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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
In the current economic environment, troubled, distressed, insolvent and Chapter 11 bankruptcy businesses are presenting strategic and financial investors with attractive opportunities. Distressed transactions may provide the acquirer with a pathway to: gain access to a new client base or geographic territory; acquire assets at extremely discounted prices; effectively eliminate a competitor; or new technology, […]
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