March/April/May 2015 The Firm Deal Review

Basement to Big Time 29-YEAR-OLD BELLEVUE NATIVE SELLS FOR $7,827,000 PG. 8

Cyber Insurance ARE YOUR CLIENTS PROTECTED? PG. 12

Foodies New Owner 30 YEARS OF KITCHEN PREP PG. 6

A Publication of The Firm Business Brokerage

Spring 2015

MIDDLE MARKET EDITION

Volume 1 Issue 3 Published by The Firm Business Brokerage, LLC President/Editor • Cortney Sells Director/Assistant Director • Cassandra Powers In-House Legal Counsel • Susanne Miller Executive Broker • Lindsay Novak Referring Broker • Rachael Rand Referring Broker • Elizabeth Jones Business Broker • Breann Becerra Associate Broker • Lori Stangl Development Manager • Holley Garcia Broker Liaison • Rene Rademacher Marketing Division • Adam Jaime Client Services • Nycole Wandvik-Tolle Client Services • Julie O’Brien IT Department • Adam Trubnikov

Contributing Writers • Elizabeth Jones Lindsay Novak • Susanne Miller Rene Rademacher • Alex Shteriev • Jason Quinn Frank Younes Photography • Bill Sitzmann Design • OBI Creative

To Subscribe: The Firm Business Brokerage, LLC 210 N. 78 St., 2nd floor Omaha, NE 68114 402.998.5288 info@thefirmb2b.com Advertising Inquiries: 402.884.2000 todd@omahapublications.com

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The Bottom Line

Version 2.0 29-Year-Old Tech Guru Hits Reboot

pg.8

Special Section

7 Fresh Off The Firm

There are more than 115 opportunities

in the listing portfolio—from medical practices to commercial services companies.

Departments

5 More is Not Always Better

Not enough hours in the day for this

Clocktower Chiropractor

6 Culinary Class

to His Own Kitchen

Chef Hilger spends 30 years prepping for a kitchen of his own.

Columns

4 Negotiated:

High & Younes Law Firm

Business Planning – Know Your Exit

New Technology – New Threat

12 Net Worth : Quinn Insurance 14 Executive Impact

Bringing the Buyer and Seller Together is

Only the Beginning

15 Cash Flow : Beacon M&A

What Businesses Sold for in 2014

Sells Insights

Reset

A

n estimated 9 million of America’s 15 million business owners were born in or before 1964. Basic economics would hypothesize that, as a result, an estimated 11 million businesses will be transferred from one generation to the next. Uprooting and a redistribution of this wealth will provide

the upcoming generation the ability to grow through acquisition. In this issue, our hope is that you enjoy learning about regional entrepreneurs that hit ‘reset’ on their careers. Selling your business is not the end of your legacy. It is the breathtaking beginning of your next chapter. The FIRM

by Cortney Sells president/editor

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A Publication of The Firm Business Brokerage

Negotiated:

Business Planning—Know Your Exit written by Frank E. Younes, Partner at the firm of High & Younes, LLC.

Many unexpected events may cause need for exit, which if not properly planned could result in disagreements among partners, conflict, litigation, confusion for family, dissolution of the business, forced sale at a lower than desired price, and decreased profitability. Such events include: • Unexpected offers to one or more members • Health or family crisis • Age or retirement • Market changes • Death of the sole member or one of multiple members • Partnership disagreements and falling outs

Frank E. Younes J.D.

A

n exit strategy may be the last item you consider when operating your current business or buying a new one. However, there is no question that, at some point, it will be a crucial piece of your return on investment.

Many exit plans exist, but only one is the best for you and your family. It is a necessity to determine which exit plan is best from the beginning, especially when involved in a multi-member organization. The different types of exit plans include: • A succession plan • Transfer of ownership interest to an heir during the owners life, or upon death

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• Transfer of ownership interest to another member • Sale of ownership interest to a third party • Liquidation and dissolution of the business A properly developed exit plan will provide benefits to any business, including: • Improve the probabilities of success • Increase the valuation of the sale price • Prevent complacency • Provide a timetable for growth • Providing realistic goals for growth • Prevent litigation

An exit plan is extremely important for all businesses. In multi-member organizations customized planning in partnership documents can prevent conflict surrounding the buy-out price, or sale by one partner to a third party. In the event of one partner buying out another partner, voluntarily or involuntarily, conflicts can be avoided by including either a pre-determined purchase price or calculation of a purchase price within the organization’s documents.

