Economies of scope are efficiencies that a buyer may gain post-acquisition by increasing the scope of certain combined functions, such as marketing and distribution, to include additional products (sometimes creating product bundles as seen in the Telecom sector). Economies of scope are one of the… View Full Term
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By: Exit Planning Institute
By: Yiannis Empeoglou
By: Erick Hamdan
By: Divestopedia Team
A proprietary deal lets a specific buyer have a first chance to purchase a company before the company is presented to other buyers by the owner or an investment banker. Proprietary deals are often presented to specific buyers based on their perceived fit with the seller. While proprietary…
When people ask about the payback period their intended question is "When will I get my money back?" In order to answer this question, the payback period must deal with cash flows — e.g., invest € 100 today, receive € 20 in year 1, € 30 in year 2 and €…
Ready to sign that letter of intent (LOI)? When you’re selling your business, after all the negotiating is done, a buyer will put forward an LOI for you to sign. This is when things really get serious, so you need to be sure you want to take this step. So what is an LOI and…
Investment banks offer expertise and know-how that can add significant value to any transaction, but complicated fee structures can be daunting and confusing in picking an investment banker. In negotiating fee structures, a business owner should consider the goal he or she seeks to…
Preparation and planning are key to successful outcomes in any project, and buying out a partner can be a consuming, emotional, complicated process and so this question is really around planning and preparation. Buy-Sell Agreement The best thing that any partnership can do is put in a…
By: Paul Wormley | General Partner, Hadley Capital
Technology helps you reach out to employees faster and more effectively. According to ACCG partners, a platform-based approach enables companies to standardize their processes and really spend time looking outward for new opportunities, rather than focusing on inward and filling manual…
By: Hope Malveaux | CEO, Veaux Professional Services, LLC
I can tell you it's more than town hall meetings and occasional emails. To connect, you'll have to really know your employees true feelings, their concerns, and their overall feedback. We believe you connect with employees by inviting them to the planning committee, not just the…
When working with an owner on their transaction, how does an M&A advisor ensure that the business is as valuable as possible at the point of transition? What steps…
M&A Advisors work on what is arguably the most significant financial transaction in a person’s life: the sale of their business. As a member of a business…
*Owner and company names have been changed to protect the privacy of the individuals and businesses represented in the case study.*When planning to exit your business,…
(Article originally posted here.)In the M&A world, there are few terms as dreaded as the “Re-Trade”. The continued market uncertainty, coupled with…
By: Michael Carter
It’s the dream of just about every private equity fund manager to source a proprietary deal. Why? Because they are often less trafficked by buyers and therefore…
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
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
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
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…
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…
By: Jason Kwiatkowski
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
Economies of Scope
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By: Paul Wormley
By: Hope Malveaux
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Alan Chettiar leads FirePower Capital’s Investment Banking team in all its engagements and sets its strategic direction. He brings over a…
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Andrew J. Sherman is a Partner in the Corporate Department of Seyfarth Shaw LLP. Andrew focuses his practice on issues affecting business growth for…
Director of Product Marketing and Strategy at Intralinks.