According to Business Valuation Resources, new analysis shows time needed to market and sell a privately held business is 211 days, up from 200 days in previous analysis. Todd Nelson, Capstone Valuation Advisor, weighs in on these observations: “There are many variables that impact the time it takes to complete a private company sale. Those …
Category: M&A and External Growth
Quarterbacking the Acquisition Team
With football season starting, I am reminded of the indispensable role of the quarterback. In the same way that a quarterback can lead a football team to victory, your Acquisition Coordinator should lead the Acquisition Team to a successful acquisition. The Acquisition Coordinator’s job is to manage the process and drive it forward. This key …
How to Get a “Fat Cat” to Buy Your Small Business
How do you get a large company to buy your small business? In this video interview with Matthew Lesko, I’ve shared some of my tips & tricks. In many ways, selling a company is like selling a house. My number one recommendation is to make your company easy to buy. How can you do that? …
Future Private Equity Deals Likely
by John Dearing, Capstone Managing Director GF Data recently published a report noting private equity deals valued between $10 and 250 million averaged 6.4x – the highest levels in three quarters. This data is an interesting indicator of the M&A market. Although multiples are up, deal volumes remain sluggish for private equity as a whole. …
How to find the Perfect Acquisition Target
Acquiring the right company is the key to acquisition success. Your target should fit into your company’s overall strategic vision and add value to your business. To determine what this company looks like and to find it, develop prospect criteria. Keeping in mind your business strategy, sit down with your acquisition team and write your …
In an Acquisition Process, the Buck Stops With You
As you go through the M&A process, you may find that advisors are both necessary and helpful to assist you. However, you must maintain your leadership role. I find that particularly toward the end of the acquisition process, executives imagine that they should hand the reins to a more “experienced” professional. This would be unwise. …
China’s Rising Investment in the U.S.
Capstone recently was invited to the Virginia Economic Development Partnership (VEDP)’s Chinese Investment Promotion Agency (CIPA) Delegation Seminar to present on M&A opportunities for Chinese companies in Virginia. There are many opportunities for investment; see some of the latest trends in the chart below. China’s inbound and outbound M&A activity has been rising, with 47% …
Healthcare M&A Can Only Grow
Two major hospital acquisitions announced this summer will result in huge hospital networks and likely create pressure for other hospital deals. Tenet will buy Vanguard Health for $1.73 billion and Community Health will buy HMA for $3.6 billion. Combined with Vanguard Health, Tenet will become No. 1 or 2 in 19 key markets, including San …
Investment Looking Up
by John Dearing, Capstone Managing Director Housing prices are on the rebound, there’s talk of interest rates on student loans increasing and Private Equity fundraising has reached the highest level since the financial crisis began. In Q2 2013 PE raised over $122 billion, a 36% increase from the same period one year ago (Q2 2012). These …
Due Diligence: More than Just a Checklist
What comes to mind when you think of “due diligence”? Most people picture an army of lawyers and accountants who pore through financials and company records after the letter of intent is signed. Once they uncover the significant risks, the deal is renegotiated based on their findings. But due diligence is more than just a …
