By: John Carvalho | President, Divestopedia Inc.
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...
A cash sweep is the use of a company's excess cash to pay outstanding debts ahead of the scheduled payment date instead of giving it to their investors or shareholders. This process helps a company to minimize risk and liability as well as pay its debt at a faster rate than what is expected or...
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...
This article explains how to negate the due diligence grind that can potentially decrease your sale price.
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.
By: John Carvalho | President, Divestopedia Inc.
Great advisory boards bring innovation and opportunity, but can they increase the overall value of your organization?
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,...
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...
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 business. There are also lots of articles that cover "when is the right time...
By: John Carvalho | President, Divestopedia Inc.
Over the last few months I have talked to three different business owners who, in hopes of selling their businesses, reached out to a single potential buyer they...
By: John Carvalho | President, Divestopedia Inc.
The succession or exit by a business owner is usually the single largest financial transaction in their lifetime with a lot at risk as typically a majority of an...
By: Scott Yoder
Regardless of the current media concentration on the pros and cons of private equity firms and investments, those who work in the business or those considering...
By: Jack Kearney | Managing Director
Business buyers do not often reveal their hands about why they feel a business is an attractive acquisition prospect for fear of driving up the price. They do, however,...
By: Dave Kauppi
One of the most important elements of a great investment is getting the right people involved. The right people bring innovative ideas, create opportunities and help the...
By: Jeffrey Kadlic
That dollar figure, whether written on a napkin over coffee or floated in a conversation, is not a binding offer. Any potential acquirer will need to conduct a due...
By: Paris Aden
In my previous article, Value is in the Eye of the Beholder, I presented the idea that the definition of value can vary depending on the stakeholder. I stated that for...
By: Erick Hamdan
The exit plan is progressing. We have identified the goals under Step 1, determined the financial needs upon exit under Step 2, assessed the current value of the...
If you started your business from scratch, the chances are that you’ve invested a lot of your time and financial resources into growth. You have been through thick...
By: Lyle Solomon | Principal Attorney
I sat down with Tom Hendrickson, the founder and president of Mitre Media, an online financial media company focused on aggregating a sophisticated audience of...
By: Cory Janssen
How does working capital impact the value of my business? Firstly, an overriding principle of valuation, particularly in valuing operational going concerns businesses,...
Working on the buy-side means that I not only get to negotiate a deal, but that I also have to put together a realistic financing structure that will get that deal done...
By: John Carvalho | President, Divestopedia Inc.
When one thinks of private equity buyouts, the first topic that comes to mind is rarely the consideration for the management team. However, the human element should not...
By: Chris Stavrou
How much will you have to explain to the marketplace after the acquisition? Some strategic acquisitions are stealth-like — the customers won’t even know...
By: Robert Sher
Jason Gibson specializes in timber frame construction, a traditional style of carpentry that dates back hundreds of years. Every project he touches—whether...
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By: Paul Wormley | General Partner, Hadley Capital
By: Miracle Semien | COO, Veaux Professional Services, LLC
By: Hope Malveaux | CEO, Veaux Professional Services, LLC
By: Hope Malveaux | CEO, Veaux Professional Services, LLC
By: Paul Wormley | General Partner, Hadley Capital
Erik Twhohig is President of Sunbelt Business Brokers of London, and Sales Representative with Sunbelt Business Brokers Premium. Operating in southwestern Ontario, Erik serves clients in the lower middle market and small business (Mainstreet) arenas. Erik’s background in small business, as an owner and consultant, as well as with multinationals in project management, policy and regulatory affairs, acquisition due diligence, and operating practices provides significant depth across all business management and transaction functions.
Craig O. Allsopp is an investment banker with Corporate Finance Associates, a full-service mergers and acquisitions firm with an office in Portland, ME and 20 other cities around the country. His practice is focused on creating growth and exit strategies for middle market companies in New England.
Jarrett Davidson is the principal and co-founder of Score Capital Partners Inc. He is an experienced corporate finance professional who has advised private companies in all areas of corporate finance, including M&A, financial structuring, financing, valuations, business planning and strategic options.