M&A Insights
Stay on Top of the Changing M&A Landscape.
{M&A Process/11} Letters of Intent(LOIs)
Maximizing Synergies in M&A: How Strategic Buyers Drive Higher Valuations
Most M&A participants know that strategics - whether a corporate buyer or a PE portfolio company (a hybrid strategic) - tend to value targets the most because of synergies. So, what goes into synergies and, more importantly, using them to drive purchase price?
{M&A Process/10} Indicative offers and management meetings
Exclusivity Agreements: When and How to Use Them
Kicking off another post, this time focusing on exclusivity or no-shop provisions.
{M&A Process/9} Going to market
Navigating 'Simple' Deals: Avoiding Pitfalls in Buy-Side Transactions
{M&A Process/8} Buyer list
M&A Deal Points | A Deep Dive on SaaS Valuation
We now turn to a final factor that quantifies elements from across the other factors: SaaS metrics.
{M&A Process/7} Prearranged financing
Deciphering Deal Structures: Insights into M&A Consideration Mix
In M&A, the consideration mix or deal structure can be just as crucial, if not more so, than the headline purchase price for sellers. Earnouts, rollover equity, and seller notes don't always translate into expected cash returns.
{M&A Process/6} Marketing materials
One of the things we often highlight at Sierra Pacific Partners is the importance of a cohesive deal team with open lines of communication. What could be wrong with that?
Maximizing Business Value: Insights from M&A Advisors
In M&A, sellers often hold optimistic views on their business's value. Our role as advisors is to provide data-driven valuation advice. During a discussion on diligence with a client, we emphasized the need for focus and momentum in the sale process.
{M&A Process/5} Market Intelligence
Once engaged, Sierra Pacific Partners conducts a market study using proprietary databases to assess the company’s value, determine active buyers in the industry, and talk to those buyers to uncover how they view and weigh various value drivers
Deal Diary: How to Handle Minority and Marketability Discounts in Operating Agreements
Recently, while drafting an operating agreement for a surgery center, we used a formula-based redemption price with an appraisal option if contested. Should appraisers apply minority and marketability discounts?
{M&A Process/4} Sell-side Preparation
Both prior to and following engagement, we’ll need information from the seller to assist with valuation, marketing, and diligence.
Ready to Sell Your Business? Here’s How to Take the First Step
What does it take to capture a buyer's attention and prompt them to submit a Letter of Intent (LOI)? According to the latest Alliance of M&A Advisors survey, several key factors influence buyers' decisions, including growth potential, stable revenue, quality of the management team, EBITDA margin, and synergies.
{M&A Process/3} Different types of M&A sale processes
There are a number of ways to transfer a company depending on client goals and circumstances y or combination.
SaaS Valuation Demystified: Tips for Buyers and Sellers in the Market
Traditional SBA valuation metrics often fall short when applied to SaaS businesses due to their unique characteristics, such as huge total addressable markets and opportunities for explosive growth. This has created a market where business transfers command higher prices, attracting various buyers with ample funding sources.
{M&A Process/2} How we add value
Before embarking on an M&A process, many sellers think an investment banker or M&A advisor’s primary role is to find a buyer. In fact, post-closing surveys of sellers repeatedly show the opposite--that sellers view buyer sourcing as the least important part of what advisors do.
Success Comes at a Price - Cost of Capital
Founders considering an exit often approach Sierra Pacific Partners, having achieved success and raised capital for their ventures. Ultimately, a seller's capital structure and investor goals profoundly influence strategic alternatives in M&A transactions.