Term of the Day

Reverse Take Over

A reverse take over (RTO) results when a buyer issues its own stock as purchase price consideration to a seller. The buyer issues so much of its own stock, that the seller's shareholders end up... (Read on)

Past Terms: J-CurveManagement BuyoutLeveraged Buyout

Latest Question

I can reference multiple transactions, even for larger mid-market businesses and say that when you have deals with contingent consideration or staged payout, the amount of cash... (Read on)
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. 
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. 
The Myth of Fair Business Valuation: What Professional Valuations Don't Tell You

The type of buyer and method of sale are two important (yet often overlooked) value determinants when finding a starting price for your business 
When Should You Sign a Letter of Intent?

Why holding off on signing a letter of intent can be advantageous in a sales process. 
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. 
How Do Private Equity Firms Work With Operating Partners?

A case study of a The Riverside Company's investment in AIA Private Equity investment, the problems that were faced and how value was built. 
10 Steps to Create a Simple Business Valuation Template in Excel

Determining the value of your business is the starting point to building value. Here’s how to set up a simple valuation template in excel. 
Investment Bankers Don’t Have Magic Words

Investment bankers do not have magic words that they whisper in the ears of buyers to get them to pay more for a company. Sellers should be wary of any advisor who says (or implies) they have that ability. 
Choosing a Success(ion) Team To Sell Your Business

Assemble a group of professionals with education, experience, and skills who will help you to achieve your goals and prepare you and your business for transition. 
Improving Access to Capital Markets

In this podcast, Peter Lehrman, CEO of Axial, talks about how his company is improving access to the capital markets. 
Choosing between Strategic Buyers or Private Equity

Private equity and strategic buyers come with their own set of financial and ownership objectives. This will undoubtedly have a critical impact on the initial transaction as well as operations post closing. Here are issues that should be considered. 
Can Private Equity Help Grow Your Equity Value by 3X?

In this podcast, James Darnell of KLH Capital shares his experience of partnering with business owners in the lower middle market. 
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Operating Partner

Operating partners are independent advisors to private equity groups who actively contribute to the strategic and operational development of portfolio companies.... Read more 

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... Read more 

Institutional Strip

An institutional strip refers to the total capital provided by private equity investors to facilitate leveraged buyout. When a private equity company acquires a... Read more 

Bulge Bracket Investment Bank

Bulge bracket investment banks are the largest entities and corporations in the financial world. The bulge bracket is comprised of top banks that include Bank of... Read more 

Regional Investment Bank

As the name implies, regional investment banks typically focus on a certain area or region. These firm will have multiple offices with a national presence. Some... Read more 
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