Further, decisions regarding right of first refusal, tag-along and take-along should be made in the organization documents to guard against conflict when a partner receives an offer for purchase of his/her ownership interest. Such determinations provide all members the option of exit or purchase when changes occur in the ownership structure.

I urge any business owner(s), whether sole proprietorship, partnership, LLC, or corporation, to protect themselves and their business by investing in an appropriate exit strategy.

You may contact the law offices of High & Younes, LLC., at 402-933-3345 for a free consultation. The FIRM

A Publication of The Firm Business Brokerage

More is Not Always Better

Not enough hours in the day for this Clocktower Chiropractor written by Elizabeth Jones

The Deal Review Multiplier: 2.44 Bank: United Republic, Erol Kinkaid Reason for Sale: Retirement Loan Type: SBA Express

Dr. Ryan Goss, current owner of Clocktower Chiropractic and former owner of Wellness Pointe Chiropractic, is a local chiropractor.

He purchased Clocktower just out of college; then when his CPA brought another to his attention, he decided to purchase a second practice. While they were both successful, there just wasn’t enough of Dr. Goss to give

both practices his full attention. After much deliberation, he decided to sell one of the practices to a budding chiropractor associate, Dr. Ben Tapper, in order to be sure that all of his patients would maintain the highest level of care.

Dr. Goss came to The Firm Business Brokerage with a unique circumstance.

He had chosen to sell Wellness Pointe Chiropractic to the deserving chiropractor on staff. Even though he had a buyer in place, there was much to do in order to get to the closing table. The time, energy, and stress of selling his practice to Dr. Tapper would detract from his patients’ care. This led to his obtaining outside assistance through a business brokerage.

From the day he received his valuation to the day he closed on the sale of his business, it was just over one month. During that time, The Firm assisted in the entire transaction, including helping the buyer obtain acceptable financing. The goal in hiring The Firm was ultimately met with the realization of the stresses of selling a business being alleviated. The goal was to alleviate the process of selling a business in order to remain focused on his practice.

This goal was ultimately achieved. The FIRM

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A Publication of The Firm Business Brokerage

From Culinary Class to His Own Kitchen!

Chef Hilger spent 30 years prepping for a kitchen of his own.

written by Lindsay Novak

After meeting with a broker, Hilger had a list of four restaurants specific to his interests. He spent time secret-shopping and reviewing financial information, eventually picking a business and making an offer. After waiting patiently, the seller chose another buyer’s offer, leaving Hilger discouraged about fulfilling his dream.

He admits to talking himself out of the possibility of becoming an owner.

With encouragement from his broker, he returned to his restaurant prospect list and performed additional due diligence on the opportunities. He made an offer on another business, and anxiously waited for the response. This time he received the call that said “Foodies accepted your offer!”

With financial support from his family, closing day was within sight. A month into the 90-day transition period, he was ready to take over the reins without continued help from the previous owner.

Chef Brian Hilger

The Deal Review Reason for Purchase: Always wanted to own a restaurant Financing: Family-supported investment Days on the market: 111 Brokers: Rachel Rand, Listing Broker, Lindsay Novak, Buyer Broker

I

t was July 1984 and 16-year-old Brian Hilger was sprinting to his first job interview. He was running five minutes late, terrified that he had already ruined his opportunity. To his surprise, he was hired on the spot and became a busboy for the Venice Inn. Within days, his love for the restaurant industry had begun, and he told everyone he met, “I love this! I am going to own a restaurant some day!”

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Hilger grew up at the Venice Inn, climbing the ladder from busboy to salad boy, pizza cook, bartender, waiter and, eventually, manager. His admiration for cooking grew so much that he applied for and was accepted into Metro’s Culinary School, graduating in May 2013. “Culinary school was instrumental,” Brian says. “I learned about food costs, bookkeeping, and safety issues in the kitchen.”

Thirty wonderful years after the start of his busboy days, the Venice Inn decided to close its doors. Hilger worked up until the last shift.

After the Venice Inn closed, Hilger spent time traveling, only to return home out of a job and missing the restaurant. Looking for a solution, he picked himself up and returned to his idea of owning a restaurant.

A Google search led him to The Firm Business Brokerage, and he eagerly began reading the many restaurant listings.

