UP
- Value to the Buyer is the Ultimate Driver
- Differentiation in the market
- Valued and leading clients with
minimal client concentration - At or above industry margins
- Tenure of business
- Size – Larger companies
get higher multiples - Control of fixed costs and SG&A
- Preparation, audit, and quality of earnings
- Strong leadership team
- Strong market
DOWN
- Concentration of clients
- Lack of differentiation
- Low tenure of business
- Inability for growth
due to oversaturation - Size – Smaller companies
get lower multiples - EBITDA dollars and margin %
- Business mix
- Industry market trends
- Weak management team
- Poor market
RVR’s M&A Tenets
- Preparation is Key
to a Successful Exit - Weaknesses Must Be Addressed
- The Goals is to Maximize Value While Balancing Optimal Transaction Structure
- Maximizing Value Starts With Understanding the Buyer’s Ultimate Return
- Challenges Will Arise and We Will Work Through Them
