Valuable Insights & Resources for business owners

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Insights

Practical perspective for owners of privately held companies on value, buyers, preparation, and what to expect in a sale.

Construction Industry Insights

The backlog of profitable jobs is a critical factor in determining the valuation of a construction business. While a company’s value is derived from various factors, such as financial performance and assets, a contractor with little work on its backlog is not attractive to potential buyers. The absence of a healthy backlog can lead to a decrease in financial stability, bonding capacity, and skilled workers, which could cause the business’s value to plummet. Contractors must bid competitively but profitably and maintain stable operations to keep work on the backlog. This approach can help maintain valuation for the long haul and enable owners to focus on increasing their business’s worth.

Construction Contractors: 10 Ways to Increase Your Company’s Valuation Before Selling

Despite the economic headwinds of higher interest rates and inflation, the construction sector continues to see steady merger & acquisition activity. Construction companies tend to sell for 3.5x to 7x EBITDA depending on the company’s size and other qualitative factors which can often be improved prior to selling. Here are ten actions an owner can take to prepare the company for presentation to the market and increase the potential buyer’s offer price.

Semiconductor 2022 M&A Deal Activity Mixed Amid Regulatory and Supply Issues

Merger and Acquisition activity in the semiconductor industry is currently mixed due to regulatory and supply issues. While some companies are looking to acquire competitors to increase their market share and technological capabilities, others are holding off due to concerns about regulatory scrutiny and uncertainty around global supply chains.

Q4 2022 Electronic Components, Equipment & Instruments Deal Activity

The current state of the electronic components, equipment, and instruments industry. This report highlights the diversity of sub-industries that make up the sector and the growth opportunities created by the increasing importance of technology in different fields. Additionally, the challenges facing the industry, including supply chain disruptions and regulatory issues, and the impact of recent M&A activity on the industry landscape.

Case Study: How a Higher Ed Focused Software Company Found the Right Buyer

Introduction Aviso Retention is a student retention software solution for higher education. It uses AI and predictive analytics to help colleges and universities increase the engagement, retention, and degree or certificate completion of underserved students. Alex Leader founded Aviso in 2012. Within less than a decade, he and his team had bootstrapped it into a…

Valuation Multiples for the Manufacturing Industry

Manufacturing company valuations are often discussed in terms of multiples of EBITDA. This is because EBITDA is a common measure of a company’s cash flow that allows apples-to-apples comparisons between companies with different capital structures. We looked at manufacturers sold in the past five years, included breakouts for a few key manufacturing sectors, and summarized…

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