developing a strategic business plan designed to help grow their business utilizing an innovative blend of online, virtual and live training, clinics and coaching, combined with an e-commerce marketing strategy.

About Beestera Sports:

Beestera Sports was created by two former professional soccer players with the goal of improving the development of soccer players within the United States. Beestera Sports specializes in the development of both individual players and teams through small group trainings, soccer camps, coaching education, and specialized team trainings.

To learn more, visit them at: www.beesterasports.com .

SHG provides 409A Valuation Services for Astro Digital US, Inc.

cmartin@shggroup.com — Thu, 02 Jun 2022 12:39:25 GMT

SHG provided a 409A valuation analysis for Astro Digital US, Inc. for management and it's advisors, and to assure compliance with IRS section 409A tax code.

About Astro Digital US, Inc.

Astro Digital designs and develops "micro" satellites to be used in a variety of applications that require long-term monitoring of geographical areas. Astro also provides operational control / mission control of space satellites. To learn more please visit Astro Digital .

Business at a Crossroads

Fri, 20 May 2022 12:29:03 GMT

How SHG Helped iSimulate Find a Private Equity Buyer

iSimulate , a highly successful manufacturer of medical simulation equipment, was at a crossroads. Should the owners double-down with the significant investment necessary to achieve the company’s full potential, or find a buyer with the resources to get them there?

They turned to the Schwartz Heslin Group (SHG) for direction — and received a road map to success.

In our new SHG Success Story video, iSimulate COO Bobby Syed and SHG Managing Directors Cory Martin and Rai Archibold discuss the finely tuned process that led to iSimulate’s acquisition by the longest-tenured private equity firm in the country.

SHG Welcomes Randall Hooper as Associate

Thu, 05 May 2022 12:44:14 GMT

Randall Hooper, Associate , joined the firm in 2022. He specializes in competitive analysis, strategic planning, financial modeling, time-driven activity-based costing budgeting, private equity, management skills, and family legacy planning.

Prior to joining SHG in 2022, Randall had previously worked at Lexington Partners, Pomona Capital, and Solum Partners. Randall's background includes deal sourcing, industry competitive analysis, and strategic planning. Randall is also skilled in the use of SMART goals and delegation to improve management effectiveness as well as the application of strategic planning fundamentals to family legacy planning. He graduated from Hobart & William Smith Colleges with a Bachelor of Arts, Major in Economics, and Minor in Sociology. He was on Hobart's Division I crew team. Randall is also a graduate of GroundSwell's Business Ownership School and is a Certified Business Owner ("CBO").

To talk with Randall and learn more about SHG’s strategic business advisory, investment banking or valuation services, please call us at (518) 786-7733 or visit shggroup.com.

SHG Welcomes Keegan Bailey, MS as Senior Advisor

Thu, 28 Apr 2022 11:46:39 GMT

Keegan Bailey, MS, Senior Advisor, joined SHG in 2022. Keegan is an impassioned business leader, health and health care leader, constantly challenging the status-quo to promote business value, and improve outcomes. He is a caring leader that believes that people are the engines of great companies. Recently, he has been instrumental in building one of the largest and diverse data, technology and analytic assets in health care in the greater Capital Region of New York, as the Chief Executive of Acuitas Health.

Keegan boasts diverse national expertise in business leadership and strategy, value-driven health, health systems design, health economics and insurance, advanced analytics, health information technology, and health services research and policy for hospitals, public health, health systems, large physician groups, and federal and state government. A proven thought leader and pioneer, Keegan developed one of the earliest and largest investments in health care re-design and technology in the nation for the state of New York. He also founded a successful leadership and strategy consultancy, Navaste Health working with leading companies in the industry.

Beyond his passion for transforming the health care landscape, Keegan is also passionate about food in business, and in community giving. In May 2019 Keegan and his wife Ilene, founded Send Me Waffles, a food business based in Clifton Park. Keegan and Ilene are also supporters of the Regional Food Bank for Northeastern New York.

K eegan holds a Bachelor of Arts degree from Binghamton University, and a MS in Health Policy and Management from the University at Albany School of Public Health. He holds a certificate in Value Measure Measurement for Health Care from Harvard Business School, and is appointed Clinical Assistant Professor at the University at Albany School of Public Health. Keegan has published substantially on health and health care topics, and achieved national recognition for his work.

