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Most business sales fall into one of two categories: asset sales or stock sales. Asset Sales vs. Stock Sales – What’s the Difference? Understanding the difference between asset and stock sales can help you avoid surprises and build a smoother, more strategic transaction.
Summary of: Asset Sale vs. Stock Sale: What Tech Founders Need to Know When a technology company enters M&A discussions, one of the earliest and most consequential decisions is whether the transaction will be structured as an asset sale or a stock sale. Defining the Structures What Is an Asset Sale?
Our clients are usually founder-owned businesses that work with us on their first sale transaction, often to a larger company or privateequity-backed group. Our extensive experience working opposite privateequity acquirers tells us that a structured process is best. Our healthcare services clients (e.g.,
Business owners often dont know where to start with these steps when considering a sale or investment deal. Financial Buyers : These are typically investment companies, such as privateequity firms, with no prior investment in your industry. What are the key terms I should negotiate in a sale or investment deal?
With a deep understanding of the unique dynamics of the sports market, MergersCorp is well-equipped to guide the club through every phase of the sale process, from valuation and positioning to negotiations and finalizing the transaction.
This guide covers every stage, from defining what qualifies as a middle-market enterprise to finalizing post-sale considerations. A clear sense of your company’s market position shapes your negotiation tactics and marketing campaigns since buyers typically seek stable revenue, consistent profits, and a clear growth strategy.
Whether you're a SaaS founder contemplating a strategic sale, a privateequity firm seeking a bolt-on acquisition, or a CEO navigating unsolicited interest, choosing the right M&A advisor is a critical decision one that should be informed by more than just brand recognition.
Whether you're a SaaS founder contemplating a strategic sale, a privateequity firm seeking a bolt-on acquisition, or a CEO navigating unsolicited interest, choosing the right M&A advisor is a critical decision one that should be informed by more than just brand recognition.
In this article, well outline the key privacy, security, and compliance documentation that buyers especially privateequity firms and strategic acquirers expect to see during due diligence. CCPA/CPRA Compliance For California users, documentation around consumer rights, opt-out mechanisms, and data sale disclosures is essential.
Why Open Source Raises Red Flags in M&A Buyers particularly strategic acquirers and privateequity firms are increasingly cautious about open-source software (OSS) usage. Without clear ownership, you cant transfer rights in a sale. Their concern isnt philosophical; its legal and financial.
This is music to the ears of strategic acquirers and privateequity firms. Working with an experienced M&A advisor can help you get an accurate valuation and position your business for the highest possible sale price. Privateequity buyers who are after targets with stable cash flows and growth potential.
2025 Dental Transactions Update As of June 2025, our research shows approximately 130 privateequity backed DSOs operating across the dental services landscape – more than in any other healthcare vertical. DSO Creation Privateequity investment in dental practices began in the 1990’s when the first DSOs sought outside investors.
Understanding the value of what you’ve built is an essential early step in the sale process. There are plenty of conventional methods to estimate value, including EBITDA multiples, asset-based valuation, and comparable sale benchmarks. How to Get Ready for an Exit Pristine record-keeping is always a boon for any business sale.
Drawing from decades of experience and my own trials and triumphs in the business world, I’ve outlined seven key strategies to help you prepare, execute, and ultimately succeed in selling your business to privateequity. Remember, privateequity firms invest in potential.
We are pleased to confirm that negotiations with an American PrivateEquity Fund are underway regarding the potential sale of Foggia Calcio 1920. Further details will be provided as the negotiations progress.
E219: Unlocking True Business Value: Strategies and Insights for Mid-Market Sales w/ Trever Acers - Watch Here About the Guest(s): Trever Acers is an investment banking and valuation expert with over two decades of experience in the industry.
By Dom Walbanke on Growth Business - Your gateway to entrepreneurial success Raising privateequity funds is seen as the holy grail for businesses who want to grow quickly, simply because the strength of capital opens the door for rapid growth.
This is especially true for larger transactions, such as those involving privateequity. Privateequity firms get their money from investors, and when interest rates are high, they have to lower the multiple they pay in order to get the same return they did when interest rates were lower.
The tire industry has experienced a surge in interest from privateequity firms seeking to acquire tire dealerships. Several factors contribute to this phenomenon: Profit Potential: Privateequity firms are attracted to the tire industry due to its resilience and steady profitability.
Kip, an experienced M&A attorney, shares his expertise on how business owners can prepare their companies for acquisition by privateequity firms and strategic buyers, ensuring they are poised for a successful exit. Buyers are doing all this due diligence, and it has an impact on how they negotiate indemnification."
For top privateequity firms, there’s a lot to like about SaaS. Top Software PrivateEquity Firms Here is a select list of the most active PE investors in the SaaS and software industry over the past year (data taken from the SEG 2024 Annual SaaS Report ). The firm employs 93 professionals.
Whether you’re retiring, moving on to new ventures, or simply seeking a change, finalizing the sale of your business is a crucial step toward achieving your goals. In this blog post, we will explore essential steps to help you complete the sale of your business. Be prepared to compromise while protecting your interests.
Concept 3: Prove Integration Capability When it comes to proving integration capability to potential privateequity firms, entrepreneurs should focus on providing leverage to their businesses. This will demonstrate to potential privateequity firms that the business is structured to implement or integrate acquisitions.
