Sun Acquisitions

MAY 15, 2023

Here is a beginner’s guide to understanding valuation for family businesses. Identify Your Valuation Goal: Before getting started, you must identify the overall objective you are trying to achieve with this process. Doing research ahead of time will help determine which valuation methods are best suited for your needs.

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OfficeHours

JUNE 5, 2023

DO NOT let yourself fall victim to such a ploy – instead, follow the tips outlined below to stand out in the interview process: Understanding the Purpose of an LBO As you have likely heard time and time again, knowing WHY you are using a valuation method is just as important as knowing HOW to use a valuation method.

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Focus Investment Banking

APRIL 7, 2024

One aspect that is often talked about and significantly impacts the business landscape is the relationship between interest rates, private equity groups, and business valuations. Impact on Business Valuations: The fluctuation in interest rates not only influences PE activities but also affects how businesses are valued.

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Private Equity Valuation Equities Business 52

How2Exit

FEBRUARY 27, 2023

They offer a range of assets, such as Shopify businesses, WordPress blogs, other content sites, and iOS or Android apps. Monetizing search criteria data can be a great way to increase profits and maximize the potential of investments. Concept 8: Build boring businesses for profit. The blog was sold for $5.2

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Software Equity Group

NOVEMBER 13, 2023

The following blog content has been updated in November 2023 to incorporate the most recent research findings. In 2022, investors and buyers were keenly focused on gross revenue retention (GRR) and gross profit margin (GPM) as top metrics to target. Moreover, gross profit margin experienced a slight decline.

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Focus Investment Banking

MARCH 24, 2024

In the dynamic realm of direct-to-consumer (DTC) businesses, a clear hierarchy emerges in private equity valuations, largely based on the perceived stability, scalability, control over supply chains and customer experiences. The hierarchy in DTC business valuations reflects a balance between risk and reward.

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Sun Acquisitions

JULY 29, 2022

You stand to: Potentially grow your profits. Increase the company’s market valuation. Free up resources to focus on more profitable business divisions. During his 20-year tenure, Welch grew GE’s profits from $1.5 billion to $15 billion and raised the company’s market valuation from $14 billion to $400 billion.

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RKJ Partners

AUGUST 6, 2017

An earnout provision in a business sale refers to a transactional tool used to compensate a seller for future profits or sales. An acquirer customarily wants to buy based on today’s earnings or sales and conversely the seller seeks a price based on tomorrow’s profits or sales due to the “potential” of the business.

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OfficeHours

JUNE 12, 2023

Additionally, you are financially incentivized to work in private equity as firms have carried interest in the funds and share in the profits of their investments alongside the firm’s investors. At the junior level, running the model and valuation analyses will be one of your primary workstreams as a private equity professional.

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Focus Investment Banking

MARCH 10, 2025

Shifting focus to profitable, reliable customers strengthens cash flowwhat buyers ultimately value. These are called addbacks, and are extremely important to valuation. Address Legal/Compliance Lingering issuestaxes, labor rules, or lawsuitscan minimize probability of deal close, extend timelines, lower valuation, etc.

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RKJ Partners

AUGUST 6, 2017

In our latest blog installment, we outline the eight basic steps involved in the buy side M&A process and related insights to assist in a successful execution. Establish Preliminary Valuation. As investment bankers, RKJ Partners, LLC possesses a breadth of knowledge and experience in advising buyers on business acquisitions.

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RKJ Partners

AUGUST 6, 2017

Careful preparation and advanced planning can significantly increase the likelihood of a successful business sale and have a positive effect on valuation. Independent Valuation. The following are proactive steps a business owner should take prior to beginning the business sale process: Recasting Financial Statements.

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Software Equity Group

JUNE 10, 2024

The “Rule of 40” in SaaS valuations is a rule of thumb used to assess a company’s financial health and growth potential. This rule helps buyers and investors evaluate whether a company is effectively balancing growth with profitability. Profitability : We prefer EBITDA as the standard measurement here.

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Viking Mergers & Acquisitions

MAY 25, 2023

Find a Dependable Broker Advisor When selling a small business, a good business advisor is your ally from valuation to closing. Understand the Business’s Value A valuation analyzes a business for its financial worth. Read more about our business valuation process in this blog post.)

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Sun Acquisitions

JUNE 15, 2022

Business valuation, according to the Corporate Finance Institute , is the “process of determining the present value of a company or an asset.”. In this post, we’re going to answer why you need to conduct a business valuation, how you can determine your business value, and how to find the best business valuation specialists.

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OfficeHours

JULY 4, 2023

Now, it is time Case Study From Public Markets To Private Markets In this case study, learn how Officehours transitioned from a public market to a private market and achieved profitability in the process. Celebrating 5 Years of Placements (2020-2024) – Empowering Dreams and Unlocking Opportunities!

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Sun Acquisitions

NOVEMBER 29, 2022

Whatever your motivation for selling, we’re sure you want a seamless transition in which you walk away with a decent profit from the sale. billion valuation by 2030. The first step in positioning your HVAC business for a favorable acquisition is increasing its current valuation. Future profit margins. Client base.

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Midaxo

APRIL 25, 2023

The rest of the blog consists almost entirely of questions and prompts that were posed to ChatGPT to obtain answers on how to create a company-specific M&A playbook. How to outline the process for negotiating deal terms and determining valuation? Fortunately, ChatGPT can make the process much easier.

