Tomorrow we are completing our business sale… Waiting for a deal to complete the deal, all parties working hard to finalise documents, all items settled and agreed in principle. The weeks and months running up to today have been a roller coaster. Minor items seem to be deal breakers, the buyer gets cold feet and […]
Prospective Buyer Lists for M&A
When selling your business the key question is who will buy my business, who is the prospective buyer and does the advisor have a prospective buyer lists? For large corporations, there are generally few buyers who would make sense to approach and the list is typically short. For mid-market businesses, particularly niche and specialised, the prospective […]
EBITDA Multiples Mislead
EBITDA Multiples mislead in valuing a business! Although it is a quick and easy way to view and understand the value of a business, caution must be exercised. When determining the value of a company, close consideration should be taken when using either EBIT or EBITDA (earnings before interest and tax, depreciation and amortisation) multiples and the type of […]
Reasons Why Businesses Do Not Sell
According to a recent Deloitte survey of executives who had businesses on the market which did not sell, the following main 8 reasons why businesses do not sell were determined to be the key issues. Source: Deloitte Divestiture Survey Report 2013, Reasons for not completing divestitures Circumstances within your Control The most common reason for not completing […]
How a Higher Price can be Achieved when Selling Your Business
Multiple Bidders In a recent Deloitte survey of executives the most common reasons selected as to how a higher price can be achieved when selling your business was to have multiple competing bidders (44%). Other factors include strength of the management team, their preparation and ability to convey the company goals and objectives (40%). No surprises […]
Earnouts Maximise Value in Business Sales
What are earnouts, why are they used? Earnouts maximise value for the seller of a business and de-risk the transaction for a buyer. Businesses are valued and priced by a buyer largely on past performance (although internally a buyer will have a value based on future performance) whereas a seller who understands the prospects and opportunities […]
