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Q&A With Our Experts

Divestopedia has assembled some of the industry's top advisors to answer anything and everything related to the sale of a business.

Featured Experts

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Adam Croft

 

Adam has been a lead advisor in the UK for M&A for over 10 years. His insights and advice come from a successful history of the due diligence…

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The Value of a Valuation
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Alan Chettiar

 

Alan Chettiar leads FirePower Capital’s Investment Banking team in all its engagements and sets its strategic direction. He brings over a…

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Preconceived Notions Can Be Deal Killers
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Andrew J. Sherman

 

Andrew J. Sherman is a Partner in the Corporate Department of Seyfarth Shaw LLP. Andrew focuses his practice on issues affecting business growth for…

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Letter of Intent: Examining 3 Different Drafting Styles
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Q&As

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“What Are Some HR Issues Around Mergers and Acquisitions?”

Here are some HR issues around mergers and acquisitions. Let's take Mary, for example. Mary has been your key employee, your top talent, and naturally you want to keep Mary during and after the…
Answered by:
Miracle Semien

"> Miracle Semien
COO, Veaux Professional Services, LLC
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“Why are private companies valued lower than their public company peers?”

For public companies, analysts express the value of a company as a multiple of earnings. It is called the price-earnings ratio or P/E ratio. If the price of a stock is trading at a low multiple (say…
Answered by:
Erick Hamdan

Erick works with business owners, investors, and private equity firms looking to create value and maximize their returns on exit. Working as adviser, founding partner, and/or CFO of three private companies that each grew to revenues over $300 million, he has worked on valuing, acquiring,…
"> Erick Hamdan
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“What Are The First Steps to Take to Buy Out a Partner?”

Preparation and planning are key to successful outcomes in any project, and buying out a partner can be a consuming, emotional, complicated process and so this question is really around planning and…
Answered by:
Paul Wormley

"> Paul Wormley
General Partner, Hadley Capital
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“How can a technology platform help with HR acquisition integration?”

Technology helps you reach out to employees faster and more effectively. According to ACCG partners, a platform-based approach enables companies to standardize their processes and really spend time…
Answered by:
Hope Malveaux

"> Hope Malveaux
CEO, Veaux Professional Services, LLC
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“How Do I Connect with Employees During and Post-Merger Acquisitions?”

I can tell you it's more than town hall meetings and occasional emails. To connect, you'll have to really know your employees true feelings, their concerns, and their overall feedback. We…
Answered by:
Hope Malveaux

"> Hope Malveaux
CEO, Veaux Professional Services, LLC
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“Why is Employee Engagement Important in Post Acquisition Integration?”

Engaged employees are critical to a company's success under any circumstances, and that is especially true during a merger when employee dedication can quickly make or break the success of the…
Answered by:
Miracle Semien

"> Miracle Semien
COO, Veaux Professional Services, LLC
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“How To Prep For Employee Retention Issues in Post-Merger Integrations?”

You prepare for employee retention issues during due diligence, not post-merger integration. If you wait, which actually happens all the time, you lose the ability to be proactive. You want to assume…
Answered by:
Hope Malveaux

"> Hope Malveaux
CEO, Veaux Professional Services, LLC
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“What Professions Should You Consult to Help You Buy Out a Partner?”

This is a really important question because for most small business owners the business is their primary asset. So it's incredibly important financially and otherwise to get it right. I think a…
Answered by:
Paul Wormley

"> Paul Wormley
General Partner, Hadley Capital
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“What Are Common Issues Encountered When Buying Out a Partner?”

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…
Answered by:
Paul Wormley

"> Paul Wormley
General Partner, Hadley Capital
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“What are Common Situations that Lead to a Partner Buyout?”

This is a question that goes to succession and exit planning. The reality is that most small business owners don't have succession plans. I wrote a blog about baby boomer succession and more than…
Answered by:
Paul Wormley

"> Paul Wormley
General Partner, Hadley Capital
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“What Are 3 Ways to Finance Buying Out a Partner?”

I talk to business owners pretty much every day and this is a question that comes up a fair amount. Partially because there's just not a lot of places for small business owners to go get this…
Answered by:
Paul Wormley

"> Paul Wormley
General Partner, Hadley Capital
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“How Do Private Equity Firms Differentiate Themselves?”

