Valuing Companies by Analyzing their Customers
There is a recent article in the Harvard Business Review describing the benefits of valuing companies by analyzing their customers – their retention, churn and cost of acquisition. Customer-based corporate valuation (“CBCV”) is meant to highlight the true value of an entity due to the loyalty of its clientele. To an old cataloger like me, […]
The 4 P’s of Business Valuation
How can business owners increase the valuation of their business prior to an M&A transaction or business sale? Mirus recently collaborated with other Boston-area trusted advisors (including a leading accounting firm, law firm, and commercial bank) to gather 40 business buyers and sellers for a roundtable discussion of proactive steps CEOs and owners can implement […]
Achieving an Exceptional Multiple in the Sale of Your Company – Part 1
In October of 2014, we blogged about valuing the intangibles of a business. Here we wrote about achieving value beyond merely what the financials associated with your business would indicate. (see http://merger.com/whats-company-worth/ ). As follow on, we are often asked what it takes to leverage these KPI’s to achieve the exceptional multiples that one hears […]
The $360 billion revenue question
The way you recognize you company’s revenues is about to change. In particular, the way companies recognize revenue for licenses and long-term contracts, including the those traditionally measured under a “percentage-of-completion” method, will be affected by changes FASB has planned to make effective January 1, 2017. The total amount of deferred revenue on the books […]
Counting the Cash: Deals in Medical Revenue Cycle Management Ticking Up
Medical revenue cycle management is a little known (to the public) business service that involves helping healthcare professionals get paid. It includes software to automate the process of submitting claims, as well as service providers, who ensure that every claim contains the appropriate service code and diagnosis code to maximize reimbursement. While there aren’t typically […]
A Compelling Reason to Sell Your Business in 2015
Why should 2015 be the year? Because valuations are nearing record highs (and trees don’t grow to the sky). Note that I am not referring to the stock market per se, although the S&P 500 and Dow Jones Industrial Average have both reached record highs in 2014. I’m referring to the price-to-earnings ratio (or […]
Marketing Services Companies Fly Off The Shelf
2014 is shaping up to be another banner year for M&A in the marketing services sector, on track for nearly 300 transactions to be completed. So what gets a company a premium value in this sector? Strong brand and market reputation Your brand and market reputation could be for a specific service offering, or with […]
Virtual Organizations and their Impact on M&A
Virtual organizations are on the rise, especially among start-ups. The cloud has replaced the “garage” as the 21st century laboratory for collaboration and innovation. What’s most exciting about this trend is the fact that the barriers to entry for an intellectual property-driven business (whether it be a software firm, professional services, or an online business) […]
