By: Chris Weingartner There is perhaps no industry being transformed more rapidly than IT Services and Managed Service Providers. Several private equity groups have planted their flags with investments in large platforms and are almost universally executing on a strategy to identify complimentary add-on acquisition targets. As a result, MSP owners and operators are receiving tidal waves…
By: Neal England For millennia, learning has taken place in a shared space. Teachers and students were together—perhaps in a classroom, lecture hall or laboratory. The evolution of e-Learning has now provided unique opportunities for students to learn online and on their terms whether minutes or hours away from their instructor. With a less-structured setting…
By: Billy Pritchard What is Deferred Revenue? If a software company offers its customers the ability to prepay on longer-term contracts, Deferred Revenue becomes an important consideration during the transaction process. Generally, a prepayment from the customer creates a future liability for that company to service the customer over the life or term of the…
By: Wesley Legg Cash is king; however, the highest offer doesn’t always seal the deal. This is especially the case when the seller is a founder-based company, i.e., the seller is the founder or an heir of the founder. Most founders, of course, want to maximize value, but that is generally not their sole focus,…
By: Wesley Legg Have you ever visited a friend or family member who lives in a city with major traffic congestion? I live in a smaller city. When hunger strikes my wife and me, and there is no desirable food in the pantry, we get in our car and we go out to eat. That decision…
By: Zane Tarence Companies are generally valued based on their risk adjusted future cash flows. Therefore as cash flows increase (bottom line), the value of the company increases. Normally companies are valued as a multiple of this bottom line, EBITDA (earnings before interest, tax, depreciation, and amortization). If a company generates $10mm in EBITDA and…