Term of the Day

Coverage Ratio

Coverage ratio is the ability of an organization to meet its financial obligations and liabilities. In general, a higher coverage ratio denotes a greater ability of the organization to meet its creditors'... (Read on)

Past Terms: Liquidation ValueRecap FeeConfirmatory Due Diligence

Latest Question

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... (Read on)
The Initial Price May Not Be Real

“The Due Diligence Grind” is often practiced by sophisticated acquirers to reduce the purchase price of a business, by citing negative findings during due diligence. This article takes a closer look at the ways a prospective buyer may try to grind down t 
Real Economic Value in Driving Corporate Culture

If you could purposely - not accidentally but purposely - create the culture that had the highest probability of causing your people to perform at the highest levels, wouldn’t it make total sense to do that? 
Keys to Finding Happiness After Selling Your Business

Bo Burlingham's book, Finish Big, summarized his research with entrepreneurs on the keys to a successful and happy exit from a business. 
Minimizing Inevitable Risks in the Sale Process

To ensure that the window of vulnerability is as short as possible, it’s critical to thoroughly prepare for a structured, competitive transaction process. 
Avoid These Four Mid-Market Deal Killers

Few experiences in business are more harrowing than having a deal to sell your company fall apart. While the ups and downs of a deal are inevitable, having your transaction get permanently derailed is not. 
Preventing Seller’s Remorse in a Mid-Market Deal

How to prevent seller’s remorse and leave your business feeling positive about the process. 
The Window of Vulnerability in an M&A Transaction

In every sale transaction, there is a “window of vulnerability” for the seller that starts with the initiation of sale discussions with a potential buyer and ends with the closing of the sale. Three key risks present themselves during this window. 
The Four Stages of an Exit

Excerpts from the book Finish Big: How Great Entrepreneurs Exit Their Companies on Top. Penguin Publishing Group. 
Making Business Valuations Affordable, Accessible and Real-Time for the Middle Market

In the past, knowing the real-time value of your private businesses was impossible. BizEquity is changing that by democratizing business valuation for the Small and Midsize Business marketplace. 
How to Double the Value of Nearly Any Business

A framework for increasing the value of any business by transforming it into a thriving, turn-key operation. 
Choosing the Right M&A Attorney When Selling Your Mid Market Business

A common sense approach for CEOs to follow when selecting the right M&A attorney for their deal. 
Confronting Yourself: The Emotional Journey of Selling Your Business

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. 
Protecting Confidential Information in an M&A Deal

The average cost of a data breach is $3.8 million globally. Are you doing enough to protect confidential corporate information during your M&A deal? 
Build and Exit a Billion Dollar Business

Many entrepreneurs dream of building and exiting a billion dollar business. Learn how to from Terry Freeman, an entrepreneur who has done it before. 
Maintaining Confidentiality When Selling a Mid-Market Business

One of the biggest fears when sell a business is breach of confidentiality. You never want your employees, customers or competitors to know before the time is right. Here are four tactics to manage confidentiality in a mid-market business sale. 
Private Equity Basics For Mid-Market Entrepreneurs

Private equity buyers can be a great exit option for many middle market business owners. In this podcast, learn the basics of private equity and how to attract investment from these groups. 
The Single Most Important Lever Driving Corporate Value

There are many drivers that can increase the value of a business, but one is more important than any other. 
Why Your M&A Advisor Should Use Online Deal Sourcing

There are some common objections about online deal sourcing, but it is an important tool for completing middle market M&A transactions. Here we debunk the three most common objections to online platforms. 

A summary of the general requirements for developing a business valuation as per the American Society of Appraisers. 
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Corporate Finance

Corporate finance is all aspects of finance related to an organization, such as capital investment, operations, banking and budgeting. The process is intended to... Read more 

Accelerated Monitoring Fees

Accelerated monitoring fees are lump sum fees charged to portfolio companies by private equity advisors for services. This happens when the portfolio company is... Read more 

Financial Modeling

Financial modeling is the process by which an organization creates a representation of some or all of its operational aspects. The idea behind creating such a model... Read more 

Confirmatory Due Diligence

Confirmatory due diligence is the process conducted by the buyer within the last 60 days of the transaction cycle during which legal, financial and operational due... Read more 

Bid Instructions

Bid Instructions, or Instructions to Bidders, is a document issued by the investment bank running a competitive auction process that contains all the requirements,... Read more 
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