A FINANCIAL QUARTERBACK NEGOTIATES AROUND THE EDGES

By Dewey Hammond

"A billion here, a billion there, and pretty soon you're talking about real money." While the money may not be quite that big in a middle market M&A transaction, the late Senator Everett Dirksen’s famous line makes a point that every business owner considering selling his or her business should understand. Hiring an experienced financial advisor or investment banker offers many benefits, including reducing risk, saving time for management, and maintaining confidentiality. However, the business owner's main motive is usually to maximize value.

HAVING YOUR CAKE AND EATING IT TOO: SELLING CONTROL TO A PRIVATE EQUITY GROUP

By Andy Stockett

Let’s say you’ve grown your company to $10 million in revenue with adjusted cash flow (or EBITDA - Earnings before Interest Taxes Depreciation and Amortization) of $ 1.5 million.

Going to the “next level” requires additional debt (i.e. a loan from your bank with your personal guaranty on it).  Competition in your industry is fierce and to stand still is to die a slow death.  So, the question becomes whether you should push all your chips back onto the table with additional debt or pursue the alternative of “partnering” with a Private Equity Group (PEG)?

BUILDING BUSINESS VALUE FOR A SALE

By Chris Rowe

It is difficult to predict when a business owner may want or need to sell.  In the past, owners typically passed businesses to their children, but that practice is not as prevalent in today’s society.  Therefore an owner should always focus on building a company that would attract the best price from a potential buyer.  By recognizing the factors that affect value, an owner can prepare his or her company and maximize the ultimate selling price.