Insights

  1. Home Services Businesses with Recurring Revenue Are More Valuable

    By: Joseph Vinar Every business owner is asking, “What’s my company worth?” and “How do I increase its value?” As the adage goes, it’s worth whatever someone is willing to pay, so it’s helpful to view a company through the eyes of a potential buyer. Buyers pay for risk adjusted future cash flows. The two…

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  2. Am I Enhancing or Hindering the Value of My Business?

    by Wesley Legg Unlike listed public companies, private businesses don’t get a daily ticker tape telling them what they’re worth. But imagine you did.  Would that daily feedback from buyers and sellers make you think differently about how you operate your business?  While I know public company CEO’s don’t always agree with the market’s perception,…

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  3. Big Revenue with a Big Valuation Discount

    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…

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  4. Will Your Company Be Around in Five Years?

    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….

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  5. How External Market Factors Drive Your Company’s Valuation

    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…

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  6. Valuation Drivers in Managed IT Services

    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…

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