Industry News – Category Posts from The Forbes M+A Group. Research via our Knowledge Base and get access to M&A articles, news, and other info.

M&A Insights: Summer 2020

 

As the current environment evolves and we all adjust to the new normal, the Forbes M+A Group is dedicated to keeping our team, clients, and friends of the firm up to date. Our team continues to remain very active, with as many transactions in the works as before the pandemic. Through these transactions, we are experiencing firsthand the effects of the virus on a variety of industries. We will continue to monitor market trends and share our experiences in order to grasp, internalize and ultimately, exceed, our clients’ goals.

The initial shock of the pandemic essentially put a pause on deal activity. Many buyers had to shift their focus from acquiring new companies to maintaining and providing support for their existing portfolio. Other buyers became more conservative with their funds out of fear of their ability to outlast the pandemic. These factors, combined with other concerns, resulted in deals going on hold or even dying out. However, now that the first half of 2020 is behind us, you may be wondering what to expect going forward.

Fortunately, the market appears to be showing signs of resumed deal activity. Private Equity is still sitting on upwards of one trillion dollars in funds. Sponsors will need to be more diligent in their investments but will not neglect M&A. Strategic acquisitions of industries that have been deemed “COVID19-resistant” will continue to be targets.

Additionally, as election season sits on the horizon, some sellers are pushing for end of the year close dates. With the possibility of a new party overtaking the White House come January, the looming specter of tax increases has caused sellers to recalibrate price expectations as they race to the finish line.

In this newsletter, we highlight how these trends in M&A are affecting some of our focus industries.

 

Food & Beverage Industry Insights and Post-COVID predictions

Food & Beverage M&A activity in the first quarter of 2020 was off to a strong start with recent activity being driven by companies looking to meet shifting consumer needs and preferences. While COVID-19 has caused major disruptions throughout the industry and slowed M&A activity, public comparables remain high with a median EV/EBITDA multiple of 12.7x.

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Forbes M+A Awarded Colorado M&A Firm of the Year!

Forbes has been selected as the M&A Advisory Firm of the Year in Colorado – 2020 presented by Global Advisory Experts, for the second consecutive year. “Over the past 15 years, Forbes has made it a mission to really grasp, internalize and ultimately, exceed, our client’s goals, said Bob Forbes.

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We’ve Moved!

Please make note of our new address:

6400 S. Fiddlers Green Circle, Suite 850, Greenwood Village, Colorado 80111

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Spring Digital Gaming Report

Digital gaming, despite the global pandemic, continued to surge forward with unprecedented growth across all channels; streaming platforms saw record viewership while consumer spending was at its highest since 2008.

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About The Forbes M+A Group

Founded in 2004 with offices in Denver, CO and Salt Lake City, UT, The Forbes M+A Group is an award-winning investment bank with expertise in mergers and acquisitions, capital formation, and financial restructuring within the middle market. The group has over 15 years of experience delivering outstanding results for business owners, entrepreneurs, and investors. Advisors at The Forbes M+A Group have 250+ years of combined experience in international transactions across a wide variety of industries. The Forbes M+A Group has been recognized as a leader within the middle market as a regional M&A Firm of the Year for the past 5 years.

The Current M&A Landscape: March 2020

Denver, CO., (March 30, 2020) – All of us at The Forbes M+A Group are hoping you, your businesses, and families are maintaining your health and well-being during these trying times.

Over the past few weeks, The Forbes M+A Group has been closely monitoring the situation and wanted to pass along some trends we have been witnessing in M&A and the capital markets. As the environment continues to shift within the middle market, it is our goal to keep our clients and colleagues informed. It is important we find some level ground amongst the chaos.

With a variety of deals currently in market, we have been in the trenches for our clients discovering how best to navigate this difficult environment. We have been in constant communication with lenders, investors, private equity groups, and other strategic buyers to understand how they have been affected and get a sense of their expectations in real time.

The Mind of the Buyer
We understand there is some anxiety for sellers, and possible pull back from buyers in the early stages of transactions. Buyers, especially strategic ones, will be focusing on getting their own businesses in check before considering investing in outside companies. This will most likely slow down sell-side or capital raising processes, but not necessarily drive it to a dead stop. In some cases, sellers’ businesses may perform better in this market, which would create a very strong proposition for any buyer.

Future of Investments
Simultaneously, there are many driven investors who believe that in the long run, if the US responds to this situation in a similar way that China has, this crisis could be resolved in a few months. Those investors will continue to look for good opportunities and good companies. There is still a significant amount of committed capital held by investors and buyers with long-term investment theses. We are hearing from these groups on a regular basis with the message that they would still like to put money to work.

Banks and Lending
In the capital markets, some of the more traditional banks have been slowing down processes while they evaluate the market and manage new internal processes related to employees working remotely. We continue to speak with our network of non-bank direct lenders and are hearing that they are still active and ready to lend. It is likely that the threshold for lending has increased some but initial signs point to continued activity.

Overall, we believe we can expect a slowdown of processes over these next several weeks while the wounds are still fresh and the investing community continues to assess the market situation. But we believe forward-looking, smart, decisions on deals will continue given the amount of capital waiting to be deployed.

