Since Allston Advisory Group’s founding in 2010, the private equity landscape has changed considerably. Around 2010, the United States had approximately 2,300 private equity firms. By 2024, that number had increased to approximately 6,000 firms. The number of private equity backed companies has also grown substantially. PitchBook data indicates approximately 6,400 U.S. companies had private […]
Owners often begin thinking about business value when they start considering a sale. By that point, some improvements may require significant time. Preparing a business for maximum value should begin well before the company enters the market. The objective is not simply to increase earnings. Owners should strengthen the characteristics that make those earnings sustainable, […]
Business owners naturally focus on serving customers, growing revenue, managing employees, and solving immediate problems. However, every owner will eventually leave their business. The decisions made throughout ownership can significantly influence what happens when that time arrives. Long-term exit planning connects today’s business decisions with the owner’s eventual financial, professional, and personal objectives. Start With […]
Selling a privately held business requires sharing sensitive information with prospective buyers. However, premature disclosure may create unnecessary risk for the seller. Employees may become concerned about their jobs or begin exploring other opportunities. Customers may question future services, while suppliers may reconsider credit terms or existing relationships. Competitors may also use knowledge of a […]
The Letter of Intent represents a major turning point in the sale of a business. Until this stage, multiple prospective buyers may still compete for the opportunity. Once the seller signs an LOI, the dynamics change significantly. The selected buyer typically receives exclusivity and begins confirmatory due diligence. For this reason, sellers should use their […]
Preparing a company for sale establishes the foundation for a successful transaction. The next decision involves determining how to approach prospective buyers. The appropriate business sale strategy depends on the company, buyer universe, confidentiality concerns, market conditions, and seller objectives. Some businesses benefit from broad exposure to prospective buyers. Others require a more selective approach […]
Business value is not a single number that applies equally in every situation. The purpose of the analysis may significantly influence the conclusion. Understanding business value in a sale begins with recognizing that owners, valuation professionals, and prospective buyers may view the same company differently. An owner planning an estate may need a different measure […]
Intellectual capital and intangible assets often represent the most valuable components of a successful business. Yet many business owners underestimate their importance during a merger and acquisition (“M&A”) transaction. Consequently, sellers often fail to identify, protect, and maximize the value of these assets before beginning the sale process. Unlike machinery, equipment, or real estate, intangible […]
Private equity groups offer business owners far more than a traditional outright sale. Depending on the owner’s objectives, a private equity firm may offer several different transaction structures. Consequently, business owners should understand these alternatives before selecting a buyer or negotiating a letter of intent. Unlike many other acquirers, private equity firms often tailor transactions […]
The most effective way to maximize the value of a business is to create a competitive marketplace among qualified buyers. A transaction involving only one prospective buyer rarely produces the best outcome. Conversely, multiple interested buyers create competition, strengthen negotiating leverage, and often increase purchase price and transaction certainty. Creating that competitive environment requires careful […]
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