When closing a deal, the difference between targeted net working capital and actual net working capital can drastically affect the purchasing price. As a seller, what you make off the sale is directly tied to NWC making it a crucial variable for you to understand. In mergers and acquisitions, calculating NWC and determining a normalized level can be more nuanced than it seems. 𝗪𝗵𝘆 𝗡𝗪𝗖 𝗠𝗮𝘁𝘁𝗲𝗿𝘀: • Buyers' Interpretations: Prospective buyers often have their own views on NWC, which can lead to intense negotiations. These discussions may delay the closing or impact the final deal value. • Purchase Price Adjustments: NWC plays a pivotal role in purchase price adjustments, directly affecting your take-home proceeds. • Smooth Post-Transaction Operations: Proper NWC management ensures smoother transitions and ongoing operations post-acquisition. Understanding what NWC might or might not include and how an M&A advisor can assist you in negotiating favorable terms can maximize your deal’s value. 𝗥𝗲𝗮𝗱 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗯𝗹𝗼𝗴 𝗵𝗲𝗿𝗲: https://lnkd.in/gMpZ94W3 𝗚𝗿𝗼𝘄𝘁𝗵 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 Software advancements are creating abundant growth and M&A opportunities. To assist in navigating these, we offer a complimentary Strategic Assessment of your company. Please reach out if your company meets the following criteria for a liquidity event: 𝗠𝗶𝘀𝘀𝗶𝗼𝗻-𝗖𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗦𝗮𝗮𝗦 / 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗚𝗥𝗥: >90% 𝗔𝗥𝗥: >$5M+ 𝗥𝘂𝗹𝗲 𝗼𝗳 𝟰𝟬: >40% https://lnkd.in/eaAbw_-n #MergersAndAcquisitions #NetWorkingCapital #IndustryInsights
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What do North American dealmakers report about their business this year? ◼️ Increased revenue: Three-quarters say their revenue increased in 2023. ◼️ Prompted to raise fees: 38% of North American middle-market merger advisors increased fee levels. ◼️ Profitability largely held up despite rising costs: Those that increased fee levels were twice as likely to grow profits than those that didn’t. For more on the current state of North American M&A advisory fees, take a look at our 2023-2024 Fee Guide — North American Edition: https://fir.mx/NAFEES24 #MergersAndAcquisitions #AdvisoryFees #FirmexInsights
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I’ve noticed in recent years that LLCs have surged in popularity compared to S-Corps, and it's easy to see why. LLCs offer more flexibility in management and ownership, along with fewer restrictions. They're especially favored by those looking to achieve strategic growth through mergers with industry peers. Even for smaller practices, business owners are increasingly attracted to the ability to customize an LLC to suit their specific needs—whether it's for scaling up operations or safeguarding personal assets. With fewer compliance requirements and the option to choose their tax structure, LLCs provide a versatile framework that aligns with the dynamic nature of today's business landscape. Ready to explore which business entity is the perfect fit for your business? Call us today at (503) 427-9910. Let's take your business to the next level! #BusinessFormation #LLC #SCorp
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Reflecting on the year 2023, our Deals team has curated a summary of their key projects over the past year. Throughout this period, we assisted many businesses in analyzing and evaluating various transactions and investment opportunities. Our support extended to overseeing the acquisitions and sales of different businesses. We are excited about the upcoming completion of ongoing projects this year and the start of new initiatives. We eagerly look forward to another year of productivity. ✅ Take a look at the highlights of our Deals team’s projects in 2023: https://pwc.to/3O7bcK2 #PwC #Deals #PwCDeals #CorporateFinance #mergersandacquisitions
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The 50+50 Rankings, in partnership with Source Advisors UK, show a surge in M&A activity within the UK accounting sector. Nearly 40% of the top 100 firms participated in mergers or acquisitions in the past year. While this trend presents exciting opportunities for growth and efficiency, it also raises concerns about potential challenges. Explore the factors driving the M&A boom, including the need for mid-tier firms to consolidate for broader expertise and the pressure to modernize quickly. Read more: https://lnkd.in/dxWmk28r #Accounting #AccountancyAge #AccountingSector #SourceAdvisors
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📊 Elevate Your Financial Analysis with EBITDA Insights! 📊 Our latest blog post explores advanced applications of EBITDA. With practical examples and insights, this is a must-read for CPAs and financial professionals. 🔍 Enhancing company performance comparisons 📈 Driving strategic investment decisions 🤝 Assessing mergers and acquisitions with precision 💰 Strengthening loan agreements We provide detailed examples and actionable insights to help you leverage EBITDA for optimal financial management. Plus, discover how Peerview Data can benchmark your client's EBITDA, providing you with data-driven recommendations. 👉 Read more: https://hubs.ly/Q02KcCxj0 #CPA #Finance #EBITDA #FinancialAnalysis #PeerviewData
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Most business valuation reports will give you a "number". But that can quickly lose all meaning. Our team has the perfect tool for you to understand your valuation, exit options, strategies to maximize your sale price and cash at close. An all in one Market Value Assessment (MVA). Considering 70-80% of your wealth is locked inside your business its important you know what its really worth. Click here to Start a Valuation. https://lnkd.in/dCekZZRP #AcquisitionHub #BusinessValuation #BusinessSales #MergerAcquisitions
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For business owners eyeing the sale or merger of their business 👀, having a foundational understanding of the business valuation process🔎 is not just beneficial—it's lucrative. Knowing how a valuer will assess your business will empower you to make strategic decisions that may increase your market value.📈 Elements Advisory Group partner Darren Van Zyl delves into this critical topic, aiming to equip you with the knowledge to successfully navigate the valuation processes. Watch the video linked to understand the fundamental components a valuer will likely consider when completing a valuation on your business. https://lnkd.in/gyimFG7F #valuation #MarketValue #MergersAndAcquisitions
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