The M&A Process

The M&A Process

The M&A process has a number of distinct stages and typically takes 6 to 10 months to complete.

The M&A Process

Finding the Right Buyer

Finding the Right Buyer

There are strategic and financial buyers. The right buyer is the one that benefits the most from the purchase.

Finding the Right Buyer

Terminology and Documentation

Terminology and Documentation

Before proceeding down the M&A path it is worthwhile familiarizing yourself with the terminology and typical documentation used in the process.

Terminology and Documentation

Milestones in the M&A Process: How Long Does it Take?

Milestones in the divestiture or private capital raising process are similar and generally as follows: Having said that, the following is an actual example of a divestiture of a private company.  In this case, the owner and 100% shareholder wanted to retire and was well prepared to initiate the process.  The business was a very…

What Makes a Good Buyer?

Now that we have constructed the buyer list, what really went into the thinking of who to include?  What are the buyer list criteria?  I have outlined several considerations in my previous post but another way to look at it is as follows: identify companies with an ability to pay and an interest in paying…

Valuation 201: Comparable Company Analysis

Ever since I wrote “The Basic Math of Valuations”, which explains the valuation differential between different asset classes, I have been meaning to write a follow-up on specific valuation techniques.  There are market based approaches such as public company trading multiples and comparable transaction analyses and cashflow and earnings based methodologies such as the Discounted…

Valuation 301: The DCF and Forecasting

In my last post, I reviewed the various discounts and premiums to be applied in the market comparable approach to valuing a company.  Other approaches that use company specific earnings and cashflow include the capitalized earnings and the Discounted Cashflow (DCF) method. A DCF requires a forecast of the company’s revenues and earnings and then…