Insights

  1. Market Share: When Comparison Is a Good Thing

    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…

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  2. Gross Margin Trends

    By: Wesley Legg As healthy companies grow, they generally see margins expand as fixed costs are diluted with increased sales or as the company gains pricing power. Therefore, compressing margins can be a leading indicator of issues arising within a business. Perhaps a business has not invested sufficiently in R&D, so their technology is becoming obsolete….

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  3. Growth or Profitability – Which Should I Choose?

    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…

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  4. Hot M&A Market For Managed IT Services

    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…

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  5. High Growth Rate but Low Valuation?

    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…

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  6. Five Things to Consider When Selecting an M&A Advisor

    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…

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