Recent Business Leadership Position

Founder and Chief Value Architect, Navaste Health (navastehealth.com)
Co-founder, Send Me Waffles (sendmewaffles.com)
Clinical Assistant Professor, Health Policy, Management and Behavior, University at Albany, School of Public Health (https://www.albany.edu/sph/faculty/keegan-bailey)
Chief Executive, Acuitas Health (acuitashealth.com)

To talk with Keegan and learn more about SHG’s strategic business advisory, investment banking or valuation services, please call us at (518) 786-7733 or visit shggroup.com.

SHG Provides Valuation Services to Red Argyle, LLC

cmartin@shggroup.com — Thu, 21 Apr 2022 12:21:07 GMT

SHG is pleased to announce that it has provided a benchmark valuation for Red Argyle, LLC for the purpose of strategic planning among the leadership and advisors of Red Argyle. Our report will be used among the shareholders.

About Red Argyle:

Red Argyle is a software consultancy specializing in consulting, developing, and administering applications on the Salesforce.com platform, for organizations of all sizes, in diverse industries, and across the globe. To learn more, visit www.redargyle.com .

SHG Provides Valuation Services to Saratoga Casino & Raceway

cmartin@shggroup.com — Thu, 07 Apr 2022 12:03:37 GMT

SHG is proud to announce that it has provided a benchmark valuation for Saratoga Harness Racing, Inc. for the purpose of strategic planning among the leadership and advisors of Saratoga Raceway. Our report will be used among the shareholders.

About Saratoga Harness Racing:

Saratoga Harness Racing, Inc. is a racing and gaming holding company that through its subsidiaries, owns and operates Saratoga Casino Hotel, a harness racetrack, located in Saratoga Springs, New York, and Saratoga Casino Black Hawk, a casino located in Black Hawk, Colorado. Saratoga Casino Hotel in Saratoga Springs, New York includes a casino, hotel and harness racetrack. To learn more, visit www.saratogacasino.com.

Getting to Know Senior Advisor Jeff Frankel

cmartin@shggroup.com — Thu, 03 Mar 2022 14:55:44 GMT

Speaking A Language Every Business Leader Understands

For those reasons and many more, SHG is delighted to offer Jeff’s experience and expertise as a Senior Advisor to our clients. He not only speaks all those business languages, he does so in a way that makes your business options, opportunities, and, most importantly, a strategic path forward clearer than ever before.

HOW JEFF CAN HELP YOUR BUSINESS

“It’s so easy when you’re running a business to get lost in the minutiae,” Jeff says. “With my varied background and experiences, I can help business owners and leaders quickly hone in on the areas of concern or opportunity and identify the solutions, including strategic partnerships, that are available to get them where they want to go.

“I have both public and private company expertise, and I understand how to navigate through all types of corporate structures and market environments to get to the desired objective or conclusion.”

Jeff is ideally suited to help SHG clients in the areas of growth capital acquisition, operational improvement and efficiency, exit strategies and succession planning, restructuring, sales management (direct and channel), digital marketing, business development, strategic and financial planning, risk mitigation, and human resources management and talent acquisition.

STAY ONE STEP AHEAD. JEFF DOES.

Over the 6 years prior to joining SHG, Jeff grew and positioned his two most recent acquisitions for sale; first selling a national document management software company to the fifth largest enterprise resource planning (ERP) software company in the world, then selling a regional managed IT service provider following a two-year growth-focused restructuring that resulted in top-line revenue growth of 30%.

“I’ve always been one step ahead of myself in terms of my next venture,” Jeff says. “I can see the path ahead, I set annual goals and objectives, and I formulate a plan to help me get there. I can help others do the same.”

SHG reached out to Jeff immediately after learning he once again had a little time on his hands. Jeff says he didn’t think twice about joining the team. He had first met SHG Founder and Chairman Bob Schwartz two decades ago when Bob proved “instrumental” in propelling Jeff’s then-employer to new levels of growth, and he had worked with the firm numerous times in the years since. He says he considers Bob, Managing Partner Cory Martin and Managing Partner Rai Archibold “good friends and peers.”

“I have a great deal of respect for — and firsthand experience with — the SHG team and the value they bring to their clients. I’m excited to work with them to help businesses of all types and sizes grow, improve their margins, build their teams, leverage strategic partnerships and plan for the future.”

That’s language every business owner can understand.

