M & A

Why Some “Ordinary” Businesses Sell For Massive Premiums


Article by Richard Parker on 13 Jun 2012 0 Comment


Mr. Richard Parker is the author of the “How To Buy A Good Business At A Great Price” series which is sold in over 80 countries. He is the founder of Diomo  Corporation and has personally purchased eleven businesses. Learn more  about Richard and his materials at diomo.com (www.diomo.com)

A study was done recently to determine how business valuations have evolved over the years, and it came as no surprise to me that, in the past twenty years, small businesses have typically sold for around two times

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Acquisitions: NEGOTIATING THE DEAL


Article by John Psarouthakis on 15 Apr 2012 0 Comment


Dr. John Psarouthakis, Founder and former CEO, JPIndusries,Inc., a Fortune 500 industrial corporation. .
Currently, Distiguished Visiting Fellow / Professor, University of Edinburgh, Scotland. He is the Executive Editor of www.BusinessThinker.com

Successfully negotiating the deal requires a clear understanding of the negotiation process.  This article presents a view of the negotiating process which will help you to be a more effective negotiator.  Negotiation needs to be viewed as a problem-solving process.  Your goal should be to establish a

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LETTER of INTENT and FORMAL DUE DILIGENCE for ACQUISITIONS


Article by John Psarouthakis on 12 Feb 2012 0 Comment


Dr. John Psarouthakis, Founder and former CEO, JPIndusries,Inc., a Fortune 500 industrial corporation. Publisher of www.BusinessThinker.com

This article covers the letter of intent, which should be negotiated and signed prior to the start of formal due diligence and the formal due diligence process itself.

The most extensive and expensive investigation of a company lead takes place during the formal due diligence.  Formal due diligence can be viewed as the fourth filter through which company leads pass.  Because of its expense, you should probably plan to complete

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VALUING AND PRICING THE COMPANY (This is the 10th article in the series on M&A)


Article by John Psarouthakis on 11 Jan 2012 0 Comment


Dr. John Psarouthakis, Founder and former CEO, JPIndusries,Inc., a Fortune 500 industrial corporation. Publisher of www.BusinessThinker.com

Before you can begin final negotiations on price, you need to determine the value of the company. You can use several techniques to value a company.  We recommend the discounted cash flow value approach as the most accurate method although other approaches are useful in preliminary stages of your search to give you a sense of the range of the estimated price.

Timing and Scope of the Valuation Process

An initial calculation of valuation can be done on a fairly mechanical basis, based on information provided to you by

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