Long before selling their businesses, owners start thinking: “What’s my business worth?” Or, if they are a buyer, “How much should I pay?” Bankers like to talk about the value of publicly listed companies based on their stock prices and some reasonable “premiums” above those prices. There is nothing wrong with this approach – but what is the right premium, if any, and how do you figure it out?
I believe that our attitude – our expectation of success is one reason that people choose us to advise them. We not only are experts in our field and know how to get deals done, we also don’t quit. Perseverance is one of our mantras. It’s one thing to simply “broker” a deal – to introduce parties and get a deal conversation started – it’s quite another to bring the deal to closure. We are mere “brokers.” We’re full-fledged strategic and financial advisors.
We’re feeling pretty good about 2016. The m&a market in the dozen+ information technology sectors that we follow and sometimes lead is strong. We’re busy. Demand is high for companies that check all the boxes: unique products that address very large markets, defensible market leadership, high recurring top-line growth, substantial profit leverage, strong management, etc. High demand often translates to high values. We recently advised on a sale at more than 30x EBITDA.