There are several popular motivations for selling your business. Determining what they are is an important stage of the sell-side M&A process. Having a clear vision of the reasons for pursuing an exit strategy can play a crucial role in preparing the business for investor due diligence, determining optimal valuation range and conducting final price and deal terms negotiations. Let’s dive into the more common reasons for selling your enterprise.
Due diligence (DD) is the process of detailed research and/or appraisal, which takes place before making a decision and focuses on minimizing risks and/or estimating true commercial value. It is the investigation, audit, or review that must be performed to validate the facts.
Continue reading “Fundamentals of the Due Diligence Process”
According to Morningstar analysts, despite much of the rebound already being priced in, there are some remaining investment opportunities in the market.
Continue reading “Has all the potential for economic recovery been already priced in?”
Growth and value are two fundamental approaches, or styles, in stock investing. Growth investors seek companies that offer strong revenue and earnings growth while value investors seek stocks that appear to be undervalued in the market. Because the two styles complement each other, they can help add diversity to a portfolio when used together. There are some stocks that have both growth and value attributes – their classification depends on other traits they possess.
Country risk is an important consideration in building a diversified investment portfolio in capital, private or bond markets, as well as currency or commodities speculation or hedge trading.
We have picked some of the more interesting global markets figures from last week to present here – we believe these might be indicating a new trend for global equities and should definitely not be ignored by investors.
Continue reading “Global Markets – a few highlights from last week”
It’s worth diving into some themes which have emerged recently, as the world is trying hard to get rid of COVID-19 and go back to the old normal, or at least as close as it gets.
Continue reading “Stimulus, economic recovery and inflation (Part III)”
At the moment many investors are worried that the unprecedented stimulus and gradual demand recovery will eventually lead to inflation. Thus, we need to understand the relationship between inflation and the bond market, as well as the stock market.
There are several fundamental factors, which align economic policy, markets, and the general business cycle, which investors must be familiar with and follow closely. Understanding certain relationships between the above aspects of the investing universe could assist with building a sound portfolio strategy, with solid returns and well-managed risk.
Continue reading “Interest rates, economic cycle and stock returns (Part I)”
There are endless forecast comments in relation to the US economy recovery path, characterized by a myriad of well-know letter representations, including V-shaped, U-shaped, W-shaped, L-shaped, etc. Despite the general perception that markets are disconnected from economic fundamentals, it could be argued that US economy is actually catching up in terms of unemployment levels, business activity, general demand (consumption), favourable currency value, investments crude prices stabilizing (but still favourable to gradually returning commercial demand), etc. This could imply a rather quick economic recovery (probably by the end of the year), especially if the Fed stick to their current monetary policy (probably not so much on the asset buying, but rather the interest rate side of it) and Congress extends the successful fiscal support measures implemented so far, including business bailout funds and household support. Continue reading “US market outlook”
