Tag Archives: selling a business

Examples of Acquirers Paying a Premium

5 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…

EBITDA Multiple

A Multiple of What (and When)?

When you hear an owner of a similar business to yours saying  “I sold my business at a 10 times multiple!”? or … the tech sector is trading at a 25 multiple.  Early stage companies trade at 2 to 3 times.  The question is a multiple of what?  In the first case it might be…

Selling a Small Business

What are the Steps in Selling a Business?

Steps in selling a business include four phases of progressive information release to smaller and smaller audiences. Phase 1: Prepare Marketing Materials 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. it should include no specific information from which the company name…