OfficeHours

OCTOBER 20, 2023

Inflation can also have an impact on the cost of debt required to finance an investment. Inflation itself does not directly affect the cost of debt or interest; rather, since inflation and interest rates are very closely related, changes in inflation impact changes in interest rates. Great, I’m learning a ton!

Investors 130

Investors Private Equity Equities Debt 130

OfficeHours

OCTOBER 23, 2023

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. This results in the target company receiving a potentially very different capital structure than they previously had, typically with higher debt levels.

Investors 130

Investors Private Equity Equities Investment 130

Focus Investment Banking

MARCH 10, 2025

Optimize Working Capital (One Year Ahead) What It Is: Net Working Capital (NWC) is Current assets minus current liabilities (A/R + Inventory A/P + Accrued Expenses), excluding cash, which you keep (in a typical cash-free, debt-free transaction). Why It Matters: Healthy working capital keeps the business running smoothly day-to-day.

Investment 52

Investment Book-building Sale Business 52

Sica Fletcher

JULY 31, 2024

In addition to the high cost of debt interfering with their bottom line, they also have to contend with a buyer pool that’s larger than ever before , with 50+ buyers in the current pool where there used to be ~5. Sellers are remaining patient and working with M&A advisosr to identify areas of opportunity.

M&A 52

M&A Insurance Debt Equities 52

iMerge Advisors

APRIL 8, 2025

litigation, debt) are disclosed Team & Org: Document key roles, retention plans, and any dependencies on founders or key personnel Many founders underestimate the time and effort required here.

M&A 40

M&A Valuation Private Equity Negotiation 40

iMerge Advisors

APRIL 14, 2025

AR Aging and Collections History Accounts receivable aging reports help buyers assess the quality of your revenue and the risk of bad debt. Final Thoughts Audited financials arent always required, but GAAP-compliant statements and a well-organized financial package are non-negotiable in todays M&A environment.

Sale 40

Sale M&A Valuation Private Equity 40

iMerge Advisors

APRIL 14, 2025

Financial and Tax Documents Final working capital adjustment schedules Tax allocation statements (especially in asset sales) IRS Form 8594 (Asset Acquisition Statement) Payoff letters for outstanding debt or convertible notes 5. Legal and Regulatory Filings Secretary of State filings (e.g.,

Acquisitions 40

Acquisitions Mergers and Acquisitions M&A Sale 40