This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
In the pursuit of attractive equity returns, private equity firms have developed numerous innovative strategies beyond typical leveraged buyouts and take-private transactions. As it happens, this is an industry that has experienced a significant amount of private equity-backed roll-up activity.
With closer operational integration and a shared vision for growth, the new structure is the natural next step in growing the Companys international offerings in M&A, debtadvisory, and equity raising.
Intrepid Investment Bankers Intrepid Capital Advisory Update – A View From the Trenches Click here for the full report. With all-in interest cost typically exceeding 10%, managing debt service and cash flow is becoming paramount. “At Intrepid brings a full arsenal of resources to help clients achieve their capital raising goals.
If it makes financial sense and you understand the dilution aspect of selling equity and the potential interference from investors, then yes, go ahead. In this post, we’re going to address what these are, some of the challenges to expect, how to sell the equity, and who to sell it to. Selling equity – the good, the bad, the ugly.
Financial Preparedness: The episode highlights the critical need for comprehensive financial planning, especially when leveraging debt for acquisitions. Professional Guidance: The importance of holistic financial advisory services to ensure both business growth and personal financial stability is emphasized.
This concept is called rollover equity and is common for private equity transactions. What is Rollover Equity? The offer of ongoing ownership is known as “rollover equity” because the seller chooses to roll a portion of the sale proceeds back into the company’s new ownership structure. How Does Rollover Equity Work?
In recent posts, we outlined the background of and reasons for the dramatic upsurge of private equity investment in the insurance brokerage industry , how the combination of private equity and low interest rates have dramatically raised valuations , and how private equity sponsored agencies increasingly dominate the insurance agency business.
By Dom Walbanke on Growth Business - Your gateway to entrepreneurial success Raising private equity funds is seen as the holy grail for businesses who want to grow quickly, simply because the strength of capital opens the door for rapid growth.
But this started changing in the 2010s and early 2020s as team values skyrocketed and billionaires, sovereign wealth funds , and sports private equity firms all jumped into the sector. Regulations – Does the league allow private equity or other financial sponsor ownership? Can teams carry debt? What is Sports Investment Banking?
trillion in growth and buyout private equity (PE) dry powder has fueled a competitive, but crowded, M&A market for high-quality middle market businesses, even amidst inflationary pressures and elevated interest rates. trillion in growth and buyout private equity dry powder , these investors stand ready to bridge the gap.
Key Considerations Before Buying In: Equity and Ownership : Determine what percentage of the business you’re acquiring, as it will influence your role in decision-making, profit distribution, and overall control within the company. Defining Your Level of Involvement Decide if you want to be hands-on in operations or prefer an advisory role.
If you go out to market, your most likely buyer will be a private equity (PE) group. For investors that plan to finance a portion of the deal with debt, a government contracting business with visible, low-risk revenue also paves an easier path to securing financing.
Corporate finance jobs at normal companies are bad … …if you’re using them to break into a deal-based field, such as investment banking , private equity , or venture capital , or as a “Plan B” if you interview around but do not get into one of these. The key questions that corporate finance teams answer also vary.
Functions of Merchant Banks A merchant bank’s primary function is to provide financial and advisory services to medium-sized businesses. This was one of the largest debt restructuring deals in India and helped Piramal Enterprises to become a major player in the Indian financial services sector.
In addition to Ricci’s role, the Panmure Liberum board will comprise Shane Le Prevost – founder and executive director at Liberum – as non-executive chair, Bidhi Bhoma as deputy chief executive, David Parsons as head of equities, and Richard Morecombe as president, head of origination and business development.
Thus far in the last 10 blog posts, we have discussed what M&A is, its success metrics, types of acquirers and value creations, capital structure, debt, and equity. Profitability: What is the targeted return on invested capital (ROIC), return on assets (ROA), or return on equity (ROE) - along with the payback period.
There are several resources for growth capital: debt from a lender or financial institution, minority equity financing, or majority equity financing through a control transaction. Growth debt, also called venture debt, most often comes as a principal loan accompanied by an interest payment.
Project Finance Definition: “Project Finance” refers to acquisitions, debt/equity financings, and new developments of capital-intensive infrastructure assets that provide essential utilities and services. However, many people also use the term more broadly to refer to equity, debt, and advisory for infrastructure assets.
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. Pay attention to how the equity a buyer offers is actually valued. Equity used to consist of senior debt (i.e.,
On the latest episode of The Deal’s Behind the Buyouts podcast, Macquarie Capital global head of financial sponsors Tom Amster details his expectations for private equity dealmaking in the coming months following a muted 2023. “Private equity as a business, they’re not stores of capital, they recycle capital,” he said.
