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Best Practices for Due Diligence and Valuation in M&A

Sun Acquisitions

Assess the company’s financial performance, including revenue, profitability, and cash flow. Best Practices for Successful Due Diligence and Valuation Engage Experienced Professionals: Hire experienced M&A advisors, lawyers, and accountants to assist with the due diligence and valuation process.

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Why ReNew Manufacturing Solutions is Bullish on Precision Machining and Fabrication Companies

Focus Investment Banking

Focus on Profitability and Growth : These two factors drive the highest valuations. Clean Up the Financials : Ensure financial statements are accurate, organized, and easy to explain. Remove personal expenses from business operations, or at least clearly separate them to facilitate buyer diligence.

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Striking the Balance: Key Negotiation Points in Today’s Agreements

Focus Investment Banking

Exclusivity Extensions with Accountability Pegs Exclusivity periods, where sellers agree not to shop the deal elsewhere, are increasingly structured. hitting revenue or profit goals). Buyers like a blanket period such as 90 or 120 days to complete diligence, negotiate the purchase agreement and close.

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Exit Planning Through an Investment Banker’s Lens

Focus Investment Banking

Shifting focus to profitable, reliable customers strengthens cash flowwhat buyers ultimately value. Supplier Diversification If one supplier accounts for >40% of your sourcing, buyers become concerned, especially with risks like tariffs in 2025. Have a conversation with your bookkeeper about the below and hold them accountable.

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Breaking Down the FOCUS Sell-Side Process

Focus Investment Banking

This process allows us to present financial statements in the method nearly all buyers prefer, but more importantly, it allows us to capture the practice’s maximum EBITDA (earnings before interest, taxes, depreciation and amortization), the key profitability metric used to value dental practices, physician practices, and behavioral health groups.

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Private Equity Continues Push Into Professional Services

Focus Investment Banking

Private Equity Continues Push Into Professional Services There was a time in the not too distant past when private equity investors eschewed investments in accounting and consulting firms. With these highly sought after characteristics, it’s no wonder that private equity investors have taken note.

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Tomarchio, Mosses talk success on Gain Traction Podcast

Focus Investment Banking

By adjusting labor rates and responding rapidly to cost increases, he has helped transform underperforming stores into profitable ones. His four-pillar hiring approach — focused on attitude, enthusiasm, work ethic and moral compass — fosters loyalty, high standards and accountability.