Building Value

Building Your Company’s Enterprise Value

A SUCCESSFUL M&A TRANSACTION REQUIRES MUCH MORE THAN A GOOD START, IT REQUIRES THE REALITY OF A SOLID OPERATING COMPANY AND THE FINISH OF A COMPANY POISED FOR FUTURE GROWTH AND SUCCESS.

THE FOLLOWING ARE SOME OF THE KEY PERFORMANCE INDICATORS THAT SPGS WILL MODEL.

The Start

Strong topline revenue trend
Significant EBITDA achievement
Cash flow vitality

The Reality

Market conditions and competitive analysis
Identifiable white space for growth
Operational and P&L analysis
Product/service line optimization
Achievable scalable model
Systems redundancy
Operational KPIs
GAAP accounting compliance
Appropriate audits (or QofE)
Solid culture
Delineation of responsibilities/authority
Succession planning

The Finish

Logical, believable and achievable model
5 year business plan and prospectus development
Accessible & complete data room
Transparent sharing of information (good & otherwise)
Assessment of capable investment banking partners
Assessment of potential partnership compatibility

BUYERS BUY MAXIMUM VALUE BUSINESSES ON FUTURE POTENTIAL, NOT HISTORICAL PERFORMANCE