
Does growth potential impact business value?
As you may expect the undeniably straightforward answer to this question is a resounding YES! Acquirers typically pay the most for businesses which have the potential to grow. In rare cases, an acquiring company may even buy a business with lots of growth potential yet performs relatively poorly on many other business attributes because the buyer sees a way to leverage some of its own assets to help the business grow much more quickly than it could otherwise grow under the cu

Did Microsoft overpay for LinkedIn?
Microsoft’s recent $26.2 billion acquisition of LinkedIn provides an illustrative example of a strategic acquisition – the type of sale that usually garners the most gain for the acquired company’s shareholders. You may be wondering what a billion-dollar acquisition has to do with your business, but the very same reasons a strategic acquirer buys a $26 billion business holds true for the acquisition of a $2 million company. The financial vs. strategic buyer A financial buyer