Stories

There are 4 company valuations for every Internet service company

I have been discussing Internet service company valuations for over 20 years and what I realized a long time ago is there are 4 valuations for almost every Internet service company. 1) There is the valuation that the company CEO/owner has in their mind. 2) There is my valuation opinion … which other than deciding…
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The most ruthless tactic in private mergers and acquisitions

Buying and selling a private Internet service company can be a smooth process which evolves into a win win for both the business buyer and the business seller … OR it can turn out to be a disaster where either the shady seller misrepresented the company or the shady buyer went into the deal fully…
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Losing your job due to a tech merger or acquisition?

If you hear that the company you work for is being acquired, of course the first things you want to find out are … is it true, who is the buyer, when is the deal closing, what is the probability of the deal happening, and will the buyer want to keep me or not? Let…
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14 Misconceptions & Mistakes with Company Divestitures

The divestiture of a business is obviously THE most important transaction of the entire life of the business … and should be treated as such. Over the years I have seen many of the same mistakes being made, as well as selling CEOs and business owners holding onto the same misconceptions with regards to the company…
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The mirage of company valuation multiple expansion

“Multiple expansion” is an idea around company valuation. The idea is, as a company grows from $1mm in annual revenue to $15mm then $25mm and higher, the company valuation multiple will also increase. Two common company valuation metrics are, a multiple of annual revenue and a multiple of EBITDA.  I have been acquiring, divesting and valuing recurring revenue…
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The MSP Company Valuation Dilemma

Article as seen on MSPInsights.com Many years ago the tech world was filled with single product and single service companies, think long distance service, local phone, wireless paging, SMR, cable tv, dial up ISPs and a few others. This made company valuations relatively easy. The valuation metrics were based on dollar per subscriber, revenue multiples, EBITDA multiples,…
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Digital Agency M&A: Buy-side Assignment, Valuation and Liquidity

I have been assisting individuals and CEOs acquire, divest and value Internet service companies since the days of the dial-up modem, so to witness the “Digital Agency” industry evolve from basic website design and old school advertising to where it is today has been a fascinating journey for many of us. My 2018 six-month buyside…
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Never do business with this person

Of course I keep a list of the shady people I have met in the 20+ years I have been doing mergers and acquisitions in the Internet industry. The reason I maintain this “Never do business with this person” list is obvious, but there are other aspects of the list that are valuable yet maybe…
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The difficulties of selling a 50/50 equity partnership

When business partnerships are formed the obvious benefits and concerns are addressed. How do each partner’s strengths and weaknesses complement each other? How much capital will each partner contribute to get the business going, and to keep it going until it reaches cash flow break even? How long will they grow the business until they…
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Internet M&A: The perfect number and blend of MSP services to offer

There are over 50 individual services a “Managed Service Provider” can offer customers. Many CEOs have asked me … in order to maximize their company valuation and liquidity is it better to specialize in 3-5 services or try to offer as many services as possible … and which combination of these services is best. In my…
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