Advisory

Trimming Excess Working Capital to Boost Your M&A Valuation

M&A valuation is significantly influenced by adept management of a crucial financial tool: Working Capital Management (WCM). Mastering WCM is fundamental to achieving outstanding financial management and elevating business value. Working Capital: An Unseen Ally in Improving M&A Valuation   Working capital, the difference between your firm’s current assets and current liabilities, serves as a …

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Koch v. Koch: $12M Verdict & $58M Minority Buyout in Valuation Battle

Koch v. Koch (No. 27-CV-18-20579, 2022 WL 1467980 (Minn. Dist. Ct. May 06, 2022)) involved a shareholder dispute among three brothers who owned two businesses in Minnesota. The plaintiff, Jim Koch, had a falling out with his brothers, Randy, and Dave Koch (the defendants), resulting in a deteriorated relationship and disputes over the terms of …

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Quality Earnings Analysis: Maximize M&A Value, Minimize Risks

Introduction In today’s complex and competitive business environment, mergers and acquisitions (M&A) continue to be a driving force for growth and value creation. However, these transactions are often fraught with risks and uncertainties that can undermine the expected synergies and benefits. One of the most critical aspects of successful deal-making lies in the ability to …

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An Acquisition Bargaining tool: Contingent Consideration

The conceptualization of contingent considerations plays an instrumental role in the current merger and acquisitions arena. Contingent consideration or “earn-out” is a type of payment that is made by a buyer to a seller in a business acquisition, but the exact amount of which is dependent on the achievement of certain future events or milestones. …

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Fair v. Fair: Exploring the Impact of Discount for Lack of Marketability (DLOM)

In the case of Fair v. Fair, the Louisiana Appellate Court examined the impact of the discount for lack of marketability (DLOM) on the valuation of a closely held business. This article focuses on the use of DLOM as a factor in determining damages and aims to provide insights into the importance of considering marketability …

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Marion Coster v. UIP Companies: The Importance of Fair Price and Process in Valuation

In the case of Marion Coster v. UIP Companies, Inc., et al., the Delaware Chancery Court examined the issues of fair price and fair process in the context of a merger transaction. This article focuses on the valuation aspects of the case and aims to provide insights into the importance of fair price and process …

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The Admissibility of Calculated Value Assignments in Courts of Law: Larchick v. Pollock

In Larchick v. Pollock, the admissibility of calculated value assignments in Arizona courts of law took center stage. This article focuses on the importance of using well-founded valuation methodologies and how they are presented in legal settings. The dispute in Larchick centered around the valuation of a closely held business in which both parties held …

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In Re Cellular: Valuation Lessons from a Squeeze-Out Shareholder Dissent Case

In the case of In Re Cellular Tel. P’ship Litig., the Delaware Chancery Court addressed a shareholder dissent suit involving a “squeeze-out” transaction. The minority partners in various partnerships received from the court about three times the value they initially received in the forced transactions that created the squeeze-outs. This article focuses on the valuation …

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