Private Capital Markets: Valuation, Capitalization, and Transfer of Private Business Interests, Second Edition
Now fully revised and in its second edition, Private Capital Markets provides appraisers, accountants, lawyers, bankers, estate planners, intermediaries, and other professionals with a framework for making sound investment and financing decisions based on their own needs and experiences.
“In the years since publication of the first edition of Private Capital Markets, the concepts and ideas [...]
Are we witnessing the beginning of the return of manufacturing to the U.S.?
“Manufacturing is starting to move back to the west,” says Pippa Malmgren of the Canonbury Group. Speaking to the CFA group from the beautiful Usher Hall in Edinburgh, Scotland, she commented that you’re seeing events like the Chinese taking a position in Volvo. Or you’re seeing international investment in farmland in Australia. “International markets respond [...]
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 [...]
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 [...]
Want to take a graduate course from a leader in valuing your business?
Another semester has begun for Aswath Damodaran, Professor of Finance at the Stern School of Business at NYU, who’s perhaps the best-recognized teacher of corporate finance and valuation. He comments in his Musings on Markets he is “just as excited as I was the day that I taught my first class” in 1986.
Here are two of several [...]
Business owners and brokers can find 142 more current private company financials and market comps
Doug Twitchell, Publisher of Pratt’s Stats, let businessvaluation.com know that 142 private company deals were just added to the database. Updates occur regularly so that private company owners, business brokers, and business appraisers can review current transactions to get a better sense of market pricing.
The new deals include financial statements, deal terms and purchase price, for [...]
Having trouble selling your minority shares? Try these new “secondary markets”
Adam Oliveri, Managing Director for SecondMarket, told commercial lawyers at the ABA Business Law Sections annual meeting in Denver last weekend that “the public capital markets are broken.” This comes as no surprise to BV.com readers!
SecondMarket is one of the new centralized sales platforms for illiquid assets, and here’s some evidence from Oliveri regarding [...]
Depressing: median sale price/revenues is now 47%
If you’re thinking of selling your business in 2010…take care. Valuation multiples have definitely taken a fall over the past two to three years, and the newest data from Pratt’s Stats® shows no sign of the much-publicized “recovery:”
Year of Sale
Count
Median revenue
Median selling price
Median price/ sales multiple
Median price/ gross profit
2007
1,493
$844K
$419K
0.58
1.03
2008
1,626
$535K
$250K
0.52
0.88
2009
862
$483K
$207K
0.47
0.74
“It’s important to note that the above includes [...]
How do business owners think?
A new study by Pepperdine University, reported to BV.com by John Paglia, an associate professor of finance at Graziadio School of Business and Management there, shows that private company owners can generally be described as gut-feel, risk taking operators with short term payback expectations.
A large number of private business owners would take a business risk (91%) [...]
Just in case you thought celebrity doesn't have value…
Two professors at UC Davis, a school that prides itself on unusual market analyses, have determined that shareholders of Nike, Gatorade and other Tiger Woods sponsors lost a collective $5 to $12 billion in the wake of the scandal involving his extramarital affairs.
Victor Stango and Chris Knittel, professors of economics at the UC Davis Graduate [...]
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