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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 …

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.…

Closing the Gap between Valuation and Proceeds: What Every Business Owner Needs to Know

By G. Stanley Cutter, Partner, FOCUS Enterprises, Inc.

Many business owners mistakenly assume that they will receive the “value” of their firm in cash as proceeds during a sale. This expectation is further compounded if the business owner has received a formal valuation from a valuation professional.

While any experienced M&A professional can cite numerous …