How Frequently Does a Business Valuation Need to be Performed?

A business valuation may be performed at some point in a company’s existence for various reasons. In some cases, a business may simply wish to understand its value, but for the most part, there will be a specific reason that the valuation analysis is sought. It often relates to investment decisions, exit planning strategy, a potential sale or buyout, or because of an impending IPO.

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How to Perform Reverse Due Diligence

Due diligence is an inevitable facet of any merger or acquisition, and companies considering a sale must take a long, hard look at the business before propositioning any prospective buyers. The best way to ensure that there are no surprises during the future buyer’s due diligence investigation is by engaging in reverse due diligence, also known as sell-side due diligence. This is just a due diligence investigation that takes place and has far less at stake before the real due diligence process begins. Here are the top tips for performing reverse due diligence:

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What To Do When You Receive An Acquisition Offer From A Competitor

For businesses that succeed and become an intimidating presence to their competitors, there is a good chance that one of those competitors will seek an acquisition at some point. After all, if a company cannot compete with its main rival, then it is clearly a smart move to join them. But, it can be a bit jarring for a company’s leadership team when they find out that one or more of their market challengers are interested in pursuing a purchase of their entity. The initial thought may be that there is something untoward brewing, with an understandable gut reaction to run as far away from the situation as possible. Of course, there very well may be good intentions behind the interest and a perfectly reasonable offer coming down the pipeline, so company leaders need to think twice before completely balking at the prospect. Here are some tips on what to do when you receive an acquisition offer from a competitor:

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How to Combine Company Cultures After a Merger

Mergers are usually pretty exciting for shareholders and members of the leadership team given that they are the folks who are going to benefit the most financially. However, for many of the employees and staff, a merger is often met with a fair amount of apprehension. There may be uncertainty as to job stability, and there will no doubt be relatively substantial changes to operational aspects of the business. Of course, one of the biggest obstacles to the success of a merger is the melding of two distinct corporate cultures. New leadership often entails different goals and expectations, which can result in noticeable changes to the company atmosphere as well as significant shifts for many employees’ roles and responsibilities. To ensure the most successful merger possible, it is important to prioritize a satisfactory combining of company cultures. Here are some things to consider to make that happen:

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6 Common Questions Venture Capitalists Ask

Startup founders know that sourcing and then actually getting an infusion of venture capital can be quite a feat. The economic climate is always in flux, as is the nature of the competitive landscape. As a result, startup founders must do their research before approaching any potential venture capitalists (VCs). It is essential to know the type of businesses the VCs tend to invest in and how well those ventures are faring to ensure the right avenue is pursued. Of course, startup leaders must also be aware of the expectations and requirements the VCs will have, so that they can be well prepared in advance. VCs will no doubt have a ton of inquiries, and if things progress, a lot of concrete data will be requested and scrutinized. Here are some common questions startup leaders must be prepared to answer:

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5 Tips for a Successful IPO

Deciding to take a company public is a huge decision, and executing a successful IPO requires a tremendous amount of dedication and hard work. Of course, the reasons a company seeks to go public as well as the timing of the launch will have a significant effect on how things turn out in the end. It is obviously incredibly important to create a solid strategy well in advance and to ensure that all existing and potential problems are identified and rectified as early as possible. Here are five tips to consider to ensure a successful IPO:

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Financial vs. Strategic Buyers: The Key Differences Between the Two

If you're looking to sell your business, you might not think at first that the buyer's identity is very relevant to you — only the terms of the deal that you work out. However, not all buyers are created equal, and the entity to whom you sell will ultimately have a major impact on the sales process.
When it comes to business mergers and acquisitions, buyers are generally separated into two types: financial and strategic. Here's a look at the distinctions between them and how these differences will affect your bottom line.
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How to Organize Your Virtual Data Room for Due Diligence

Meticulous record keeping and an organized data management system are imperative to running a business successfully. Of course, there are also a number of instances throughout the life of a business during which a company will be called upon to furnish some of their records and documentation. This kind of massive data exchange is probably most commonly associated with a transaction-related due diligence investigation. Given the extent of data sharing required during any due diligence process, a coherent document retention and management system will prove critical to sealing the deal. Here is how to organize your virtual data room to ensure your company is adequately prepared for due diligence:

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M&A Due Diligence & Cybersecurity

Mergers and acquisitions (M&A) are fairly routine deals these days, and conducting a due diligence investigation to identify and rectify potential issues before sealing the deal is obligatory. Although due diligence is an expected part of the process, the scope of the investigation continues to evolve. These days, companies need to scrutinize more than just financials, with matters related to technology and cybersecurity becoming increasingly important. Here are the key aspects of cybersecurity to consider during due diligence:

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When is the Right Time for my Startup to be Acquired?

For startup founders, once a business is on a roll, it can become increasingly difficult to balance upward success. On the one hand, you want your company to grow and do well, but there are understandable concerns that larger, better funded competitors will swoop in and pull the rug out from under you. They may do this by delivering the same product or service in a bigger and better fashion, or they may come directly for your business and seek to acquire you before you are actually ready. There may not be a perfect time to submit to an acquisition, but there are definitely some telltale signs in the business life cycle that help suggest when the time is right. Here are some things to consider when deciding if it is the right time for your startup to be acquired.

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