For privateequity investors, one of the most important considerations for a successful investment is determining the value the firm will receive at exit, which directly impacts fund returns. Privateequity investors often have a 5 to 7-year investment horizon and expect a significant return at the end of this hold period.
A term sheet is often used in the early stages of negotiating a venture capital investment or M&A transaction. Since SEG often helps facilitate term sheet discussions, we’ll also share some practical guidance on how to negotiate them and a term sheet template to show you what they look like. What is a Term Sheet?
E223: The Acquisitions Pilot Project: A Solution For 1st Time Buyers to Buy Lower Markets and Sell A Roll-Up - Watch Here About the Guest(s): Roger Best is a seasoned professional with a diverse background spanning mechanical engineering, law, and privateequity. And they can't touch these deals. They're entirely too small.
They act as intermediaries between buyers and sellers, helping to facilitate negotiations, conduct due diligence, and ensure a smooth transition. Whether it is in a specific industry or as a generalist, a skilled advisor can provide valuable insights, facilitate negotiations, and ensure a successful outcome.
With a career spanning over a decade, Patrick has become an industry-agnostic specialist, facilitating financial diligence, quality of earnings, purchase price negotiation, and offering comprehensive partnership support to his clients. rn rn rn Emotional readiness and concessions are critical in M&A transactions.
One specific real estate strategy that has gained popularity in recent years is the sale-leaseback arrangement. rn A sale-leaseback is a transaction where a business sells its owned real estate to a third party and then leases it back for a specified period. rn Secondly, sale-leasebacks enhance financial flexibility.
Completing the Sale of a Technology Business: A Step-by-Step Summary by Aaron Solganick, CEO, Solganick & Co. Whether you’re a fast growing company looking for an exit or a mature company exploring strategic and financial M&A options, the sale process requires precision, preparation, and patience.
Navigating the sales process can help ensure you secure the best buyer and get the most out of your sale. Selling a business can be overwhelming, but with proper guidance, it doesn’t have to be.
It is also important to be proactive and persistent in the negotiation process. Effective negotiation is an important skill for any entrepreneur and can be especially valuable in the process of acquiring a business. Negotiating with empathy is an important part of successful negotiation.
In most business sales, the purchase price is largely based on some multiple of the subject company’s net revenues and adjusted earning capacity. That is especially true when the buyer is a privateequity group or other type of “financial” buyer, which is the case in seven out of 10 deals that we have closed over the last several years.
Just because you are getting lots of inquiries from PrivateEquity and other investors, it does not mean you are ready to sell. Focusing your efforts on improving those metrics will make your company more attractive and give you a leg-up in negotiations. If your numbers aren’t up to snuff, you’d be wise to wait.
And there may be intense negotiations concerning this number that could delay the closing or impact how much you ultimately take away from the deal. For that reason, it can pay to learn more about NWC, what it might or might not include, and how an M&A advisor can help you negotiate more favorable terms to maximize your proceeds.
The company was founded by Peter Lerman, who stumbled into an opportunity to work part-time for a privateequity firm while he was in graduate school. It also provides tools to help sellers prepare their businesses for sale, such as financial analysis and market research.
rn Key Takeaways: rn rn Off-market deals offer faster sales and avoid the lengthy process of working with brokers. These deals offer unique advantages, such as faster transactions, potential tax benefits, and the ability to negotiate favorable terms. rn Setting clear goals and tracking leads is crucial in sourcing off-market deals.
Patrick has a background in sales and marketing and holds an MBA. rn rn Summary: Patrick Dichter, owner of Appletree Business Services, shares his journey from sales and marketing to acquiring and growing a small business accounting firm. Reconciled sets the standard for consistency and quality that you can count on.
Having well-documented processes in place not only streamlines operations but also instills confidence in potential buyers regarding the business’s sustainability post-sale. Their insights and experience can help navigate regulatory requirements, negotiate favorable terms, and optimize the financial outcome of the transaction.
If you have been through a business purchase or sale, you have likely experienced the unique tension and strife common to that phase of the deal known as “due diligence.” While it takes work, due diligence helps squeeze risk out of a sale, protecting the buyer and the seller.
They can be prepaid based on negotiation, and this flexibility comes with an attractive pricing (LIBOR + 300-350 bps). Mezzanine or Sub Debt: Varies in size (smallest would be $5M), 7-10 years with no amortization (balance paid at maturity), unsecured, and provided by insurance companies, pension funds, and mezzanine private / public funds.
TOPS is owned by privateequity firm Atlas Holdings, which is based in Greenwich, CT. After targets are identified and screened, Sun Acquisition provides advisory services including valuation, drafting and negotiating offer letters, and due diligence support.
He is an alumnus of UC Berkeley and previously worked at Industry Ventures, a venture capital and privateequity firm. rn Key Takeaways: rn rn rn Commitment is Key : Being all-in on entrepreneurship is non-negotiable; half-hearted efforts stand in the way of success. rn The broader implications here are far-reaching.
Reconciled sets the standard for consistency and quality that you can count on. David does not discuss individual stocks or mutual funds. rn About The Speaker: rn David C.
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