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

Revenue Quality: What Does it Really Mean?

High quality revenue companies are valued higher than low quality revenue companies.  But what does this really mean and why is this? It is simply a question of risk. High quality revenues reduce risk and therefore result in a higher valuation. What are high quality revenues?  Primarily it is about revenue continuity but also diversity…

The Top Five Impediments to Securing Exceptional Value in the Mid-Market

Many owner-entrepreneurs develop expectations for their business’ value based on news items and industry chatter about M&A and financing activity.  However, the small percentage of transactions that make the headlines are not reflective of the average transaction.  The factors we see most often (not in order of frequency or importance) that prevent private mid-market companies…

What Exactly Does an M&A Advisor Do?

In “How Does an M&A Advisor Add Value to the Divesture Process?”, I noted that M&A advisors typically charge between 3% and 7% as a success fee for managing the sale process for a company.  The question I addressed then was, will engaging an M&A advisor improve your expected sale value by at least 5%?…

Managing Operating Risk To Drive Value

In my previous post I said that if revenues are diversified and sticky then they are characterized as high quality.  A business with high revenue quality is one that will likely be around for some time to come, and is therefore highly valued.  However no business is risk free.  If your revenues are project oriented…

How Much Information (and when) Do I Share With Potential Buyers?

There are four phases of progressive information release to smaller and smaller audiences in the acquisition/divestiture process. The first document used is called a teaser and is typically only one to three pages in length.  The teaser is a “blind” (i.e. no information from which the company identity can be deduced) overview of the acquisition opportunity and…