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Business Valuations

14 Feb Private Company Valuations: Overcoming the Knowledge & Incentive Gaps for Middle-Market Business Valuations

Various, alternative business earnings metrics can be used to determine a reliable business valuation. The variance between earnings measurement methods can be wide and the results can be misleading. The worst possible outcome is a scenario in which an inaccurate representation of value is presented....

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06 Feb How Investment Bankers Add Value in Mergers & Acquisitions

We are certainly strong advocates for disintermediating the investment banking process, particularly when it comes to mergers and acquisitions. Some would argue--incorrectly--that advisors in a transactions are overly valued, especially given today's flatter world, including access to "big data." In fact, this very question was...

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02 Nov Merge or Die: How Competitors Become Allies and How Recessions Consolidate Industry Power

No industry continues into infinity without major aberrations, especially those involved in technology or growth. When consolidation follows growth, enemies become friends and bitter rivals can find healthy new profits in strategic (and might I say legal) collusion through M&A. As has been said in the...

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04 Jun Magical EBITDA Thresholds

When doing deals, size matters. Revenue matters, but from the prospective of business buyers, the size of a company's EBITDA is particularly important. Both strategic and financial buyers alike view EBITDA (earnings before interest, taxes, depreciation and amortization) as a key yardstick for where the...

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23 May Triangulating Business Valuations Based on Market Multiples

In general, multiples boost the valuation of a business above a typical DCF (discounted cash flow) analysis. Hence, it is always helpful--and I would argue--essential to come at the valuation of the business from multiple directions. Typically, multiples--and especially multiples of EBITDA--are the most used...

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21 Mar Preemptively Preventing Merger & Acquisition Transaction Failure

Over the next few years, thanks to aging and retiring baby boomers, an overwhelming number of businesses will likely be up for sale. This potential flood is sure to create a competitive environment among both sellers and buyers, as potential buyers begin to closely scrutinize...

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