Revenue is not profit
In each and every deal we do, potential acquirers will want to know the revenues, sure, because that will show the orders of magnitude of the EBITDA.
Do you get a check for inventory at closing?
I can't tell you how many company sellers wrongly calculate the dollar value of inventory when they are tallying up their company’s worth.
Losing control during an earnout period
When there is a disagreement between an acquirer and a seller about the value of a company, yet determination to get the deal done, an earnout is often put in place.
Always shop the deal (almost always)
You never know who your buyer will be, and it’s imperative that—short of accepting a market-clearing price—you take the offering of your company as far and wide as possible.
Why companies sell for less, or don’t sell at all
Why don't companies sell getting top dollar, or sometimes not selling at all? Here are a few reasons.
Taming unrealistic valuation expectations
When selling at a time of strong growth, some owners want the valuation of their businesses pegged not where they are now with financial performance.
Why strategic investors pay more
What are the value implications of a strategic acquirer versus a non-strategic acquirer? It’s simple math.
Acquiring new leadership can ding your valuation
An acquisition is a natural time for leaders to cash out, but you should avoid acquiring new leadership in advance of a sale.
Are you trying to sell too soon?
Every day, investment bankers like us get two or three email requests from funds and strategic investors looking to acquire successful companies. Ironically, with...
Selecting an operative timeframe for valuation
Traditional performance indicators such as EBITDA, OPEX, and COGs are all used in valuing lumber and building material businesses, whether they are lumberyards, retail...