Term of the Day

Risk Arbitrage

Risk arbitrage is a strategy used to take advantage of the spread between the price at which a company trades at the time of the announcement of a proposal for merger or acquisition and the price when the (Read on)

Past Terms: EBITDARMIndividual GoodwillIntangible Operating Synergies

How Business Sales Are Best Strategized, Conducted and Consummated

This article follows-up on the Divestopedia article 'When Selling Your Business, What Sale Process Is Best?' with a focus on the often undervalued step of ensuring you select the right advisor.
Prepare Early to Close Faster (and Better!)

While we know the importance of due diligence during a sale, did you know that doing it before you enter the sales process can give you a competitive edge and therefore help you net more funds? Here's how to do it!
Business Succession: Is an MBO or Employee Share Ownership Plan Right for You?

So you want to sell your business, but you have a dilemma: who do you sell to? This article shows how your well-trained staff can take over and continue to successfully run your business instead of approaching the sales market.
Why Retiring Business Owners Balk at the Idea of Selling Their Company

Every owner has their own retirement process. Some are vying to get out, but many have second thoughts -- are they ready? What comes next? This article overviews options that may help you with your exit planning.
Key Factors in Executing a Management Buyout

Executing a management buyout requires a willing seller and a prepared management team. Find out the key factors that are required to execute a management buyout successfully.
When Selling Your Business, What Sale Process Is Best?

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.
What Drives the Value of Your Business?

When it comes to the value of your business, no one knows better than you -- right? Well, just in case, here is a comprehensive look at a variety of factors that go into a valuation and how they can help you position your business in the market.
Business Development Is Vital to Success

One of the best ways to increase the productivity and value of your business is by hiring the right business developers. This article takes you through the complex nature of business development and provides some key ideas you can use in your business.
Stick to Your Guns When Selling Your Business

Some buyers will try to take advantage of the sales process and negotiate for a lower price, or, worse still: they will try to re-trade when your price point goes higher without paying you your due. This article tells you how to avoid being taken advanta
3 Simple Ways to Start an Exit Plan in 2017

You've heard the crazy statistics...90% of business owners don't have any exit plan. Well here are three simple areas to start thinking about that inevitable day when you exit your business.
No Plan for a Succession Plan?

Do you think about the longevity of your business? What would happen if you were no longer in charge? Read on for an easy-to-follow guide for creating your own succession plan so you can be prepared.
Why A Major Corporation Would Buy Your Local Business

What would make a large corporation like Bell purchase a local business? Could your business appeal to a larger competitor for a sizeable buyout? This article shows the key facts you should consider if you want to be competitive enough for a buyout.
The Big Risk: Waiting Versus Selling Your Business Now

Brad Mewes is the founder of Supplement!, a strategic, financial and M&A advisory firm specializing in the collision industry. He gives his take on the upside of deciding to sell any business now versus waiting and continuing to build it up.
The C-Level Executive's Rising Role in Exit Planning

Today's market requires a flexible management team that can grow your business, no matter what the market throws at them. Here is an overview of the traits your managers need to help you prepare for a future sale.
What Is My Auto Repair Business Worth?

Do you know how much your shop is really worth? Have you done your valuation? This is the best strategy to get what you deserve out of your hard work.
A Valuation Is Not Always the Best Way to Measure Value

Intangibles make up 80% of the value of the average business. Understanding these intangibles helps create a map of how different parts of your organization can and should work together.
7 Fundamentals to Due Diligence You Need to Know

Thinking of buying, selling or merging? These are 7 key pieces of advice about doing your due diligence that you need to know before making that final decision.
Life After Selling Your Business

Are you selling your business? Is your network on board? Are you ready? And what comes next? Find out what you need to do to properly prepare yourself for this life-altering decision.
Acquisition Growth Strategies for Middle Market Companies

Podcast with John Bly, author of 'Cracking the Code: An Entrepreneur’s Guide to Growing Your Business Through Mergers and Acquisitions for Pennies On The Dollar.'
How Much Money Do You Need From an Exit to Be Financially Secure?

Valuation is important when selling a business, but after-tax proceeds are even more critical. Learn about methods to figuring out how much money an owner needs to be financially secure.
Wealth Management Strategies for Entrepreneurs Who Sold Their Business

Eighty percent of people with wealth in excess of $5 million gain it through entrepreneurship. Learn about wealth management strategies from Richard C. Wilson, a leading professional in the area of family offices for the ultra-wealthy.
How to Check an Investment Banker’s References

When devising reference check questions for investment bankers, your guiding light is to get usable data as answers that will help you make a decision. Here are five questions you should be asking to help you get those answers.
Misconceptions & Realities When Hiring an Investment Banker (Part 5: Like a Realtor)

M&A professional, Bill Snow, continues to answer the question, “How do I hire a good investment banker?” in Part 5 of this five-part series by clearing up the misconception that investment bankers are just like realtors.
Misconceptions & Realities When Hiring an Investment Banker (Part 4: The 'Ask Price')

M&A professional, Bill Snow, continues to answer the question, “How do I hire a good investment banker?” in Part 4 of this article series by clearing up the misconception that investment bankers should determine the ask price for your company.
Misconceptions & Realities When Hiring an Investment Banker (Part 3: Magic Words)

M&A professional, Bill Snow, continues to answer the question, “How do I hire a good investment banker?” in Part 3 of this article series by clearing up the misconception that investment bankers use their 'magic words' to get you a better deal.
Misconceptions & Realities When Hiring an Investment Banker (Part 2: Industry Experience)

M&A professional, Bill Snow, continues to answer the question, “How do I hire a good investment banker?” in Part 2 of this article series by clearing up the misconception versus reality about industry experience.
Misconceptions & Realities When Hiring an Investment Banker (Part 1: 'Knowing' Buyers)

The question M&A professional, Bill Snow, gets asked most often by business owners is “How do I hire a good investment banker?” In part one of this five-part series, he explains the misconceptions and realities about the importance of knowing buyers.
What Is My Equipment Rental Business Worth?

The best valuations to use when you need to know how much your company can sell for and the market comparisons you need to be doing before you decide to sell your well-established equipment rental business.
Understanding Return on Equity for Privately Owned Businesses

Calculating the return on equity for a privately owned business and understanding the implications of not achieving the market-driven cost of capital.
What Is My Concrete Business Worth?

What is the best way to evaluate your concrete business' worth in today's market? Explore the information in this article to give yourself a step up in the sales process.
View All

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
View All

Connect with us

Divestopedia on Linkedin
Divestopedia on Linkedin
Tweat cdn.divestopedia.com
"Divestopedia" on Twitter

Sign up for Divestopedia's Free Newsletter!

Email Newsletter

Join thousands of others with our weekly newsletter