Foodies is a family affair. Hilger works every day at his restaurant. His sister assists with Foodies’ popular catering and delivery service. There are occasional appearances of his mom, who helps behind the register and his dad, who greets customers. The original Foodies employees have remained, and he values each one of them.

Hilger says, “The Caniglia family and Venice Inn taught me everything about the restaurant business and how to run things the old school way.” A picture of the Caniglia family proudly hangs on the wall of Foodies while former Venice Inn regulars frequently stop by for lunch and dinner.

“Business is good. Food costs used to be over 49% and now they are averaging 30%.

Overall, gross sales are up and we’re making 25% more compared to the previous owner’s numbers!” Hilger hopes to keep increasing sales, maintain great quality food, plus add new specials and maybe open a second location in town. The FIRM

A Publication of The Firm Business Brokerage

Fresh Off The Firm Well Known Wine Bar

Industrial Warehouse & Conveyor Installation

OWNER’S PROFIT $108,840 PRICE $325,000

OWNER’S PROFIT $304,562 PRICE $1,085,000

If you have a passion for wine, you will have fun owning this successful wine bar.

This popular wine and food location has been consistently trending upwards since it opened.

In operation since 1987, this Midwestbased company installs industrial rack, workspace, and conveyor systems into existing warehouse space. Serving clients locally and throughout the U.S., strong cash flow and profit margins make this business a great choice. Seller will provide transition assistance.

Retiring Dentist in Prime Location

Franchised Restoration with Carpet Cleaning

OWNER’S PROFIT $234,625 PRICE $928,000

OWNER’S PROFIT $100,889 PRICE $445,000

This well-established dental practice has a 94% collection rate and boasts a 37% profit margin. With 2,200 active patients, it would be a great investment for any savvy buyer. It is located in a high traffic area in West Omaha where they bring in 30 new patients a month.

This successful franchise has been around for over 60 years offering a variety of cleaning services and top-notch maintenance for fixtures and furnishings.

This business comes with all the necessary staff and equipment to ensure these lucrative services can still be offered by a new owner.

Specialty Medical Practice

Curves

OWNER’S PROFIT $905,060 PRICE $1,540,000

OWNER’S PROFIT $27,012 PRICE $40,500

Specializing in the treatment of acute and chronic pain syndromes, this Omaha clinic takes an interdisciplinary approach to pain treatment. Even with a solid base of 1,800 active clients, this business still has room to grow.

This centrally located women’s gym has doubled membership and profits in less than two years; with a nationally recognized spokesperson it will have continuous steady growth for a new Owner!

Simple Ad Sales Business

Temporary Staffing Agency

OWNER’S PROFIT $22,000 PRICE $45,000

OWNER’S PROFIT $328,412 PRICE $808,000

This indoor billboard company has been around since 1999 and can be yours for a very low price. You can make a nice salary only working 20 hours bi-weekly visiting or calling your clients.

Established in 1999, this business is a large provider of both general business and industry-specific personnel services.

The business serves clients locally and nationally, spanning several industries.

Repeat clients help the consistent profit margins, but there is still room for growth!

With the exception of Curves, no actual businesses names are used on this page.

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Ellie Diehm and Tony Valenti

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A Publication of The Firm Business Brokerage

Self-Made Tech Guru

Omaha’s Very Own Zuckerberg

written by Susanne Miller • photography by Bill Sitzmann

“YOU NEED TO START THE SELLING PROCESS KNOWING NOT ONLY WHAT YOU ARE ASKING FOR BUT ALSO WHAT YOU WANT. KEEP YOUR FOCUS ON THE GOAL THROUGHOUT THE WHOLE PROCESS.”

-Ellie Diehm, CFO at Managed.Com.

The Deal Review Sale Price: $7,827,000 From List to Close: Less than 4 months Days on the Market: 20 days from listing to close.

2013 Gross Sales: $4,788,020.

Profit Margin: 58% Reason for Sale: Divorce Broker: Cortney Sells

T

ony Valenti remembers his father saying “If you think you can do better, then you should quit and do better.” Valenti was in high school, working at a small software business that built websites. He took the advice to heart, put in his notice and started working as a programmer for hire. While working on one of his coding projects, he met someone who was in the niche that he eventually moved into: putting websites onto the internet. Their conversations made him think about the direction he would take.

