Thursday, January 28, 2010

Over and Above the Numbers

The following is an excerpt from CBI's The Privately Held Company Newsletter:

A close review of the financial statements is always in order when considering the acquisition or merger of a company. However, that is only part of what a buyer is acquiring. Other important assets are:
  • Repeat customers or clients
  • Patented product, government approvals, profitable copyrights
  • Broad customer or client base (diverse & growing)
  • Long-term contracts
  • Recognizable brand or product name
  • Experienced management team and trained work force
  • Valuable intellectual property
  • Proprietary products
  • Profitable alliances
  • Contracts/non-competes with valuable employees