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Best Practices for Due Diligence and Valuation in M&A

Sun Acquisitions

Due diligence and valuation are critical to any successful merger and acquisition (M&A) deal. Valuation: Determining the Fair Valu e Valuation is the process of determining a company’s fair market value. Accurate valuation is essential for successful M&A deals.

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M&A in the Digital Age: How Tech is Supercharging Dealmaking

Sun Acquisitions

Imagine crunching historical data to identify potential synergies or using social listening tools to understand brand sentiment – all crucial information for making informed decisions about valuations and deal structures. Valuation Precision: Financial modeling software powered by advanced algorithms can improve valuation accuracy.

M&A
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Exit Planning Through an Investment Banker’s Lens

Focus Investment Banking

These are called addbacks, and are extremely important to valuation. Address Legal/Compliance Lingering issuestaxes, labor rules, or lawsuitscan minimize probability of deal close, extend timelines, lower valuation, etc. Buyer confidence is gained through visibility.

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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. Remove personal expenses from business operations, or at least clearly separate them to facilitate buyer diligence. Buyers will pay a premium for businesses with steady EBITDA and strong future potential.

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The Perils of Customer Concentration in M&A

Focus Investment Banking

For the sellers, the impact was catastrophic, and not only in terms of salability and valuation. The effect on the valuation and/or sale, is usually significant. The transaction valuation can be substantially reduced, perhaps 20-35%. It is a risk we see often in the M&A world. Important information to be sure.

M&A
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How Investment Bankers are Different than Brokers

Focus Investment Banking

Investment bankers run structured, competitive processes that drive up valuations. Brokers then share whatever information they collected from the practice and may not be equipped to answer buyer questions and resolve issues that arise. The FOCUS sell-side process uses two rounds of competitive bidding.

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Sellers Have All the Leverage in 2025

Sun Acquisitions

These conditions are creating a perfect storm of motivated buyers and premium valuations. “Ultimately, right now, sellers have everything working in their favor: deal scarcity, cash-heavy buyers, and the market timing misapprehensions of other sellers, stated Domenic Rinaldi, Managing Partner of Sun Acquisitions. The window is open.