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How Can I Value My Business? Business Valuations Made Simple!

How Can I Value my Business?

In today’s fast-paced business environment, understanding the true value of your business is more critical than ever. If you’re asking yourself, “How can I value my business?” you’re not alone. It’s a crucial question that can shape your strategic decisions, whether you’re considering selling, looking to acquire a competitor, or simply aiming to understand your business’s standing in the market.

This video addresses that very question, offering insights and solutions for business owners seeking clarity and accuracy in their business valuation.

Navigating the maze of business valuation can be daunting. You could spend countless hours on the internet, stumbling through clickbait, or end up in the endless loop of online distractions. The common avenues—consulting an accountant not versed in M&A activities, relying on generic online calculators, or even seeking advice from unqualified individuals—often lead to inaccurate valuations. These methods beg the question: “How can I value my business accurately and reliably?”

Our comprehensive approach to business valuation transcends the basic formulas and generic calculators that fail to capture the unique essence of your business. Whether you’re preparing for a management buyout, raising finance, contemplating a sale, or evaluating a purchase offer, knowing how to value your business is imperative. This video outlines a method that combines industry expertise, financial acumen, and an understanding of your business’s unique value drivers, offering a solution to the perennial question, “How can I value my business with precision and confidence?”

The valuation process often involves complex formulas, from enterprise value to discounted cash flows, and requires an understanding of the specific metrics and performance ratios that validate your business’s worth. More importantly, it demands an appreciation of the intangible, off-book assets that define your competitive edge. “How can I value my business in a way that reflects its true worth?” This video introduces a robust valuation model developed by professionals active in the M&A market, designed to give you a clear, comprehensive view of your business’s value now and into the future.

Don’t leave your business valuation to chance or the myriad of unreliable sources that fail to understand the nuances of your operation. Our detailed valuation report, exclusive to the UK market, is tailored to your business, offering a depth of analysis backed by professionals. From understanding the intrinsic and extrinsic factors contributing to your business’s value to navigating the valuation with confidentiality and speed, our service is designed to equip you with the knowledge and confidence to make informed decisions.

Remember, knowledge is power. By addressing the critical question of “How can I value my business?” with our expertly crafted valuation model, you’re taking the first step towards unlocking your business’s potential. Follow the link below or contact us directly to embark on this vital journey towards understanding and maximizing the value of your business.

Business Valuation Report – 3 Easy Steps

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How Important is Heads of Terms in Business Deals

Navigating the Essentials: How Important are Heads of Terms in Business Deals and Acquisitions?

In today’s insightful video, we dive into the critical phase of the business sale or acquisition process, focusing on the pivotal role of Heads of Terms (HOT). This stage, often overlooked, can significantly impact the outcome of your deal, potentially costing time, energy, and financial resources. Understanding how important Heads of Terms are could be the key to avoiding common pitfalls that jeopardise successful negotiations.

What Are Heads of Terms?

Heads of Terms, also known as a Letter of Intent or Memorandum of Understanding, lay the groundwork for smooth negotiations during a business transaction. They encapsulate the main agreements between the parties, ensuring there’s a mutual understanding before moving forward to the binding contracts stage. How important are Heads of Terms? They’re not just important; they’re the blueprint for your deal’s success, guiding both parties through the negotiation with a clear structure and goals, while being non-legally binding except for specific clauses like confidentiality and exclusivity.

The Two Faces of Heads of Terms

In our practice, we encounter two prevalent versions of HOTs. The first version is a succinct document, often a one-pager, that outlines the agreement’s basics. This version might expedite signing an exclusivity clause but could lack consideration for the deal’s structure, due diligence, and contingency plans. On the other hand, the second version is a thorough document that acts as a comprehensive roadmap, instructing lawyers in drafting the Sale and Purchase Agreement (SPA). This contrast raises a crucial question: how important are Heads of Terms in shaping the outcome of a transaction?

Choosing the Right Approach

The importance of heads of terms ultimately depends on the approach taken. The choice between a rudimentary document that may rush or pressure parties and a detailed guide that ensures a smooth transition to legally binding agreements is vital. It’s about finding the balance that fosters a win-win situation and leads to the successful completion of a deal, on time and within budget.

