Tag Archives: Valuation
Value 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 MoreHow Do I Create Value?
For business owners, there is a subtle balance between making the necessary decisions to successfully run their business day-to-day and focusing on the long-term value of their business. The actual realization of that value, an eventual exit, should always be present in the owner’s current strategies. The objective is for owners to make decisions that […]
Read MoreValuations: To Sell or To Grow?
The uses of business valuations are almost unlimited: buy/sell agreements, fairness opinions, purchase price allocations, estate planning, gift taxes, charitable contributions, shareholder transactions, Employee Stock Option Plans (ESOPs), solvency and insolvency opinions, collateral valuations, litigation support, etc. In the context of selling one’s business, clarifying the seller’s goals, and measuring those goals’ financial needs with […]
Read MorePedia Research, LLC has been acquired by Qualmedica Research, LLC
ABOUT THE DEAL: Pedia Research, LLC (also referred to as the “Company,” “Pedia,” or “Sellers”) has been acquired by Qualmedica Research, LLC (“Qualmedica” or the “Buyers”). Headquartered in Evansville, Indiana, Pedia is a focused team of health professionals that are dedicated solely to “Improving Health Through Research.” The Company’s team includes study coordinators, physicians, scientists, […]
Read MoreTransactions Structured for Success!
Transactions between buyers and sellers of middle market businesses are often complicated. Driven by opposing motivations and interests, both parties want the most advantageous deal for their side. Sellers must be sure to consider every offer, especially offers that are less than the asking price of their business. A “lesser” offer in hand will not […]
Read MoreKentucky Bourbon Barrel has been acquired by Independent Stave Company
ABOUT THE DEAL: Kentucky Bourbon Barrel (the “Company” and “Sellers”) has been acquired by Independent Stave Company (“ISC” and “Buyers”). Headquartered in Louisville, Kentucky, an important crossroads for the bourbon industry, the Company is a family-owned business selling high-quality, ready-for-filling used barrels to distilleries, wineries, and breweries around the world. The Company has become well-known […]
Read MoreBrand Recognition Enhances Value?
Early orchestration of a strategy for your business’ brand will create additional value at the time your business is sold. A brand represents the face of the business; a unique and recognizable design, sign, symbol, or slogan employed to create an image that identifies a product and differentiates it from its competitors. Aside from generating […]
Read MoreU.S. Nut and Bolts has been acquired by Nebraska Heavy Industries
ABOUT THE DEAL: U.S. Nut and Bolts (the “Company” and “Sellers”) has been acquired by Nebraska Heavy Industries (“NHI” or the “Buyers”). Headquartered in Louisville, Kentucky, the Company, a full service fastener distributor, has served the commercial, industrial and manufacturer sectors for nearly ten years. Nebraska Heavy Industries, a Lincoln, Nebraska-based conglomerate, has interests in […]
Read MoreKnow the Exit Channel!!
Most business valuations calculate the value of a private company using fair market value, and this value is rarely suitable for making investment and financing decisions. Fair market value, although compliance-oriented and theory-based, fails to consider a business owner’s objectives or reasons for a transaction. The type of transaction will determine the owner’s exit channel, […]
Read MoreLeaving It To Chance?
Since a company owner never knows for sure what exit strategy may be successful, they should always consider decisions based on maximizing company value no matter what strategy is ultimately followed. Company owners should focus on the qualitative factors that drive quantitative results that align and strengthen the organization, improve profitability, enhance access to capital, […]
Read MorePrivate Markets: Stop the Clock!!
According to Robert T. Slee, an investment banker and influential author of Private Capital Markets: Valuation, Capitalization, and Transfer of Private Business Interests, US private markets operate on a 10-year transfer cycle, and mid-market companies are currently in the midst of unprecedentedly high valuations and a pre-recession earnings boom (Seller’s Market). Slee’s corroborated data suggest […]
Read MoreNormalizing Adjustments & The True Company Value
Although a detailed analysis of the financial statements reveals pertinent financial data, the true value of a Company requires that normalizing adjustments be made to the financial statements. Normalizing adjustments reflect a more accurate financial performance, both historically and projected. Normalized financial statements also help determine the Company’s future cash flows, and assess its financial […]
Read MoreUp-Rite Systems, Inc. has been acquired by Fletchline, Inc.
ABOUT THE DEAL: Up-Rite Systems, Inc. (also referred to as the “Company” and “Sellers”) has been acquired by Fletchline Inc. (“Fletchline” or the “Buyers”). Established in 1993 and headquartered in Bardstown, Kentucky, the Company is a nationwide rack installation company; dealing exclusively in material handling equipment installations. Located in Springfield, Tennessee, approximately thirty miles north […]
Read MoreLynn’s Paradise Café has been acquired by Fresh Capital Group
ABOUT THE DEAL: Lynn’s Paradise Café (also referred to as the “Café” and “Sellers”) has been acquired by Fresh Capital Group (“Buyers”). Opening its doors in 1991, in Louisville, Kentucky, Lynn’s Paradise Café created a unique setting that has continuously attracted a diverse clientele from around the world. The Café has always made customers feel welcome; presenting […]
Read MoreNACVA’s 2015 40 Under 40 Honorees!
Congratulations to Allston Advisory Group’s Senior Managing Director, Nolan K. Kapp, for being selected as a 2015 NACVA 40 Under 40 Honoree!! NACVA and the CTI are founded on excellence, superior quality, and the spirit of pioneering. They have a rich history of partnering with visionary leaders across all spectrums of the accounting and financial consulting professions regardless […]
Read MoreCalculation of Value: The Precursor to an Exit
Business owners contemplating an exit from their business should begin the transaction process by engaging an experienced M&A Advisor to perform a Calculation of Value. Although the requirements for a calculation engagement may be more limited than for a valuation engagement, business owners should expect an efficient and systematic approach to the calculation of their […]
Read MoreKnow When To Hold ‘Em
Exiting a business at its highest value requires business owners to have a deep understanding of their business, their industry, and the marketplace at large. As the publisher and businessman Malcolm S. Forbes said, “the best vision is insight.” Timing the market necessitates a business owner’s ability to recognize the not-to-often phenomena of “in the […]
Read MoreA. Arnold World Class Relocation has been acquired by the Management Team
ABOUT THE DEAL: A. Arnold World Class Relocation (“A. Arnold” or the “Company”) has been acquired by the Management Team (“Buyers”) of the Company. Established in 1905 and headquartered in Louisville, Kentucky, A. Arnold is one of the largest, independent moving companies in the country; transporting families and entire corporations around the world. Through the […]
Read MoreThe Most Appropriate Process
When discussing the motivating factors of maximizing M&A sale prices, value drivers are best understood in terms of how they influence either expected cash flows (EBITDA) or the perceived risk (the purchase multiple). The significance of the planning and conducting phases of the sales process can often times be overshadowed from heavily focusing on the […]
Read More
Recent Comments