Savvy venture capitalists and private equity firms strive to acquire thriving companies at the lowest prices they can achieve. In defense of their stake in the company, sellers need to be proficient at using the available valuation options for rapidly increasing future revenues.
While cash acquisitions do occur, they are very rare in the lower middle market space in particular. Nearly every deal comes with financing. Quite often, SBA financing, which is good, but with certain deals there may be even better alternatives.
2018 was one of the most interesting and exciting years in history for middle and micro-market merger and acquisition activity. 2019 promises to deliver much more of the same.
Over the next ten years, it’s likely that no fewer than one-half of successful, privately owned businesses will have a transition of ownership. Some will give up minority interests for new investment, while many more will sell majority control or essentially 100% of the assets of their companies.
The young man and woman I listened to were seeing a very different world in front of them. He, working for a large, national consulting firm, and she having worked for three years at Microsoft. They saw the world quite differently than did at the time.
I had a conversation yesterday that sparked some thought about a subject I face in my practice every day: what is a client’s business really worth?
It’s interesting to see what motivates business owners to come and seek legal assistance for the first time. Often, it’s due to unexpected litigation that a business has to defend.
Entrepreneurs have great ideas every day. We know those that succeed are largely a function of a founder’s desire and zeal to see the idea through to its ultimate profitability, and to see growth of a company as a never ending proposition.
I try to make careful distinctions about the legal categories we use when it comes to the issuance of securities or of raising money as contributions.
One thing people often forget about trademarks is they are marks and not names per se. But that’s where it gets tricky. if the name is unique enough, you can probably register the name itself.