Category Archives: Finding the Right Buyer

Strategic Buyer Pay

What Will a Strategic Buyer Pay?

What will a strategic buyer pay?  Ideally a premium, but what defines a premium? By definition, it is higher than the average price.  But if the market will ultimately determine the price, where do you start? Start with the notional value A notional value determination is one in absence of an open market transaction, in…

Examples of Acquirers Paying a Premium

Five Examples of Acquirers Paying a Premium

Five Examples of acquirers paying a premium.  What are buyers looking for in acquisition targets?  The objective of an acquisition is to create value.  This is accomplished by improving profitability and/or reducing risk; both enhance earnings quality and drive value.  More specifically, acquisition objectives can include achieving economies of scale or economies of scope, vertical…

When is a Management Buy-Out (MBO) a Good Idea?

MBO stands for Management Buy-Out and is a form of acquisition where a company’s existing managers acquire a large part or all of the company from either the parent company or from the private owners. An MBO is one alternative for an owner-entrepreneur to exit his or her business.  The management team buying the business can range from an experienced arm’s length team to family members who are active in the business.  The advantages of an MBO include…