Four ways a CFO can add value in M&A
The CFO brings a critical perspective to the sale of a business. Typically she’s the one with the best understanding of the “numbers”, the financial history and the overall economics of the business. Most CFOs have got their monthly reporting process down and know how to work efficiently with lenders and auditors. There’s a regularity […]
8 factors driving software valuation multiples
Public software company valuations have risen to astronomical levels in recent years. Valuations for small privately held software businesses are strong as well and can vary significantly from one transaction to the next. What drives a 2x revenue multiple vs. a 10x revenue multiple? Some key factors influencing transaction multiples include: Size: larger companies […]
How has the COVID-19 pandemic changed the deal process?
It’s been remarkable to see the rebound in deal activity in the last few months and to observe the M&A process shift to virtual settings. A few things that we’ve observed: Most or all of the deal process can be done remotely. Most meetings can be done over videoconferencing, and most diligence can be done […]
Seven Forecasting Tips for Uncertain Times
One of the most common questions clients have asked us lately is how to prepare a financial forecast for their business during uncertain economic times. Stated another way: how do you put together a budget that is both useful for your company’s operations, while maintaining credibility with your advisors, lenders, and potential partners. While every […]
Who are the Buyers?
With the myriad issues that coronavirus has raised for companies, ranging from work-from-home arrangements to complete business stoppages, it’s no wonder why M&A activity has slowed in recent months. In late March, Xerox abandoned its $35 billion hostile bid for HP Inc, referencing the need to focus on managing through the pandemic. In early April, […]
Four things to do now to prepare your business for due diligence
A deal isn’t done when the terms are agreed to in an LOI and is still subject to further due diligence at that point. An acquirer will want to do a detailed review of almost every aspect of your company’s operations. Below are a few of the most common issues that come up in due […]
Five reasons why 2020 is the right year to sell your business
Small business owners often struggle with the question: when is the right time to sell my business? While there’s no “one size fits all” answer and there may be a myriad of reasons to stick with a business and reinvest over the longer term (based on the owner’s age, risk profile, the maturity of the […]
Three differences between selling your product and selling your business
If you’ve got years of experience with growing your business, selling its products or services to hundreds of customers, how different can it be to sell the business itself? Sales is sales, right? Well, not so fast. The day-to-day experience of sales does have some commonality with the M&A experience — you’re connecting with folks who […]