Christopher College

Understanding the worth of a company is essential when you're planning to sell, but it’s a nuanced process that requires different methodologies that vary depending on the unique characteristics of your company. ➡️ Here are 3 three primary valuation methods: https://lnkd.in/e-bCFu8C #SellYourBusiness #MergersAndAcquisitions #BusinessSuccess #MergersAndAcquisitions #BusinessBrokers #MAAdvisors #InvestmentBankers #SellYourBusiness #businessowners #mergers #mergersandacquisitions #mergersacquisitions #investmentbanking #investmentbanker #midsizedbusiness #midsizebusiness #businesstips #woodbridgeinternational #sellside #Woodbridgeinternational #businessstrategy #businessresources #businessresilience #businesstips #businessblog #B2Bblog

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At Neri Capital Partners, we're not just a firm; we're a team of seasoned, experienced, and qualified entrepreneurs who provide business owners with a pathway to exit on top. Our pathway is to Determine, Build, and Realize with proven services regardless of where the business owner is in their life cycle. Where are you in your business life cycle? 1. Learning the value you have created with a comprehensive business valuation. WhatIsMyBizWorth? 2. Focusing on building your business with various build services from Neri Capital Partners. 3. Realizing the liquidity you have created: Exit your business "on top" with a customized process that monetizes the value you have created over your life's work. Free consultation: Phone: (800) 216-4819 x0 Email: https://[email protected] - https://lnkd.in/g4g_WMiA #businessowners #babyboomers #sellsideadvisory

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There is a lot of talk about the PE industry not delivering the exits they promised. PitchBook succinctly put it with the title “Behind the J-curve” in its recent in-depth analysis of distribution activity in private market funds. Another side of that story, particularly relevant for secondary buyers like us, is that many private market funds hold their assets at seemingly inflated valuations. TVPI numbers look great for most funds, but they can’t monetize their holdings anywhere near their current NAV, indicating their estimate of “fair market value” is way too optimistic. There is always a market, the price may just not be where you wish it. To a large degree, the reluctance to exit companies results from having them marked too high. Assets were aggressively written up to look good in the short-term, impressing LPs with “paper gains” to raise the next, much bigger fund. #secondaries #privatemarkets

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It could take anywhere from 1 to 5 years to properly prepare for the sale of a business. Sounds basic but you would be surprised how many owners do little to no planning. I would suggest that every owner start the process with a quality market value opinion and an operational review. Those reviews will point out the areas to improve to maximize value for when the time is right to sell.

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THE VALUATION PROCESS: 1. Execute Neri Capital's Confidentiality Agreement 2. Execute a Valuation Agreement 3. Provide the following information to the Valuation Specialist: a. 2021- 2023 Income Statements. b. 2024 Income Statement (Year-to-Date). c. 2021- 2023 Balance Sheets ending December 31st each year. d. 2023 Balance Sheet YTD. 4. Complete an interview with the Valuation Specialist. After the business valuation is completed (3 to 4 days after receiving requested information), the Valuation Specialist will provide the business owner(s) with a 30+ page report. Valuation Specialist will review the report with client(s), answer questions, and make recommendations. https://lnkd.in/g4g_WMiA https://nericap.com #businessvaluations #sellsideadvisory #babyboomers

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The government solution is always higher taxes and higher levels of regulations. No matter the problem they attempt to solve is high taxes and higher levels of regulations. https://lnkd.in/e3gYTrbb

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I will be sharing tips/clues we use at Calder to identify “real” buyers - those most likely to submit an offer. You may find it interesting that ~10% of buyers that inquire, sign NDAs, and are approved actually move forward seriously on a given business opportunity so it’s paramount for our team to spend time with those 10%. The problem is that we don’t know at the outset who they are. So here’s clue #1: “If the buyer’s first question is related to the asking price, they are unlikely to be serious.” #buyingabusiness #mergersandacquisitions #investmentbanking #sellingabusiness

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One of the great minds in investing today. We are headed toward an iceberg and United States and Private Equity are rearranging the chairs on the Titanic. Who knows when the reckoning comes but it must. Mauloa recognizes this and invests in a manner that will survive a correction mainly because of lack of debt and will also thrive moving forward with its dry powder. The debt time bomb is real and will create generational investment opportunities for those that are capitalized properly. https://lnkd.in/eMNUVNAq

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Percentage completion accounting + very high inventory days + high A/R days + most players overwhelmingly based out a certain southern state + performance warranties / BGs + turbocharged valuations; seen this movie in civil construction in 2002-2008, now playing in a different industry....

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Your customized 30+ page valuation report expresses the market values in ASSET—EQUITY—ENTERPRISE values. In addition, you receive 13 major KPIs compared with thousands of businesses that share your NAICS Code as overperforming, underperforming, or average. The information source is the IRS anonymized data from Federal Tax Returns. #businesssowners #businessvaluations #sellsideadvisory #estateplanning https://lnkd.in/g4g_WMiA https://nericap.com

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Retiring entrepreneurs are motivated to sell to private equity firms because PE offers substantial capital infusion, strategic guidance, and a streamlined exit strategy, which helps them unlock their business's full potential and encourage further growth. This approach allows retiring owners to secure a successful transition and maximize business value while preserving their legacy with professional support from firms like SEA.

