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Ownership Transfer Issues in the Sale of Professional Services Firms

Focus Investment Banking

Are you the owner of a Professional Services firm? I remember an acquisition I worked on where there were senior partners with control nearing retirement and several younger partners who each owned minority stakes in the business. As we explained how the acquisition would work, the younger partners sat in stunned silence.

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How to Accurately Calculate Gross Margins (and Understanding Their Importance) at Professional Services Firms

Focus Investment Banking

If you’re considering the sale of your consulting or professional services business, you should understand that buyers will be examining your Gross Margin as an indicator of the value of your firm. Professional services companies make money by billing out their experts and consultants at rates higher than the employee cost.

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Earnouts: Sometimes a “Bridge” Too Far

Focus Investment Banking

But do earnouts consistently bridge the gap between buyers and sellers in Consulting and Professional Services deals? In the realm of Consulting businesses, where the primary assets are often intangible—knowledge, relationships, and expertise—maintaining these assets post-acquisition is paramount for buyers.

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10 Concepts You and I Can Learn About M&A and Creative Deal Structuring From How2Exit's Interview With Roland Frasier Investor, Business Mentor and Strategist

How2Exit

Through his experience, he learned the power of leveraged buyouts and how they could be used to finance acquisitions. However, many of these people find that they haven't built a sellable business and don't know how to professionalize it. This inspired him to start looking at how he could use the same strategies to acquire businesses.

M&A 130
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THE M&A MARKET CONTINUES TO GROW IN 2022

Lake Country Advisors

Various sectors from different industries have experienced consistent growth in 2022, thanks to the professional services of reliable M&A business advisors in Wisconsin. Why is it a Seller’s Market for a Merger or Acquisition in 2022? We are seeing this trend continue across all sectors.

M&A 52
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Will There Be an IPO for a Specialty Consulting Company in 2024?

Focus Investment Banking

And will that mean that some of the privately held management consulting firms or other professional services companies will choose an IPO this year? It has been some time since a professional services firm chose a public offering as a liquidity strategy. But those companies have been public for more than 20 years.

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Event-Driven Hedge Funds: The Best Home for Bankers Turned Investors?

Mergers and Inquisitions

Part of the issue is that many different strategies fall within the “event-driven” category: merger arbitrage , activist investing , distressed investing, special situations, and more. Event-driven hedge funds differ from other funds because they rely on specific “hard catalysts,” such as acquisitions and divestitures.

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