The best source for all the public company acquisitions last year
After large declines in the activity of mergers and acquisitions in 2008 and 2009, the soon-to-be-released 2011 Mergerstat Review reports they are on the increase.
The number of mergers and acquisitions announced in 2010 was 9,116. This represents an increase of about 34% from 2009. The total value of announced mergers and acquisitions that disclosed a [...]
New ways to commercialize your intellectual property require new management and audit skills
Businessvaluation.com is attending AUTM’s annual conference in Las Vegas, where we’ve noted Mike Moberly’s February 18 blog post.
Moberly believes the models for IP development are changing, and license agreements are getting ever more complex. What factors will affect IP value from early to later stage development? As attendees here agree, it’s all about risk… identifying [...]
The true value of your business may not lie in the financials
We’ve regularly emphasized that owners and deal-makers can underestimate the value of intangibles. This error makes sense…many intangibles remain invisible on the balance sheets of small businesses.
“Let’s see. Right here on the balance sheet are all of your assets? Book value would be …” You may have had a conversation like this recently, and [...]
What are the key issues for family owned businesses in 2011?
The PWC Family Business Survey 2010/11 indicates family business owners are exhibiting “post-crisis wariness” and are “waiting for greater market certainty” before implementing new business plans. Nevertheless, the survey shows family businesses are poised for growth.
The top 5 areas family businesses plan to invest in to improve productivity and competitiveness are:
1. IT infrastructure
2. HR/training
3. Sales [...]
Watch out for deferred IT costs when acquiring new companies
Gartner reports that 2009 was the worst year ever for IT growth. They say midsize companies halted spending—and were refocusing on extending the useful life of technology assets.
Writing for Pitchbook, Stan Mork of RSM McGladrey offers this very reasonable warning to any one involved in dealflow:
What does this mean for the transaction process? Outdated, undersized, [...]
Competitive research from BizMiner updated with 2ndQ 2010 data
“Responding to feedback we received from the last BizMiner “mid year” update, we’ve reconfigured the reporting years (not metrics) slightly,” reports Jon Brandow (BizMiner). The new release will carry over the year-end data and add an additional column that represents a mid-year update (in most cases, for the 12 months ending QII-10).
The following series have [...]
An investment strategy based on IP value beats the market
Ocean Tomo tracks, at a macro level, the components of the S&P 500 market value. It’s a familiar graphic for those who do a lot of IP valuation, but it’s still a shock to realize that 79% of corporate balance sheets are made up of intangibles. “There’s a lot wrong with this number,” admits Michael [...]
You’ll get a better price from ’strategic’ buyers now than you will from ‘financial’ buyers
Strategic buyers paid record premiums of 40.9% in 2009, as reported by BVR financial analysts working with Mergerstat®/BVR Control Premium Study™ data. After acquisitions practically grinded to a halt during the deep U.S. economic drop, deal activity began picking up. Capable strategic buyers capitalized on opportunities—and were willing to pay a premium for them. Financial buyers, [...]
Thinking of acquiring a business? A fairness opinion provides protection
If you’re in acquisition mode, there’s a small legal detail you may face–getting a fairness opinion. During the recent BVR webinar on fairness opinions, Jeffrey Rothschild (McDermott Will & Emory) told the audience there are generally two different models of fairness opinions; one by Goldman Sachs and the other by Houlihan Lokey. The Goldman model [...]
One way to increase the value of your business
by Dave Kauppi, CBI, principal at MidMarket Capital Advisors, LLC
At one point or another all business owners face the question how to transition ownership of their business to another party. It’s what we call Exit Planning and Strategies. This process can involve turning over the reins to a relative, merging the business with a larger [...]
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