Most business owners spend years growing revenue — and assume that’s what drives value. It’s part of the equation, but only part. When investors evaluate a business, they run through a much longer checklist. And many of the items on…
I spoke to a private equity investor recently. He described a recent sell-side process for one of their portfolio companies. They basically had no bake-off to vet investment bankers. They knew who their advisor would be – a middle-market bank…
Here’s a recent case study of a successful deal. About three years ago, a private equity investor connected with a CFO at a larger private company. The conversation touched on a portfolio company owned by the private equity firm. The…
I’ve watched strong deals unravel late in a process – not because the business was fundamentally weak, but because diligence uncovered issues that should have been addressed months earlier. Things that, if surfaced ahead of launching a process, could have…
Often, you’ll see charts like the following in banking materials. Figure 1: Typical regression analysis in investment banking materials Deep down, we all know this isn’t a great analysis. But regardless of our gut feelings, it’s still being used. What…
The Quick Take: A typical transaction process often feels like it needs to be a race against time. But shortcuts in early preparation can lead to a “domino effect” of missteps in the later stages of a process. By leveraging…