Author Archive

Jeff Hooke

FOCUS Senior Advisor
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Large M&A Sellers Consistently Get Higher Prices than Small Sellers

2015 FactSet statistics show that large M&A transactions had higher value multiples than small deals—and the premium is about 30 percent. Median EV/EBITDA multiples for deals exceeding $250 million approximated 12.4x, while the ratio for middle-market transactions was 9.5x. This phenomenon of higher multiples for larger deals has been persistent over time.

Leveraged Buyouts – Valuation Update

Leveraged buyout transactions (LBOs) provide good valuation guidelines for those companies that fit the general profile of an LBO candidate. The profile’s main attributes are:

  • Low tech business
  • Steady earnings and positive cash flow through the business cycle
  • Low debt-to-equity ratio so the LBO candidate can take on extra debt

LBO transactions often are included …

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Fairness Opinions: Five Factors to Consider When Selecting a Firm to Provide an Opinion

A fairness opinion is a black and white finding from an investment bank or business valuation firm, stating that a transaction (such as a merger or divestiture) is either fair or unfair from a financial point of view. Generally considered a requirement in public deals, a growing number of private, middle-market firms seek fairness opinions.…