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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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Renewable Energy Investment Banking: How to Make Greens by Going Green

Mergers and Inquisitions

Renewable Energy Investment Banking Definition: In renewable energy investment banking, bankers advise companies in the solar, wind, biofuel, storage, battery, smart grid, electric vehicle, hydrogen, hydroelectric, and carbon capture verticals on equity and debt issuances, asset deals, and mergers and acquisitions.

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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.

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10 Concepts You and I Can Learn About M&A and Creative Deal Structuring From How2Exit's Interview With Roland Frasier Investor, Business Mentor and Strategist

How2Exit

Through his experience, he learned the power of leveraged buyouts and how they could be used to finance acquisitions. However, many of these people find that they haven't built a sellable business and don't know how to professionalize it. Seller financing is the most favorable option, as it comes with the least restrictions.

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