Your Experience with Heads of Terms

We’re eager to hear your thoughts and experiences regarding how important Heads of Terms are in your business transactions. Which version have you encountered more frequently, and how has it influenced the outcome of your deals? Drop your comments below to join the conversation.

Stay Informed

If you find the strategic importance of Heads of Terms as fascinating as we do, don’t forget to like, subscribe, and share your thoughts in the comments section. Your insights on how important Heads of Terms are could provide invaluable guidance to fellow business professionals navigating their own negotiations.

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Who Will Value My Business

Are you part of the 98% of business owners pondering, “Who will value my business?” If so, this video is your essential guide, designed to unravel the valuation conundrum in just 90 seconds. Understanding the value of your business is not just beneficial; it’s critical. However, the biggest hurdle often comes down to deciding who should perform this crucial assessment.

The Valuation Dilemma: Navigating Your Options

When the question arises, “Who will value my business?”, many business owners feel tempted to tackle the task themselves. Entrepreneurs, business owners, and professional advisors alike may consider DIY valuation methods. But, is this a realistic approach? The complexity of choosing the right valuation formula—be it enterprise value, equity value, cost to entry, precedent transactions, or the intricate discounted cash flow—can be daunting. Moreover, understanding which performance ratios to use and how to forecast your business’s future only adds layers of complexity.

Professional Insights: Beyond DIY

This leads us back to the critical question: “Who will value my business?” While consulting an accountant might seem like the next logical step, unless they possess a deep involvement in current M&A activities and a track record in business sales and acquisitions, their valuation might not hit the mark. Independence in valuation is crucial for credibility and accuracy, steering us away from biased estimations.

Expert Valuation: The Path Forward

So, “Who will value my business?” This video proposes a definitive answer, introducing a professional, efficient, and transparent valuation service ready in just five working days. Tailored for business owners seeking clarity and precision, our service offers valuations written in plain English, backed by insights from professionals actively involved in the M&A market and qualified as FMVA and CBCA. Our report delivers specific valuation metrics and key performance ratios, presenting a clear picture of what your business is worth now and in the future.

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Why Not EBITDA

Why Not EBITDA : The True Measure of Business Health?

Delve into the world of business metrics with a focus on EBITDA, a term that has sparked endless debates among professionals. With over two decades of experience in the business acquisition sphere, our expert demystifies EBITDA, addressing the burning question: Why not EBITDA? Is it really the golden standard for assessing a business’s financial health, or is it, as some claim, the laziest metric used in the industry?

Decoding EBITDA: More Than Meets the Eye?

EBITDA stands as the most controversial and widely discussed metric in the business world. But why not EBITDA? This video explores its prevalence and the reasons behind its widespread use. Is EBITDA celebrated for its precision and depth in providing insights into a business’s financial well-being, or is its popularity merely due to the ease of calculation, allowing even novices to appear informed?

The Reality Behind the Metric

Our seasoned expert questions the efficacy of EBITDA as a standalone measure. Despite its utility in generating a snapshot of earning potential and facilitating year-on-year comparisons, relying solely on EBITDA is akin to diagnosing health based on blood pressure alone. It’s a starting point, but why not EBITDA when evaluating a business’s overall health? This analogy underscores the necessity of a broader metric suite for a comprehensive health check.

A Balanced Perspective

Concluding that EBITDA is neither inherently good nor bad, the video posits that it serves as a crucial yet partial insight into a company’s earnings generation capability. This raises the crucial consideration: why not EBITDA as the sole metric? The discussion highlights the importance of integrating EBITDA with other financial indicators to paint a full picture of a business’s health.

Join the Conversation

As we peel back the layers on EBITDA, we invite you to contribute your thoughts. Why not EBITDA? Is it a metric of convenience or a valuable tool in the arsenal of business assessment techniques? Your insights and experiences are invaluable as we navigate the complexities of business metrics together.

 

 

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Never Accept an Offer for Your Business Until You Know This…

In this insightful video, Mark Roberts, the head of a distinguished private M&A boutique firm, shares invaluable advice that every business owner must hear before even considering an offer for their business. With over 20 years of experience in buying and selling businesses and participating in hundreds of deals, Mark has witnessed the pitfalls and triumphs of the M&A world.

He emphasizes one crucial point that can drastically change the outcome of your business sale: never accept an offer for your business until you know this one essential fact.

