Is that patent worth buying?
Many of the failed business acquisitions recently have run aground because of issues related to poor due diligence of intellectual property–particularly patents. David Wannetick commented yesterday on how patents create value on the Axial Markets blog. He writes: “Savvy licensing professionals will conduct intensive due diligence to understand the dynamics of their potential [...]
More evidence of economic rebound: new study analyzes earnouts as a portion of purchase consideration
“The mergers and acquisitions (M&A) market generally rebounded with more transactions and a higher median purchase price than in 2009,” says the latest (10th annual) Purchase Price Allocation Study by Houlihan Lokey (HL), the first time the study has analyzed earnouts, or contingent consideration (CC), as a component of purchase consideration (PC) under the requirements of [...]
Size premium driving middle market M&A activity
Data published in GF Data’s Second Quarter 2011 Report reveal unprecedented differentials in the valuations and debt multiples between small and large transactions, according to a recent GF Data press release. The gap “indicates the resurgence of an even more severely bifurcated market that is less accommodating to smaller transactions,” the GF Data sources add. [...]
SOX costs have shifted private firms exit strategy, new study says
The costs of complying with the Sarbanes-Oxley Act of 2002 (SOX) for private firms that are still trying to find an efficient if not profitable exit strategy is the subject of a new study by Francesco Bova and Gordon Richardson (Univ. of Toronto), Miguel Minutti-Meza (Univ. of Miami), and Dushyantkumar Vyas (Univ. of Minnesota). Among [...]
Need market comps for your family business?
If you want to see what sort of values businesses are getting in the market now, we’ve just added over 400 new private company transactions to BIZCOMPS, bringing the total in the database to over 12,000. BIZCOMPS focuses on small company transactions; the median selling price of the companies added is $166,000. So, it’s a [...]
More restaurants sold in the last few months than any other type of business
Pratt’s Stats has just added 511 transactions in the past two months, taking its deal total to 17,554. The median net sales of the newly collected transactions equaled $438K with a median selling price of $200K. Here’s how the deals break down by major industry:
Industry
Count
Restaurants
98
Tech companies
44
Insurance agents
21
Lawn and garden [...]
Average deal termination fees at 3.5%
The just-released 2010 Transactions Termination Fee Study by Houlihan Lokey (HLHZ)—which summarizes key metrics for 2008-2010 M&A transactions—shows termination fees as a percentage of transaction value ranged from 0.9% to 30.4% in 2010, with a mean of 3.5% and a median of 3.3%–slightly higher than the mean in 2008.
“Properly crafted, a termination fee provision can [...]
Researching acquisitions? Pitchbook reaches 50,000 deal milestone
PitchBook has alerted businessvaluation.com that it’s pushed its deal count beyond 50,000 domestic and international transactions (representing over $6.24 trillion of invested capital) in the PE and VC universe. These transactions—plus data on deal sizes, transaction multiples, investors, sellers, lenders, service providers, company financials and more—are available on the Pitchbook platform.
Over 41,000 companies, 14,000 investors, [...]
Search the financial statements and deal documents of over 20,000 M&A deals with one click
Subscribers to Pratt’s Stats and Public Stats have long been able to search private sold businesses and public sales without commingling the summary results: but now, with recent changes to the system, users can toggle back and forth between the two databases with one click. For instance, if you’re looking for information for a company [...]
2011 Mergerstat Review now in stock
The 2011 Mergerstat Review is now in stock and ready for delivery. If you’re involved in mergers and acquisitions in any way you’ll want to add this book to your library. It not only reviews the 2010 M&A activity in a statistical analysis section but it also includes a 2010 industry analysis, a 2010 geographical [...]
Share your thoughts..