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Term of the Day

Market Capitalization

Market capitalization refers to 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 (Read on)

Past Terms: Catalyst, Indicative Offer, Reverse Multiple Arbitrage

Buy-Side M&A Strategy Success

While it is important to carefully consider your options when buying a business, sometimes you need to take a risk and purchase something that you have a good feeling about and improve it from there.
Flirting with a Single Buyer for Your Business

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!
10 Brand Architecture Strategies After M&A

Have you considered your branding strategy, post-acquisition? What your brand says to your customer base directly impacts the potential of your new acquisition. Here are 10 strategies to help you maximize your profits with your new business.
Who Is the Right Buyer for Your Business?

When it comes time to sell your company, you will need to carefully select your buyer to ensure both the best price for your hard work and to keep your vision alive. Consider this list of potential buyers before you start the sales process.
Growing Your Business in Preparation for a Sale

If your business value isn't where you want it to be, but you're looking to sell soon, follow these simple steps to start improving it today. Whether you implement one or all of them, you will see the results of your efforts at time of sale.
No Exit Plan, But Need to Sell

At the end of a long business career, it can be difficult to know what to do next. This is why exit planning before you reach the point of retirement is so important. Here are three key areas to focus on when creating a plan.
Timing an Exit

The most important thing to consider in exiting is timing. The sooner you have a plan in place to help you decide the most relevant time for you to act on it, the more secure your exit will be.
5 Ways to Manage Unsolicited Approaches from Business Buyers

An in-depth look at 5 ways to work through any unsolicited offers you receive for your business so you are not making any rush decisions which could negatively impact your solvency or prevent you from accepting an offer that has better fair market value.
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.
Four Simple Ways to Increase Your Business Value

Author and speaker of M&A and business finance, Brad Mewes, discusses four simple ways to increase your business value through organic growth, cost reduction, new developments and acquisitions.
Key Concepts for Successful Deals

A high-level view of the buy-side and sell-side processes, and a framework for thinking about and planning each.
How to Structure the Right Investment Banking Engagement Letter

If you need an investment banking engagement letter, you need to know what to include and how to word it. Here are the critical terms of agreement you should have in your letter so both parties are looked after.
The Four Main Reasons Acquisitions Fail

You've successfully completed an acquisition, but will this business thrive under your care? Here are four main reasons why acquisitions fail and what you can do to avoid them.
The Value of a Valuation

The best valuations cover all the basis. Are you getting the best? Find out what nuances are often overlooked in a business valuation and take steps today to avoid these pitfalls.
5 Tall Tales Entrepreneurs Tell to Bolster Business Value

Business owners come up with all kinds of stories to support an unrealistically high value for their business. The problem is, most of these tales are pure fantasy.
The Only Valuation Method that Really Matters

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.
If You're Selling Your Company, Don't Get Sandbagged

A seller needs to understand what a sandbag clause is in a purchase and sale agreement, and how to spot specific language to make the agreement seller-friendly.
9 Critical Areas for Effective Due Diligence

This is part 2 of a two part article that discusses what constitutes an effective operations due diligence and nine critical areas of focus.
Who Will Buy My Company?

The right way to find the best buyer for your company when you are ready to sell. Develop the ultimate strategy to source and choose the right buyer for you.
Should My Accountant Do My Business Valuation?

Your accountant is willing to do the valuation of your business, but should you be willing to let them? Here are some of the main reasons why your accountant might not be your best fit.
When Selling Your Business, Don't Waste a Buyer's Time

When selling your business, you will inevitably be asked the question: Why are you selling your business? You and your team need to have a solid and consistent answer to this question. This article explains how and why.
Excessive or Expected Costs: What SG&A Can Tell You About Your Business

Expenses are a normal cost of doing business, but how much is too much? Are you overpaying on taxes because you are unsure how to manage your expenses in order to increase your profit? Read on for more.
Key Ingredients to Making M&A Brand Decisions

There are many factors to consider when finalizing the resulting new brand (or re-branding) from a merger and acquisition. This article overviews the key items you need to think about before moving forward.
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

When it comes time to sell your business, you need to master these 10 value drivers to give yourself the best position possible in today's market. Challenge your method of thinking by learning to assess your business the way a potential buyer would.
What Role Does Your Brand Play in a Successful M&A?

Brand strength and value is often overlooked during a merger and acquisition. However, brands carry a lot of value and influence how successful your M&A will be in the long run. Learn what you need to know here.
So You Received a Letter of Intent, Now What?

You've worked hard to position your business for the sale and finally received a letter of intent. Understanding what this letter truly says is vital and this article will detail what it means.
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Deal sourcing refers to the process through which financiers such as investment bankers, private equity firms, family offices, business owners, strategic buyers and Read more

Fixed charge coverage ratio (FCCR) measures whether an organization has the ability to pay its fixed expenses such as tax, interest and lease payments. This is a Read more

The Securities Exchange Act of 1934 is legislation passed by the United States Congress that empowered the Securities and Exchange Commission (SEC) with broad Read more

An irrevocable proxy is a type of proxy that cannot be revoked for a specific period of time. Though most proxies are revocable, some can be made irrevocable with Read more

Normalization is a financial process where any nonrecurring expense or income is removed from financial calculations, such as EBITDA. The idea behind normalization Read more
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