M&A
Alternatives to the Discount Rate Method for Business Valuation
Other methods to utilize in valuing companies include Capitalization of Earnings Multiply base year earnings/cash flow by a capitalization rate ( typically 15% to…
August 28, 2013Insights
M&A insights & market research
Perspective on valuation, deal structure, and sector dynamics across the middle market — written for founders, owners, and investors.
M&A
Brevity is Your Ally
I've heard it stated in multiple ways and from countless sources, but I couldn't agree more: if you can't explain yourself in one sentence and have nearly any…
August 27, 2013M&A
Market Comparable Analysis for Corporate Valuations
The IRS provides some valuable insight to the important issues in valuing companies which Deal Capital's philosophy closely follows (value is a prophesy of the…
August 21, 2013M&A
Seller's Discretionary Cash Flow Business Valuation
There are a few instances where valuing a business using the seller's discretionary cash flow is appropriate. Here are some explicit examples The company's value is…
August 14, 2013M&A
When to Use Excess Earnings to Value a Company
Below are a few pointers on when using excess earnings to value a business is appropriate: The company's value is derived primarily from its earnings (applies to…
August 13, 2013M&A
When to Use Industry-Specific Valuation Multiples for Business Valuation
Here are some instances when using Industry Valuation Multiples for valuing your company are appropriate There is an adequate�number of�comparative companies and/ex…
August 11, 2013M&A
Capitalization of Earnings for Business Valuation
The following are scenarios where utilizing the Capitalization of Earnings method for business valuation would be highly effective. Earnings capacity contributes…
August 9, 2013M&A
Liquidation Value Method: When To Use When Valuing a Company
Consider using the Liquidation Value Method (as opposed to the Net Asset Value Method ) when valuing a company if the: The liquidation value is an appropriate…
August 8, 2013M&A
Net Asset Value Method: When to Use it in Business Valuations
Consider using the Net Asset Value Method �for valuing a business when: The company holds significant tangible assets, and there are no significant intangible…
August 7, 2013M&A
Stock Swaps: Tax Free Reorganizations
Designed to qualify as a tax-free B reorganization a Section 368(a)(1)(B) stock swap, the tax consequences of such a reorganization are virtually identical to that…
August 6, 2013M&A
From Services to Products to Finance
There is a natural evolution in the business models companies have taken in recent decades which bespeaks an opportunity for many would-be entrepreneurs and…
August 5, 2013M&A
Factors to Consider When Choosing a Discount Rate
Main Factors to Consider Their are countless factors to�consider when accessing the appropriate discount rate. The�overall consideration is how comfortable is a…
August 3, 2013M&A
Favorite Investments
Everyone has their pet projects. For some with a little extra money to burn "investment" could be used very loosely. Not that one can't make massive gains by…
July 29, 2013M&A
Corporate Value Maximization
I have two separate clients right now who represent polar opposites when it comes to strategy and approach. Both are in the tech space. Let me paint a brief picture…
July 27, 2013M&A
Adding Business Value: Integrating Systems
Mergers can be a hairy monster. Attempting to bring together the ideas, management and strategy of two differing, and sometimes competing, organizations can be…
July 25, 2013M&A
Angels or Devils: The Perils of Angel Financing
Much like everyone else, institutional investors are chasing returns, looking for spread and trying to arbitrage the market like crazy. Consequently, we've seen a…
July 23, 2013M&A
Statutory Mergers: A Reorganization
Stock issued as part of the purchase price of a business can, if structured correctly, be considered a tax-free reorganization under Section 368(a)(1)(A) . When…
July 22, 2013M&A
Business Valuation Information Request
The following is a request list for business valuation services .1)������ �Five Historical Financials �I have the P&L�s the last five years, but I need their…
July 21, 2013M&A
338 Election: Stock Sale
The once very popular 338 election has, since the trimming of the General Utilities doctrine in 1986, been toned down. However, it's applicability still remains in…
July 19, 2013M&A
Can We Count on Social Security?
Most who are near or past the retirement starting line have some basic personal and business planning goals to preserve their cherished personal independence and…
July 18, 2013M&A
How to Start Your Own Private Equity Fund
The latest official news about the JOBS Act has many up-in-arms about the opportunities to fund and start a mini-private equity fund without the real oversight. I…
July 17, 2013M&A
Selling Your Business: Predictable Questions in Due Diligence
In the event that your business becomes fodder for acquisition by an investor or investment group, you will most likely be required to go through a barrage of…
July 13, 2013M&A
The Democratization of Capital
It's been 80 years since entrepreneurs could legally perform a general solicitation. Getting slapped with some of the hard rules laid out by the SEC has been the…
July 12, 2013M&A
How to Start Your Own Private Equity Fund
Methods of SolicitationWeb/Social MediaDirect MailTelesalesLead GenerationAngels vs. Devils (angels with experience vs. everyone elseHow to Get Minimally…
July 12, 2013