Tag Archives: Expert

How do I prepare my company for sale?

The value of your company is in the eye of the buyer; therefore, sellers of middle-market companies should position their businesses to drive the strategic value and attractiveness before a possible sell transaction. Enhancing the value of your company is an ongoing process; sellers should prepare their company for sale 18 to 24 months before […]

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Discovering the Potholes of Deals

The buyer’s due diligence process deals with the legal, financial and strategic reviews of all of the seller’s documents, contractual relationships, operating history and organizational structure. Due diligence is a process and a test of the value proposition underlying the transaction to insure that the buyer’s company meets the expectations created before the signing of the […]

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The Pepperdine Private Capital Markets Project (PPCMP); where do I go when the bank says no!?

According to the results of the PPCMP (http://bschool.pepperdine.edu/), business owners reported having increased enthusiasm about their company’s growth plans, but almost one-half of them reported the lack of necessary financial resources to successfully execute their growth strategies. There have been about 250 bank failures since the start of the financial crisis in 2007 and with […]

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Relying on a Handshake or a Letter of Intent (LOI)

In acquisitions, a Letter of Intent, or LOI, is a document that outlines the key business terms the buyer and seller agree to, which later become the basis for all agreements and documents that legally bind a business sale. Common clauses in the LOI should include who the buyer and seller are, purchase price, structure […]

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Do ‘Rules of Thumb’ Work for Business Valuations?

Rules of Thumb are used every day to help business owners place a sales value on their business. These “rules” are quick, simple and easy to apply; however, they are only the beginning in the process of determining a business value. Many of these rules belong in one of two categories: A multiple of gross […]

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Generating Multiple Buyers

It has long been recognized in the Merger & Acquisition market that “having only one buyer is the same as having no buyers.” For the seller of a business, having multiple buyers is an absolute requirement to maximize the sales value of an owner’s business. But just how does the M&A Professional bring multiple buyers […]

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How Do I Maximize the Sales Price of My Company?

Maximizing the sales price of a business involves focusing on the “value drivers” of the industry. Value drivers are the set of key factors that reduce financial risk, improve financial returns and create value for the company. These aspects are used by buyers, investors and financial lenders to determine the value of a company. Value drivers […]

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Valuation: What Is the Value of My Company?

The uses of business valuations are almost unlimited: buy/sell agreements, fairness opinions, purchase price allocations, estate planning, gift taxes, charitable contributions, shareholder transactions, Employee Stock Option Plans (ESOPs), solvency and insolvency opinions, collateral valuations, litigation support, etc. When selling one’s business, clarifying the seller’s goals and measuring those goals’ financial needs with the proceeds from […]

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If I am selling my company, what’s the importance of a Growth Vision for my company?

A vision for Growth Strategy is a practical approach to achieving top-line revenue growth and bottom-line profit results. Company growth strategies are critically important whether the seller is a start-up business or has been in business for years. In today’s economic recovery many CEOs and business owners have become strategic buyers turning to acquisitions in […]

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Is It Time to Acquire?

The motivation to acquire is as plentiful and different as is buyers, sellers and kinds of deals. The goal of an acquisition is to increase your competitive advantage by gaining: New Capabilities: adding new products and services. New Customers: expanding the customer base, increasing revenues with higher earnings. More resources: adding new and fresh talent, […]

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How do buyer and seller bridge the “Price Gap” between seller’s expectations and buyer’s fears?

Earn-out agreements have long been introduced into merger/acquisition transactions when Buyers and Sellers have a “price gap” impasse; yet both have the common goal of arriving at an agreement that meets the needs of both Parties. Earn-outs may also provide a flexible way to deal with Buyer/Seller differences, future uncertainties and post-acquisition potential. Most successful […]

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The Valuation of Real Estate as Part of a Merger and Acquisition (M&A) Deal.

When real estate is a component of an M&A deal, the following, similar, lasting questions will arise: Is the real estate an operating asset, a part of the business, critically necessary to continue the operations, un-separable for any other possible use or rezoning, or possibly used at its highest and best use? If the real […]

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Maximizing the Sales Value of Your Business

Maximizing the sales value of a business involves focusing on the “value drivers” of the industry. Value drivers are the set of key factors that reduce financial risk, improve financial returns and create value for the company. These aspects are used by buyers, investors and financial lenders to determine the value of a company. Value […]

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What services can an Investment Banker provide to the seller of a business?

Upon engaging an Investment Banker to sell their business, a seller can expect the firm to find a buyer for the sellers’ business at the highest possible price with the most advantageous terms. The Investment Banker would provide the following services to accomplish this goal: Provide the seller with a business valuation confirming the expectations of the seller with […]

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It’s a good deal, but is it bankable?

In the life cycle of a business there are always opportunities. The transaction could be a start-up, a commitment to growth, a merger, an acquisition, the buy-out of a partner or any number of other possibilities that occur in getting and staying in business. As a business begins sizing up these possibilities, the key question may be,” […]

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