Term of the Day

Reverse Earnout

A reverse earnout is used to close a valuation gap between a buyer in a seller. In a normal earnout, a certain amount of the purchase price is withheld to be "earned" by seller after some time... (Read on)

Past Terms: StuckholdersAcquhireReverse Multiple Arbitrage

Latest Question

In a short word 'no.' Having said that, getting involved in the exit planning process is a great thing to do, especially if you're contemplating leaving your business in the next... (Read on)
Common Tax Strategies for Mid-Market Deals

Tax planning is one of the most complicated parts of completing deals. Learn some common strategies that can help minimizes taxes payable in M&A transactions. 
Have Business Partners? Understand Buy-Sell Agreements.

Learn about buy-sell agreements and why they are an integral part of exit planning. 
Overview of Private Equity for Entrepreneurs

Private equity firms should be seen as an important buyer in the marketplace for good businesses and should also be regarded as a genuine partner. 
Think Twice Before Involving Your Kids In the Family Business

Author of two international best-seller books, Dr. Tom Deans, provides a thought-provoking and contrarian approach to business succession planning and family wealth transitions. A "must listen to" podcast for every family business owner! 
Developing a Proactive Acquisition Strategy for Mid-Market Businesses

An Acquisition Program uncovers more proprietary acquisition opportunities that make strategic sense and are available at better valuations. 
Wealth Management Strategies For Entrepreneurs Who Sold Their Businesses

80% of people with wealth over $5 million gain it through entrepreneurship. Learn about wealth management strategies from Richard C. Wilson, a leading professional in the area of Family Offices for the ultra-wealthy. 
How Do I Evaluate My Company as a Platform?

Evaluating your business as a platform is a crucial step to attracting potential buyers. Look for ways to prove that your company is scalable and self-sustaining, ready to support investors as they cross the bridge into new territories. 
Determining the Pre-Sale Value of Assets

There are several ways to accurately appraise the value of your assets. Before selling, determine the use value, condition, and fair market value of your company's inventory. 
How to Increase the Value of Your Business - Even If You're Not Selling

It can be hard to focus on increasing the value of your business if you have no immediate intention of selling, but putting the work in ahead of time can ensure that you're able to sell on your terms - and at the best valuation. 
Real Economic Value in Driving Corporate Culture

If you could purposely - not accidentally but purposely - create the culture that had the highest probability of causing your people to perform at the highest levels, wouldn’t it make total sense to do that? 
5 Core Tenets of Exit Planning

Business owners: prepare for the single largest financial transaction in your lifetime. 
9 Critical Areas for Effective Due Diligence

Part 2 of a two part article discusses what constitutes an effective operations due diligence and nine critical areas of focus. 
The No.1 Way to Increase the Perceived Value of a Construction Company

Construction is an inherently risky business, which can leave buyers painting all construction companies with the same brush. Check out a few ways that companies can showcase their strengths to potential buyers. 
Deal Structures Through the Eyes of an Acquirer

In many cases, the sellers of a business (and even their intermediaries) will have no idea how the buyer has financed the acquisition. Here we take a look inside a few actual mid-market deals to learn more. 
Phasing Out Without Selling Out

For business owners, knowing when and how to relinquish ownership to a successor can be difficult. How do you transition out without completely detaching? 
Find Freedom and Unlock Hidden Value In Your Business

Learn methods to uncover hidden values in a business and specific tools that owners can used to create freedom by removing themselves from active operations of their businesses. 
Envision, Plan and Implement Your Business Transition

Jack Beauregard talks about his book "Finding Your New Owner: For Your Business, for Your Life". If you are a business owner over the age of 50, this book could save your business, your wealth and your life. 
The Top 10 EBITDA Adjustments to Make Before Selling a Business

Investment bankers conduct a comprehensive review of historical numbers to show a company in the best financial position possible when it's up for sale. Learn the most common adjustments to EBITDA, so you can look for them yourself. 
Master Ten Value Drivers to Sell Your Business at the Highest Price

Evaluate your company through the eyes of a buyer. Master these ten value drivers and sell at the higher range of the multiples normally associated with your industry. 
Why Mid-Market Companies are Valued Lower Than Their Public Company Peers

Learn how private companies are valued and why these valuations differ from the way public companies are valued. 
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Cross Guarantee

A cross guarantee is an arrangement between two or more related firms to provide reciprocal guarantees for each other’s liabilities, fulfillment of promises, or... Read more 

Control Premium

A control premium is the amount that a buyer is willing to pay over and above the current market price in order to acquire a controlling interest in that specific... Read more 

Cost of Debt

The cost of debt is the cost or the effective rate that a firm incurs on its current debt. Debt forms a part of a firm’s capital structure. Since debt is a... Read more 

Buyer Brokers

Buyer brokers are also call buy-side intermediaries. They represent the buyers in a transaction. Buyers are the clients of buyer brokers. Buyer brokers sign an... Read more 

Deal Fatigue

Deal fatigue is a condition during a deal negotiation in which the involved parties begin to feel frustrated; helpless as well as irritated; and fully exhausted and... Read more 
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