Report from ACG: Transaction Costs And Risks Rise; Buyers Change
BV.com has attended three of the major “intermediary” meetings in the last several months, beginning with the IBBA and AM&AA Annual Meetings. But, the dean of the group is InterGrowth, held last month in San Diego. This is the largest gathering of members and leaders of the Association of Corporate Growth (ACG).
Different market segments, different [...]
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 [...]
Business analysts often ignore the value of internally developed trademarks
Fernando Torres (IPmetrics), a leading intellectual property value analyst, proposes an econometric model of trademark values in the IPmetrics blog. Torres believes internally developed trademarks are frequently underreported in financial statements—and that they deserve a sound and consistent valuation solution. IPmetrics built a database of relevant transactions that allows them to perform empirical studies to support [...]
Which law firm did the most private market deals in 2010?
Skadden Arps wins–or so reports the Mergermarket Group. They’ve also issued a 2010 summary that joins the ranks of very optimistic analyses of the return of the merger and acquisition marketplace.
Highlights of their data include:
Global M&A up 25% from 2009
Strongest year for private equity buyouts since 2007
Cross-border deal flow up 73% from 2009
Most active year [...]
Further evidence that “strategic acquisitions” are leading M&A activity out of the slump
“M&A transaction activity saw significant improvement in 2010. A recovery in business valuations leading to more motivated sellers, an easing in the financial credit markets and the global economic recovery,” reports George Steinbarger (PCE Investment Bankers) in “State of the M&A Markets Year End 2010.” PCE’s report, based on data from Capital IQ, indicates “valuation multiples [...]
One way to save money on purchase price allocation compliance?
According to a recent Duff & Phelps article, “Maximizing Value through the Integration of Transfer Pricing and Purchase Price Allocation,” valuation practitioners in a business combination scenario, should be aware of the hazards of preparing separate analyses – one that determines the fair value of assets and businesses for financial reporting purposes and one to [...]
Is the new management good enough to warrant a control premium?
In The Use and Application of Data for Control Premiums and Discounts, Gene Trevino (Valuation Associates Inc.) challenged a somewhat standard private equity belief. “The key question to ask,” says Trevino, “is can a buyer of a controlling interest do better at managing the company than the current owner? If you can’t do a better [...]
Insiders see marked increase in middle-market private equity deal activity
One source of what businesses are selling for is GF Data Resources. They track and pool transactions from 150 active PE firms.
Those firms completed approximately 20 deals in the first quarter of 2010 and 30 deals in the second quarter–“up a bit from the ‘death valley days’ of ’09, but still well off of the 40-plus [...]
Will you have to settle for less than the real value of your company?
It’s an interesting question these days for buyers and sellers. “These days, a private equity investor will see intrinsic value as lower than M&A value might be if the seller won’t roll over cash,” says Michael Poole (PCE), speaking now at the ASA/CICBV Annual BV Conference. “They figure that the sellers must be worried or [...]
Every one has their own opinion, but at least one credible source thinks the M&A market has stablized
“Entering the second half of 2010, the M&A market is well-positioned for a continued rise in activity thanks for major developments in key sectors,” according to the recent report, “Deal Drivers North America”, published by mergermarket in association with Merrill Datasite. The “Technology, Media and Telecommunications” sector had the strongest increase in deal flow over [...]
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