Author Archive
Sell a Software Company - The Valuation Dilema
One of the most challenging aspects of selling a software company is coming up with a business valuation. Sometimes the valuations provided by the market (translation - a completed transaction) defy all logic. In other industry segments there are some pretty handy rules of thumb for valuation metrics. In one industry it may be 1 […]
Private Equity May Be Your Best Business Exit Strategy
I must admit that I have had a bias against my clients selling their businesses to private equity firms until I discovered that there are some situations where it might be the best exit strategy. Our firm represents business sellers primarily in the information technology and healthcare industries. Because the valuation multiples in these industries […]
Ten Reasons to Sell Your Information Technology Company
For the past 20 years you have built your information technology business. Your company has become part of your identity. Even when you are not at work, you are working, thinking, planning. You never stop. If you sell you are leaving behind much more than a job. In this article we will discuss some reasons […]
The Number One Driver of Business Valuation in a Software Company Sale
We get to witness buyer behavior first hand in our software investment banking practice. The most important behavior is their economic vote - how much they are willing to pay for an information technology business. Many factors go into their assessment of value, but a contractually recurring revenue stream is consistently the number one value […]
Not Invented Here is Not an Option for The Large Beverage Companies
As an investment banking firm, we regularly dialogue with the top executives in the beverage industry. We have to chuckle when we reach a decision maker with a large beverage company and he says, “We have a corporate policy that we organically develop all of our own beverage concepts.” Does this guy read the industry […]
Healthcare Information Technology - Business Valuation
One of the most challenging aspects of selling a healthcare information technology company is coming up with a business valuation. Sometimes the valuations provided by the market (translation - a completed transaction) defy all logic. In other industry segments there are some pretty handy rules of thumb for valuation metrics. In one industry it may […]
Grow or Sell Your Information Technology Company - A Crossroads Decision
Thinking of taking your information technology company to the next level with a major marketing campaign or by hiring additional sales resources? These are decisions that can impact your company’s future. It might be time to consider the alternative of selling your business.
We are often approached by software company or information technology business owners at […]
An Alternative to Venture Capital for the Healthcare Technology Entrepreneur
If you are an entrepreneur with a small healthcare technology based company looking to take it to the next level, this article should be of particular interest to you. Your natural inclination may be to seek venture capital or private equity to fund your growth. According to Jim Casparie, founder and CEO of the Venture […]
Capital Gains Deferral in a Business Sale
The sale of business is a challenging and difficult transaction with several complicated aspects. Whether it’s the complete sale of a business or simply the sale of a partial ownership interest in a company, one of the most troubling issues created by this disposition is the manner in which capital gains and other taxes are […]
Business Broker Versus Merger and Acquisition Advisor - The Monthly Fee Objection
Probably the biggest objection that we get from potential business sellers is, “I’m not going to pay you a monthly fee only a success fee when you sell my business.” These business owners have met with business brokers that do not charge a monthly fee and believe that a Merger and Acquisition Advisory Firm should […]