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OfficeHours

JUNE 5, 2023

Occasionally, once a potential acquisition is identified, consultants help private equity firms structure investment deals by advising on optimal capital structures, negotiating terms and conditions, and evaluating potential exit strategies, while also sometimes providing valuation services to determine the fair value of target companies.

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Sun Acquisitions

NOVEMBER 27, 2023

In this blog post, we will explore a business broker’s indispensable role and highlight why you need their expertise when selling your business. Proper Valuation and Pricing One of the critical roles a business broker fulfills is accurately valuing your business.

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Devensoft

JUNE 14, 2023

These factors can significantly influence a company’s long-term sustainability and profitability. In this blog post, we’ll explore how ESG factors impact M&A deals and provide guidance on how to make sustainable investments. ESG factors can impact the valuation of a target company.

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Sun Acquisitions

NOVEMBER 30, 2023

Attracting potential buyers is crucial to ensure a successful and profitable transaction. In this blog post, we will provide valuable insights into how to list your business for sale and attract potential buyers to maximize your chances of securing a favorable deal.

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Sun Acquisitions

MARCH 27, 2024

In today’s business landscape, mergers and acquisitions (M&A) are not just about profit and market share. In this blog post, we will explore why sustainability and ESG are taking center stage in M&A and how they shape the future of corporate consolidation. These conditions can be included in the deal agreements.

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Focus Investment Banking

DECEMBER 4, 2023

When a seller conducts a Quality of Earnings analysis, the upfront investment, which is lower than the cost of an audit, can yield significant returns, including a higher valuation and a smoother transaction process. A seller that conducts a QofE can often experience a higher valuation. What is a Quality of Earnings?

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Valuation Financial Statement M&A Food 52

Focus Investment Banking

AUGUST 6, 2023

While increasing revenue and profits are almost always the corporate goal, ESG can expedite the process and make it sustainable. Among other advantages, executing ESG effectively can help combat rising operating expenses (such as raw-material costs and the true cost of water or carbon), which can affect operating profits by as much as 60%.”

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Wizenius

MAY 19, 2023

In this blog post, we will explore an influential concept coined by finance guru Ashwath Damodaran—the Golden Triangle. Return on Capital (ROC): Efficiency Meets Profitability Return on Capital evaluates a company's proficiency in generating profits from the capital invested in its operations.

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Sun Acquisitions

APRIL 17, 2024

In this blog post, we’ll explore the key steps to prepare your business for potential buyers in mergers and acquisitions. Valuation can be done through various methods, such as market analysis, income approach, or asset-based valuation. Strengthen Customer Relationships Your customer base is a valuable asset.

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Focus Investment Banking

JUNE 25, 2023

A business segment’s place in my hierarchy of value is determined by a mix of things, like profitability and margins, recent market activity, positive or negative long-term trends and threats to the business model. The primary driving factors here are EBITDA, gross profit margins and recent market activity for these businesses.

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OfficeHours

OCTOBER 16, 2023

Some of the other positives of an IPO exit include the potential for higher valuations (as public markets might offer a higher valuation than a sale to another private entity) and liquidity (as the PE firm can convert existing shares into cash). the secondary buyout described in more detail below).

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Sun Acquisitions

APRIL 10, 2024

In this blog post, we’ll explore the key steps to prepare your business for potential buyers in mergers and acquisitions. Valuation can be done through various methods, such as market analysis, income approach, or asset-based valuation. Strengthen Customer Relationships Your customer base is a valuable asset.

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Mergers and Acquisitions Business Mergers Acquisitions 59

Sun Acquisitions

FEBRUARY 10, 2023

Step #2 Have a Business Valuation Done Determining the value of your hotel is best left to a business valuation expert. Market trends: These will be weighed into the final valuation. Do you need to work on customer service or perhaps revise your marketing strategies?

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Sun Acquisitions

OCTOBER 4, 2024

An increase in capital gains taxes can directly and profoundly impact the valuation of M&A transactions. Understanding Capital Gains Taxes Capital gains taxes are levied on the profit realized from the sale of an asset held for more than one year. This reduction in net proceeds can lead to a lower valuation for the target company.

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Sun Acquisitions

APRIL 24, 2024

In this blog post, we’ll explore the key steps to prepare your business for potential buyers in mergers and acquisitions. Valuation can be done through various methods, such as market analysis, income approach, or asset-based valuation. Strengthen Customer Relationships Your customer base is a valuable asset.

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Mergers and Acquisitions Business Mergers Acquisitions 52

Sun Acquisitions

DECEMBER 15, 2023

In this blog post, we’ll explore some of the most common mistakes to avoid when selling your business and offer insights into how you can navigate the process more effectively. To avoid this mistake: Conduct a thorough valuation of your business.

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Sun Acquisitions

APRIL 26, 2024

This blog post delves into the intricacies of different financing models, shedding light on the associated risks and rewards. On the flip side, if the merger generates synergies and increased profitability, debt financing can yield substantial rewards, as debt is often lower than equity.

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Software Equity Group

MARCH 26, 2024

And it typically boils down to a few common elements that successful SaaS companies do particularly well: High-quality SaaS companies feature predictable, recurring revenues, solid unit economics , and high gross margin and gross profit rates. The firm currently employs 31 professionals. The firm employs 93 professionals.

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Software Equity Group

JUNE 18, 2024

This blog will guide you through the essential elements affecting market timing, helping you make informed decisions to maximize your return. High demand (explained in the next section), combined with strong economic forecasts, creates a fertile environment for achieving exceptional valuations and maximizing returns.

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