To talk with Jeff and learn more about SHG’s strategic business advisory, investment banking or valuation services, please call us at (518) 786-7733 or visit shggroup.com.

SHG Provides Valuation Services to Burch Bottle & Packaging Company

Tue, 08 Feb 2022 14:09:19 GMT

SHG is pleased to announce that it has provided a benchmark valuation for Burch Bottle & Packaging, Inc. for the purpose of strategic planning among their leadership and advisors. This will help provide guidance to the organization as it continues to achieve substantial growth.

About Burch Bottle & Packaging:

Burch Bottle & Packaging, Inc. is a supplier of glass containers, plastic containers, and metal packaging components. The Company was founded over 40 years ago and is headquartered in Queensbury, NY. Customers are global and include industries such as food and beverage, pharmaceutical, health and wellness, personal care, chemical and industrial businesses. Customers include early-stage businesses to large companies purchasing volume quantities. To learn more, visit www.burchbottle.com.

From Valuation to Growth to Strategic Investment, Death Wish Coffee Turns to Schwartz Heslin Group

Mon, 24 Jan 2022 22:24:11 GMT

For three years before helping Death Wish Coffee (DWC) launch its new strategic investment partnership with one of the largest and most experienced global growth private equity firms, the Schwartz Heslin Group (SHG) had been providing the upstart coffee brand with a wide array of strategic advisory and valuation services. It’s a relationship that took off at a whole other kind of launch.

On June 28, 2018, DWC hosted a special event celebrating the inclusion of its coffee in a care package being shipped to the astronauts aboard the International Space Station. SHG staff took the opportunity to drop by and make an introduction.

A Lot More Than Just a Valuation

“My initial purpose for having a valuation performed was to establish a base for an equity plan that I hoped to develop for my employees,” Mike says. “But I got a lot more out of the valuation than just a number to value my business. SHG Managing Director Cory Martin and his team educated me on how companies were valued and showed me what metrics were essential to further growth. They also performed an in-depth industry analysis to help identify growth opportunities.”

Cory remembers those initial conversations well. “Mike was managing extremely high growth after the Super Bowl commercial. He was managing new staff, bringing in new leaders, scaling up the business. I think what really resonated was just that … he was experiencing amazing growth, but he needed to manage the risks of that growth or else it would effectively implode on him.”

“I don’t approach a valuation as just a number,” Cory says, “It’s not just a benchmark, but a very valuable tool to help you manage your growth.” For example, SHG’s analysis for DWC included market and peer-to-peer performance and infrastructure comparisons to help the company normalize its operations, identify weaknesses and develop a strategic plan for the future.

Guiding The Way to a Strategic Investment Partnership

After three years of engaging SHG in valuation analysis and other advisory services, Mike decided the time was right to seek the strategic outside investment necessary to take DWC to the next level of growth. Death Wish retained the services of SHG to manage the entire process from the identification and selection of a strategic investment partner to negotiating the final deal.

In the fall of 2021, after a highly accelerated nine-week process, DWC finalized its investment partnership with TA Associates, one of the world’s largest and most experienced global growth private equity firms.

“When it comes to what SHG offers our clients, our relationship with Death Wish has been textbook,” Cory says. “We have taken them along the path of all of our service offerings and we’re excited to see this next phase of growth with TA as a strategic partner.”

To learn more about SHG’s strategic business advisory, investment banking or valuation services, please call us at (518) 786-7733 or visit shggroup.com.

A Wish Come True for Death Wish Coffee: Schwartz Heslin Group Leads Way to Strategic Investment

Mon, 10 Jan 2022 22:08:54 GMT

Strategic Process Accelerates Success

Much as a great cup of coffee begins with the freshest beans and best grind, SHG believes finding the right strategic partnership starts with a highly selective prospect list.

“We have a very controlled process that begins with how we identify prospective investors,” Cory says. “We go through an extensive evaluation incorporating our industry knowledge along with new research to determine prospects’ appetite for investment, levels of past investment, and other pertinent factors, and then rank them qualitatively and quantitively. We need to know they have a high probability of interest before we approach them.”

“Some firms start with a list of 200 to 300 names, send out information and see what sticks,” Cory adds. “That’s a recipe for disaster. It’s time-consuming and it doesn’t work. By being highly selective at the start, you can accelerate the process of finding the right partner.”