When he started the business in 2004, he started small: just Valenti, his telephone, a computer, all in his basement. Did he think that he would be running a successful business specializing in DNN platforms 10 years later? “Not at all” Valenti stated with

a serious look on his face. When it started it was something that interested him; he was a student and didn’t need huge profits every year. It was almost a surprise that it did so well. He thought it would be fun running his own business, but over time it just got bigger and bigger.

With growth came the need to bring on employees. In 2007 Valenti hired a receptionist to field the calls that came in.

He hired more people to help out with the workload. It was a casual work environment, with all the employees actually working out of his home! In 2008, it was time to move to an office space. “All the stereotypes that you would imagine of a tech start-up from out of a movie—that really happened.”

It was a good place to be.

One of the lessons that he learned as he grew: it is important to have good people.

The bottom line is important, but it is easy to place too much focus on how much is being spent. Doing that, you may wind up with a lot of turnover and employees that have to be continuously monitored so the work gets done. Valenti soon realized that he needed quality employees he could trust to do their jobs autonomously so that he didn’t have to wear so many hats; and that cost more. “You can pay as little as possible and have more work or pay a little bit more so you don’t have to watch the employees constantly. It is so worth it.”

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A Publication of The Firm Business Brokerage

About a year ago Valenti’s priorities started to change. His personal life was in transition and it drew more of his focus. Being CEO was no longer the most important part of his life. The business was in a good place with solid customers and employees, almost to the place where could start to think about “handing the baton off to someone else.”

Valenti and his CFO, Ellie Diehm, reflected on the path that Valenti took to get to the sale. In June 2014 Valenti wasn’t looking to sell, but was interested in exploring the idea of buying a new business at The Firm Business Brokerage.

After looking at what was available he didn’t find a business that was the right fit for him at that time. He did, however, learn about the business sale process and considered the possibility of selling his business. Valenti came back to The Firm for his complimentary business valuation and signed his Listing Agreement on September 15, 2014.

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“I FEEL LIKE THIS IS A RESET! AFTER THE SALE IT WAS LIKE A HUGE WEIGHT HAD BEEN LIFTED OFF MY SHOULDERS.”

-Tony Valenti

Interested parties came forward immediately. The Firm brought 22 qualified buyers within only 45 days. Out of the 22, 19 of them were out-of-state buyers. With four nearly full price offers on the table, Valenti had some thinking to do, and a big decision to make. This was his business, and he had to feel confident that the next person could run it as well or better than he could.

The buyer that was ultimately chosen was very upfront about the way he did business and the way he planned to run the business, even going so far as to privately fly Valenti

and Diehm to his offices so they could spend the day with him, look into his corporation and talk to his business partners and employees. This really resonated with Valenti, “In the end, I didn’t choose the buyer with the most money on the table; I chose the one I had the most confidence in and I felt the most comfortable with.”

Aggressive timelines were important to Valenti. Diehm was very succinct with the reason, pointing to the old adage, “Time kills all deals.” In fact, a cover story was created to allow for due diligence in efforts to keep the sale confidential during the process. The buyer’s representative posed as a budget consultant so that he could move freely through the office, review documentation and speak to employees.

The plan worked and the process moved forward.

With an aggressive timeline of accepting an offer on December 5th to a January 9th closing, there were multiple hurdles to overcome, and there was a lot of work from all parties to get to the finish line.

“There is so much involved that it is easy to become overwhelmed. If you want to get it done, both buyer and seller need someone on the inside, like Cortney Sells, quarterbacking all the work to push it forward,” explains Valenti.

The closing occurred Jan. 9, 2015, less than four months from when the Listing Agreement was signed. Diehm will stay on with the new owners, working with the existing management team as different structures, policies and procedures are put in place. She was involved for seven years as the business grew to where it is today, and now she has the opportunity to see where it goes in the future. The plan of the new owners is to double sales in year one.

Valenti is looking forward to what comes next. “I feel like this is a reset! After the sale it was like a huge weight had been lifted off my shoulders—then every day of transition another layer of weight peels back.” Valenti also notes, “I am carrying back a percentage of the sale price, so I have a vested interest in the business’s continued success. The promissory note was a great option for me because I receive a nice interest rate on a monthly payment over the next several years; and it helps defer my taxes.”

