Term of the Day

Envy Ratio

Envy ratio is the ratio between the price paid by private equity investors and the price paid by management for their respective shareholding interest. It is used in a leveraged buyout to show how much... (Read on)

Past Terms: Commitment FeeRule of ThumbSupermajority Provision

Latest Question

The trends that we’re seeing in the market right now with the baby boomers who are the largest segment of the population now reaching retirement. These are the people that have... (Read on)
Options for Business Real Estate When Selling a Company

Understanding options related to business real estate will help maximize value and achieve the goals desired in a transaction. 
5 Reasons Why You’re Not Creating an Exit Plan for Your Business

If you’re anything like the average mid-market business owner, chances are you don’t have a formal exit plan. Don't fret, you're not alone. 
Preserving Life Stories for Family Businesses

Learn how owners can make sure their business and family legacy is long-lasting and positive. 
Understanding Return on Equity for Privately Owned Businesses

Calculating the return on equity for a privately owned business and understanding the implications of not achieving the market-driven cost of capital. 
Why Your M&A Advisor Should Use Online Deal Sourcing

There are some common objections about online deal sourcing, but it is an important tool for completing middle market M&A transactions. Here we debunk the three most common objections to online platforms. 
Report: North American Mid-Market M&A Outlook for 2015

Eighty-eight percent of respondents expect mid-market M&A to rise this year in both the US and Canada, suggesting an excellent landscape for M&A, financing, and foreign interest in 2015. 
Investing Your Wealth After a Business Sale

Plan for the transition from earning money or wealth accumulation as business owner, to spending money or wealth utilization after you sell your business. 
Why Should I Retain an Investment Banker to Sell My Business?

Selling your business is probably the biggest transaction of your career. A business owner should hire a capable investment banker for a number of reasons. 
Selling a Private Company - Preparing for the Sale

It is critical that business owners prepare well before the sale of their private company in order to ensure their financial and personal goals are met. 
Hitting a Home Run When Exiting Your Business

Exiting a business is a lot like running the bases. Use these tips when exit planning and you will be sure to hit a home run. 
Expensive Mistakes When Selling a Business

In this podcast with Stuart Sorkin, learn about common exit planning mistakes and things you can do right now to prepare for an exit. 
Where Does the M&A Advisor Add Value?

Where does the M&A advisor add value? A survey conducted by High Rock Partners, Inc. provides insight into what functions performed by M&A advisors were most valued by mid-market business owners that sold their companies. 
Reliable Financial Data Is a Top Driver of Business Value

The lack of financial integrity is one of the most common hurdles encountered during the sales process. Maintaining meticulous financial record is a must to get top-dollar when selling your business. 
Determining Benchmark Working Capital in a Business Acquisition

Having a good understanding of the company’s working capital needs is extremely important in a sales process. Invest the time necessary to understand, in detail, the operating cycle of the company for sale. 
Where does the Operating Partner in Private Equity begin?

Discover the importance of an operating partner and the value they can bring. 
The Emerging Paradigm for Private Equity

The paradigm shift for PE firms in business development strategy, diligence, deal execution, 100 day planning and exit strategy ideation is here and it needs to be embraced. 
Everything You Wanted to Know About Reps and Warranties (But Were Afraid to Ask)

Reps and Warranties can be so ambiguous. Are they the "fine print" of purchase and sale agreements? Here's Everything You Ever Wanted to Know About Them, But Were Afraid to Ask. 
Strategies for Managing Wealth in Your Private Business

In this podcast, Chris Mercer talks about invaluable strategies for unlocking the wealth in private businesses and creating financial independence for business owners. 
Anatomy of a Letter of Intent

A primer for business owners on terminology commonly included in a letter of intent. 
How Do I Attract a High Multiple for My Business? - The Sales Process

Attract a high multiple for your private company by learning how the sales process impacts a company valuation. 
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Poison Pill

A Poison Pill is a hostile takeover prevention strategy used to make the target company's stock look less desirable. There are typically two types of poison pills... Read more 

Industry Agnositic

Industry agnostic is a term that refers to private equity firms or investment banks that don't specialize in a specific industry. In some cases however, while... Read more 

Reverse Due Diligence

Reverse or seller due diligence is when a seller performs an analysis of a potential buyer to assess their ability to close the transaction and if they are suitable... Read more 

Greenmail

Greenmail is the process in which a buyer acquires a large number of a target company's shares and threatens a hostile takeover but, instead, forces the target... Read more 

Pac-Man Defense

The Pac-Man defense is a strategy used by a target company to prevent a hostile takeover by turning the tables and attempting to acquire the firm that initated the... Read more 
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