Industry – Other

Our team has over 100 years of combined business experience. Our careers have given us exposure to many industries as business leaders, consultants, and M&A professionals. We have had the opportunity to serve clients as diverse as the New York Yankees, The Walt Disney Company, Allstate Insurance, Microsoft, Dell, T-Mobile, and countless others. We enjoy working with entrepreneurs and helping them grow their companies and make key strategic moves.

Market and Valuation Trends

  • Recurring revenue is king – Multi-year recurring contracts with reliable corporate or institutional customers command the highest valuation multiples.
  • M&A trends are mixed – The Coronavirus has caused a slowdown in M&A in some sectors, but there is still money available, so investors are looking for safe bets. Well-managed companies with strong multi-year profitability are always well received by prospective buyers.
  • Valuation trends – Sellers were seeing strong valuations prior to the pandemic, especially for companies that have reached scale (greater than $5M revenue). We’re waiting to see what happens to valuations as the capital markets adjust to the new normal.

What Buyers Want

  • Recurring revenue – Cash flow provides a strong foundation for growth.
  • Scale – Bigger is better. Economies of scale and higher valuation multiples help larger players.
  • Desirable customers – Good customers who have a good payment history, while avoiding too much revenue concentration with a small group of customers.
  • GAAP Financials – If you are considering a sale of your company in the next three years, we strongly recommend that you shift to Generally Accepted Accounting Procedures (GAAP) and have annual accounting reviews or audits, if you are large enough to justify the expense. This will save a costly and time-consuming recast of your financials at the time of sale.