By: Wesley Legg Customer concentration is a notorious deal killer, yet many business owners fail to address this issue prior to pursuing a recapitalization or exit. After all, from an owner’s perspective, landing one household name as a client could be exactly what an up-and-coming company needs to build its credibility in the industry, boost…
By: Wesley Legg Moats are often water filled ditches around castles and other fortified structures creating obstacles for would be attackers. Moats make it difficult for those wanting to siege the protected structure, both thwarting attacks from the ground and preventing the practice of mining, digging tunnels under the castle to cause it to collapse….
By: Wesley Legg “I should have sold when I had the chance,” is a phrase our advisors hear much more often than “I sold too early.”Timing a transaction is tricky, because it’s influenced by a variety of internal and external factors, such as:– Government policy– Capital markets– Macro-economic forces– Industry life-cycles– The company’s life-cycle– Personal…
Founders Managed IT Services Valuation Scorecard Founders’ MSP Valuation Scorecard isolates the most critical quantitative and qualitative factors during valuation multiples Revenue Stream Impact on Valuation For Managed IT Services Revenue composition remains a critical driver of valuation for managed IT service providers; below displays how the investor community views varying streams of revenue in…
By: Brad Johnson “How large is your market, and what is your share of it?” If you haven’t been asked this question yet, you can certainly expect it if you ever consider any sort of transaction. This is one of the most common questions from both strategic and financial buyers, yet we typically find that…
By: Chris Weingartner One of the most frequent questions we are asked by founders and entrepreneurs is whether their focus should be on growing revenues or achieving profitability, especially when it comes to the impact on Enterprise Value. It is a complicated question that presents meaningful tradeoffs unique to each company and one that companies…