M&A Insights

Most business owners are reluctant to spend the time and money to conduct an annual financial audit unless there is some requirement to do so, such an audit requirement from their bank or lender.  Very few of our clients...

A strong management team is a key factor in driving value. In our experience, companies with well-rounded, experienced management teams receive far more buyer interest and better valuations. When we present a client’s business to a buyer, one of the first topics of...

HOW TO VALUE YOUR COMPANY? Business valuation firms use a variety of techniques to value companies including the Discounted Cash Flow Model, Public Market Comparisons and various Asset Value methods. While these valuation methods are technically accurate and provide...

The hyper-competitive M&A market has pushed valuations for privately held companies to historically high levels.  This has resulted in buyers becoming far more aggressive in their direct outreach to business owners in an attempt to avoid acquiring companies...

Receiving a written offer letter from a buyer is a significant milestone in the process of selling your company.  Offer letters come in different forms, however, so it is important to understand the distinction between them and when they are used.   ...

Working Capital is a key component of every M&A transaction so it is important to understand what role it will play in the sale of your company.  First, let’s start with how transactions are typically structured: Transaction Structure Most acquisitions of...

The timeframe required to sell a company depends on many different factors such as the transaction size, quality of the seller’s financial information, management dept, size of the buyer pool, etc.  In general, though, you should expect the transaction to close...

As the M&A market has become increasingly competitive, Private Equity Groups (PEGs) have become more aggressive in their outreach to business owners. We have received an increasing number of calls from business owners who have been contacted directly by PEGs. These...

Creating competition among buyers drives value in the M&A process, so constructing a quality buyer list is a critical step in the preparation and planning stages of selling a company.  A well thought out buyer list significantly increases the chances of completing...

The most important step that you can take when selling your company is to create a competitive bidding process. Simply put, competition drives value in M&A transactions. We are often introduced to business owners who have already been approached by a buyer to...