Dealbridge M&A Advisors

So you understand the healthcare business? Analysts are unanimous in their opinion that the healthcare sector will be one of the economic sectors that will see the most lively M&A transactions in 2025. Linkedin group "Private Equity & Venture Capital Investors" has now posted a video in which Dr. Jacque Sokolov, Chairman and CEO of SSB Home Healthcare (located in India), shares his journey through 30+ years of healthcare innovation, investment, and entrepreneurship. Although the statements relate to the Indian healthcare system, they provide a worthwhile insight into the dynamics of this sector, in which Asian companies are increasingly making inroads:: https://lnkd.in/ghxb44cn…

RECOGNIZING THE BRANDS AS STRATEGICAL INTANGIBLE ASSETS  An accurate valuation of intangible assets and goodwill plays a strategic role in mergers and acquisitions (M&A) by capturing and reflecting the value that lies beyond tangible fixed assets., This value often resides in the future potential to generating profits and the business’ competitive advantages. The valuation of brands, intellectual property, and technology with various company valuation techniques has gained significant importance following the evolution of accounting standards. International Financial Reporting Standards (IFRS) now permit the recognition of certain intangible assets, such as brands, a departure from previous practices where many intangibles were not recognised due to the complexities associated with their valuation. Their recognition depends on the following conditions: a)     it is segregated, i.e. it can be separated from the entity and sold, transferred, licensed, rented or exchanged individually or together with a related agreement, asset or liability regardless of the entity's intended use; b)     arises from contractual or other legal rights regardless of whether those rights can eventually be transferred or separated from the entity or from other rights and commitments and it must still be probable that expected future economic benefits attributable to the asset will flow to the entity (i.e. cash flow). Each asset must be identified, measured at fair value at the time of the transaction and recorded in the balance sheet in appropriate intangible accounts. Although there are regulations to standardise and reduce disparities in the valuation of brands (ISO 10668 and ISO 20671), the limitations of brand valuation models can lead to some disparity in the values to be recognised. One option to mitigate these potential discrepancies would be to introduce supplementary marketing reports alongside the financial statements. These reports could help clarify the methods used in brand valuation, market performance and potential impairments, which gives stakeholders a more accurate picture of a brand's contribution to a company's value. While IFRS provides a framework for recognizing and measuring intangible assets, the valuation process can present challenges due to the inherent uncertainty associated with these assets. ·       Limitations of Valuation Models: The use of various valuation models can lead to discrepancies in the estimated values of intangible assets, such as brands. ·       Enhanced Transparency: To improve transparency and investor understanding, entities may consider supplementing their financial statements with disclosures regarding the valuation methodologies employed for intangible assets, including details on market performance, potential impairments, and the assumptions used in the valuation. #BrandValue #Dealbridge #Intangibleassets

  ‘Sell or continue?’ - that is the entrepreneur's question here. Should I sell my company or continue the business? For reasons of age, but also in view of the increasingly difficult economic environment, many entrepreneurs ask themselves this question at the turn of the year. According to Google Analytics, the keywords “company sale” or “sell company” are most frequently accessed around New Year's Eve. If the answer is ‘sell’, then further questions arise, such as: ‘What could my company be worth?’ ‘How can I achieve a high enough sale price to secure my retirement?’ ‘Is my company economically so well positioned that there will be interested buyers at all?’ ‘How can I find such buyers and approach them anonymously?’ ‘How long is the sales process likely to take?’ ‘How does such a sale work and what do I have to do to make it happen?’ ‘How do I conduct the sales negotiations when there are several interested parties?’ ‘Are buyers from abroad also a possibility? What would be the consequences?’ ‘Could I use the proceeds to acquire another existing company and continue with a more promising business model?!’ ‘How can I minimise the tax burden on the sale?’ Arrange a free initial consultation with a partner of the Dealbridge M&A Advisors European network in the new year to get answers to such questions. #CompanySale #SellCompany

