For business owners currently engaged in or contemplating an M&A process, the importance of the purchase agreement is critical. Beyond the legal intricacies, this document serves as a basis of trust, transparency, and collaboration between buyers and sellers. To navigate this pivotal phase of the M&A process, prudent business owners are well-advised to engage the services of experienced investment bankers and M&A attorneys.
Whether a company is undergoing its first financial review or has a history of accounting oversight, the decision to engage in a Quality of Earnings (QofE) analysis is crucial, especially for those contemplating a sale. A QofE analysis focuses on the accuracy and sustainability of earnings, helps sellers better understand how buyers are going to evaluate their business, and provides a deeper understanding of the true earning potential of a business.
Business succession planning needs to be an integral part of any private or family-owned business. It is an important and evolving process that requires thoughtfulness and ongoing attention from the owner. This is not a task to be put off until later. To be done successfully, it needs to be a consistent part of a company’s business strategy and operations. Doing so can increase the confidence of buyers and potentially maximize the amount they are willing to pay for the company.
Crewe Capital (Crewe) played a crucial advisory role in the sale of Trailer Boss, a leading trailer dealer in the Pacific Northwest, to BF Ventures whose principals have several investments in the automotive sector, including Sunrise Toyota, AutoBuy, and B Squared. As the exclusive advisor to Trailer Boss, Crewe successfully managed the transaction between Trailer Boss and BF Ventures, who plan to grow the footprint of Trailer Boss and continue offering top trailer brands and products to customers.
While mentioned frequently, EBITDA is still not fully understood by many business owners, and rightfully so. There are questions as to why EBITDA is what institutional investors often use to peg a valuation to a company, what differentiates it from net income, and sometimes what it even means. Shedding some light on questions surrounding EBITDA can help business owners have a better understanding about how their companies may be valued when it comes time to sell.
“We believe Enphase Energy (Nasdaq: ENPH) to be the perfect partner to help LGCY Power capitalize on growth opportunities,” said Michael Bennett, managing partner of Crewe Capital. “As a global leader in energy technology, they were able to quickly recognize LGCY as a standout platform. Enphase’s strategic products and relationships will help LGCY continue on their growth trajectory.”
If you are considering selling your company, a primary objective will be getting the highest possible value. If you haven’t sold a company before, or aren’t familiar with the process, you might not understand exactly what investment bankers do or how they add value. Here we highlight the primary responsibilities of an investment banker and how they could potentially help maximize the sales price of your company.
By focusing on these five categories, you can make your business stand out and also may decrease the perception of risk, which could lead to greater interest from the market and potentially a higher sales price.
