In today’s digest we explore why it’s helpful to have M&A professionals on your side when taking a business to market, how private equity’s high amount of dry powder affects the privately owned businesses, and questions that you know an interested buyer will ask. Click on the headlines to read the full story.
M&A Professionals – Why You Need Them
“Some of you may be familiar with the various methods used to value privately held companies. Many of you, however, are probably using methods that undervalue your company. Professional M&A advisory firms and investment bankers use a variety of methods to value their clients. The breadth of the models used are based on their experience in your industry and related industries, your expected growth, the projected growth and health of your industry and end markets, and a myriad of other criteria.”
Dry Powder Update
“Based on Preqin data released in late November, the amount of dry powder being held by equity firms has reached new highs…What does this mean for owners of privately held companies?
Simply this: The next few years could the best in quite some time to find an equity firm to invest or outright acquire your company. In fact, given the huge amount of capital available, professional business buyers will be in bidding wars with strategic players for acquisitions.”
Questions to Expect from Investors
These eight questions reveal how business buyers determine the price and deal structure they’ll offer for your company.
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