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M&A Blog #14 – valuation (roles, types, equity & enterprise values)

Francine Way

The market conditions The context of the transaction: Privately negotiated sale will have different mechanics than an auction. A company’s value depends on the type of transaction being considered, the buyer’s identity, the way the purchase price is negotiated and ultimately determined, and the level of liquidity created by the transaction.

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New Buyback Reporting Rules May Expose Deal Talks

The Deal

Corporate advisers suggest the disclosures could wreak havoc on private merger negotiations by inadvertently outing private merger talks and providing fodder for activist investors agitating for deals.

Shares 52
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How Private Equity uses ‘Roll-up’ Strategies to Drive Investment Returns

OfficeHours

As one example, BrightView, now a publicly-traded company, developed as a roll-up of smaller landscaping businesses and has been owned at various times in the past by private equity firms including KKR, MDS, and Leonard Green, among others. To illustrate this point, let us consider the landscaping industry.

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The Role of Due Diligence in Successful M&A Transactions

Sun Acquisitions

It enables the acquirer to make informed decisions, negotiate better terms, and potentially avoid costly mistakes. It provides a solid negotiation foundation and ensures the transaction aligns with the acquirer’s strategic goals.

M&A 52
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Why Aren’t More Tire Dealerships Going Public?

Focus Investment Banking

The benefits of going public are significant. First, there’s the ability to raise substantial capital by issuing shares to the public in an initial public offering (IPO), as well as secondary offerings. Lastly, going public is a liquidity event for the founders and early investors, allowing them to cash in on their success.

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Why Software Companies Choose Software Equity Group

Software Equity Group

The journey can be arduous, from grappling with due diligence, negotiation intricacies, and legal hurdles to managing customer relationships concurrently, driving revenue growth, and fostering innovation. Understanding their preferences and priorities significantly contributes to our ability to negotiate successfully.

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Mergers and Acquisitions Valuation Strategies: Unlocking the Secrets to Successful M&A Transactions

Sun Acquisitions

Accurate valuation is essential for the following reasons: Price Negotiation: Valuation provides a starting point for negotiations. Comparable Company Analysis (CCA): CCA involves comparing the target company to similar publicly traded companies. Valuation strategies should be flexible and adaptable to changing circumstances.