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But the events of 2023, including the UBS acquisition of Credit Suisse and the rise of firms like Wells Fargo, Jefferies, and RBC, have shaken up the traditional list. For example, Wells Fargo always does well in debt capital markets but much worse in M&A advisory and equity capital markets.
But a spin-off, divestiture, restructuring, or another major event is likely.” But that would have happened anyway because of the firm’s plans to spin off its IB group into Michael Klein’s advisory firm, M. However, the tone of the article was too optimistic, and I should have recommended looking for “Plan B” options more forcefully.
Shifting economic conditions, changing regulations, and geopolitical events impact all buyers’ appetite for acquisitions and the price and terms they will offer. Dedicated Resources Selling your company may be one of the biggest events of your life. Adaptability The M&A market is dynamic, as the last few years have underscored.
Selling your business may be one of the most pivotal events of your life. This article was originally published on June 8, 2023 on the I-95 Business website. However, the process is fraught with complexities and challenges that can stand in the way of securing the best deal.
Growth strategy following a transaction is the key to ensuring that all parties are satisfied with the partnership when the time comes for a second liquidity event. Consequently, a full exit may not be possible until after a subsequent liquidity event.
Additionally, at the exit of the investment period, the value of retained ownership increases with debt repayments and equity appreciation resulting from both organic and inorganic growth, making liquidity generated at exit typically more meaningful than the initial sale – an event often referred to as “the second bite of the apple.”
Technology & Services: This one includes any company that is built on top of sports, such as firms in the gambling, data/analytics, software, and live event sectors. Is it suddenly popular among a certain demographic due to recent events or player relationships (e.g., How many live viewers does the average game have?
Chesapeake Corporate Advisors (CCA) continues to expand its reach and scope, adding Business Services to its areas of industry focus for investment banking and corporate advisory services. I could not be more grateful to the CCA team for their assistance in this process.
An added benefit to the business owner is the rollover equity is tax deferred (as it is not taxable at the time of the initial liquidity event) and no personal guarantee is required for any debt utilized by the PEG.
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