News | Links Capital

May 3 2019

Links’ List of Multiples and Buyers | May 2019

Multiples and Buyers / May 3, 2019

The highest multiple that is recognized from a divestiture standpoint using these historical metrics at the end of Q1 2019 suggest that a private equity group is likely going to attain a higher selling multiple (8.1x) when compared to buyouts (7.2x), platform investments (7.4x) and add-ons (6.7x) even when taking into consideration companies with above-average financial characteristics (7.8x) and management staying on post transaction (7.3x) purchased by other private equity groups. Detailed analysis should be done, looking at respective deal sizes and industry to understand how it impacts each company.

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Accounting Firms and Client Retention | March 2019

In the fall of 2017, the Business Development Bank of Canada completed a study on business transitions.

“41% of all entrepreneurs are likely to leave their businesses within the next five years and 52% of them expect to sell or transfer their business outside the family.”

“Entrepreneurs looking to exit are slowing down too soon: 71% are reluctant to take risks to improve their business performance and 52% have little interest in expanding their business, which may cause them to sell below market value.”

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