A second bite at the apple means a second chance or opportunity. In the case of Private Equity (PE), it means selling part of the business and then working with a private equity partner to create value and selling the remainder, which is likely a smaller percentage, at potentially an even a larger amount than…
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…
Unsolicited offers tend to come at inopportune times. While some are actually opportunistic, most come out of the blue when the potential seller is not ready to receive them. Unsolicited offers for private companies tend to come from immediate competitors, customers or suppliers and, these days, private equity is also actively searching for new platform…
Who Will Pay More, a Strategic or Financial Buyer? A strategic buyer will often pay a premium over the notional value of the business. The notional value is the value in absence of an open market transaction, in other words, the intrinsic or stand-alone value. The notional value of an enterprise does not include what…
Finding the Right Buyer In constructing a buyer list, do you include immediate competitors or will they not be a “good” buyer. Every company has a different culture and reputation in market and you may not want your legacy in such a company’s hands. Questions to Consider It is important to think through your objectives.…
When a small or niche business receives unsolicited interest from key a customer or supplier, this can leave the owners wondering,.. is there another logical buyer for my business? Should you consider hiring an advisor at this point and engage in a sale process that could take many months to complete or take the bird…
A Management Buyout, or MBO, 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. A Management Buyout is one alternative for an owner-entrepreneur to exit his or her business. The management team buying the business…
