The median sales of a company going public has gone from an average $15 million in 1999 and 2000 to $164 million in 2004. Smaller companies have decided not to...
In most jurisdictions, a board of directors is not required for privately held companies. However, many of these companies have appointed what might be termed advisory boards. Although they may...
The deal is getting down to the wire, the price differential is close, but the parties are not yet in agreement. Following are some ideas that might get the ball...
A recent article in M&A Today offered some observations concerning current and future M&A trends.
“The business world is constantly changing. For the first half of the 20th century, vertical integration...
We suspect that the answer to this question depends on who you ask! The Internal Revenue Service (IRS) reports that they received some 24.8 million business tax returns for the year 1999....
Here is a common and much-used breakdown by the federal government:
Small Business Administration (SBA):
Very Small Business = 19 or fewer employees
Small Business = 20 to 99 employees
Medium-Size Business =...
1. Start with the business
- Value Drivers: Size, growth rate, management, niche, history
- Value Detractors: Customer concentration
Poor financials
Outdated M&E
Few assets
Lack of agreements with employees, customers, suppliers
Poor exit possibilities
Small market
Potential technology changes
Product...
“There are many reasons for valuing an entity, and those circumstances can lead to different outcomes…For instance, a business’s value for sale on a going-concern basis will differ from its...
Many courts and the Internal Revenue Service have defined fair market value as: "The amount at which property would exchange between a willing buyer and a willing seller, neither being...
Is there pricing elasticity?
What's proprietary?
What's the company's competitive advantage?
Status of employment agreements and non-competes?
Post-Acquisition:
Are there cost savings after purchase?
Are there significant capital expenditures pending?
Is there synergy with the seller?
Is it...