Diehm and Valenti are interested to see what the new owners will do to grow and change the business. Thinking back on the sale experience, Valenti can sum it up for others in two sentences: “Make the new owner’s life easy, they are writing you a big check so respect their risk. And use a business brokerage like The Firm, there is no way this would have been completed without their team.” The FIRM Spring 2015

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Net Worth:

Cyber Insurance in 2015 written by Jason Quinn, Quinn Insurance

C

yber insurance is quickly becoming a must-have policy for many corporations, large and small. High-profile security breaches, combined with falling premiums and recent exclusions to the commercial general liability policy, are causing this emerging coverage line to gradually become a staple in any solid business risk management and insurance program.

At least 35 carriers are writing stand-alone cyber policies, with many more providing it by endorsement. Coverages vary greatly, and there is no standard cyber form at this time. With many coverage exclusions to consider, having a trusted commercial insurance agent to guide business owners through the terms and conditions of any cyber policy is key.

Jason Quinn

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While financial transactions may be a coveted avenue of attack, what hackers really want is personal confidential information (PCI). This consists of personally identifiable information such as names, addresses, birth dates, and credit card numbers, as well as personal health information like medical records.

A 2014 study by the Ponemon institute focused on 61 U.S. companies over 16 business sectors in the U.S. Of these companies suffering a data breach, the cost per record is just over $200, with the average cost to that organization at $5.9 million.

Most small businesses can’t afford a loss of this size. A broad cyber insurance policy, coupled with a solid cyber security plan, can significantly reduce the potential for this type of financial meltdown.

“HAVING A TRUSTED AGENT TO GUIDE BUSINESS OWNERS THROUGH THE TERMS AND CONDITIONS OF ANY CYBER POLICY IS KEY.”

Embroidery

No business—not matter its size—is immune to the threat of a cyber incident.

Procuring the right cyber insurance policy for your company and solidifying your cyber security plan will prove to be a worthwhile investment. The FIRM

Signage

Banners, Vehicle, Vinyl Decals, & More

104 5th St., Fullerton, NE 68638 308-550-0632 signdan170@yahoo.com SignCraftersMidwest.com

The following are several coverages you should expect from your cyber policy:

A few years ago, small business owners faced minimum premiums of several thousand dollars. Today, cyber policies start at a minimum premium of $1,250 plus taxes and fees.

EE

Ord LIV E ers over RY $100

Polos, Jackets, T-Shirts, Hats, & More

-Jason Quinn

• Privacy and security liability for settling with clients for their incurred losses, as well as the costs of notifying those clients of the breach • Regulatory fines and penalties coverage • Public relations and crisis management coverage, to mitigate the damages • Loss of data, intellectual property, and direct damage to network coverage, as replacing hardware and recovering files and other data can be costly • Cyber extortion coverage for threats to a site or system • Business interruption coverage, if there is a potential for loss of income

FR

DE

Your Logo Here

Find us on Facebook: facebook.com/signcraftersmidwest

Commercial & Residential Contractor Facilities Maintenace Property Preservation Services Contractor Services Code Compliance Specialists High Reach Lift Work Roofing Underground Construction Project Consultation & Management

grncompanies.com

2702 Douglas Street Omaha, Nebraska

Building A World of Difference Class A Building Contractor

business. entertainment. family. food & drink. health. home. lifestyle. style.

402.916.4006

the new

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Executive Impact:

Bringing a Buyer and Seller Together is Only the Beginning written by Rene Rademacher, Broker Liaison

80%

Signed to offer the closing table

10%

Buyer Placement

10%

Seller Packaging

Rene Rademacher

W

hen thinking about selling a business, many sellers don’t know where to begin. There are many pieces to the puzzle, including knowing what your business is worth, finding a buyer, and understanding the lending and legal aspects of the transaction. Continuing to run a business dayto-day while putting the puzzle together can be both daunting and overwhelming.

Engaging a business broker to facilitate the sale process alleviates much of the stress and allows a seller to continue to focus on their business.

The professionals of The Firm Business Brokerage understand that there are three parts to the sale process, referred to as the 80-10-10 split, and ensures that all three of its divisions are working for you and the business you are selling. The first step, creating a Business Valuation, involves individuals from both the Operations and the Brokerage Divisions. This Business Valuation is both complimentary and completely confidential, and will be prepared within three to five business days.

A review of the Business Valuation with the seller provides insight into the fair market value of the individual business and the

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sale process as a whole. Creation of this Business Valuation, although quite detailed, represents about ten percent of the work performed for the seller.

