Term of the Day

Private Investment Banker

A Private Investment Banker provides a number of services related to middle-market deal making such as acquisitions, divestitures and financings. Private Investment Bankers refers to practitioners that... (Read on)

Past Terms: M&A IntermediariesSentimental ValueValue to Owner

Latest Question

Building a business with more recurring revenue, as opposed to one with one-off revenue, has almost a direct correlation to an improvement in valuation. You can see it in... (Read on)
When Should You Sign a Letter of Intent?

Why holding off on signing a letter of intent can be advantageous in a sales process. 
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. 
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. 
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. 
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. 
Lessons Learned from Negative Buyer Feedback

A business owner that is contemplating the sale of her or his business could greatly benefit from rigorous buyer feedback two of three years prior to actually beginning the business sale process. 
How to Sell Your Business for a Crazy High Price

What does it take to sell your business for an "Outrageous" Price? Find out in this interview with Kevin Short, author of "Sell Your Business for an Outrageous Price" 
Advice from a Real Entrepreneur on Selling a Business

There are lots of articles from advisors on selling a business. But business owners want to hear from their peers on what to look out for. In this interview, Mike Michalowicz, author and entrepreneur, provides insight on navigating through the process. 
Consider These Issues When Evaluating ESOPs

ESOPs can be a nice exit strategy for some small business owners but they are not perfect for every situation. 
Letting the Market Bridge the Valuation Gap

Unrealistic value expectations is the number one reason for only 10% of businesses for sale actually close within 3 years of going to market. How can entrepreneurs set a realistic expectation of value for their business? 
5 Tall Tales Entrepreneurs Tell to Bolster Business Value

Business owners come up with all kinds of stories to support an unrealisticly high value for their business. The problem is, most of these tales are pure fantasy. 
Pitfalls Around Earnouts (and Why They Rarely Payout)

Is an earnout right for your business sale? What should a seller be on the lookout for? 
Real Stories of Private Equity Value Creation

Understand the process and work that goes into value creation in a private equity investment. 
The Importance of Projections in Determining Business Value

It's no secret that valuations are a big part of the business selling process, and it's a critical step. Weighing future projections is a key component to determining the fair market value. 
Business Owners Beware of the Unsolicited Offer

If you become intoxicated with the thoughts of future riches, you could put your company in jeopardy. 
The Myth of Value Creation

Discover how you can exit your business at a more lucrative price to the right successor. 
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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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