Earn-outs are a common feature of many private company sale transactions. An earn-out is a mechanism that provides for a portion of the agreed purchase price for a business to be payable contingent on certain future conditions being met. For example, an acquirer might agree to purchase a company for $60.0m but only pay $40.0m in cash up-f... Read More
In any business sale transaction, valuation is always a key consideration. Central to understanding company valuation is having a firm grasp of the concept of a valuation multiple, which is an extremely common valuation tool, particularly for private companies. A valuation multiple is simply a ratio that expresses the value of a company a... Read More
A key distinction in company valuation is the difference between enterprise value and equity value. For a business owner engaged in a sale process, understanding this distinction is essential. Equity Value Equity value refers to the market value of the owners’ shares in a company. In the context of publicly traded companies, it is commo... Read More
A company is not just numbers in an Excel spreadsheet, it is a business brand. And for those looking to sell their company it is often one of the most misunderstood components of the business sales process. Lets imagine that you have finally decided to sell the family home. It’s been a big decision but the time feels right. You have an ... Read More