“Having zero experience in in this type of investment partnership to that point, I was quickly brought up to speed by SHG,” Mike says. “Cory said he was confident in his process, and he started executing immediately. Within days, SHG had about 25 targets, and then we narrowed that down to four just days later. Within a week, we were interviewing potential partners, and we had chosen TA shortly after. That was accomplished in two weeks, and now we had eight weeks to get the deal done.

“Cory put together a team of dedicated accountants, lawyers, and financial professionals to get the deal executed. It was intense, but Cory and his team were very organized and on top of everything we needed to do. With him leading, we got the job done in the time frame that was agreed upon.”

Focused on the Things That Mattered Most

DWC’s new partner, TA Associates, has invested more than $30 billion in more than 550 businesses worldwide over its 50-year history. Managing Director Bill Christ was the firm’s lead on the investment.

“Cory and the team at SHG were the type of people and advisors with whom we love to work: transparent, efficient, practical and focused on the things that mattered most to the deal,” Bill says. “They were able to work a very small Death Wish team to extract, process and provide us with accurate and detailed information that helped get a transaction over the finish line in an incredibly short window.”

Back at DWC’s headquarters in historic Saratoga Springs, NY, Mike Brown is looking forward to the next exciting chapter in a storybook tale that has seen the company evolve from a what-the-heck idea in the mind of a struggling coffee shop owner (“Hey, let’s make the strongest cup of coffee we can”) to a fan-crazed brand (some would say “movement”) with appearances on Good Morning America, the Super Bowl and the International Space Station. Yeah, he’s had some pretty big moments, but that nine-week period in the summer of 2021 is right up there.

“I’ll forever be impressed with SHG and the people they brought together to execute at a high level,” he says. “I highly recommend SHG’s services to any business. Even if taking on an investment isn’t in your plans, the value provided by them will help you focus on building a great company and give a lot of value to your customers.”

To learn more about SHG’s strategic business advisory, investment banking or valuation services, please call us at (518) 786-7733 or visit shggroup.com.

SHG Facilitates Strategic Partnership for Death Wish Coffee

Sun, 21 Nov 2021 18:05:45 GMT

SHG assisted Michael Brown, owner of Death Wish Coffee Company, in identifying a strategic partner. Mr. Brown selected TA Associates as the right partner to help guide the strategic and tactical growth of Death Wish Coffee.

SHG led a process on behalf of Michael Brown to select a partner to further the growth and mission of Death Wish Coffee Company, home of the ‘World’s Strongest Coffee.’ SHG has proudly worked with Death Wish Coffee over the last several years and is excited to see this next phase of growth with TA as a strategic partner to the company.

About Death Wish Coffee Company:

Death Wish Coffee is here to fuel your passion by providing the highest quality arabica and robusta coffee beans to create the ‘World’s Strongest Coffee.’ Death Wish Coffee Company, founded in 2012, is owned and operated by Michael Brown in Saratoga Springs, New York. The company’s products can be found online and in stores across the U.S.

About TA Associates:

TA is a leading global growth private equity firm with more than 50 years of experience partnering with family and founder-owned companies. The firm is an active value-added investor that works with management on key objectives at the board level, leaving operations to the management team. TA has offices across the globe in North America, Europe and Asia.

SHG Advises Kaddis Manufacturing on Its Sale to Alco Manufacturing

Sat, 20 Nov 2021 18:03:59 GMT

SHG advised Ron Iannucci, majority owner of Kaddis Manufacturing Corporation on its sale to Alco Manufacturing, a portfolio company of MiddleGround Capital. SHG ran a formal process to both strategic and financial buyers, and was responsible for creating marketing materials profiling the opportunity, identifying and contacting targets, negotiating transaction terms, and managing the due diligence process.

About Kaddis:

Kaddis is a manufacturer of precision machined components for the fluid system, industrial sensor, medical device, motor and automotive end markets. The Company has a variety of different machining capabilities including Davenport/Acme screw machines, Tornos multi-spindle Swiss CNCs, Tsugami single spindle Swiss CNCs, Bechler Swiss machines and Escomatic Swiss machines. The company was founded in 1939 and based in Rochester, NY. For more information, please visit: https://kaddis.com/.