Special Situations
Please do not hesitate to contact our Special Situations team, as you and your constituents continue to navigate through unforeseen change. We are able to respond quickly, offer unbiased advice, and develop custom solutions designed to preserve flexibility and maximize value in the face of underperformance, distress, and/or insolvency. For a guide of key steps to consider when evaluating transaction solutions please click here.

Whatever the outcome, we hope to use our resources to support each other and help each other to overcome this.

Best regards,

The Forbes Team

Winter 2017/2018: The Forbes M&A Group Newsletter

The Forbes M&A Group recently released its Winter newsletter for business owners looking to learn more about merger and acquisition transactions. This 8-page newsletter includes valuable information for executives wanting to learn more about selling a company, growing through acquisitions or buying a company. The original articles, written by our own team of experienced M&A executives and entrepreneurs, include:

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Q3 2017: The Forbes M&A Group Newsletter

The Forbes M&A Group recently developed its inaugural newsletter for business owners looking to learn more about merger and acquisition transactions. This 8-page newsletter includes valuable information for executives wanting to learn more about selling a company, growing through acquisitions or buying a company. The original articles written by our own team of experienced M&A executives and entrepreneurs include:

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Doing is the Best Kind of Thinking

One of the most significant reasons why Tom Chi was able to invent Google Glass, self-driving cars, Project Loon, and hundreds of game-changing inventions so fast is this…Tom learns fast and tries oftenmaking small variations until he succeeds

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Doing is the Best Kind of Thinking

tom-chi-eventOne of the most significant reasons why Tom Chi was able to invent Google Glass, self-driving cars, Project Loon, and hundreds of game-changing inventions so fast is this…Tom learns fast and tries oftenmaking small variations until he succeeds

What could our generous community of leaders accomplish – individually and collectively – if we become masters of staging and testing new ideas, learning rapidly, and increasing how many new things we try?

Anything is possible, and we invite you to click the image to the right and dig deeper to discover what prototype thinking can do for you!

The Forbes M+A Group is Most Trusted M&A Advisor in Colorado According to Corporate America

Greenwood Village, CO, United States (January 12, 2016) – The Forbes M+A Group (www.forbesma.com), a leading transaction advisory firm, today announced it has been named the Most Trusted M&A Advisor in Colorado by Corporate America Magazine. This prestigious award was the result of months of research and analysis from Corporate America and commemorates the successes, outstanding results and class-leading client service of some of the M&A world’s key players.

ISetWidth700-The-MA-Awards-2015-Logon announcing the award winners, Nathan Angell, awards coordinator for Corporate America, said, “2015 has seen some spectacular deals being done across a variety of different sectors. With so many successful transactions being done year, it is truly an honor to recognize our deserving winners for their achievements, and we wish them even greater success in 2016 and beyond.”

“I’m proud Corporate America’s independent research uncovered and recognized the exceptional work our team of experienced professionals diligently provides clients every day,” said Bob Forbes, Founder and President of The Forbes M+A Group. “The deep experience and strong relationships we have, along with our rigorous attention to deal details, drive our success. We are honored to receive this award and look forward to continuing to serve the Colorado business community to the best of our ability.”

This is the third award The Forbes M+A Group received in 2015 recognizing the success of its client-focused approach. The Forbes M+A Group’s unique process centers on identifying a client’s multiple goals to ensure a transaction that goes beyond securing the best price, to also positively impacting the company’s employees, customers, culture and brand.

About The Forbes M+A Group

The Forbes M+A Group is an award-winning Denver, CO-based mergers and acquisitions advisory firm. The firm serves sellers or buyers in middle-market M&A transactions. It applies meticulous attention to detail in helping business owners develop and execute M&A strategy, acquire companies and partner with investor groups for growth, and maximize value in an eventual exit. Senior advisors at The Forbes M+A Group have more than 150 years of combined experience in transactions across a wide variety of industries. For more information, please visit: www.forbesma.com or phone 303-770-6017.

About Corporate America Magazine

Corporate America is the definitive magazine for CEOs, top tier management and key decision makers across the US. Created to inform, entertain, influence, and shape the corporate conversation across the nation through high quality editorial, in-depth research and an experienced and dedicated network of advisers, Corporate America provides current analysis of the major changes effecting the corporate landscape, and the latest deals and topical issues dominating the corporate universe.

Media Contact: Lisa Holmes +1 (303) 770-6017, lisa@ForbesMA.com

Catalyzing Innovation

In July, The Forbes M+A Group attended the TiE Rockies Catalyzing Innovation Series.  It was an informative presentation for business owners; particularly those who were seeking to expand their companies through acquisitions.  The keynote of the evening was Paul Riley, an entrepreneur who led a small company in the maturing printing industry from $17 million in sales to over $2 billion, growing almost exclusively through acquisitions.  Paul discussed how entrepreneurs can create value through buying right, how best to integrate firms and how to raise capital to support the growth plan. His approach, which we coach our clients through, suggests that growth through acquisition can be faster and less risky than organic growth which usually requires expensive sales and marketing efforts.

 The Forbes M+A Group encourages business owners to join in networks such as TiE, Vistage, TAB and others to gain insight to current business issues and strategies. We also hosts several events per year to educate and inform business owners on key M&A processes related to building company values, strategic acquisitions and exit strategies. We encourage you to attend our business owner conferences and learn from business owners, industry specialists and The Forbes M+A Group team.