June 2014
Recurring revenue counts in industries far beyond software
The recurring revenue (“RR”) business model gets a lot of attention in software M&A and growth investment, and for good reason. Most growing subscription/ software-as-a-service (SaaS)-based software companies trade in the public markets for north of 6x revenue and many of those fortunate few with annual revenue growth over 40% trade for over 10x revenue. […]
Three perspectives on M&A value: what you pay, what you get, and what you give.
Warren Buffett is fond of quoting Ben Graham’s adage: price is what you pay; value is what you get. Mr. Buffett is a renowned investor and acquirer of companies, but what does this adage mean when it comes to selling? For the seller, price is what you get. What do you give? In M&A, […]
Healthcare M&A: Big deals getting all the attention
2014 has to go down as the year of the big announcement (it may also be remembered as the year of the failed Pfizer bid for AstraZeneca). One might think these mega deals are crowding out middle market activity. But that’s only true in the newspapers. In fact, there have been over 1,000 healthcare deals […]
“$163 million?!!!? Hey, Terminate ME!” (Break-up fees in the middle market)
Hillshire Brands agreed last month to acquire Pinnacle Foods for $4.3 billion in a deal intended to broaden Hillshire’s product offerings beyond Ball Park hot dogs, Jimmy Dean sausages, and other protein products by adding Pinnacle’s roster of iconic grocery brands including Birds Eye, Mrs. Paul’s, Log Cabin, Duncan Hines, Vlasic and more. The market […]
US manufacturing continues to bloom in May
US industrial production increased in May for the third time in four months, rising a seasonally adjusted 0.6% from April, according to the Federal Reserve. Capacity utilization climbed to 79.1% in May, continuing to provide support for manufacturing expansion in 2014. US manufacturers were generally impaired by the harsh winter, and the performance in recent […]
5 Reasons to Sell Your Business in 2014
Owners of many privately-held businesses have sat out the recent resurgence in M&A activity while waiting for their company performance to rebound and waiting for M&A valuations to match their expectations once again. Abundant capital and fervent demand are fueling a strong M&A market, so owners should consider these five reasons to sell their businesses […]
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