At some point, most founders and owners face financial constraints and consider whether they should sell their business. What most of them don’t know is that there is an option to sell the business and still have the opportunity to participate in its future growth. Recapitalization allows owners to sell part of their shares and cash-out Read More

Letter of Intent (LOI)

A letter of intent (LOI) is a written document that outlines the intentions of the buyer and the seller during a potential transaction.  Among other things, the LOI includes the purchase price and payment terms in addition to other key considerations to the transaction.  The main purpose of the letter of intent is to ensure there Read More

Exit Planning

Exit planning is a critical yet underestimated financial planning task. For most entrepreneurs and business owners, the value of business is at least 50% of the owner’s net worth; in many cases it is up to 80-90% of the total net worth.  Exit planning focus on maximizing enterprise value. Why exit planning? 2/3 of the US Read More

Capital Raising

Raising capital is a serious task and often requires serious dedication, determination and patience.  It is a fundamental process that requires the business to be well organized and ready for new funding.  Capital can be raised in the form of debt, through a financial institution, or equity, through a financial backer whether it is an angel Read More

Term Sheet

A term sheet is a non-binding document that lays out the proposed terms and conditions under which an investor will make an equity investment in a company.  Essentially, a term sheet sets out the key points of a potential deal – a framework for negotiating the final agreement. The contents and clauses of the term sheet vary Read More

Pre-Money vs Post-Money Valuation

The value of a business in a transaction starts with determining the pre-money and post-money valuation. This valuation will be used to determine how many shares will be issued to the new investor and what percentage of ownership (after dilution) will the owners keep.  The pre-money valuation is the value attributed to the business before any Read More

M&A as part of your Growth Strategy

Mergers and acquisitions make perfect sense in a variety of situations. For example, maybe an opportunity presents itself that requires fast, decisive action. Or maybe a competitive threat compels a defensive move to get bigger, faster. Here are five situations in which mergers and acquisitions have proven useful as a growth strategy: 1 – Fills critical gaps Read More

Key Considerations when Selling your Company

By Richard Harroch, David Lipkin and Richard Smith. Mergers and acquisitions involving privately held companies entail a number of key legal, business, HR, intellectual property and financial issues. To successfully navigate a sale of your company, it is helpful to understand the dynamics and issues that frequently arise: Valuation is negotiable Deals can take a long Read More

Buy-Sell Agreement

El Buy-Sell Agreement es un acuerdo entre los accionistas de una empresa que asegura la continuidad de la misma en caso de que suceda algún evento imprevisto como muerte, separación, retiro, quiebra, renuncia o venta de las acciones de algún accionista. El objetivo del acuerdo es garantizar la continuidad de la empresa y protegerla de cualquier Read More

Calculation Report

El Calculation Report es un informe donde se acuerda con el cliente, previo al análisis de valoración, los métodos que van a ser aplicados para dicho informe. A diferencia del Valuation Engagement en donde se llega a una conclusión de valor despues de considerar todos los métodos y aplicar los procedimientos correspondientes, en el Calculation Report Read More