Financing & Valuation of a Merger or Acquisition

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Valuation Range and Seller’s Debt in an M&A Indication of Interest

The valuation range is the heart of the M&A indication of interest. Because the indication amounts to little more than a “dipping the toe in the water” exercise [more…]

The Importance of the M&A Valuation Range

To help create a visual of the importance of the M&A valuation range, imagine a dog. Specifically, a retrieving-mad Labrador retriever. Hold up a tennis ball in front of said retriever and shake your hand [more…]

How to Evaluate the M&A Deal Offered

After Seller gets over the disappointing shock of a low M&A bid or anticlimactic relief of an acceptable range, the next step is to read the actual indication of interest document. The indication should [more…]

M&A Letter of Intent: Valuation and Deal Structure

Valuation is the key number everyone looks for in an M&A deal. Usually the valuation appears in the third or fourth paragraph of the LOI (letter of intent). [more…]

M&A Letter of Intent: Financing Contingency

Most letters of intent (LOI) contain some info about where Buyer proposes to obtain the dough needed to effect the M&A transaction. Sellers should pay very careful attention to this part of the LOI. The [more…]

Ways to Structure an Earn-Out to Bridge a Valuation Gap in an M&A Deal

In an M&A deal, the venerable earn-out is a favorite deal component for Buyers because it allows the Seller to prove the company’s profitability. If the company achieves the goals Buyer and Seller agree [more…]

Resolve M&A Valuation Differences: Hire the Seller

To get past the valuation impasse, Buyers are often willing to keep the Seller on as an employee of the company or as a consultant. This arrangement is beneficial for both Buyer and Seller. Buyer receives [more…]

Ways to Solve Valuation Differences in an M&A Negotiation

Valuation is always the million-dollar question — well, often the multimillion-dollar question — in an M&A negotiation. To get past the valuation impasse, here are a few ideas on ways Buyers and Sellers [more…]

Inventory Carrying Valuation Methods

You may be thinking that valuing ending inventory is a no-brainer — you just value inventory at whatever the original cost happened to be for whatever is left in inventory at the end of the financial period [more…]

Three Things Investors Look for in Online Start-Ups

When screening new online business start-up ideas, investors generally make a call whether or not to invite you in based on these three key factors: [more…]

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