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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....

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...

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...

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...

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...

Many businesses underestimate the power of customer relationships today. In a world that is dominated and powered by technology and automation, it seems that human interactions – whether by phone, email or chat – are few and far between. Although it is true that technology...

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...