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Maximize ValueThe Top 10 EBITDA Adjustments to Make Before Selling a Business
By: John Carvalho | President, Divestopedia Inc.
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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...
Multiple of Revenue
Multiple of revenue, or revenue multiple, is a ratio that is used to measure a company’s value based on its net sales or gross revenue. It is used in the valuation of any given business. However, some financial experts say that this valuation method is not so reliable as it just measures the...
Non-Cash Working Capital
Non-cash working capital (NCWC) is calculated by taking all current assets net of cash and subtracting all current liabilities. Usually during due diligence, the target's historical NCWC is calculated on a monthly basis for two to three years to understand how much working capital the business...
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.
Choosing Between Strategic Buyers or Private Equity
Here are the key elements you should consider before you decide whether to sell to a strategic buyer or private equity.
The Reasonable Payback Period for an Investment in a Small- or Medium-sized Business
Inform yourself on what you can reasonably expect a payback period to be for your small- or medium-sized business.
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,...
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...
What can M&A professionals do to better leverage technology?
I think it's two things. So, you’ve got the sale-side and the buy-side. Two sides of the same coin with the M&A process. On the sale-side, we’re seeing a lot of bankers looking into automate and streamline the deal-marketing process. So, a lot of labour-intensive tasks in terms...
By: Ben Collins | Director of Product Marketing and Strategy
