Firm News
Posted on Jun 1, 2019
The good news is that completed sales of private firms is trending up. In 2018 the number of successful transactions was 8761, a 12% increase over 2017. The economy "roars" onward, ...
Continue reading "DEAL FLOW" »
Posted on May 1, 2019
Even those of us imbedded in the M&A world are sometimes confused by multiples paid. While each deal is unique, buyers and sellers continue to seek clarity about the most reasonable multiple for ...
Continue reading "THE CONFUSION ABOUT MULTIPLES" »
Posted on Apr 1, 2019
Much of our valuation and investment banking services revolve around private equity (PE) firms. The primary interactions with PE's are the following: Valuation of partners' carried interests ...
Continue reading "PRIVATE EQUITY - FINDING TARGET ACQUISITIONS" »
Posted on Mar 1, 2019
One of the more vexing issues for the successful investment banker is deciding how much to really "share" with the seller(s) concerning the sale process. The myriad of issues faced by the ...
Continue reading "WHAT SELLERS NEED TO KNOW" »
Posted on Feb 1, 2019
Careful and effective investment banking professionals are circumspect about which prospects they want as clients. Thus, the intake interview is critical to that process. As an investment bank, the ...
Continue reading "Interviewing the Prospect" »
Posted on Jan 1, 2019
The most reasonable prognosticators agree that there will be no recession in 2019. In addition to that reality, owners will experience growth in revenues and profits. This is the right combination to ...
Continue reading "2019: Expect More Transactions" »
Posted on Dec 1, 2018
As an investment bank, the most critical part of our job is the first interview. This meeting is a two-way street, meaning that each party is there to determine if the prospective engagement is right ...
Continue reading "SELLER: IS YOUR MOTIVATION CLEAR?" »
Posted on Nov 1, 2018
This headline is not intended to dissuade any committed business owner from selling. It is a warning that a deal may go sideways or crater at any point in time, even just before the cash is wired to ...
Continue reading "SELLING YOUR COMPANY: ANTICIPATE THE WORST" »
Posted on Oct 1, 2018
For different but similar reasons, some buyers and sellers choose not to employ an investment bank (IB). When a trusted advisor strongly urges their client, buyer or seller, to hire an IB, that ...
Continue reading "WHY NOT USE AN INVESTMENT BANK?" »
Posted on Sep 1, 2018
As opposed to startups or early stage companies with little to no revenues, there is a vast market for raising growth capital. This market is buoyed by the explosion of non-traditional capital ...
Continue reading "RAISING GROWTH CAPITAL" »
Posted on Aug 1, 2018
The middle market and lower middle market for M&A transactions has been somewhat of a roller coaster for the last two years. The booming economy set in motion in early 2017 has both helped and ...
Continue reading "M&A ROLLER COASTER" »
Posted on Jul 1, 2018
We often write about M&A from the prospective of the selling company. But the opposing side to those conundrums are the issues facing even the most astute buyers. The risks of making a bad ...
Continue reading "BUYER BEWARE" »
Posted on Jun 1, 2018
We expected that the 2017 Tax Act would spur increased multiples for buyouts. At the same time, we did not expect some of the pricing we have heard of or experienced. One recent example was $11 ...
Continue reading "THE SUPERCILIOUS MARKETPLACE" »
Posted on May 1, 2018
How does a professional investment banker (IB) create his brand or reputation? At the end of the day, he/his firm are judged by the client successes: type, size, industry, and niches within those ...
Continue reading "WHAT'S IN A REPUTATION?" »
Posted on Apr 1, 2018
There are many consequences of the 2018 Tax Act, especially for M&A. Perhaps the most evident affects of the new law are the following: With the reduced rate for C corps from 35 to 21%, after-tax ...
Continue reading "M&A PRICING UNDER TAX ACT" »
Posted on Mar 1, 2018
In addition to selling companies, Mentor Securities provides financial advisory to buyers. These engagements involve a monthly retainer and a success fee, usually a percentage of the purchase price. ...
Continue reading "BUYER ADVISORY SERVICE" »
Posted on Feb 1, 2018
Nearly every investment banking client takes us on an interesting journey, with numerous twists and turns. The progression of a beginning, middle, and (potential) end is very akin to a courtship. Our ...
Continue reading "LIFE OF A DEAL" »
Posted on Jan 1, 2018
The new Tax Act, along with the burgeoning economy, portend exciting and fruitful 2018 for M&A activity. The Act specifically creates incentives for faster depreciation write-offs and expensing of ...
Continue reading "Prognosis for 2018" »
Posted on Dec 1, 2017
Medical Practice - our sellside client has built a well-known reputation via continual advertising; the practice has adapted to the current customer needs, and away from the highly competitive service ...
Continue reading "Client Highlights" »
Posted on Nov 1, 2017
When considering how to raise capital today, a firm must know its place in the market. From start up concept to stable company, the various stages require different sources of money and approaches to ...
Continue reading "What is the Market for Your Capital Raise?" »
Posted on Oct 1, 2017
Under Section 363(f) of the Bankruptcy Code, the trustee or debtor-in-possession may sell the bankruptcy assets "free and clear of any interest in the property". This provision of "free ...
Continue reading "Bankruptcy Sale of Business" »
Posted on Sep 1, 2017
The following is a simplified overview of the need for documentation to support an allocation of the purchase price of a business. In most purchases, the agreement contains a schedule of allocated ...
Continue reading "STOCK vs. ASSET - ALLOCATION OF PURCHASE PRICE" »
Posted on Aug 1, 2017
Company management and key employees are incentivized by having a stake in the firm's success. However, actual shares of common stock must be issued for cash, property or past services. When ...
Continue reading "PHANTOM STOCK AND SARs" »
Posted on Jul 1, 2017
Changes in the securities law with the JOBS Act and the Reg A+ rules (finalized in June of 2015) have created a completely new form of a public offering. The new rules allow non-accredited investors ...
Continue reading "Reg A+" »
Posted on Jun 1, 2017
There is no panacea or instruction manual that a seller or buyer can use to select the "right" investment bank (IB). At the same time, there are some guidelines and probing questions the ...
Continue reading "SELECTING THE RIGHT INVESTMENT BANK" »