September 2018 – Here is what’s new at Verit Advisors ®
Has the U.S. Economy Reached A Tipping Point?
Over the last several months, discussion in the markets and amongst business owners has turned to focus on timing. Some are optimistic and believe the U.S. can continue riding the wave of economic growth as evidenced by GDP growth, low unemployment, and strong corporate earnings. The current economic expansion began in June 2009 and if it makes it to the 10-year mark next year, it will be the longest economic expansion in U.S. history. While there is reason to believe that the U.S. can continue on its strong trajectory, some worry macro and micro dynamics could tip the economy into a slowdown or even a recession.
The Fed has been raising short-term rates in recent months. Yet, long-term rates have not risen in kind. Economists widely believe an inverted yield curve, where short-term rates are higher than long-term rates, is a strong predictor of a recession. Note: The last time the yield curve flattened to these levels was in 2007, not long before the Great Recession.
While the U.S. economy remains strong according to key economic indicators, business owners should vigilantly monitor where we are in the business cycle with a heighted eye towards timing and what’s to come.
Recent Transactions
Verit Advisors®, a Chicago-based investment banking firm, is pleased to announce the completion of the 100% sale of Max Auto Supply Company to an Employee Stock Ownership Plan (ESOP). Max Auto is the largest franchisee of Midas auto care and repair centers in the country with locations across Ohio, Michigan, New York, Pennsylvania, Kentucky, and Georgia. Founded in 1956, Max Auto has grown to 113 locations providing outstanding customer service and know how. Verit provided expertise in ESOP structuring, valuation, and debt placement alternatives, allowing Max Auto to evaluate and optimize sellers’ objectives.
“Verit was an excellent choice for us. They were always well organized and efficient. They helped us move through a very complicated transaction relatively easy with great speed,” commented Randy Katz, Owner, Max Auto.
Mary’s Recent Blog
To Gain Top Dollar for Your Private Business, Focus on Maximizing Its EBITDA, Not Its Multiple
All too often, owners of small businesses obsess about the multiple their company will fetch when sold. While the multiple is important – a business sold at 9 times EBITDA is worth 50 percent more than if sold at 6 times multiple – that focus can be misguided. To read more click here
Promotions and Recent Team Additions
Jake Cravens was recently promoted to Vice President. Jake joined Verit in August 2015 as an Analyst and recently earned his Chartered Financial Analyst (CFA) credential.
Casey Rohret joined Verit as an Analyst in July. Casey comes to us from Prairie Capital Advisors.
Syd Reynolds also joined us as an Analyst in July and comes from Kraft Heinz.