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Private Equity Deal Sourcing Strategies in 2022

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...

By: Divestopedia Team

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Valuation
Business Valuation Excel Template: 10 Simple Steps to Success

By: John Carvalho | President, Divestopedia Inc.
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The Top 10 EBITDA Adjustments to Make Before Selling a Business

By: John Carvalho | President, Divestopedia Inc.
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The 10 Things Your Business Broker Must Do to Earn the Fee

By: Erick Hamdan

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Post Sale

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...

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Debt Capital Market

A debt capital market (DCM), also known as a fixed income market, is a market for trading debt securities such as bonds and loans. Like equity markets, debt capital markets are used by businesses and governments to raise long-term funds that could go towards growth or maintenance.The main...

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Cash Sweep

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...

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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.

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Valuation

Business Valuation Excel Template: 10 Simple Steps to Success

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.

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Pre Sale

Neutralizing the Due Diligence Grind

This article explains how to negate the due diligence grind that can potentially decrease your sale price.

By: Paris Aden

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Valuation

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,...

By: Rose Stabler

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Valuation

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...

By: Brandon Hinkle

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Valuation

What are the current challenges concerning valuation uncertainty?

Note: This content originally appeared in T/A Economics and has been published here with permission.The International Valuation Standards Council (IVSC) provided insight in how to deal with valuation uncertainty.First of all, the difference between market risk and valuation uncertainty is clarified...

By: Kenny Van Tulder | Senior Manager

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Latest Articles

Pre Sale
5 Core Tenets of Exit Planning

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
Sale Process
Choosing Between Strategic Buyers or Private Equity

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: John D. (Jack) Kearney, Sr.
Pre Sale
Lessons Learned from Negative Buyer Feedback

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
Pre Sale
Do Advisory Boards Increase Business Value?

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

Pre Sale
Neutralizing the Due Diligence Grind

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
Maximize Value
Intrinsic Value per Share and the Roadmap to Measurable Value Creation

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
Pre Sale
The Fifth Ingredient to a Successful Exit - Net Proceeds Analysis

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
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How Business Owners Can Thoughtfully Approach Exit Planning

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

Post Sale
Post Deal - The Plan for the First 90 Days

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
Maximize Value
How Does Working Capital Impact the Value of Your Business?

How does working capital impact the value of my business? Firstly, an overriding principle of valuation, particularly in valuing operational going concerns businesses,...

By: Equicapita Income LP
Sale Process
Deal Structures Through the Eyes of an Acquirer

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.
Pre Sale
Considerations for Management Teams in Private Equity Buyouts

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

Sale Process
Customer Communication in Mergers and Acquisitions

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
How I Sold My Business
How I Sold My Business: The Personal Touch Approach

Jason Gibson specializes in timber frame construction, a traditional style of carpentry that dates back hundreds of years. Every project he touches—whether...

By: Divestopedia Team
Expert
A Brick-and-Mortar Business Broker’s Intro to Ecommerce and SAAS

Traditionally, there’s been a general bias against eCommerce businesses. They were seen as less serious, even less reputable, than similar sized businesses with a...

By: Buy and Sell a Business

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Term of the Day

Crown Jewel

A crown jewel refers to a company's most prized or valuable asset in terms of its profitability and future prospects. A...

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Latest Q&As

What Are The First Steps to Take to Buy Out a Partner?

By: Paul Wormley | General Partner, Hadley Capital
Why is Employee Engagement Important in Post Acquisition Integration?

By: Miracle Semien | COO, Veaux Professional Services, LLC
How Do I Connect with Employees During and Post-Merger Acquisitions?

By: Hope Malveaux | CEO, Veaux Professional Services, LLC
How can a technology platform help with HR acquisition integration?

By: Hope Malveaux | CEO, Veaux Professional Services, LLC
What Professions Should You Consult to Help You Buy Out a Partner?

By: Paul Wormley | General Partner, Hadley Capital

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Meet Our Experts

Derek van der Plaat

Derek is a Managing Director at Veracap M&A International Inc. He has over 20 years of corporate finance experience, both as an adviser with a major Canadian bank and as a owner-entrepreneur. Derek started his career in Investment Banking with CIBC M&A where he focused on acquisitions, divestitures, and financing advisory services to companies in the manufacturing, food, transportation, printing, chemical, engineering, wholesale, telecom, hardware and software sectors.

Craig Allsopp

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.

George Deeb

George has a passion for start-ups and formalized his consulting efforts as the Founder and Managing Partner of Red Rocket in 2010. George has consulted over 500 startups since launching Red Rocket. George has a very deep base of relationships in the startup, digital and venture community, in Chicago and nationwide.

Private Equity Deal Sourcing Strategies in 2022

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