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Maximize ValueThe Top 10 EBITDA Adjustments to Make Before Selling a Business
By: John Carvalho | President, Divestopedia Inc.
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Sale Process
The One Secret Ingredient For a Successful Exit
By: John Carvalho | President, Divestopedia Inc.
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Transitional Service Agreement
A transitional service agreement (TSA) is a type of agreement that is made between the buyer and seller of a company. In this arrangement, the seller agrees to provide certain services to the buyer at a predetermined price. These services can include accounting, IT and human resources and their...
Standard Operating Procedures
Standard operating procedures (SOPs) are the documented processes that a company has in place to ensure services and/or products are delivered consistently every time while meeting minimum quality standards. In practical terms, most SOPs are written as a step-by-step series of operating...
Sweet Equity
Sweet equity is an instrument in the form of options, performance rights or rights to be issued further shares that increase the value of management equity relative to other shareholders, depending on the success of the investment. Sweet equity shares are typically only issued to...
The Top 10 EBITDA Adjustments to Make Before Selling a Business
The most common EBITDA adjustments you need to know when it comes time to sell your business.
By: John Carvalho | President, Divestopedia Inc.
Back to Basics: How to Calculate EBITDA
There are lots of acronyms to know in the world of divestments. EBITDA is one of the most important. Here's what you need to know.
How I Sold My Business: The Personal Touch Approach
Jason Gibson's approach to selling his mid-sized business focused on a personal connection with potential buyers and created a non-adversarial environment for the process in doing so.
What's the difference between growth capex, maintenance capex and internally financed capex?
There are generally two reasons companies spend money on capital expenditures (capex): to grow the business, and to maintain the business. Once a company determines it needs to make a capex investment it must decide how to pay for the capex, either using company cash or debt. Let’s explore each...
What is the impact of supplier concentration on business value?
Concentration in the acquisition world is a bad word. Businesses with high supplier concentration attract fewer buyers and this lowers the price. What’s too high? Having a supplier with 40% of your business is too high. Diversify if at all possible. When buyers look at a company for sale,...
What are typical fee structures for portfolio companies by private equity groups?
A private equity group has a lot of flexibility typically in how they collect fees or harvest value from a company in which they are invested. The form and structure of what those economics looks like varies, but the most typical structure is some type of current pay from the economics surrounding...
