For owners of mid-market companies considering selling as they reach or near retirement age, the mergers and acquisitions team at IBG Business is the right place to turn.

Gary Papay, founder and principal managing partner for IBG Business’s Eastern/MidAtlantic region, offers such service at the IBG Business office at 114 Railroad St., Hughesville.

IBG assists in business sales, purchases, and mergers, working with key advisers, buyers and sellers, he said.

“It’s business sales and acquisitions for mid-market companies,” he said, describing these companies as having revenue in the millions of dollars, between $20 million and up to $100 million-plus.

Some of the more prominent Lycoming County businesses that have worked with IBG include when William Pickelner sold his fuel oil terminal, Hermance Machinery, and Montour Oil, which is now Superior Plus Energy Services.

“A lot are more than an hour away,” he said of the clients, including those across the Northeastern and Mid-Atlantic States.

Asked what is special about the business and why?

“We help business owners exit their businesses at the appropriate time for maximum value,” he said.

“I just talked to a seller today – a large metal manufacturing company owner who is getting up in age and thinking of selling,” he said.

Typically, IBG’s mergers and acquisitions team will first look at the company’s past three years of financial statements to determine what position they are in and tell the owner ‘here is what your company looks like, and we think you should do this.'”

“Sometimes, we advise the owner to spend more time in the business, to make it more profitable and come back in a year. Other times, we say, ‘you’re in good shape,’ and if you desire to get out now would be a good time to exit.'”

It generally takes about a six-to-12-month process to seal a transition deal.

When did the business start?

It was in 1986, although Papay has been in mergers and acquisitions since 1976.

IBG has about 18 full-time employees and eight offices around the country.

What is new this year that you are providing for customers? “As active members of the International Business Brokers Association www.ibba.org and the M&A Source www.masource.org , we are continually updating our processes and technologies to better serve our customers,” he said. “We’ve all held leadership positions in both of which are two of the largest associations of business brokers and M&A Advisors.”

“We attend and participate in the M&A Source’s conferences where we meet with active buyers for our clients and keep abreast of the current market,” he said.

Papay cited around 1,200 successful closings with more on the way, which is greater than an 86 % closing rate and many more qualified offers on the way.

Database

IBG’s proprietary database and resources and skilled insight and experience of a talented team identify targeted buyers to determine top value in sales.

IBG was founded by business owners who have owned, grown, bought and sold companies across a broad range of industries.

“We have walked in your shoes and know the path to the best outcome,” an IBG spokesman said.

“A lot of clients we work with are people who started a business way back when,” Papay said. He described many of the clients as “baby boomers” who started a business in the 1950s or 1960s and turned it over to a son or daughter to cash out at a certain age.

“Some have bought into a business or purchased a business along the way,” he said.

The fact is their business is a major generator of their personal income.

The owner, obviously, takes a salary out of the business operation, takes a distribution of the profits to establish a foundation of accumulated wealth.

“When they do come to us to decide to sell we want them to think about what they are going to do post-closing and it might be doing something else until they reach retirement age,” Papay said.

He acknowledged that, for a former president and CEO of a company, it is a “challenge,” or often difficult to go to work for somebody.

So, what is the forecast for your business in terms of profit?

“Excellent!,” Papay said.

“Last year was a good year,” he noted. “This year, we are getting calls every day. We are swamped right now.”

Currently, it is a good market for sellers, he added. “A lot of buyers, a lot of capital on the sideline to put to use.”

Papay and his wife, Deb, are regular contributors to their community.

Papay is a member of the Hughesville Rotary Club and past president and district chairman of the Rotary Club Short Term Youth Exchange Program.

“My wife and I have hosted a number of students,” he said.

They are members of Church of the Resurrection, Muncy.