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Ownership Transfer Issues in the Sale of Professional Services Firms

Focus Investment Banking

Are you the owner of a Professional Services firm? The younger partners were presented with a dilemma: They could each increase their stakes in the business and collectively control it but would have to take on—and be personally liable for—the $25 million in debt. It would take years before the debt could be paid down.

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How to Accurately Calculate Gross Margins (and Understanding Their Importance) at Professional Services Firms

Focus Investment Banking

If you’re considering the sale of your consulting or professional services business, you should understand that buyers will be examining your Gross Margin as an indicator of the value of your firm. Professional services companies make money by billing out their experts and consultants at rates higher than the employee cost.

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Earnouts: Sometimes a “Bridge” Too Far

Focus Investment Banking

But do earnouts consistently bridge the gap between buyers and sellers in Consulting and Professional Services deals? Despite the potential value at stake, the buyer balked at the idea of relinquishing control, envisioning strategic integration and synergy across their portfolio of Professional Services businesses.

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Will There Be an IPO for a Specialty Consulting Company in 2024?

Focus Investment Banking

And will that mean that some of the privately held management consulting firms or other professional services companies will choose an IPO this year? It has been some time since a professional services firm chose a public offering as a liquidity strategy. But those companies have been public for more than 20 years.

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Why Private Equity Investors Find Government Contractors Attractive

Chesapeake Corporate Advisors

For investors that plan to finance a portion of the deal with debt, a government contracting business with visible, low-risk revenue also paves an easier path to securing financing. About the Author The post Why Private Equity Investors Find Government Contractors Attractive appeared first on Chesapeake Corporate Advisors.

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LLP: All You Need To Know About Limited Liability Partnership

Razorpay

LLP is an alternative corporate business form that gives the benefits of the limited liability of a company and the flexibility of a partnership. Features of LLP A Limited Liability Partnership (LLP) is a type of business structure that combines the flexibility of a partnership with the limited liability protection of a corporation.

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The Secret Sauce for Separating Successfully

M&A Leadership Council

If you reinvest divestiture proceeds to acquire faster growth and higher-margin businesses or strategic, transformative technologies; reduce debt, conduct share buy-back programs and the like, you will meet – but not exceed -- analyst expectations. Strategic Use of Net Proceeds Frankly, this step is a given… nothing more than table stakes.

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