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...
Sweet equity is a type of financial instrument that represents any form of non-monetary equity that the owners or employees of a business contribute to the venture. Sweet equity can come in the form of options, rights, warrants, restricted stocks and RSUs or other forms of equity.Sweet equity is...
Effective exit planning is essential for a successful business transition. Without proper preparation and expert guidance, sellers may face valuation disputes, unmet financial goals, and protracted negotiations. Involving a diverse team of experts ensures a holistic approach, maximizing potential...
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.
An overview of M&A fees for sell-side transactions.
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...
Small business owners are not experts at this process. Most small business owners only sell their business one time, so there's a level of concern and trepidation about pursuing a buyout of a partner when it's not something that you're an expert at. It's a broad question, there are...
By: Paul Wormley | General Partner, Hadley Capital
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
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,...
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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
Greg Tobben is a partner and co-founder of Access Capital Partners, an investment bank exclusively focused on raising capital for independent sponsor acquisitions. He has extensive experience in investment banking, capital markets advisory and real estate, including sell-side, strategic advisory, turnarounds and capital markets transactions.Greg graduated from The University of Missouri, Columbia, with a dual concentration in Finance and Real Estate. He holds his FINRA Series 63 and 79 Registrations.
Jey Arul is the President of VR Business Sales in Edmonton, Alberta. VR is a business brokerage firm that assist entrepreneurs and business owners with business financing, business valuation and business sales.
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.