Term of the Day
Banks, shareholders and government agencies never ask a private business owner what their company is worth, but that doesn't mean you don't need to know.
It's a common concern for business sellers that their price will be knocked down as a result of what's discovered during the due diligence process. But what if what's discovered is positive? Find out how one M&A advisor prepared for this possibility.
George Abraham of Business Evaluation Systems explains the Direct Market Data Method and the issues facing transactional data from the top three databases.
Tim Vipond of Corporate Finance Institute offers a visual aide here that he's created to help better understand business valuations and how a potential buyer will value your business when it comes time to sell.
Jack Beauregard talks about his book, "Finding Your New Owner: For Your Business, for Your Life." If you are a business owner over the age of 50, this book could save your business, your wealth and your life.
George Abraham of Business Evaluation Systems explains what a calculation of value report is and how it differs from an appraisal. Knowing the difference can mean money saved up front and down the road for you and your business.
Every deal has its own unique challenges, but just about every successful deal has three key elements in common. Find out what they are here.
For many entrepreneurs, the hardest part of selling their business is wrestling with their own emotions. Here are some tips for successfully navigating a sale.
In valuing a business, an appraiser must analyze every aspect and quantify his/her analysis of the company’s risk into value. George Abraham of Business Evaluation Systems details 9 key risk factors to be considered in the appraisal of your business.
For companies with low debt on their balance sheets, leveraging back to an optimal capital structure can allow an owner to monetize the business - without selling.
The best companies can't always be compared to their peers. That's where the best of breed strategy comes in. Find out how it's used in IPOs - and how those lessons can be applied to mid-market businesses.
Dave Kauppi, M&A advisor with MidMarket Capital, Inc., gives five more reasons out of 11 why earnouts should be considered when selling your technology (or other) company.
Sellers have historically viewed earnouts with suspicion as a way for buyers to get control of their companies cheaply. However, here are the first six of 11 reasons why earnouts should be considered when selling your technology (or other) company.
Business owners often have all their wealth tied up in their business. But diversifying doesn't have to involve selling - or even giving up control.
The use of these 10 buzzwords is music to private equity investors' ears. Just be sure to back them up with facts.
MidMarket Capital, Inc. explains their "smart equity" model and how it can serve both small entrepreneurial firms looking for an investment with the appropriate growth partner, and large industry players looking to enhance their new product strategy.
Dave Kauppi, president of MidMarket Capital, Inc., describes his recent experience in helping a health care information system company get the best value when selling to a strategic buyer.
Entrepreneurs looking to streamline their processes will want to listen to this latest Divestopedia podcast with our guest, Mike Paton, who explains the 6 key components of the Entrepreneurial Operating System and how to implement EOS in your business.
Mezzanine financing may be a great way for growing businesses to bridge the gap between what conventional banks will lend against assets and the total value of a new project/acquisition. Investing in such debt may also be worth adding to your portfolio.
Paul Wormley from Hadley Capital continues his candid discussion of what to expect when you close a private equity deal in this third and final part of the article series.
In continuing this candid series by Hadley Capital, Paul Wormley discusses more specifics about what a business owner can expect to change once a deal closes with a private equity group in part two of this three-part series here.
Most business owners are more concerned about closing a deal than what exactly happens after the documents are signed. Paul Wormley, partner at Hadley Capital, explains what changes to expect as soon as the ink dries.
Read more for what you should be doing before you go to market with your business in this final of the three-part article by Jim Grebey, president of Diligent Inc.
Read more for what you should be doing before you go to market with your business in this second of the three-part article by Jim Grebey, president of Diligent Inc.
Selling a business requires considerable strategic planning and preparation. Learn what you should be doing before you go to market in part one of this three-part series by Jim Grebey, president of Diligent Inc.
This is part three of a three-part series from Dave Kauppi, M&A advisor with MidMarket Capital, Inc., that identifies the natural advantages that business buyers bring to the table before the transaction process even starts.
Dave Kauppi, M&A advisor with MidMarket Capital, Inc., identifies buyer attacks on the transaction value of your business during the negotiation and LOI process, and approaches you can use to hold your ground.
Unless your company is one of those "must-haves" with buyers crawling all over you, you are subject to a process that greatly favors the business buyer. This is part one of three of how the buyer already has the upper hand in the sale process.
Understand the basic financing structures used in the sale and acquisition of a lower mid-market business.
Ever heard of NDAs? If you are looking to sell or buy a business, you may have been required to sign one. Here are 5 questions you always wanted to ask about them, but were afraid to.
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 moreView All
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- Sep27 An Open Conversation on M&A Advisory Fees
- Sep08 What's My Business Really Worth?
- Oct13 What is Synergistic & Strategic Value (and Why Should You Care)?
- Nov10 5 Things You Need to Prepare for Your Exit
- Dec08 9 Ways to Leave Your Business
Deal Source Mandates
$2.87m EBIDTA Weight Loss & Skin Care Ecomm Business
- Revenue - $21,830,051
- EBITDA - $2,872,384
Industrial Parts Distributor of International Capital Equipment
- Revenue - $4,000,000
- EBITDA - $1,125,000
E-Cigarette Liquid Manufacturer
- Revenue - $8,606,835
- EBITDA - $2,800,000
Certified Commercial Roofing and Waterproofing Applicator
- Revenue - $9,364,845
- EBITDA - $1,757,894
Cleanroom Construction Management, Turnkey Design/Build - Missouri
- Revenue - $5,000,000
- EBITDA - $613,000
- Baird Capital’s Industrial Investment Team Seeks Businesses in the Process Controls Sector
- Seeking IT Companies With Revenue Up to $ 50 Million
- Baird Capital’s Industrial Investment Team Seeks Businesses in the Safety & Environmental Sector
- Baird Capital’s Industrial Investment Team Seeks Businesses in the Water Infrastructure Sector
- Strategic Buyer Seeking Acquisitions in Aerospace - Partner for Development and Manufacture of Customer-Specific Precision Formed Components