private equity

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How Private Equity Groups Value Companies

In this third part of our series on Private Equity Groups (PEGs), we will examine how PEGs perceive value.  But first, we must define what it is that PEGs are valuing. In almost all cases, when a PEG makes an offer for a company it is based on the Enterprise Value of the firm.  The [...]

2018-04-12T06:09:16+00:00 April 12th, 2018|Mergers and Acquisitions Posts|0 Comments

How Private Equity Groups Invest in Companies

How Private Equity Groups Invest in Companies In this second part of our series explaining the role Private Equity Groups (PEGs) play in the lower middle transaction market, we review how PEGs structure investments in companies.   Generally, PEGs seek to make investments as one of two types; a platform investment where the [...]

2018-03-21T14:50:33+00:00 March 21st, 2018|Mergers and Acquisitions Posts|Comments Off on How Private Equity Groups Invest in Companies

Private Equity Groups Explained

When M&A advisory firms such as ours engage with owners to sell their business, one of the first steps of the process is to identify what type of buyer would be interested in the acquisition.  In general, there are always three types of buyers; financial buyers interested solely in the returns of the opportunity, strategic [...]

2018-02-21T10:36:20+00:00 February 21st, 2018|Mergers and Acquisitions Posts|Comments Off on Private Equity Groups Explained

How to Choose: Adjusted EBITDA vs SDE Multiples

Adjusted EBITDA1 and SDE2 are common base figures used in calculating company value.  Selecting which to use is imperative in determining the sale price of a business and defining what that value is. General Rules of Thumb Companies are usually valued at 3-6 times adjusted EBITDA or 1-3 times SDE. Earnings less than $1,000,000, use SDE [...]

2018-01-05T14:21:36+00:00 May 31st, 2016|Business Valuations, Resources, Sell Your Business 101|Comments Off on How to Choose: Adjusted EBITDA vs SDE Multiples

Reports Indicate: Now Is The Best Time To Sell Businesses

The best time for selling a business, at least for the foreseeable future, may be right now.  For businesses valued over $3 million, a strong seller’s market has been created by private equity groups (PEGs) flooded with cash – but it won’t last forever.  For those businesses under $3 million, who are generally too small for [...]

2018-01-05T12:53:31+00:00 November 29th, 2015|Articles, News|1 Comment