Why You Should Never Accept an Offer for Your Business Without This Knowledge

Throughout his career, Mark has observed a common mistake made by 95% of business owners. Many receive offers for their businesses and jump into negotiations without taking a crucial step — getting an independent valuation. Drawing parallels with selling a home, Mark explains why knowing the true worth of your business is fundamental before engaging in any discussions or considering any offers.

The Dangers of Rushing into Offers

Mark delves into the typical scenarios business owners face when approached with an offer. From the initial excitement of receiving interest from competitors or third-party entities like accountants and brokers, to the eventual disappointment when offers fall short of expectations or fail to materialize, he highlights the dangers of not knowing your business’s worth from the get-go.

Take Control and Empower Yourself with Knowledge

Mark’s message is clear: never accept an offer for your business without fully understanding its value. He advocates for business owners to take control of the situation by getting an independent valuation, thereby empowering themselves with the knowledge needed to make informed decisions.

What’s Next?

Your Path to Informed Business Decisions

Never accept an offer for your business without arming yourself with the necessary knowledge. Join Mark Roberts as he guides you through understanding the worth of your business and making decisions that align with your best interests.

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Don’t Buy a Business Until You Watch This…

Don’t Buy A Business

In this must-watch video, on Don’t Buy A Business, we dive into the critical mistake many aspiring business owners make: purchasing a business without truly understanding its worth.

“Don’t Buy a Business” isn’t just a cautionary statement—it’s a gateway to unlocking the secrets of successful business acquisitions, all condensed into a lightning-fast 60 seconds video.

Prepare to navigate away from the nightmares of funding failures and deal disasters that plague the unprepared.

Why Watching This Video is a Game-Changer:

Unlock the Secret to Success: Discover the pivotal knowledge that separates successful acquisitions from costly mistakes.

Understand True Business Value: Learn why knowing the exact value of a business is not just important—it’s essential for planning your funding strategy and deal structure. Avoid losing time, energy, effort, and potentially millions in value by understanding one crucial fact.

Precision Over Guesswork: We debunk the myths of estimated values and EBITDA guesses, guiding you towards a clear, precise, and accurate business valuation. Our method is rooted in recognized valuation metrics, offering you a document that tells the unvarnished truth about what a business is genuinely worth.

Strategic Offer Structuring: With a solid understanding of a business’s worth, you’re equipped to structure your offer confidently. Learn how to approach your acquisition strategy with the assurance that it’s the right step for you.

Exclusive Insight: Follow the link below to access our in-depth valuation model, which reveals exactly what you need to know. From specific valuation metrics to key funding ratios, we lay bare the true value of a business—now and in the future. Embark on your acquisition journey with the right knowledge at your fingertips. Whether you’re a seasoned entrepreneur or stepping into the world of business ownership for the first time, this video is your first step towards a successful, informed purchase.

Don’t risk months of negotiations and potential deal-breaking disappointments with funders. Get the groundwork done first, and move onwards and upwards with confidence. Don’t delay your success story. Click the link below to unlock the secrets to successful business acquisitions and ensure your next move is not just a step but a leap in the right direction.

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Project Denab

Acquisition Targets – Across All Sectors – Subject to KPI.

We are currently working on several ‘live’ briefs for our Client.

They are looking to make additions to the twelve companies which currently make up their Group and are now benchmarking potential targets for their next phase of planned growth.

Timescales from initial contact to completing in full on deals has been as quick as 4 weeks, but an average timeframe is 4 months.

They aim to complete on acquisitions before the end of October 2022, have the experience and expertise to support and grow business, can supply evidence of companies they have already acquired and provide proof of funds. Their acquisitions brief focuses on:

  • Loss of income and trading profits due to Covid 19 to be ‘added back’ to the financial accounts
  • Building a group of companies to gain a competitive edge
  • Future profits as a basis for valuation and return on investment
  • Flexible deal structure and handover period to meet your needs
  • Protecting the skills and goodwill that you already have in place

Our role is to identify the suitability of companies based upon their brief, protect the confidentiality of both parties, enter first stage negotiations, and assist their internal acquisitions’ team in achieving a successful completion.

