Earn-outs to negotiate business valuations in M&A deals

Earn-outs are pricing structures in M&A transactions, set when the vendor and purchaser cannot agree on a valuation for the business being bought or sold. An earn-out bridges the gap between the two valuations and requires the sellers ‘earn’ part of the purchase price based on how well the business performs after the sale.The seller [...]

July 1st, 2018|Business valuation, Corporate finance, Merger & acquisitions|Comments Off on Earn-outs to negotiate business valuations in M&A deals

6 types of successful acquisitions

The authors suggestions for M&A strategies that create value reflect the McKinsey acquisitions work with companies. According to their experience: in M&A, acquirers in the most successful deals have specific, well-articulated value creation ideas going in. The strategic rationale for an acquisition that creates value typically conforms to at least one of the following six archetypes: 1 [...]

May 2nd, 2018|Business valuation, Corporate finance, Merger & acquisitions|Comments Off on 6 types of successful acquisitions

European M&A Outlook 2017 and trends 2018

In the second quarter of 2017, Mergermarket surveyed senior executives from 170 corporates and 60 PE firms based in Europe about their expectations for the European M&A market in the year 2018. All respondents have been involved in an M&A transaction over the past two years. The results were presented in the 5th edition of [...]

February 9th, 2018|Business valuation, Corporate finance, Merger & acquisitions|Comments Off on European M&A Outlook 2017 and trends 2018

Family offices: Managing wealth

Trying to define what a family office is, we are not likely to ever find a uniform definition that encompasses everyone’s notions of what family offices should do or entail.  In reality, family offices and the families they serve are much more multifaceted and diverse in their typology. Origins and evolution of family offices In [...]

October 17th, 2017|Business valuation, Corporate finance, Merger & acquisitions|Comments Off on Family offices: Managing wealth

Planning Ahead for the Sale of a Business

Planning and preparing the sale of a business, favors more robust sale processes and reduces the likelihood that potential buyers will be distracted by questions and issues that could easily have been foreseen. Here is a list of some of the actions that potential sellers should consider before embarking on a sales process: 1.Estate planning [...]

June 21st, 2017|Business valuation, Corporate finance, Merger & acquisitions, Resources|Comments Off on Planning Ahead for the Sale of a Business

Business valuation: How to value a start up

Valuation of a pre-revenue company is often one of the first points of contention that must be negotiated between angels and entrepreneurs due to the fact that there is no agreed upon standards for startups and that the goals of the negotiating parties are opposite since entrepreneurs want the value to be as high as [...]

May 31st, 2017|Business valuation, Corporate finance, Merger & acquisitions|Comments Off on Business valuation: How to value a start up

EBITDA what does it measure and how to calculate it

EBITDA (Earnings before interests, taxes, depreciation and amortization) is equivalent to Gross Operating Income (in Spanish, Resultado Bruto de Explotación) because it reflects the excess of operating income over expenses related to those revenues in a period of time and, it is commonly used as a multiple to valuing companies. It is a measure that normally is [...]

May 24th, 2017|Business valuation, Corporate finance, Merger & acquisitions|Comments Off on EBITDA what does it measure and how to calculate it

Increasing the business value

From an economic point of view, a company creates value when the business generates greater income than the costs of producing it, including charges for capital allocation. To create value, managers must have a thorough understanding of the performance of variables that significantly affect the value of the business which in the end is reflected [...]

May 17th, 2017|Business valuation, Corporate finance, Merger & acquisitions|Comments Off on Increasing the business value

Business valuation by comparable multiples approach

The comparable model is a relative valuation approach. The basic premise of the comparables approach is that an equity’s value should bear some resemblance to other equities in a similar class. For a stock, this can simply be determined by comparing a firm to its key rivals, or at least those rivals that operate similar businesses. There are [...]

May 10th, 2017|Business valuation, Corporate finance, Merger & acquisitions|Comments Off on Business valuation by comparable multiples approach

The value of a valuation and the timing in selling a business

As the old adage states, "a business is only worth what someone is willing to pay for it". However the process of maximizing the value of a company for the shareholders on exit has numerous factors which can be evaluated and controlled. Let´s see some of them. Supply & Demand By the supply  side, if [...]

May 4th, 2017|Business valuation, Corporate finance, Merger & acquisitions|Comments Off on The value of a valuation and the timing in selling a business

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