OfficeHours

OCTOBER 16, 2023

Even in 2022, when take-private deals hit a new record, they only accounted for 37% of the total value of transactions. Once the terms are agreed upon, the acquisition is financed through a combination of debt and equity from the PE firm, as with a typical transaction. Why are take-private transactions attractive?

Investors 100

Investors Private Equity Equities Debt 100

The Deal

JULY 18, 2023

But the asset class has also carried over its caution from the second half of last year amid economic uncertainty and a tighter fundraising environment. Borrowers typically don’t have to pay interest on unfunded debt until they tap those credit lines. “They know they have the advantage.”

Debt 52

Debt Finance Finance Private Equity 52

OfficeHours

OCTOBER 23, 2023

Even in 2022, when take-private deals hit a new record, they only accounted for 37% of the total value of transactions. Once the terms are agreed upon, the acquisition is financed through a combination of debt and equity from the PE firm , as with a typical transaction.

Investors 130

Investors Private Equity Equities Investment 130

Sica Fletcher

JULY 11, 2024

While the cost of debt has increased to the point that buyers often acquire brokerages at an initial loss, insurance brokerage M&A multiples have not only held steady but are actually seeing all-time highs. Equity used to consist of senior debt (i.e., the amount all common shareholders invest in the brokerage).

M&A 52

M&A Insurance Debt Equities 52

Growth Business

DECEMBER 12, 2023

billion in the same period in 2022, according to the latest KPMG Pulse of Fintech report. The volume of UK fintech deals also dropped from 392 in the first half of 2022 to 212 UK M&A, private equity or VC deals completed in the first half of this year. billion in the first half of 2023 compared with £10.8

Bank 59

Bank Banking Debt Funds 59

Sica Fletcher

JUNE 20, 2024

This is even more interesting when we view the rate of return for these insurance agencies, which has actually dropped below the cost of acquiring debt for a transaction, creating a negative spread for the first time in M&A history. Since 2022, the average multiple for these agencies has increased from 10.7x in 2020 to 9.5%

M&A 52

M&A Insurance Valuation Equities 52

Cooley M&A

JANUARY 19, 2023

The Inflation Reduction Act imposes a 1% excise tax on certain repurchases of stock of publicly traded US corporations (“Covered Corporations”) effected after December 31, 2022 (the “Excise Tax”). [1] because SPAC sponsor shares are forfeited and not entitled to receive any distributions upon liquidation).

M&A 52

M&A Capital Market Stock Mergers and Acquisitions 52

Cooley M&A

JULY 28, 2022

In the US, it is common to adjust the purchase price for cash, any excess or deficit of net working capital relative to a required level of net working capital, unpaid debt, and unpaid transaction expenses of the target business as of the closing, with an adjustment done at closing based on estimates and followed by a post-closing true-up.

M&A 59

M&A Accountant Debt Business 59

Intrepid Banker Insights

MARCH 28, 2023

Intrepid Investment Bankers Warning Signs Your Business’s Liquidity Needs Attention Mixed signals dominate economic headlines as concerns persist about a recession beginning in 2023, if it has not already begun. During any recession, cash is king and provides staying power for a business to ride out the storm.

Capital 52

Capital Advisory Bank Banking 52

Sica Fletcher

MARCH 8, 2024

Starting in H2 2022, the insurance M&A market has seen a notably difficult 18-month period, afflicted with high interest rates, lowered deal volumes, and lowered valuations. So, how did we get here? What Is Affecting Insurance Agency EBITDA Multiples?

Insurance 52

Insurance M&A S&P Valuation 52

Intrepid Banker Insights

OCTOBER 17, 2022

Intrepid Investment Bankers A Rollercoaster Ride for Software Markets It has been a disconcerting journey through the first three quarters of 2022. 2022 has seen rising inflation and interest rates, twin global disruptions in Ukraine (invasion) and China (shutdowns), and an overall economic slowdown.

Valuation 52

Valuation M&A Capital Middle Market 52

Wall Street Mojo

JANUARY 18, 2024

Bullet bonds issued by other than the government carry higher interest payments due to the credit risk Credit Risk Credit risk is the probability of a loss owing to the borrower's failure to repay the loan or meet debt obligations. The bonds mature on 31st Dec 2022. read more associated with any other issuer other than the government.

Financial Modeling 52

Financial Modeling Financial Models Financial Institution Debt 52

Wall Street Mojo

FEBRUARY 9, 2024

The primary sources of LMM companies are primarily different forms of debt and credit line lending systems. Such firms enjoy high growth rates and play a vital economic role. A combination of equity and debt financing allows the firm to convert equity interest if they default on the loan.

Middle Market 52

Middle Market Bulge Bracket Private Equity Investment Banking 52

Tyton Partners

AUGUST 30, 2023

Lessening degree requirements According to Cengage’s Graduate Employability Report , when asked whether a company requires a degree for all entry-level positions, the response changed from 62% to 50% in just one year from 2022 to 2023. This reinforces a pre-pandemic trend as reported by Gallup , which showed the percentage of U.S.

