Tag Archives: Valuation

Synergy, the ‘Magic Dust’ of Value

Synergy is the magic dust that allows for the achievement of revenue enhancement and cost efficiencies in business mergers and acquisitions. The value of synergy depends entirely on the assumptions made about how combined businesses will operate after closing. The assumptions are unique to the companies involved in the deal and may not always be […]

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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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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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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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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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