A bear market is a market condition characterized by pessimism and negativity. In a bear market, the prices of shares fall and, overall, there is a lack of confidence in the stock market. The stock market as a whole declines over a certain period of time by more than 20 percent. This period can… View Full Term
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John is president and founder of Stone Oak Capital Inc., an M&A advisory firm. For more than 20 years, John has served his clients on numerous valuation, acquisition and divestiture assignments in a wide variety of industries. John holds the Corporate Finance designation, is a Chartered Business Valuator and a Chartered Accountant.
Selling your business? Let multiple buyers court you. Be choosy, but don't shy away from those initial conversations with each one. You never know where your best match is going to be!
In many cases, the sellers of a business (and even their intermediaries) have no idea how buyers finance an acquisition, but a closer look inside can show a business owner what it takes to complete a deal.
You've heard the crazy statistics...90% of business owners don't have an exit plan. Well here are three simple areas to start thinking about that inevitable da
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.
The secret ingredient to a successful exit from your business isn't a secret...it's knowledge! Learn as much as you can to ensure you divest with success.
If you've ever thought about selling your business, you've probably thought about how you should do that. Do you sell to your biggest competitor? To investors? Here are the best options for selling your business.
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.
Business owners will unfortunately suffer through these tough circumstances, but past recessions can provide guidance on how to survive.
Building a business is hard work, but achieving your goals makes it all worthwhile.
There are five key factors that should influence your decision when you're considering an investment bank for your business. Finding the right fit insures both parties get what they want out of the deal.
Take control of your financial statement by learning how accounting policies can positively impact EBITDA.
Calculating the return on equity for a privately owned business and understanding the implications of not achieving market-driven cost of capital.
Increasing the value of your business is never a bad idea. Learn some key tips that will keep you growing the value until you're ready to sell.
One of the most common criticisms against investment bankers is the accusation that our only motivation is to get a deal done at all costs. Well, let me start out by making one thing perfectly clear: those accusations are...
Pulling from some music industry greats of our time, here are great lyrical insights on increasing your valuation and successfully selling your business.
When it is time to sell your business, it is important to know the merit of different types of buyers that might come to the table. I came across a whitepaper written by Stephen Shaw, a corporate finance profession, that...
Every deal has its own unique challenges, but just about every successful deal has three key elements in common.
Talking up your business is a good thing, right? Only if you're telling the truth.
What witchcraft is this? Let us share three magic tricks to get you the valuation your company deserves.
Having a proper understanding of the value of your company - despite the fact that banks, shareholders and government agencies never ask what your company is worth - is vital to your future success.
Working capital can be the biggest chip at the table during your negotiations.
Want to create value and wealth in your business? These key concepts explain exactly how to do it.
Private equity recaps can be a good option for business owners looking to take some chips off the table while still being involved in continued growth.
As a co-founder at Divestopedia, I am privileged to explore the possibilities that technology can bring to improving mid-market deal making. Over the last five years, I have learned that the internet and online social...
I have to admit that I spend an abnormal amount of time thinking about M&A transactions. I obsess over different deal structures for my clients. I wake up in the middle of the night with epiphanies on how to attract more...
There are many ways to do a business valuation, but is it the right one? For most buyers, there's only one business valuation that matters: theirs. Learn how to tailor your valuations to your buyer's preferences.
Why are you selling your business? This question often serves as an ice breaker for the initial meeting between a buyer and seller but, more importantly, it gives the buyer a sense of how strong the motivation is for the...
When selling a business, it is highly likely that retained equity, vendor financing or an earn-out will be weighed into the purchase price. Rarely are businesses sold for all cash, which means that a portion of the purchase...
Maintaining confidentiality is extremely important in mid-market deals, but I find many business owners to be overly sensitive about releasing company information when selling a business. Limiting the release of necessary...
I've been in hundreds of conversations with private equity groups. I love to hear their lingo, and the terms that get them excited when they are analyzing a potential platform acquisition. I often coach my clients to drop...
Business owner sometimes have lofty expectations on the value of their companies. Here are reasons why these expectations might not be achievable.
There's no doubt understanding the value of your business is important, but even more important is determining the amount of total cash that will land in your bank account at the end of a deal transaction to sell your...
Want to impress prospective buyers? A competitive analysis will do just that and may even improve your business along the way.
I have found that many owners of lower mid-market businesses lack adequate knowledge on how a business sale is actually financed by a potential third-party acquirer. This is understandable given that most business owners...
I attended a mid-market summit hosted by a leading investment bank in New York City some time ago. An executive of the firm recounted some of her most memorable experiences on two high-profile initial public offerings:...
Many entrepreneurs have a significant amount of their net worth tied up in their business. During the good times, when growth seems endless and businesses prosper, it's easy for owners to feel bullet-proof. But while nobody...
Empire builders have the desire, capability and charisma to build $100M+ companies. For those that have the risk appetite to take on such dedicated acquisition programs, here are some common characteristics of successful empire builders.
Here is the ultimate guide to VC experts to follow.
In Part 1 and Part 2 of this series we received the perspective from private equity professionals on why deals fall apart. This go around, we hear from the advisors who are in the trenches everyday trying to get deals across...
Here is our second installment of Why Do Deals Fall Apart? Some of our friends from the private equity world provide sage advice for business owners...
Deals fall apart for a variety of reasons. In part 1 and part 2 of our private equity series, we have asked some prominent private equiteers to give us their perspective on why deals fail. These guys are some of the best in...
I am of the opinion that in order to maximize value in the sale of a mid-market business, a widely-marketed sale process should be conducted. This means getting a no-names teaser to as many qualified parties as possible. I...
There are plenty of articles answering the question: how long does it take to sell a business? The typical response is that it takes about 8 to 12 months to appropriately prepare, plan and execute the sale of a mid-market...
Receiving consideration other than cash is not uncommon. In fact, it is very rare that vendors receive all cash for their business. Different forms of non-cash consideration include a seller's note, an earnout or, in your...