IBERIA M&A FORECASTS 2024/2025 The current economic situation and outlook for Spain and Portugal confirm that Iberia leads the growth of the euro zone: 1. GDP growth: Spain and Portugal are expected to experience growth of 3% and 2% in 2024 and 2.3% and 1.7% in 2025, placing them above the average euro zone, driven mainly by the foreign sector and private consumption, which will continue to benefit from falling inflation and the recovery of savings. 2. Inflation and consumption: Inflation will continue to moderate, favoring the purchasing power of households. In Iberia, the inflation rate will remain close to 2%, in line with the ECB's objectives. 3. Investments and monetary policy: Recent interest rate cuts in the eurozone should stimulate investment. In addition, the maintenance of good tone is expected in strategic sectors such as tourism, renewable energies and digitalization. 4. Short and medium term challenges: Iberia faces challenges in terms of productivity, population aging and the need for fiscal consolidation, especially Spain, which in 2024 will meet the requirements set by the EU (public deficit 2024: 3% of GDP, decrease in public debt). Investment in energy transition and the raising of European funds will continue to be important to sustain dynamism. In summary, Iberia in 2025 can continue to show a solid economy, although with more moderate growth rates, marked by a global environment of lower inflation. In this context, its mergers and acquisitions (M&A) market has shown signs of recovery and dynamism in 2024. Some key aspects of the current landscape include: 1. Increase in activity: In Spain, the M&A market recorded a 38% increase in capital mobilized in the first six months of 2024, reaching €62 billion. This reflects greater business confidence and more favorable financial conditions. 2. Featured sectors: o Renewable energies: It continues to be a very active sector, driven by the energy transition and investment in sustainability. o Technology: Areas such as cybersecurity, artificial intelligence and information technology are attracting significant investments. o Real estate and financial: They show a solid recovery, with transactions focused on key assets and digitalization. 3. Role of private equity funds: Private equity funds are taking advantage of liquidity to invest strategically, highlighting their interest in minority stakes in small and medium-sized companies to promote their growth. 4. Future trends: o Greater emphasis on strategic operations that encourage diversification. o Possible challenges derived from geopolitical instability and global economic volatility, although with an improvement in local indicators of economic stability and financing. It seems logical to think that the forecast for the Iberian M&A market in 2025 is positive, with a favorable environment for strategic sales that allow companies to grow and diversify in key sectors.

Dealbridge wish you a Merry Christmas and a successful New Year!

Customer diversification: One key to increasing business value When preparing to sell a business, most owners focus on the financials - revenue, profitability, EBITDA. But one factor that is often overlooked is customer diversification. Over-reliance on a few key customers can raise red flags with potential buyers and reduce the value of your business. At Dealbridge M&A Advisors, we've seen how diversifying a customer base can significantly increase the attractiveness of a business, particularly in cross-border transactions where buyers are risk-averse. Why customer concentration is a problem If a large percentage of revenue comes from one or very few customers, buyers will see a risk: what happens if those customers leave after the sale? This can create revenue instability, raise concerns about the company's ability to attract new customers, and limit growth potential. How to diversify your customer base   1.  Expand into new markets: Move into new geographies or industries, using distributors or partners to open doors.   2.  Broaden your offering: Add complementary products or services to attract new customer segments.   3.  Strengthen sales: Proactively target new audiences through dedicated sales efforts.   4.  Balance your revenue mix: Actively pursue new customers to reduce reliance on a few key accounts.   5.  Track progress: Regularly analyse your revenue streams to ensure continued diversification. Why it matters for cross-border business For international buyers, customer diversification is even more critical. Cross-border deals already carry risks such as regulatory or economic uncertainty, and a diverse customer portfolio signals stability and resilience. What this means for sellers A well-diversified customer base doesn't just reduce risk - it makes your business more attractive and valuable to buyers. Let's get in touch to discuss how we can help you maximise the value of your business.

Customer diversification: One key to increasing business value When preparing to sell a business, most owners focus on the financials - revenue, profitability, EBITDA. But one factor that is often overlooked is customer diversification. Over-reliance on a few key customers can raise red flags with potential buyers and reduce the value of your business. At Dealbridge M&A Advisors, we've seen how diversifying a customer base can significantly increase the attractiveness of a business, particularly in cross-border transactions where buyers are risk-averse. Why customer concentration is a problem If a large percentage of revenue comes from one or very few customers, buyers will see a risk: what happens if those customers leave after the sale? This can create revenue instability, raise concerns about the company's ability to attract new customers, and limit growth potential. How to diversify your customer base   1.  Expand into new markets: Move into new geographies or industries, using distributors or partners to open doors.   2.  Broaden your offering: Add complementary products or services to attract new customer segments.   3.  Strengthen sales: Proactively target new audiences through dedicated sales efforts.   4.  Balance your revenue mix: Actively pursue new customers to reduce reliance on a few key accounts.   5.  Track progress: Regularly analyse your revenue streams to ensure continued diversification. Why it matters for cross-border business For international buyers, customer diversification is even more critical. Cross-border deals already carry risks such as regulatory or economic uncertainty, and a diverse customer portfolio signals stability and resilience. What this means for sellers A well-diversified customer base doesn't just reduce risk - it makes your business more attractive and valuable to buyers. Let's get in touch to discuss how we can help you maximise the value of your business.

