Blog Articles

Considering entrepreneurship but unsure whether to launch a startup or buy an existing business? This detailed guide compares the challenges, benefits, risks, and affordability of starting from scratch versus acquiring an established enterprise. Discover why acquisition entrepreneurship is often a more practical, affordable, and lower-risk pathway toward business ownership than you might initially believe.

The Employee Stock Ownership Plans (ESOPs) as a strategic tool to facilitate smooth business succession, enhance employee engagement, and optimize financial planning. Discover how the ESOP structure provides significant tax advantages, financial flexibility, and long-term sustainability for businesses while simultaneously offering valuable ownership incentives and motivation for employees.

This blog dives deeply into the concepts of partnership interest redemptions, contrasting them meticulously with outright sales of partnership interests. We explore definitions, motivations, tax implications, procedural considerations, and practical scenarios to help readers clearly understand the intricacies involved in partnership transactions.

Explore comprehensive valuation methods critical for assessing business worth. This guide delves deep into traditional methods—Discounted Cash Flow (DCF), Market-Based Comparables, and Asset-Based Cost Approach—as well as startup-focused techniques such as the Berkus Method, Risk Factor Summation, Scorecard Method, First Chicago Method, Venture Capital Approach, and Real Options Valuation. Gain insights into each method’s applicability, […]

많은 1세대 한인 기업가분들이 은퇴 시기에 접어들고 있지만, 자녀 승계나 사업 매각 등 체계적인 M&A전략이나 Exit Planning이 부족하여 안타깝게 사업을 종료하거나 기대보다 낮은 가격에 매각되는 사례가 많습니다. 특히 자녀의 사업 승계 기피, 낮은 기업가치 평가, 문화/언어 장벽 등이 큰 이슈로 작용하고 있습니다.
이러한 문제에 대응하여, 성공적인 Exit Planning 전략,가업 승계 및 M&A 준비, 기업가치 극대화에 대해 분석하고, 이를 바탕으로 LEK Partners와 함께 실질적인 솔루션을 제공하려고 합니다.

A step-by-step approach to middle market M&A sell-side representation and process, covering critical stages from preliminary discussions with the seller to facilitating the closing process and supporting post-close integration. The this article aims to demystify the complex dynamic of M&A transactions, providing valuable insights for sellers and potential buyers.

The valuation of commercial real estate (CRE) involves techniques like pro forma income statement, Net Operating Income (NOI), and market capitalization rate. These methods assess property value and project feasibility, considering factors like Equity Multiple, Internal Rate of Return (IRR), and Net Present Value (NPV). Understanding these techniques is crucial for investors to make informed decisions, maximize returns, and mitigate risks associated with CRE investments. These tools provide insights into the financial performance and viability of CRE investments, empowering investors to make strategic investment decisions.

The capitalization rate (cap rate) in real estate investment is influenced by several key factors. Market conditions such as interest rates, inflation, and GDP growth directly impact cap rates. Property location also plays a significant role, with prime areas having lower cap rates. Asset quality and risk perception further affect cap rates, with well-maintained properties and lower risk investments commanding lower rates. Understanding these drivers is crucial for investors to make informed decisions and assess the potential return on their investments. By considering these factors, investors can determine whether the cap rate reflects the associated risks and rewards.

Summary: A comparison between Cap Rate and P/E Ratio, two crucial metrics in the world of finance and real estate. It not only explains what each term means but also how they are used in making investment decisions. The pros and cons of each are also discussed, providing readers with comprehensive knowledge to make informed […]