About Alco:

Headquartered in Elyria, OH, Alco is a leading manufacturer of hydraulic connectors for industrial and consumer end markets in the US. Alco manufactures steel, aluminum and brass products, including hydraulic connectors, garden hose connectors, plumbing cartridges, natural gas fittings and quick connect devices, among others. Alco was founded in 1971 and has been a portfolio company of MiddleGround Capital since 2018. For more information, please visit: www.alco.com.

About MiddleGround Capital:

MiddleGround Capital is a private equity firm based in Lexington, KY with over $2.0 billion in assets under management. MiddleGround makes control equity investments in lower middle market B2B industrial and specialty distribution businesses. MiddleGround works with its portfolio companies to create value through a hands-on operational approach and partners with its management teams to support long-term growth strategies. For more information, please visit: www.middlegroundcapital.com .

SHG Provides Benchmark Executive Compensation Assessment for Elegance Brands

Fri, 15 Oct 2021 17:00:30 GMT

SHG is pleased to announce that it has provided a benchmark executive compensation assessment for Elegance Brands. SHG’s knowledge of emerging companies, with expertise in organizational, talent planning and compensation, assisted in the delivery of a comprehensive report on recommended compensation ranges for their executive officers. Elegance Brands will be using the report to recruit and retain talent as the company expands their business efforts.

About Elegance Brands:
Elegance Brands develops, creates, and distributes premium beverages in both non-alcoholic and alcoholic verticals. Elegance Brands creates beverages using CBD / hemp. To learn more, visit www.elegance-brands.com.

SHG Provides a Benchmark Board Compensation Assessment for ev Transportation Services (“evTS”)

Thu, 30 Sep 2021 16:54:27 GMT

SHG provided a benchmark board compensation assessment for ev Transportation Services (“evTS”). SHG’s knowledge of the emerging companies along with expertise in retaining and recruiting talent assisted in delivering a comprehensive report on recommended compensation ranges for their Board of Directors. evTS will be using the report to recruit and retain talent as the company expands their business efforts.

About ev Transportation Services Inc.:
ev Transportation Services Inc. ("evTS") is a specialty vehicle manufacturer that produces purpose-built, all-electric lightweight commercial utility vehicles and provides fleet management solutions. Founded in 2015, the Boston-based company's flagship product, the FireFly ESV is aimed at the essential services transportation and urban e-mobility markets, which represent an annual domestic replacement market of approximately 400,000 vehicles, or roughly $10 billion annually. End user applications for the Company's vehicles include parking management, security and perimeter patrol, parks and sidewalk maintenance, utility meter reading, property and building management, airports, seaports, sanitation, university and corporate campuses, and last mile on-demand urban delivery. For more information, visit the Company's website at www.evTS.com.

Schwartz Heslin Group Welcomes Walker Cacciatore as Senior Analyst!

Tue, 14 Sep 2021 16:51:08 GMT

Walker Cacciatore, Senior Analyst, joined SHG in 2021. Walker has 2.5 years of experience providing investment banking services. Previously working at Mad River Associates, he helped source and close several acquisitions for clients in both the private and public markets. Prior to investment banking Walker worked in commercial banking at National Bank of Kinderhook now since acquired by Community Bank, N.A.

Walker graduated from the State University of New York at New Paltz with a BS in Finance and was a member of Beta Gamma Sigma.

SHG Provides a 409A Plan Valuation for vyv Heath Tech Company

website@sitemodify.com (Website Editor) — Mon, 23 Aug 2021 15:00:35 GMT

SHG provided 409a compliant professional valuation for internal planning and equity compensation after a successful venture raise.

Vyv , founded as a health tech company called Vital Vio in 2013, pioneered a new class of clean light technology that harnesses the antimicrobial power within the visible light spectrum to arrest growth of gram-positive bacteria, gram-negative bacteria, fungi, yeast, mold and mildew. Unlike UV light, Vyv exposure for humans and animals carries no restrictions. Vyv lights are built to continuously reduce microbial growth to keep indoor environments and surfaces clean.

SHG Performs Strategic Advisory Services to Applied Robotics

website@sitemodify.com (Website Editor) — Mon, 23 Aug 2021 14:50:43 GMT

SHG worked in collaboration with the Trade Adjustment Assistance Center (TAAC), to provide marketing leadership and guidance during a growth period of the business by helping to develop the Company's strategic marketing and sales plan for 2021.

