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Wednesday, September 24, 2014

Bright Summer for Manufacturing – Best Performance in a Decade

This August was not the time to be away on vacation if you’re in manufacturing.  According to the Institute for Supply Management (ISM), new orders reached a level not seen since April 2004 and the pace of growth rose in August to its highest level since March 2011. The ISM said its index of national factory […]

Friday, July 25, 2014

Smaller Software Companies Enjoy Increased Options Based on Growing Private Equity Interest in Technology

Over the last five years the technology sector has attracted an increasing number of private equity investors. More specifically, platform investments (financial) and follow-on acquisitions (hybrid) have grown 25% and 30% respectively over the last five years, based on our analysis of CAPIQ data. When we parsed the data to identify the most active private […]

Friday, June 27, 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. […]

Sunday, June 22, 2014

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, […]

Tuesday, June 17, 2014

“$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 […]

Tuesday, June 10, 2014

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 […]

Monday, May 05, 2014

M&A: One question you don’t want to be asking yourself at the closing table

Success! After months of negotiation and diligence, your deal is ready to close. Documents are ready for signing.  And you ask yourself, “how do I know this is the deal I should be doing?” Or perhaps, “how much did I leave on the table?” For sellers and their boards / special committees who engage in […]

Wednesday, April 30, 2014

Over $150 Billion – Record Levels of Healthcare M&A

US M&A levels are up across the board. According to Thomson Reuters, 2,777 deals representing $476 billion in value have been announced so far this year (up 78% from the same period last year), with $153.5 billion coming from healthcare. Approximately 71% of that volume is in the pharmaceutical sector, followed by health care equipment […]