“CONTINUING TO RUN A BUSINESS DAY-TO-DAY WHILE PUTTING THE PUZZLE TOGETHER CAN BE BOTH DAUNTING AND OVERWHELMING.�

-Rene Rademacher

When a Listing Agreement is signed between the seller and The Firm Business Brokerage, all three divisions, Operations, Brokerage, and Client Development, will develop and implement a strategy for the private placement of the business with qualified buyers. Once a buyer is identified, the preparation, negotiation and acceptance of a Contingent Offer to Purchase is facilitated. Once again, the process is very systematic and detailed, and

represents another 10 percent of the work performed for the seller.

Once a Contingent Offer to Purchase is made, the largest portion of our job, the remaining 80 percent, really begins. There are many tasks to complete, more than most business owners have the time or the expertise to complete on their own. The Operations Division assists with all aspects of the closing process, including referrals and introductions to legal, accounting, and bank professionals. Both the buyer and the seller are supported throughout the time it takes to reach closing, with each step, and the reason for it, fully explained.

The largest, and most involved part of the job of a business broker really begins after a buyer has been found. If a business owner is considering the current or future sale of a business, consulting a business broker is an important step. The process can seem overwhelming at times, but the professionals of The Firm Business Brokerage will assist throughout the process. The FIRM

A Publication of The Firm Business Brokerage

Cash Flow:

What Businesses Sold for in 2014 written by Alex Shteriev, M.B.A CBI, Managing Director, Partner of Beacon Brokerage located in the Toronto Area.

due to the financial institutions backing the deal requiring more time, and on a few occasions more thorough information.

However, not only were the banks more c au tio us, buyers did not seem to be in a hurry either, it seemed like everybody preferred t his prolonge d period of “dating” the seller. Whether that would make for better “marriages,” only time will tell.

PRICED TO SELL Ever since the beginning of the financial crisis in 2009, the issue preventing higher Alex Shteriev, M.B.A CBI, Managing Director, Partner of Beacon Brokerage transaction volume located in the Toronto Area. among small to medium size businesses, s an eventful 2014 was closed last has been the unreasonable valuation and quarter, I wanted to take the time to price expectations of business owners. It reflect and make sense of what happened appears that in 2014 we have started seeing in the busiest year for me to date, both more reasonable business valuations, as in terms of the numbers as well as total well as business owners willing to listen value of transactions. While this sounds to their broker, but more importantly to like a fairytale ending to a great year, the voice of the market. This has been 2014 was anything but. reflected in transactions in 2014 selling for an average of 92% of their asking price, TIMING IS (NOT) OF THE ESSENCE compared to businesses selling for 84% Looking at transactions in 2014, compared of asking during the previous five years. to previous years, a couple of facts stand What is more, a number of full asking price out. The average Due Diligence period LOI’s (Letters of Intent) were signed, only almost doubled, standing at an astounding to get lowered post-Due Diligence due 150 days (just shy of five months), compared to materially significant causes. All in all, to an average of just over 90 days for it appears like 2014 was the year when transactions I have completed in the we finally had a predominant price-to-sell previous five years. In 2014 for a number attitude versus sell-at-certain-price thinking of transactions this period was extended by business owners.

A

OH THOSE MULTIPLES As every conversation about buying or selling a business inevitably begins, it focuses and ultimately ends with discussion on multiples. Here is what businesses I represented sold for in 2014. Weighted average EBITDA multiple was 3.13 (with a high of 3.9 and low of 2.9), compared to weighted average of 3.43 for the previous five years. Weighted average SDE multiple (Seller Discretionary Earnings) was 2.29 (with a high of 3.0 and low of 1.6). No surprise there as this modest decline in multiples, compared to previous years, is in line with the aforementioned more reasonable valuations and the dominant price-to-sell sentiment in the market. Share deals versus asset deals were split exactly as previous years, with 75% of deals being asset transactions, and 25% share purchases.

THE 2015 (CRYSTAL) BALL GAME Any predictions for the future can only be reasoned as long as they are based on and try to reasonably extrapolate the past. Based on how 2014 transpired and what is the current sentiment in the investment community, financial institutions, and among business owners, I expect a balanced buyer-seller market with deals in the small to mid-size business segment executed at about 3.25-3.5 x EBITDA range, with better businesses selling at close to 4 x EBITDA. Also, it will be reasonable to expect due diligence periods to drop down closer to their norm of approximately three-month degustation periods, as well as asking to selling price ratios to remain in the 90th percentile. The FIRM

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