Risks, Reps and Warranties

Managing Risk in an M&A Transaction For all their potential benefits to both buyers and sellers, acquisitions are risky. Broadly, the risk associated with any M&A transaction falls into three categories: Financial. A buyer may not understand the true financial picture and prospects of a business. Value may change materially during or shortly after the […]

Preferred Valuation Technique: Discounted Cash Flow

In the previous article we examined the popular EBITDA Multiple approach to estimating a company’s value. Discussing its benefits and limitations, we concluded that while the EBITDA Multiple worked as a starting point, serious buyers and sellers needed a more nuanced valuation technique like Discounted Cash Flow (DCF). Both methods determine the value of a […]

Valuation 101: the EBITDA Multiple

Last month we took a high-level look at different approaches to valuing a company. We noted that, because of their ability to reflect the future economic benefits of an ongoing business, cash flow methodologies are most commonly used in business valuation. These include applying a multiple to an income or cash flow number, capitalizing cash […]

Working With an M&A Advisor

Last year’s articles have walked through the process of purchasing a company, viewed from the acquirer’s perspective. Before moving on to acquisition integration, let’s pause and look at how to work with your M&A advisor.   Role M&A advisors can provide a wide range of services. Understanding the possibilities, and identifying which services are of […]