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Retiring entrepreneurs often opt to sell their businesses to private equity (PE) firms instead of passing them on to heirs for several strategic reasons. First and foremost, PE firms bring a wealth of resources, including significant capital infusion, which can be instrumental in scaling the business beyond the original owner's capabilities or initial vision. This capital not only fuels growth but also modernizes operations, making the business more competitive and sustainable in the long run. Additionally, PE firms offer strategic guidance that leverages industry expertise and professional management practices. This guidance is crucial for businesses that need a transformational strategy to thrive in evolving markets or require a level of professional management beyond what the existing family structure can provide. Moreover, selling to a PE firm allows retiring entrepreneurs a clear and efficient exit strategy. This is particularly appealing for those who may not have willing or capable heirs, or for those who prefer to safeguard their legacy by ensuring the business is managed by professionals who can drive future growth. With the support of SEA, business owners can make well-informed decisions that align with both their personal and business goals.

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❗️Critical Compliance for Fund and Asset Manager Marketers: How do you stay compliant while implementing digital marketing and AI to elevate your fundraising? ➡️ Join us at the Revenue Revolution Symposium at the Questrom School of Business, Boston University to explore this and other critical business development issues in the digital age. 🎤 Featured Speaker: Derek Stern, Head of Global Distribution Compliance at Manulife Investment Management and John Hancock, and a panel of legal and compliance experts will provide crucial insights on navigating compliance in our online era: 1️⃣ Compliant Growth Strategies - Explore techniques to expand your digital presence and engage investors without crossing regulatory boundaries. 2️⃣ Surviving the New SEC Marketing Rule - Understand how to optimize your marketing strategies while complying with the latest regulations. 3️⃣ Thriving under multiple regulators - Learn how to grow your business while complying across multiple jurisdictions and regulations. 📍 Event Details: Join us on May 29, in Boston or online, for this groundbreaking symposium, sponsored by the Digital Business Institute BU. 📅 Act with Urgency: The regulatory landscape is swiftly evolving—stay ahead of the curve. Register now: https://lnkd.in/eYynjitW #DigitalMarketing #Compliance #AssetManagement #QuestromMeansBusiness #DigitalRevolution

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One of the most common struggles for aspiring fund managers -- current cash flow. Many fund managers are struggling in the short term to produce cash flow for their business. In a typical structure, fund managers (specifically referring to folks who leverage SPVs to invest into specific deals or funds) -- may earn 1-2% upfront as an acquisition fee and earn the rest of their compensation in a profit sharing split once the preferred return to investors is achieved. Most real estate projects today are either not achieving their preferred return in cash flow or may not achieve this bench mark for the first three, four or even five years -- at this point, there may also be accrued preferred return that would have to be caught up. As a fund manager, what other asset classes are you evaluating to help increase cash flow for both your investors AND yourself? Personally, we are diving deep into buying and operating businesses that potential to conservatively achieve 20%+ cash on cash returns.

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Great Article – Key points: (1) Interest-Rate Cut Impact: PE deal activity, is still facing challenges such as political uncertainties, weakened corporate performance, and a slow fundraising climate. (2) Already Priced In: Dealmakers indicated that the rate cut had already been factored into transactions over the past several months., (3) Value Creation Over the last two years, many PE firms have improved portfolio company performance by reducing costs and streamlining operations, which could result in higher valuations. (4) Deal Volume Growth: Projections suggest that PE deal volume will pick up in Q4 2024, with an estimated 9% year-over-year increase. This momentum is expected to continue into 2025. (5) Stagnant PE Exits: Despite an increase in US PE deal value (up 12% year-over-year in H1 2024 to $325.2 billion), PE exits remained stagnant, a critical issue as exits are essential for capital formation in the industry.

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Just back from the Global Aesthetics Conference, where I participated in several panels and shared an M&A market update from an investment banker’s perspective. Drawing from panel discussions, numerous meetings, and Bundy Group’s extensive experience advising practice owners on business sales, I’m sharing some key insights below. I enjoyed participating with Bradford Adatto Jay Shorr Jay Reyero #aesthetics #aestheticsmergers ·        Aesthetics Market Potential: With less than 10% of the aesthetics market consolidated, there remains significant M&A runway in the segment. ·        Competitive Tension Through Investment Banking: An investment banker-led process can add competitive tension to a sale, maximizing value for the practice seller. Examples: - Private equity groups frequently engage investment bankers when selling a company—a strategic approach that business owners should consider. - Bundy Group achieved over a 50% premium on client engagements last year (comparing the final closed deal value to the initial offer received before our involvement). ·        Value-Building Mindset: Continually seek ways to enhance the value of your practice. ·        Financial Systems and Support: Invest in high-quality financial systems and a strong supporting team (e.g., a fractional CFO) to ensure financial health and efficiency. ·        Provider Compensation and Retention: Many M&A deals in aesthetics now include structuring mechanisms focused on non-owner provider compensation and retention. ·        Real Estate Lease Considerations: Ensure that real estate leases are transferable to new business owners to facilitate smooth transitions. ·        Revenue Diversification: A practice owner should not be responsible for a significant portion of the firm’s revenue; a diversified provider base is key. ·        Private Equity Activity: Private equity groups are expected to accelerate the sale of their aesthetics platforms in the coming years, which will have a trickle-down impact on privately held aesthetics practices. ·        The “Mic Drop” Strategy: Know your objectives. Consider how much upfront cash it would take for you, as a practice owner, to walk away completely from the business.

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An important but counterintuitive truth: investment performance is NOT the top priority for most institutions! Chestnut's market research has been demonstrating this truth for over a decade. If you don't believe me or our research, please listen to this outtake of Teresa Araco Rodgers of The Presser Foundation on the Chestnut Solutions Institute's recent webinar, discussing several non-performance factors that are top of mind for her as Presser considers retaining its first OCIO. #OCIO #investmentsolutions #endowmentsandfoundations #nonprofits #investmentmanagement #assetmanagement #investmentconsulting

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