Applied Robotics is a leading providing of specialized automation end-of-arm tooling and connectivity solutions designed to bring greater speed, flexibility, and efficiency to automation-based processes. Products include tool changers, collision sensors, gribbers, and other end effectors and accessories. They serve the automotive, life sciences, food processing, packaging, and general industrial industries.

SHG Provides Executive Leadership Guidance to Passport for Good.

website@sitemodify.com (Website Editor) — Mon, 23 Aug 2021 14:48:54 GMT

After the tragic passing of Passport For Good's president and founder SHG was engaged to provide executive leadership and guidance during a pivotal time for the business.

Passport for Good is a mobile platform that helps schools improve and measure student engagement by capturing their community service, extracurricular activity participation and career development hours, projects, activities and critical skills, in a fun, simple and effective manner.

SHG is providing ongoing strategic advisory services for Passport For Good. After the tragic passing of Passport For Good's president and founder in March 2020, SHG's Steve Cina stepped in as interim CEO and continues to lead the company forward with support from the rest of the SHG team and Passport For Good's board of directors.

SHG is proud to announce that it has provided Financial Advisory Services for iSimulate Pty. Ltd.

website@sitemodify.com (Website Editor) — Sat, 11 Jul 2020 14:04:15 GMT

Schwartz Heslin Group, Inc. is proud to announce that it has provided financial advisory services for iSimulate Pty. Ltd. (iSimulate) in its recent sale to 3B Scientific, a portfolio company of J.H. Whitney Capital Partners, LLC in January of this year.

iSimulate, a global software company with offices in the US and UK, was founded by Peter McKie and Anthony Lewis in 2011 with the mission of providing effective, reliable and realistic simulation tools. Led in the US by shareholder Bobby Syed, President of the Americas, iSimulate has revolutionized healthcare simulation training throughout the world.

Peter McKie, Anthony Lewis and Bobby Syed will remain active in the company and continue to drive the business plan for iSimulate in active collaboration with the experts from 3B Scientific and Cardionics.

SHG Performs Strategic Advisory Services for Vertex, Inc.

website@sitemodify.com (Website Editor) — Sat, 20 Jun 2020 17:53:36 GMT

Schwartz Heslin Group, Inc. congratulates Vertex, Inc. (Nasdaq - VERX) on a $400 million raise and its highly successful transition from a family owned business to a publicly traded company.

Prior to Vertex’s transition to a publicly traded company, Managing Director David Dell and the SHG team provided strategic guidance and financial advisory services for nearly 20 years to Mr. Jeff Westphal, former Chairman, CEO, and current member of the Board of Directors.

Vertex, Inc. is a leading tax technology provider that connects great people and partners to deliver the world’s most trusted tax solutions for businesses to transact, comply and grow with confidence. Vertex provides cloud-based and on-premise solutions that can be tailored to specific industries for every major line of indirect tax, including sales and consumer use, value added and payroll.

SHG Provides Strategic Marketing Advisory for Death Wish Coffee Company

website@sitemodify.com (Website Editor) — Sat, 23 May 2020 18:20:10 GMT

Schwartz Heslin Group, Inc. is pleased to announced that it has provided advisory services for Death Wish Coffee Company, assisting in sourcing a private equity investment from TA Associates.

"We’ve worked with SHG on several projects now and they haven’t disappointed. Cory, Steve, Michael, and the rest of the team are very professional and deliver every time. Death Wish Coffee company will be stronger this year for having worked with them and through the partnership with TA Associates.”
Mike Brown - Founder, Owner, and CEO Death Wish Coffee Company

Death Wish Coffee Co. was founded in 2012 when founder Michael Brown saw a need for coffee that was both strong and delicious to serve his groggy morning customers. After creating the perfect blend of beans and combining it with his unique roasting technique, the 'World's Strongest Coffee' was born.

Schwartz Heslin Group Provides Strategic Advisory Services for New York State Industries for the Disabled (NYSID)

website@sitemodify.com (Website Editor) — Tue, 19 Nov 2019 15:29:10 GMT

Schwartz Heslin Group, Inc. is pleased to announced that it has provided strategic advisory services for New York State Industries for the Disabled, Inc. (NYSID).

