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...
In a nutshell, an expression of interest is an informal declaration that a buyer, whether strategic or financial, would like to purchase a business. The expression of interest will also provide the seller with a range of possible buying prices.Most investment bankers also require it to include at...
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.
This article explains how to negate the due diligence grind that can potentially decrease your sale price.
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...
So there are a couple of things here. One deal structure that is starting to pop up is Davids buying Goliaths. When we think of M&A, we think of transactions involving companies smaller than us as acquisitions and transactions of our peers as mergers, but then there’s no term for a...
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,...
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.
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
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
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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
John has three designations: CFP, CEPA and CIM. An entrepreneur at heart, John ventured into the business world by owning, building and managing a variety of different companies. Learning about the complexities of entrepreneurship has helped John excel as a Senior Wealth Advisor in British Columbia for more than 20 years. John currently leads a team that helps families in business and high net-worth clients bring their future into focus through strategic wealth planning.
George D. Abraham is the president of Business Evaluation Systems. He has sold over 450 businesses and has appraised over 9,000 companies both nationally and internationally.
Darrell Arne is the President of Arne & Co., which he founded in 1994 began specializing in business valuations and mergers acquisitions. He is a nationally and internationally known seminar developer and speaker on various merger acquisition topics that includes succession planning, merger acquisition tax strategies and deal structures, and maximizing business value.