Look 10 years ago operating partners, not in the payroll, but off the payroll, maybe on portfolio company payroll, was the trend. That was the differentiator. That was very commonplace but really…
Answered by:
Heather Madland

Heather is the Vice President of Business Development at Huron Capital Partners. Huron Capital Partners is an operationally-focused private equity firm with a long history of growing lower middle-market companies through its customized buy-and-build investment model. Heather is…
"> Heather Madland
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Does M&A Tech Disintermediate Investment Bankers?

“Does M&A Tech Disintermediate Investment Bankers?”

100%. It's a case where that perception could be altered a little bit. Take the deal marketing example you mentioned. Oftentimes the investment bankers are struggling to gather information and…
Answered by:
Ben Collins

Director of Product Marketing and Strategy at Intralinks.
"> Ben Collins
Director of Product Marketing and Strategy
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Embracing Tech in M&A Transactions: Why the Hesitation?

“Embracing Tech in M&A Transactions: Why the Hesitation?”

I think one of the hesitations may be any change to existing, or more traditional, processes. There's general trepidation amongst M&A practitioners to fix something that they don't…
Answered by:
Ben Collins

Director of Product Marketing and Strategy at Intralinks.
"> Ben Collins
Director of Product Marketing and Strategy
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What can M&A professionals do to better leverage technology?

“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…
Answered by:
Ben Collins

Director of Product Marketing and Strategy at Intralinks.
"> Ben Collins
Director of Product Marketing and Strategy
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Where has technology really improved the M&A process?

“Where has technology really improved the M&A process?”

It’s hard to pick just one area, but I think, first and foremost, it comes down to speed, so in this environment — which remains competitive for attractive assets — it’s…
Answered by:
Ben Collins

Director of Product Marketing and Strategy at Intralinks.
"> Ben Collins
Director of Product Marketing and Strategy
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How are add-backs used to normalize EBITDA as the basis for valuation?

“How are add-backs used to normalize EBITDA as the basis for valuation?”

For those involved in M&A, EBITDA (earnings before interest, taxes, depreciation and amortization) is the often-referenced, industry standard metric that plays a major role in how companies are…
Answered by:
Divestopedia Team

Divestopedia is a resource for entrepreneurs who want to sell their business for the best price and terms. Whether you are thinking of selling, have started a sales process, or are post-deal, we aim to arm you with the knowledge required to maximize value and limit your downside risk.
"> Divestopedia Team
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What are the current challenges concerning valuation uncertainty?

“What are the current challenges concerning valuation uncertainty?”

Note: This content originally appeared in T/A Economics and has been published here with permission. The International Valuation Standards Council (IVSC) provided insight in how to deal with…
Answered by:
Kenny Van Tulder

Kenny Van Tulder has 10 years’ experience in the field of transfer pricing and valuations. He joined the newly-established transfer pricing boutique firm, Tivalor (now part of T/A economics) in 2015, serving clients as a transfer pricing & valuation manager. Kenny’s…
"> Kenny Van Tulder
Senior Manager
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“Why Is Equity Value a More Complete Valuation than Enterprise Value for Sellers?”

Something I've noticed over the years is that when business owners go to sell their companies, they often negotiate deals using enterprise value. This is the industry norm, and there's…
Answered by:
John Carvalho

John is president and founder of Stone Oak Capital Inc., an M&A advisory firm, as well as a co-founder of Divestopedia. For more than 20 years, John has served his clients on numerous valuation, acquisition and divestiture assignments in a wide variety of industries. John holds the…
"> John Carvalho
President, Divestopedia Inc.
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“Why Is a Business Valuation the Best Place to Start an Exit Plan?”

I’ve found that a business valuation gives you the best idea of the four key things you should be working your exit plan around. My company, Stone Oak Capital, is in the business of doing…
Answered by:
John Carvalho

John is president and founder of Stone Oak Capital Inc., an M&A advisory firm, as well as a co-founder of Divestopedia. For more than 20 years, John has served his clients on numerous valuation, acquisition and divestiture assignments in a wide variety of industries. John holds the…
"> John Carvalho
President, Divestopedia Inc.
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