Bridging company valuation disputes with investment risk-sharing formulas
Many private investment transactions do not close due to issues about how future business risks are allocated between the parties. Investors often want to take as little risk as possible, which leads to them offering lower entry company valuation. Company owners, on the other hand, often reject low company valuation. This is because they do […]
React to your company’s need for capital before it is too late!
The need for an increase in capital to stay competitive is very common. It is possible that the business owner, especially when he or she is already in an advanced stage of life, will not be willing to reinvest capital that has already been extracted from the company. Before this, he prefers to exit the […]
What is my company’s brand worth?
When selling a company, business owners try to value different elements of their businesses. This includes assets, cash flows, and business relationships. Together they help to determine an appropriate sale price. In reviewing elements of their businesses that have value, one question that business owners often ask is, “What is my company’s brand worth?”. The […]
Everybody is selling their business!
The M&A wave is rampant. Never have prices been as high as today. Never has there been so much liquidity in the system. Moreover, interest rates have never been so low, so never has it been this easy to borrow money. Hence, we could say everybody is taking the chance of selling their business. The […]
Handeling an MBO: Buying a company as an executive
As an executive in a company, such as its manager or director, you might think that the owners of your company would want to sell it to a third party instead of to you. On the other hand, there are a series of reasons that make it more logical for them to choose you for […]
Do you have a clear profitability model?
The profitability model explains how a company makes money while creating value for the client at the same time. The business model should not only help you to serve your client distinctively, it must also pursue that the company gain a high return for shareholders. How to identify your profitability model The DuPont formula helps […]
The Search for Capital and Five Levels of Investor Trust
When entrepreneurs and businesses seek capital, they often focus on presenting a compelling business case with clear investor returns. While returns matter, building lasting investor trust is essential to secure funding. Without trust, investors rarely invest, no matter how promising the opportunity appears. Entrepreneurs should aim to create five key levels of trust during discussions […]
Negotiation is power when selling a business
Power is very relative. When selling a business, during a negotiation this power will depend on your alternatives and the alternatives of the other party. Don’t forget that emotions are more than 50% of a negotiation. Verify the power of the other party, it is normally overestimated In a negotiation, perceptions are crucial. It’s fundamental […]
Buying a business with a financial partner
When buying a business, you are going to marry that financial partner, so you better do your homework when choosing one. How to choose the right financial partner If you choose the wrong financial partner, your life as an executive in that company could be hell. Therefore, the first thing that we recommend is analyzing […]
Deal advised in the tourism and ICT field: Grupo CMC acquires Brújula
Grupo CMC acquires Brújula in a new M&A deal. This positions the group as the business solutions provider of reference in the tourism sector. Grupo CMC, a Spanish consulting firm in the Information and Communications Technology (ICT) field, becomes one of the leading suppliers of technological solutions and ICT services for the tourism sector, with […]