The buyout deal environment in 2006 continues to be extremely competitive, with transaction multiples climbing to an average deal multiple of 8.6x earnings, according to Standard & Poor’s Leveraged Commentary and Data. If multiples continue at these levels they would eclipse 2005’s average 8.2x multiple for PE deals which is currently the highest year on record.

Imagine you’re meeting with executives from a company that are interested in acquiring your business. What would you tell them about your company to convince them that they should buy it, and furthermore, that they should pay the price you have in mind, not the lower sum they were thinking of offering?

You receive a call from the largest player in your industry. They want to “preemptively” acquire you and begin asking for detailed information about your finances, your operations and your people. As you look through their information requests, one thing becomes very apparent: As a small, entrepreneurial business, your processes, policies, controls and reporting are adequate but through the eyes of a large acquirer, there are a lot of unanswered questions and “holes” in the information.

Over the last decade, the litigation support, compliance and information management markets have converged at an accelerating pace, creating a growing, $3 billion annual opportunity for companies in the “convergence zones” of these segments. Mirus believes these overlapping areas present a unique opportunity for companies to reap the benefits of synergies derived from combining....

When potential buyers look at your company, they view the value of your business through the dual lenses of perceived opportunity and perceived risk. As discussed in the March Viewpoint, understanding the value-creation factors that make up the buyer mindset assists you in building value into your company. In essence, knowing what factors drive the decision making of potential buyers gives you a blueprint of how to build the most valuable company possible.