Current Trends in Managed IT Services Talent Scarcity – The biggest growth challenge cited by MSP operators is the scarcity of good IT Engineers and supporting talent. Because of this, employee retention is quickly becoming as important as customer retention in driving valuation Cybersecurity Tailwinds – Customers who previously hesitated to invest in security are…
By: Wesley Legg Many business owners would consider a company with a revenue growth rate of 40% exceptionally attractive. “Surely this is a well-founded business primed for a promising future. With a growth rate of 40%, this company will soon be a dominate player in their market.” But they’ve forgotten a key part of that…
By: Zane Tarence There is much to consider when deciding to pursue a merger or acquisition. Anyone contemplating a transaction should be consulting with, and ultimately engaging with an M&A advisor. When choosing an M&A advisor there are at least five things to consider: Trust This is the foundation of relationships, and the relationship with…
By: Duane Donner This article was originally published on Fellowship of Companies for Christ International’s blog. It is, unfortunately, a common story: After a lifetime of building a successful business, a man or woman sells what they created and retires to live “the good life.” Pretty soon, they realize there is really nothing that wonderful…
M&A Year In Review M&A actively flourished in 2021, far surpassing historical records. Activity was primarily driven by private capital markets continuing to deploy cash while remaining in a state of excess liquidity, corporate balance sheets flush with cash and low interest rates. Globally, for the year 2021, an estimated 38,231 M&A transactions were completed…
The Net Present Value calculation indicates a business is worth its “risk adjusted future cash flows.” The future portion of that statement indicates that buyers are willing to pay more for something they anticipate growing. This is practically seen by two of the most common approaches to business valuations using cash flow projections: DCF and…