The income approach is a valuation method whereby the valuator quantifies the present value of future benefits associated with ownership of the equity interest or asset. The estimated future benefits that accrue to the owner are discounted or capitalized at a rate appropriate for the risks… View Full Term
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Statistics show that a surprisingly low percentage of businesses for sale actually sell on the first attempt. The major reason for the lack of sales is the valuation gap…
By: Dave Kauppi
A non-disclosure agreement (NDA), also called Confidentiality Agreements (CA), are contracts that stipulate that information received from a counterparty will only be…
By: Derek van der Plaat
For more than six months I worked closely with a client on the acquisition of a mid-market business. Like most deals, it was a roller coaster ride with gut-wrenching…
By: John Carvalho | President, Divestopedia Inc.
I have worked in the corporate finance industry for a number of years now. I can't say that I've seen it all, but I have noticed some reoccurring themes over the…
One of the biggest reasons M&A deals blow up is a poorly worded letter of intent (LOI). The standard process to solicit offers from buyers in the form of an LOI…
About the HostRyan is an entrepreneur, podcast host of the show Life After Business and the co-owner of Solidity Financial. Having personally experienced the hazards of…
By: Ryan Tansom
When negotiating the divestment or acquisition of a company, if negotiations go to plan, all parties involved should reap the rewards and leave with long-term…
By: Stephen Groves
Susan Thompson decided it was time to sell her company. She’d started out thirty years before as a one-person shop, and through sweat and perseverance, had built…
By: Paris Aden
Acquiring a company involves an inherent level of risk. As knowledgeable business owners and advisors involved in private-company M&A transactions, that simple fact is…
By: Chad Byers
Most companies that decide to sell have some characteristics that can drive down the value of their company, such as customer concentration or having management all from…
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