Why Some Companies Draw Smaller Premiums in the M&A Market - Modern Distribution Management

Why Some Companies Draw Smaller Premiums in the M&A Market

What does an A” company look like?

In MDM’s recent Webcast, Distribution M&A 2008 Update: Value Redefined in a Tough Market -order the recorded presentation/transcript here -Evergreen Consulting’s Brent Grover addressed why some companies draw smaller premiums in the M&A marketplace.

One factor: the quality of the distributor’s assets. Smaller companies generally draw a smaller premium but can boost their value to the higher end if they consider the following, according to Grover:

“It will have a well-balanced sales force meaning, not being overly dependent on any one or two salespeople. The sales force will have a good balance of age and experience so they’re not all going to …

What does an A” company look like?

In MDM’s recent Webcast, Distribution M&A 2008 Update: Value Redefined in a Tough Market -order the recorded presentation/transcript here -Evergreen Consulting’s Brent Grover addressed why some companies draw smaller premiums in the M&A marketplace.

One factor: the quality of the distributor’s assets. Smaller companies generally draw a smaller premium but can boost their value to the higher end if they consider the following, according to Grover:

“It will have a well-balanced sales force meaning, not being overly dependent on any one or two salespeople. The sales force will have a good balance of age and experience so they’re not all going to …

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