Contact Olivia@achieve-corporation.com for further details

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Boris Johnson unveils £350m to fuel decarbonisation of industry

Boris Johnson has unveiled £350m in funding to help industry to reduce carbon emissions in a bid to speed up progress towards the UK’s 2050 net zero goal.

The funding will go to a range of businesses and projects working across industries such as heavy industry, construction, space and transport.

Johnson said that the coronavirus pandemic meant that it was “more important than ever that we keep up the pace of change to fuel a green, sustainable recovery.

“The UK now has a huge opportunity to cement its place at the vanguard of green innovation, setting an example worldwide while growing the economy and creating new jobs’.

Of the funding, £139m will go to heavy industry to support the transition from natural gas to hydrogen, as well as scaling up the development of carbon capture and storage (CCUS) technologies.

The two technologies have both long been earmarked as critical to the transition to a green economy, with 40 businesses last month writing to chancellor Rishi Sunak in support of a country-wide hydrogen strategy.

In addition, £149m will go towards developing the use of innovative materials, such as so-called “green steel” across industry, while £26m will be put towards supporting low-carbon building techniques.

Read More – www.cityam.com

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2020: A year of increased M&A activity and the role of brand

Despite geopolitical fears and the spectre of a global economic slowdown organisations are continuing to look to M&A to achieve growth. According to the Global Capital Confidence Barometer as we move into a new decade 52 per cent of organisations are planning to actively pursue M&A over the next 12 months. In particular tech, B2B and luxury have all been earmarked as sectors with over average potential for activity.

However, the stats show that between 50 and 85 per cent of the deals will fail. With the average transaction value set at around $52 million; the stakes are high. However, for the 15-50 per cent of M&A deals that are successful the rewards far outweigh the risk.

Cultural difference is the most vaunted reason for a failed merger. The dissonance between two organisations can be extremely divisive and the inability to align them from the offset can quickly and easily set in the rot which eventually turns gangrenous and ultimately becomes terminal. Even the most seemingly trivial of differences can be a powerful indicator that all is not right with a deal.

 

Read More – www.bdaily.co.uk

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Private equity is dominating the NBA in 2020

Rich guys like to own professional sports teams. Private equity produces a lot of rich guys. So it’s little surprise that buyout billionaires have been snapping up NBA franchises for the past two decades.

In recent years, a few of those franchises have achieved unprecedented success. In fact, private equity tycoons have turned the league’s Eastern Conference into their own personal playground.

During the 2018-2019 season, the four top finishers in the East were all controlled by private equity pros, including the NBA champion Toronto Raptors. As the 2019-2020 season enters this weekend’s All-Star break, those same teams occupy four of the top five spots in the conference.

And all four ownership groups have at least one common factor in how they’ve achieved recent success, a trait that could tie back to their pasts in overseeing portfolio companies: Instead of meddling in every small decision, they’ve developed reputations for hiring the best talent available and getting out of the way.

PE’s basketball jones

The Milwaukee Bucks have been the NBA’s dominant team so far this season, sitting in first place in the East with a sparkling 46-8 record. The Bucks are co-owned by Wes Edens, a co-founder of Fortress Investment, and Marc Lasry, a co-founder of Avenue Capital, who teamed to acquire the franchise in 2014.

At second place in the East sit the defending champion Raptors. The Toronto franchise is owned by a group called Maple Leaf Sports & Entertainment, which is in turn partially owned by Larry Tanenbaum, chairman of Kilmer Capital Partners and the longtime CEO of Kilmer Van Nostrand. Tanenbaum represents the Raptors on the NBA’s Board of Governors (the league now eschews the word “owner”), making him the team’s most powerful dignitary.
P
The Boston Celtics occupy third place in the East standings. Since 2002, the legendary franchise has been owned by an investor group led by Wyc Grousbeck (formerly a partner at Highland Capital Partners) that also includes Steve Pagliuca, a co-chairman at Bain Capital. Grousbeck is the son of Irv Grousbeck, a professor at Stanford Graduate School of Business.

And fifth place in the East is currently filled by the Philadelphia 76ers, who in 2011 were acquired by a wide-ranging group of investors that includes Josh Harris, a co-founder of Apollo Global Management, and David Blitzer, global head of tactical opportunities at Blackstone. Harris is the team’s principal owner.

 

Read More – www.pitchbook.com