Matt Lawver, Author at Value Scout

Why Should I Remove Excess Working Capital from the Business?

Working capital allows your business to grow without incurring debt. Demonstrating positive working capital makes getting loans or other forms of credit easy. Working capital refers to the difference between a company’s current assets and current liabilities (per the balance sheet). The amount the business requires to make regular payments, purchase material to produce goods, …

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Search Funds Defined: Pros and Cons

Valuation / By Matt Lawver

Search funds make good potential buyers for small- and middle-market business owners looking to exit their companies. H. Irving Grousbeck, a professor at Stanford University’s Graduate School of Business, created the search fund concept in 1984, and by 2020, the number of search funds had grown to over 400. Search fund entrepreneurs differ from private equity investors, …

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Company Succession: The Private Equity Option

Ownership Transition / By Matt Lawver

A mere 30 percent of family businesses survive the second generation, which makes selling to a private equity investor a compelling option for continuity of the business.

Business Valuation: Comparable Transaction Method

Valuation / By Matt Lawver

Comparing different companies with attributes similar to the target company helps the buyer determine the worth of the company they wish to acquire.

Company Succession: Leveraged Buyout

Exit Planning / By Matt Lawver

The leveraged buyout describes a company takeover mainly financed by debt. Company shares can either be purchased by external or internal investors.

Working Capital: Why It’s Vital in Business Value and Exit

Uncategorized / By Matt Lawver

Working capital, or lack thereof, can significantly impact a firm’s valuation, selling price, and M&A deal terms. Effectively managing working capital is critical to a successful sale.

Growth Through Merger

Exit Planning / By Matt Lawver

When two companies merge together, the new entity they create is innately bigger and stronger. It boasts a new combination of products, people, and processes. It has an expanded presence in multiple markets, a larger customer base, a bigger portfolio of products and services, and more operational complexity. Mergers can be an extremely effective way …

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Failing to Plan is Planning to Fail

Exit Planning / By Matt Lawver

What will happen to your business, employees, and retirement goals if you don’t get the value you deserve upon the sale of your business? Read on to know more about the effects of selling your business without an exit plan.

Acquisition as a Growth Strategy

Value Creation / By Matt Lawver

Under the right market conditions, acquisitions increase a company’s market share and gain new customers.

Valuation Basics: Earnings, Growth, Risk

Value Engineering / By Matt Lawver

Understanding the value of your business is critical especially when you’re planning for the next phase — be it to merge, sell, raise capital, or even simply to convert the organization from C-Corp status to S-Corp status for tax purposes. Naturally, we pay most attention to the first two.

Author name: Matt Lawver