Education 52

Education Capital Market Capital Investment 52

Growth Business

NOVEMBER 23, 2023

Despite investment in the first half of 2023 dropping to £4.6bn from 2022’s £10.8bn as a result of rising interest rates, high inflation, a decrease in valuations and geopolitical tensions globally, UK fintechs are still attracting more VC investment than all other EMEA fintechs combined, with a significant percentage coming from US investors.

Investment 95

Investment Funds Capital Investors 95

Growth Business

MARCH 1, 2024

Capital is available, valuations have started to normalise and the debt markets are still supportive – albeit with greater scrutiny and higher costs. The data below from Statista shows the volume of UK private equity deals between 2017 and 2022.

Private Equity 59

Private Equity Equities Investment Business 59

Growth Business

OCTOBER 2, 2023

By Tim Bird on Growth Business - Your gateway to entrepreneurial success It was a buoyant 2018 for venture capital investment into UK and European companies – a trend which defied broader concerns about international trade tensions, economic growth prospects and, of course, Brexit.

Finance 52

Finance Finance Capital Funds 52

FineMark

APRIL 13, 2023

Interestingly, throughout 2021 and 2022, there were no U.S. As we wrote in our Q4 2022 newsletter, we believe that the Fed will stop raising rates during the second quarter of 2023. If you missed our previous coverage, you can read our Q4 2022 newsletter here: [link].) Its economic effect will also be deflationary.

Bank 52

Bank Banking Investment Economics 52

The TRADE

APRIL 30, 2024

By mandating banks to hold more capital in reserve, Basel III’s goal is to improve the stability and solvency of financial institutions, alongside reducing the possibility of bank failures during periods of economic turmoil. The regulation entered its final phase in September 2022 , bringing its six-year implementation journey to an end.

Financial Institution 68

Financial Institution Financial Market Risk Management Bank 68

Sica Fletcher

FEBRUARY 9, 2021

As we have reported throughout the year, the M&A market for insurance brokers remained at peak, pre-pandemic levels despite all of the public health, political, social, and economic dislocations. It appears increasingly likely that capital gains tax rates will rise, potentially substantially, later this year, or in 2022.

Capital 52

Capital IT Economics Insurance 52

FineMark

OCTOBER 17, 2023

The elevated inflationary period experienced in 2022, combined with challenging demographics faced by our nation, have contributed to this uptick. budget deficit and its upcoming substantial debt repayment, which will require refinancing in the next three years and expand the size of current Treasury auctions.

S&P 52

S&P Investment Portfolio Corporation 52

How2Exit

MAY 27, 2024

rn In the current landscape, sellers must craft a compelling narrative for their business, showcasing its potential and rationalizing its valuation in a way that resonates with buyers who are more cautious amidst economic uncertainty. No one wants to buy that."

Business 130

Business Mergers and Acquisitions Valuation M&A 130

Cooley M&A

FEBRUARY 1, 2024

2023’s much-discussed downturn in mergers & acquisitions – with global M&A volume and value down 6% and 17%, respectively, from 2022 – was largely driven by the slowdown in the tech sector, with global tech M&A volumes down 51% year over year, while other sectors saw marked increases. [1] in 2022 to 5.9x

M&A 59

M&A Mergers and Acquisitions Private Equity Equities 59

Tyton Partners

JANUARY 12, 2024

Throw in declining public trust in higher education’s economic value, and the call to action to improve economic outcomes for students is clear. In the academic year 2022-23, ~30% of degree-granting institutions had adopted inclusive access and 10% had adopted equitable access.

Education 59

Education Collaboration Mergers and Acquisitions Management 59

OfficeHours

JUNE 13, 2023

This economic profit interest is then distributed to the private equity professionals who make up the general partnership (in the GP/LP structure). debt – hence “leveraged buyout”) to finance their acquisitions. Generally speaking, carried interest is taxed at the long-term capital gains rate, which tops out at 20%.

Private Equity 130

Private Equity Equities Debt Corporation 130

OfficeHours

JULY 7, 2023

This economic profit interest is then distributed to the private equity professionals who make up the general partnership (in the GP/LP structure). debt – hence “leveraged buyout”) to finance their acquisitions. Generally speaking, carried interest is taxed at the long-term capital gains rate, which tops out at 20%.

Private Equity 100

Private Equity Equities Corporation Debt 100

Mergers and Inquisitions

NOVEMBER 6, 2024

Economic Growth? Many people are not doing well economically or socially and are upset at the Biden-Harris administration due to inflation, illegal immigration, and foreign policy. Economic Growth? Table Of Contents Ground Rules What Happened in the 2024 Election? How Can You Evaluate What Happens Next? Government Efficiency”?

Government 59

Government Economics IT M&A 59