Keynote from the Business Transitions Forum in Vancouver, BC.
Learn how to determine the price you'll receive when you sell your company and what you can do to ensure the price is fair. This talk describes the market factors which affect the price and describes what you can do to maximize the final valuation.
Highlights from How Much Will Your Company Sell For?
This was a talk to several hundred M&A professionals at the Association of Mergers & Acquisitions Advisors annual conference. The organizers asked me to discuss ways to increase the final selling price.
The first step: Hire a really good M&A Advisor - seriously
Isn’t going “from 3x to 7x” the main reason to hire an M&A Advisor?
Selling a business for 3x is a heck of a lot ea...
For almost every M&A transaction the Confidential Information Memorandum (CIM) contains both actual financial results and projections. (The rare exception is a company whose entire value is a patent portfolio.)
In companies with external investors, management teams are familiar with projecting financials. This is a necessary part of projecting future financing requirements.
For internally financed companies that are ready to exit, the enti...
My bookshelf has an entire section of books on valuation. Even though I deal with valuation every day, I haven’t looked at any of those books for at least a couple of years. It’s just not a process you need reference books for. Most of the time, acquisition valuations can even be done without a spreadsheet – many professionals will work out the valuation on a whiteboard or even a post-it-note.
That sounds simple, but valuation is actually qui...