BrightView—which once again ranked No. 1 on the LM150 list of the industry’s top 150 revenue-generating firms—announced the launch of its initial public offering of 21,300,000 shares of its common stock. According to a report on StreetInsider, the initial public offering price is expected to be between $22 and $25 per share. “It’s a fabulous valuation for our industry,” said... read more
As the year closes, it’s important to understand the value of your business. Agreeing on your company’s value will make or break a potential merger or acquisition transaction. Ultimately, a company is worth only what someone is willing to pay for it. There are four key elements that impact every valuation: the buyer, cash flow, risk and you. The buyer... read more
Prior to implementing an employee stock ownership plan (ESOP), S and C corporations must undergo a feasibility analysis to determine whether the company is financially qualified to do so. In hand with this month’s cover story, “Ownership pride,” CCG Advisors provided an example feasibility analysis for a company seeking to implement a leveraged ESOP. In this example the company is... read more
Are you looking to raise the value of your firm and sell it one day? There are many factors that determine the value of your business. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is one important indicator that is often touted as a silver bullet –but taken on its own, it can be misleading and even dangerous. EBITDA is a profit calculation made famous in... read more
Have you heard the phrase timing is everything? It’s difficult to make money these days, which are different compared to five or 10 years ago. The economy, immigration reform, fuel costs, taxes, Obamacare and pricing competition keep companies guessing and on their toes. So, what’s your plan? Do you have an exit strategy? Do you have an operating strategy that... read more
We talk a lot about strategic plans, but rarely about strategy. A successful strategy increases enterprise value. Enterprise value is the financial worth of your business. It is calculated by multiplying earnings before interest, taxes, depreciation and amortization (EBITDA) by an EBITDA multiple. Therefore, your strategy must address a simple mathematical truth: Increase both EBITDA and the multiple. So far,... read more
