Clayton Capital Partners
Inside this issue

Retained Seller Engagements



  • CO272:  Provider of Oil & Gas Consulting Services – $127.9MM Revenue - $7.5MM EBITDA.


  • CO274:  Luxury Custom Homebuilder with Proven, Proprietary Design-to-Close Sales Process in the Western U.S. – Revenue $39.6MM Revenue - $3.7MM EBITDA


  • CO277 has closed.


  • CO282:  Fully Integrated IT Service Provider Specializing in Modernization, Network Engineering and Advisory Services - $27MM Revenue - $6.4MM EBITDA


  • CO268: Leading Producer of Manufacturing Equipment and Automation Systems for the Aerospace, Metalforming, Military, and Healthcare Industries - $21.2MM Revenue - $1.7MM EBITDA.


  • CO299: Staffing Firm with an Expertise in Placing Temp-to-Hire and Direct-Hire Workers in Light Industrial, Light Technical and Administrative Positions - $16.2MM Revenue - $1.9MM EBITDA.


  • CO291: Materials Engineering, Testing & Inspection Company - $14.3MM Revenue - $3.0MM EBITDA.


  • CO290: Quarries with Large Reserves of Granite and Gravel Suitable for Landscaping and Road Building - $13.5MM Revenue - $1.9MM EBITDA.


  • CO278:  Patented Transportation and Storage Solution for Viscous Materials.

    Coming Soon



  • CO286: Steel Fabricator with Extensive Backlog of Large, Complex Industrial and Commercial Projects throughout the U.S.


  • CO305: Designer and Manufacturer of Safety and Protection Products for Electric Utility Industry.


  • CO306: HVAC Contractor Operating in Two Mid-Atlantic States.



  • CO238: Design-Build Firm with Emphasis on Biometric, Wireless, Medical, Touchscreen, and Electronic Components - $83MM Revenue - $17.5MM.


  • CO297 is under Letter of Intent.


  • CO298:  Highway, Heavy Utilities & Paving Contractor - $24.5MM Revenue - $2.0MM EBITDA.


  • CO240 deal has been closed.


  • CO300: Data Center Installation, Maintenance, Cleaning and Containment Company - $19.0MM Revenue - $1.7MM EBITDA.


  • CO304: North American 3PL Network Specializing in Food Service, Health Care and Retail with 3-year Revenue CAGR of 23% - $14.7MM Revenue - $3.1 EBITDA.


  • CO284: Dual-Platform Seller of Consumer Replacement Parts and Aftermarket Consumables - $15.8MM Revenue - $2.2MM EBITDA.


  • CO215: A Niche Fabricator of Heavy Steel Process Equipment for the Petrochemical and Steel Industries - $11.7MM Revenue.


  • CO259 deal has been closed.


  • CO294 is under Letter of Intent.
    Should I Sell My Business?

    One of the biggest obstacles in exiting your business is overcoming your objections, many of which tend to be based on misunderstanding the "facts." The objections that tend to hold back owners from selling their businesses are usually based upon some combination of the following perspectives:

    Objection:
    The Business Isn't Worth Enough To Meet My Financial Needs

    Solution: You can't know whether your business is "worth enough" unless you know what it is worth, and what value is needed in order to meet your financial needs. That's why obtaining a valuation range for your company based upon current market conditions can be very important. Use a transaction advisor, preferably an investment banker (for companies with a likely value of more than $5 million), business broker or another transaction intermediary (for smaller businesses) familiar with what your business can fetch in the M&A marketplace.


    Objection:
    The Employees (Or Customers) Will Leave When They Discover I'm Trying To Sell

    Solution: While this is a legitimate concern, when properly handled, no one should find out about the sale process until you inform them. Typically, a potential buyer does not even set foot in your business until you have made a tentative decision to sell the business to that buyer. When conducted by experienced professionals, the sale of a business is highly confidential, and the likelihood of anyone discovering you are selling your business before you inform the public is minimal.


    Objection:
    I Will Be Required To Work Years For A New Owner

    Solution: If one of your Exit Objectives is to leave the business as soon as possible, it is important to make that objective known to your Exit Planning Professional and it will be a prerequisite of any sale. That objective will determine which type of buyer you should seek. There are categories of buyers who typically do not require the former owner to remain with the company beyond a short transition time period - usually no more than a few months - provided your management team is strong.


    Objection:
    The Sale Process Will Take Too Long And Cost Too Much

    Solution: Cost, of course, is a matter of perspective. But the only way for you to make the determination whether the sale process is too expensive or not is to discuss costs and expenses with your advisors before you hire them. It usually takes from six to eighteen months to sell your business. The more you know, the better prepared your company can be for sale. Better preparation on your part can mean less time and expense on the part of your advisors.


    Objection:
    Given The Tax Bite On Sale Proceeds, It Makes More Sense To Stay, Enjoy The Cash Flow And Get Paid Over Time

    Solution: With proper tax planning, Uncle Sam's cut of the sale proceeds can be minimized so that you are in a better position to meet your financial and personal objectives upon your exit from your business. But planning - and implementation - can take years to be fully effective. Delays in beginning to plan works to reduce the time available and can increase taxes.


    Objection:
    What Will I Do After I Sell And Leave The Business? This Business Is My Life!

    Solution: For many business owners, the old "fire in the belly" is gone, but there is nothing to replace it. So many hang on to their businesses, willing to accept what they know because they fear that the unknown may be even worse. Yet, many owners don't know what they will do when they exit. However, exiting a business can end up uncovering new and exciting opportunities for owners to pursue after the sale.


    No one is more qualified to tell you what to do with the rest of your life than yourself, especially when it comes to the decision to sell your business. Our office is available to help guide you through the process of preparing for the biggest financial event of your life. We can help you review all of the factors associated with exiting your business and work to help remove the common roadblocks you may be facing, while addressing all of your personal and business objectives.

    Kevin Short is the author of Sell Your Business For An Outrageous Price and the Managing Partner and CEO of Clayton Capital Partners, a St. Louis-based investment banking firm specializing in the sale and purchase of mid-size companies.


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