From PitchBook on July 19, 2017
Being honest, our 2Q 2016 U.S. PE Breakdown is the best thing you can read to catch up on the latest private equity trends in dealmaking, debt usage, EBITDA multiples, exit activity, fundraising and more. It’s completely free and you can access it here.
If you’d rather look over the highlights, we’ve featured the top charts from the report below:
U.S. PE activity by quarter
2Q has brought activity back to the trends we previously anticipated, with both aggregate deal value and volume sliding. Overall volume has returned to 2013 levels.
For the entire article and remaining very informative charts please go to: http://bit.ly/29YuEqW
Dr. John Psarouthakis, Executive Editor, www.BusinessThinker.com and former founder and CEO of JPIndustries, Inc., a Fortune 500 industrial group.
For CV details go to:
A Dynamic Business Planning Model is a model of organization effectiveness based on both the classical goal approach and open systems theory ideas pioneered by researchers at the University of Michigan’s Institute for Social Research, including Robert Katz, Robert Kahn, and Basil Georgopoulos. See reference book at the end of this article.
Borrowing from the classical goal approach, for-profit firms depend upon financial viability to survive.
A financially viable company can pay its bills when they are due and operates at a profit.
Simple enough. But achieving financial viability is much more complicated than merely determining objectives for profit and production of goods and then setting out to achieve those goals. This Model defines the issues you must manage to assure financial viability, including market strategy, work flow, resource acquisition, human relations, resource allocation, public relations, and technical mastery. Successful corporate strategy must tackle each of these issues.
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 the seller using established formulae and guidelines. However, determining the accuracy of the financial data that the seller provides you is an on-going part of the evaluation process that should take place throughout preliminary and formal due diligence up to the closing. Thus valuation takes place along with negotiations throughout the deal-making process. One of the key objectives of due diligence is to surface any information that might affect the accurate valuation of the company. If your team does not have a financial auditor you should hire one to verify the accuracy of the historical data.