Financial Due Diligence
Rock Center Financial Partners
by Kevin Tomossonie
2y ago
Financial due diligence is a process that a buyer goes through in order to get comfortable with a business from a financial perspective. It involves looking at the books and records of a target company... The post Financial Due Diligence appeared first on Rock Center ..read more
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Earn-Outs
Rock Center Financial Partners
by Kevin Tomossonie
2y ago
An earn-out is a pricing mechanism where a buyer agrees to pay an additional amount of purchase price to a seller if the business can achieve certain milestones within a certain period of time after... The post Earn-Outs appeared first on Rock Center ..read more
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Carve-Out Transactions
Rock Center Financial Partners
by Kevin Tomossonie
2y ago
A carve-out transaction is where a parent company ‘carves-out’ and sells a business from within a larger group of businesses that it owns. A carve-out can be a business segment, a division, or... The post Carve-Out Transactions appeared first on Rock Center ..read more
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Quality of Earnings Issues
Rock Center Financial Partners
by Kevin Tomossonie
2y ago
When a quality of earnings is prepared, it’s usually best summarized in a schedule. One that shows the amount of EBITDA that a target company initially reported, which is then adjusted to reflect... The post Quality of Earnings Issues appeared first on Rock Center ..read more
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Quality of Earnings Analysis
Rock Center Financial Partners
by Kevin Tomossonie
2y ago
A quality of earnings is one of the main outputs of financial due diligence. Its purpose is to present the amount of EBITDA that a company generates in a way that it fairly represents... The post Quality of Earnings Analysis appeared first on Rock Center ..read more
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Measuring Return on Investment
Rock Center Financial Partners
by Kevin Tomossonie
2y ago
Buyers invest in businesses to make money. Which means, when they invest, they either want a business to generate cash, so they can take that cash out, or they want the business to grow... The post Measuring Return on Investment appeared first on Rock Center ..read more
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Discounted Cash Flow Analysis
Rock Center Financial Partners
by Kevin Tomossonie
2y ago
There’s a concept in valuation that the value of a cash generating asset, like a business, should be equal to the net present value of its expected future cash flows. The way this concept is applied in... The post Discounted Cash Flow Analysis appeared first on Rock Center ..read more
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Building Financial Models
Rock Center Financial Partners
by Kevin Tomossonie
2y ago
In every M&A deal a buyer should have a financial model that captures the current and the expected future financial performance of the business that’s being acquired. One that includes... The post Building Financial Models appeared first on Rock Center ..read more
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Purchase Price Multiples
Rock Center Financial Partners
by Kevin Tomossonie
2y ago
Two of the most commonly used purchase price multiples, when it comes to valuing a business, are sales multiples and EBITDA multiples. These multiples represent nothing more than the price... The post Purchase Price Multiples appeared first on Rock Center ..read more
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Rep and Warranty Insurance
Rock Center Financial Partners
by Kevin Tomossonie
2y ago
Rep and warranty insurance is an insurance policy that covers a buyer’s losses from breaches in reps and warranties in a purchase agreement. These policies can either be taken out by a buyer... The post Rep and Warranty Insurance appeared first on Rock Center ..read more
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