Established in 1975 and based in Albany, NYSID is a not-for-profit membership organization with a 40-year mission of creating jobs for New Yorkers with disabilities. NYSID and its member agencies are a proven procurement solution for government agency customers.

www.nysid.org

For more information, contact:

Robert W. Schwartz
Chairman & Founder
rschwartz@shggroup.com
518-786-7733

Schwartz Heslin Group, Inc. Performs Valuation Service for Bricktown Brewery Restaurant, LLC.

website@sitemodify.com (Website Editor) — Sun, 13 Oct 2019 14:34:00 GMT

Schwartz Heslin Group, Inc. is pleased to announced that it has provided valuation services for Bricktown Brewery Restaurant, LLC.

Bricktown Brewery was established in 1992 as a micro-brewery restaurant in an old Bricktown candy factory, and has transformed into one of Oklahoma's local favorite restaurants and brew pubs. The Bricktown Brewery handcrafts their beer in downtown Oklahoma City and delivers it fresh to their fourteen satellite locations throughout the US.

Schwartz Heslin Group Performs Valuation Service for Death Wish Coffee

website@sitemodify.com (Website Editor) — Thu, 10 Oct 2019 14:38:15 GMT

Schwartz Heslin Group, Inc. is pleased to announced that it has provided valuation services for Death Wish Coffee.

"Working with Cory and Michael from the Schwartz Heslin Group to run a valuation on my company was a great learning experience. The information they delivered helped me understand how companies are valued and why. With this information and knowing the value of Death Wish Coffee Company at a defined point in time, I'm able to make better decisions for tomorrow. Cory and Michael provided me with recommendations and best practices to help Death Wish Coffee Company continue to grow intelligently while setting us up for the future. This is something I wish I did sooner for my company. It's difficult to set a path for success if you don't know exactly where you stand right now. My standards are really high and Schwartz Heslin Group have over-delivered for me with this project and a couple of others I'm currently engaged with them on."

- Michael Brown - Founder, Owner, and CEO Death Wish Coffee Company

Today, thousands of people trust Death Wish Coffee to wake them up and keep them going every day.

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Meet Jerry Golub: Retail Visionary, Governance Expert, and Strategic Navigator

From Family Roots to CEO

M&A and Integration

Expertise in Governance

Community and Education

Why SHG?

SHG's Valuation Philosophy

A Valuation You Can Use, Not Just File Away

What Valuation Means Depends On Why You Need It

Why AI Estimates And Online Calculators Feel Fast, And Why They Often Miss The Point

Why A CPA Firm Valuation Can Still Come Up Short For Owners

SHG’s Valuation Philosophy

Client Relationship First

Understand Clients

Give A Damn

Be Entrepreneurial

Fair Fees

Work Life Balance And Community Involvement

The SHG Process

Kickoff And Scope

Data Collection And Context

Financial Analysis And Adjustments

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Draft Report And Review

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From Adirondack Source To Market Launch

Meet Realm

What Makes Realm Different

Orders Are Open!

Where SHG Comes In

Why Early Orders Matter For A New Brand

Ready For The First Wave

Choosing the Right Growth Partner: How iSimulate Found the Right Buyer With Schwartz Heslin Group

The Company

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The Process

The Result

Key Takeaways

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Business Exit Strategy Planning for Founders: Strategies & Benchmarks

Get Clear on Your Exit Goals

Choose the Exit Path That Fits Your Business

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Working Capital And Cash Flow Mechanics

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From Planning to Action

Adaptive Forecasting & Budgeting to Lead to a Successful Exit in 2026

Why Static Budgets Fail When You Are Exit Bound

What Adaptive Forecasting And Budgeting Mean in Practice

Rolling Forecasts That Stay Current

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How Buyers Will Read Your Forecast In A 2026 Deal Process

The Adaptive Planning System That Supports A Successful Exit

Start With A Clean Baseline

Build A Driver Tree That Matches How The Business Really Works

Set The Cadence

Create Trigger Points And Decision Rules

Track Cash And Working Capital Like A Deal Team

Build A Narrative That Can Survive Diligence

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Normalize Ebitda And Keep Add-Backs Defensible

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The Advisory Team That Makes Adaptive Planning Pay Off

Common Mistakes That Hurt Value And How To Fix Them

Treating The Forecast Like A Yearly Event

Assuming The Past Will Repeat Itself

Overbuilding The Model Until No One Trusts It

Forecasting Earnings And Forgetting Cash And Working Capital

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A Simple 30, 60, 90 Day Plan To Get Moving In 2026

First 30 Days

Next 60 Days

Driver-Based Planning That Ties Dollars To Actions