Term of the Day

Market Capitalization

Market capitalization referes when the total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current... (Read on)

Past Terms: Equity ValueMultiple ExpansionIntangible Assets

Latest Question

Reps and warranties, which essentially deal with the allocation of risk, are a little tricky. Business owners should go through those carefully. You are making representations... (Read on)
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. 
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. 
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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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