Dealbridge is delighted to Welcome GOIKO brand to Portugal! Silva Carvalho Group based in Sintra with more than 40 years' experience in the catering sector, has decided to take on another challenge by joining forces through a Joint Venture with the great Spanish family Goiko Grill Group, which already has more than 100 restaurants in 4 European countries! The first GOIKO restaurant in Portugal will open its doors in the 1st trimester of 2025 in a prime Lisbon neighbourhood! Congratulations to all the teams involved! It's sure to be a perfect union that will whet the appetites of millions of Portuguese! For more information, please contact: Paula Ferreira Araújo paula.araujo@dealbridge.eu – Dealbridge Portugal #Europe #Goiko #JoinVenture #Dealbridge

🌍 Mid-Market Companies are Driving a Resurgence in Cross-Border M&A In today’s globalized economy, cross-border transactions have become essential —not only for business owners in regions with a limited buyer pool but also for companies in developed markets seeking to broaden their reach to potential acquirers. Expanding internationally can not only increase the chance of a successful deal, but also the chances for a higher purchase price. That is why Dealbridge consultants discuss current mandates with each other in strict confidence. Once a year, they meet in a European city to exchange expertise. (The picture shows some of the participants at the 2024 annual conference in Porto, Portugal.) For acquirers, whether strategic or financial sponsors, cross-border M&A unlocks numerous opportunities: 🔹 Reduced Competition for in-demand targets 🔹 Potentially Lower Valuations in select markets 🔹 Broader Company Selection fitting buy & build strategies 🔹 Strategic Expansion to foreign markets 🔹 Portfolio Diversification Cross-border M&A isn’t just a trend—it’s a powerful strategy for growth, diversification, and long-term resilience. #CrossBorderMandA #MidMarket #BusinessGrowth #MergersAndAcquisitions #GlobalExpansion #InvestmentOpportunities

An EU agenda for small and medium-sized enterprises There is an EU economic policy agenda for SMEs. Are you aware of it? Well, many politicians apparently are not either. Although the main demands have been on the table since 2008, the proposed measures have so far only been partially, half-heartedly or not at all implemented in the EU countries. The week ahead has been designated EU SME Week, and the SME Assembly is meeting in Budapest for its annual conference. To mark the occasion, Dealbridge is once again presenting the Small Business Act here: WHAT IS THE PURPOSE OF THE SMALL BUSINESS ACT (SBA)? It is a non-binding document, but it has received the support of the European Council and the European Parliament. KEY POINTS The SBA's main priorities are to encourage entrepreneurship, improve access to finance, reduce administrative burdens and improve access to markets and internationalization. These priorities are set out in 10 principles that guide the design and implementation of policies at EU and EU country level: 1.An environment should be created in which entrepreneurs and family businesses can flourish and in which entrepreneurship pays off. 2.Honest entrepreneurs who have faced bankruptcy should be given a second chance quickly. 3.Rules should be designed according to the principle “Think small first”. 4.Public administrations should be more responsive to the needs of SMEs. 5. Policy instruments should be designed in a way that is SME-friendly, so that SMEs can more easily participate in public tenders and make better use of state aid. 6. Access to finance should be facilitated for SMEs and a legal and economic environment created for more timely payment in business life. 7. SMEs should be helped to benefit more from the opportunities offered by the EU single market. 8.Promote upskilling and all forms of innovation at the level of SMEs. 9.Enable SMEs to turn environmental challenges into business opportunities. 10.Encourage SMEs to benefit from market growth and provide them with the support to do so. A review also proposed new measures to integrate the SBA into the Europe 2020 strategy. These measures include: - promoting the “only once” principle for public bodies when requesting information or documents, - improving access to finance through loan guarantees, - a common consolidated corporate tax base in the internal market. A public consultation on the SBA in 2014 found that, while progress had been made, - administrative and legal burdens were still the main concerns, - access to finance was still difficult despite the measures taken, - further efforts were needed in terms of market access, particularly with regard to improving the links between existing EU programs. That was ten years ago. What has changed since then? #SMEAssembly2024 #SME #SmallBusinessAct #SBA #EUSMEWeek #EUPolicy