Expert Analysis & News
Positioning, A New Year’s Resolution?
Whether a sale is in the imminent future or not, business owners who run their companies with a “for sale” attitude keep their companies tuned up, generating increased profits and boosting enterprise value. Fundamentals for positioning your company “for sale” value include: Have a plan, align organizational objectives, focus on what creates value, i.e. profitable […]
Read MoreThe Confidential Information Memorandum
The mergers and acquisitions (M&A) sales process begins with the preparation of a thorough Confidential Information Memorandum (CIM). This critical document provides the framework for profiling a company and positioning it for sale. An effective CIM requires collaboration between the Sellers and the M&A Advisor to capture the essence of the business. These conversations will include: Company overview – history, who we are, what we do Define the core business – processes, technologies Strengths and weaknesses – success factors, […]
Read MoreValue Proposition
The value of a company is in the eye of the buyer; therefore, sellers of lower middle market companies should position their businesses to drive the strategic value and attractiveness before a possible sale transaction. Enhancing the value of a company is an ongoing process, and sellers should begin preparing their company for sale 18 to 24 months before marketing […]
Read MoreCrystal Balls, Bubbles, Cycles, Roll-ups and Business Values
Recently, I was discussing with a good friend and long-time client the past financial successes of her company. Its continued annual growth in revenues, net income, and earnings before interest taxes depreciation and amortization (EBITDA) was extraordinary. Should she continue with the Company’s compounding growth and ride it to the glass ceiling of mid-size companies […]
Read MoreA Business Colonoscopy
The due diligence process in an M&A transaction involves a legal, financial, and operational review of all the seller’s documents, including contractual relationships, operating history, and organizational structure. Due diligence is a process and a test of the value proposition underlying the transaction to ensure that the seller’s company meets the expectations created before the […]
Read MoreDouble Down!!
Most private companies have an opportunity to double their value over a 3 – 5 year period by adopting a disciplined approach to reducing risk and increasing quality. A preliminary valuation performed by an experienced M&A professional will identify many of these “risk areas,” and may be used as a road-map to strengthen the business, […]
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