Recent Valuation, M&A, and Business Articles

A cross-section of the many articles we digest about mergers and acquisitions, business valuation, the economy and business trends generally.

Merger and Acquisition articles:

• Some key issues will slow M&A in some sectors in 2019

• The biggest Aussie acquisition stories from the ICT industry in 2018

• IT industry acquisition valuations appear to be staying high with 7.3x(F) EBITDA multiple paid for Inabox

• The key trends that will shape European PE and VC in 2019.

Articles about valuation related issues:

• Proposed Div 7A legislative changes is expected in July 2019, with the new legislation opening up many issues on how market-level remuneration adjustments and Div 7A impacts can be taken into account. We will explain more in a another blog post soon.

• The concept of market value is being tested all the time and a paper presented by John Middleton, CTA (Clayton Utz) at July’s 18th Annual States' Taxation Conference in Melbourne summarised some recent developments. We will make another blog post on the detail shortly, however the take-away point is that market value must be carefully related to what is being valued. In the case of SME's it is important to define what should relate to market value.

• Revenue multiples associated with the royalties attached to sporting products. When valuing these products the value of the royalty stream can attract significant intangible value.

• Secondary Buy Outs in the US have seen increased multiples over initial buy-outs by PE firms.

Some other business-related articles posted include:

• The Tech That Will Impact 2019 - usually these lists have no thought or background to them, but I find this list very relevant and with some data to back it up.

• China - The Digital Giant - So apparently 34% of unicorns come from China and it is the largets e-commerce market accounting for 42% of e-commerce transactions globally. This market and it's related trends cannot be ignored.

• The Eurozone is not healthy and needs reform - despite being the second largest market behind China and just ahead of the US. Yet it has it's issues and the allure of a single currency has not led to happy campers.

• McKinseys version of making better strategy decisions.

• The ageing workforce will bring new challenges to succession planning. How many generations do you have in your business and who would be best placed to replace you?

• Inspiring Aussie business leaders of 2018.

Find out how these trends and changes will impact the value of your business.

If you want to find out more about any of these articles and what it means to your business then contact us for confidential discussion.