7 M&A Deal Killers and How to Avoid Them
07 April, 2020Below are several areas of your company that will be scrutinized by a buyer and can potentially kill your deal.
Insight on What Matters - So You Can Transform Your Business.
Below are several areas of your company that will be scrutinized by a buyer and can potentially kill your deal.
Some recommended considerations for entering into an M&A process are highlighted below.
The healthy valuations achieved by sellers have been supported by lenders’ willingness to finance packaging acquisitions, with leverage multiples today sometimes surpassing 7.0x total debt / EBITDA.
So, what should you consider when evaluating potential M&A professionals who all claim they’re the best for the job? It may seem a little far-fetched, but we suggest evaluating potential M&A advisors much like you would a babysitter. It’s really not that far-fetched. After all, your business is your baby.
The one-hour session explores many of the nightmares often experienced during due diligence and how to avoid them.
The theoretical metrics of company valuations are well known: compare similar public companies, review precedent M&A transactions and throw in a discounted cash flow (DCF) model for good measure. Then how does this theoretical valuation model account for Facebook's acquisition of WhatsApp in 2014 for $19 billion when WhatsApp had $20 million in revenue, a 950x revenue multiple? Why is Airbnb worth $31 billion, which is more than Hilton at $27 billion. Why is Uber worth $72 billion, which is more than GM at $58 billion?
Prior to the webinar, we sat down with, Iliya Zogovic, President and CEO of ONEtoONE Corporate Finance Group, to get a glimpse of what attendees could expect to learn about crafting creative deal structures that can effectively bridge valuation gaps.
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