GBQ Partners launching a business-brokerage unit - Business First of Columbus:

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is looking to tap into its business communitgy connections to link those who want to sell their midsizr companies with others who have the resources to buy The new service is expected to appeal to owner s of closely held companies who want to leave the businessworlfd - taking with them their investments - but have no other exit strategyg in place, said Robert Stutz II, director of GBQ' s valuation services. Stutz, who is certifier by Alliance ofMerger & Acquisition a Chicago-based trade will head the service. Brokering business saleds is also expected toexpand GBQ'e revenue pipeline. "The regionapl accounting environment isvery competitive," Stutzx said.
"Firms look for new services to offertclients - this is one of the hotter Executives who want to buy or sell midsize those with annual revenue of $5 million to $100 are underserved in Central Ohio, Stutz said. Private business brokers typically work with the owners of smal l companies lookingto sell, while large corporationsz are brokered by Wall Street investment bankingf companies. At least two other accounting firms inColumbuse - and - also offer brokeragd services to their clients. The first of 75 million baby boomers, those born in 1946, are about 58 yearws old and approaching retirement.
If they own a closely held a sale may be the only way to reap a returmn ontheir investment. And the youngest of the baby boomerss were born in 1964 and are justturningv 40, giving business line at leasg a 22-year window. "There's a tremendous marke t out there," said Ralph Walkling, a research professo of finance with at Ohio State University Fisher Collegesof Business. An improving economy means that aftera three-yead slowdown, more business operators are interested in selling. James B. a law partner at Taft Stettinius Hollister LLPin Columbus, said a company'a price is typically determined as a multiple of its earnings before income taxes and appreciation.
"If was trending around four," Farmer said. "Now it's around five to six, whicnh presents a much better sales price situation for someone to The ups and downs of acquisitionb activity roughly parallels the fortunes of thestock market, Walklingt said. "Sellers like to cash out when the stoc k price ishistorically high," he Privately held companies, particularly thosse in competitive sectors, might welcome a broker's services. "Smaller businesses in particular have a difficult timemarketing themselves," Walkling said.
"They do not have a lot of publicv information fora (potential) buyer to see, and they're oftejn operating in an environment where confidentiality is of utmost concern. If word gets out that they're on the market, it coulrd disrupt their business." Also, accountantsw are in a prime position to hear about companty owners who want to sell their businesses and they know who amonbg their clients has the interest and the resources to buy. "I think there's potential there," Walkling "If a buyer and a seller are brought together, that' s a valuable service.
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