Periculum has been CSE’s exclusive Financial Advisor for several years, completing multiple debt placements, a minority equity sale, and other periodic assignments. The firm was founded in 1998 to provide sophisticated financial advisory and transaction services. Periculum was pleased to once again be of service to the Company.
First, it’s important to understand that most M&A transactions are completed on a cash-free, debt-free (CFDF) basis. This means the seller keeps all cash remaining on their balance sheet at closing time and must pay off all long-term or interest-bearing debt. appeared first on Software Equity Group.
If you’re a seller who is evaluating the opportunity to partner with a private equity investor, it’s essential to understand the various characteristics of private equity funds that might be interested in your business. Based on the fund’s strategy, these companies often grow through strategic add-on acquisitions.
Intrepid Investment Bankers Intrepid Hires Industry Veterans Dave Hatch and Mike Letsch to Launch Supply Chain & Logistics Group Intrepid Investment Bankers announced the expansion of the firm’s Industrials & Business Services offerings with the establishment of a dedicated Supply Chain & Logistics advisory practice.
Periculum has been CSE’s exclusive Financial Advisor for several years, completing multiple debt placements, a minority equity sale, and other periodic assignments. The firm was founded in 1998 to provide sophisticated financial advisory and transaction services. Periculum was pleased to once again be of service to the Company.
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. Although sellers are in a good position to sell, they need to be wary of the equity that’s being offered.
Esposito joined Goldman Sachs in 1995 as a salesperson for emerging markets debt, before subsequently being named managing director in 2002 and partner in 2006. Booij is also currently chair of the European Advisory Board and member of the Global Board at FIA, as well as having previously served as chair of the Eurex exchange council.
a strategic legal advisory out of New York City, is a prime example of someone who has been successful in this field. His advisory practice helps them through catalytic, transformational, and strategic events, such as mergers and acquisitions, governance issues, capital raising, and disputes.
Bulge Bracket Bank Definition: The “bulge brackets” are the largest global banks that operate in all regions and offer all services – M&A, equity, debt, and others – to clients; they work on the biggest deals (usually $1 billion+) and have divisions for sales & trading , equity research , wealth management , corporate banking , and more.
Deutsche Numis is set to serve more than 170 corporate broking clients and is focused on providing comprehensive financial and advisory solutions. The transaction – first reported on back in April – was previously valued at £410 million according to documents seen by The TRADE.
Since private equity (PE) investors are very active in the middle market, there is a good chance that one or more PE groups may make an offer on your company. Whether your business becomes a platform or an add-on, most PE groups expect you to reinvest a portion of your proceeds back into equity of the new company.
The basic difference is that the international bulge bracket banks tend to be stronger in M&A advisory and weaker in equity and debt capital markets. The deal types span a wide range, but equity and debt deals are more common than M&A since many companies in emerging markets are in “growth mode.”
The M&A markets became significantly more challenged in the second half of 2022, and deal activity reported by investment bankers and private equity financial buyers has slowed down, with uncertainty and rising financing costs playing prominent roles. Watching for employee turnover is another key piece of the puzzle.
personal debt, business/legal liabilities, time-sensitive investment opportunities) may prompt owners to sell quickly. In these situations, it’s common to see deals with low cash payouts and a higher degree of equity. Generally, these fall into two distinct categories of advisory firms or investment banks. Financial Need.
A Paper LBO, also called a Pen and Paper LBO, usually prepared by candidates during private equity interviews, is a miniature paper version of a full Leveraged Buyout (LBO) Model. Further, it helps interviewers assess a candidate’s knowledge of private equity concepts. Determine the mix of debt and equity required to finance the deal.
The History of Private Equity in Insurance One of the primary forces differentiating the insurance M&A market in 2024 from those of decades past is the presence and dominance of private equity (PE) firms in the buyer space. We’ve seen this number jump even in the last two years, with the percentage of equity almost doubling.
private equity or venture capital ). These 1 – 2 “steppingstone internships” could be at any firm, but many students do them at boutique investment banks or small/startup private equity or venture capital firms. Corporate Banking : You like client relationships and deal processes but want to do more than just debt-related deals.
The funds generated from the sale can be used to finance the M&A transaction, invest in growth opportunities, or pay down debt. rn In the podcast, Chelsea Mandel, the founder of Ascension Advisory, discusses her experience in the real estate and M&A space, particularly in sale-leasebacks.
Other times, they are hoping to use their share of the sale to alleviate personal debt. And it certainly does not stop less-than-reputable advisory firms from agreeing to represent you and taking their regular retainer fees, despite knowing full well your agency can’t be sold. Manageable Debt. A Growth in Owner Equity.
Your answers will shape the type of buyers you target from strategic acquirers to private equity firms or growth investors. 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.
Cost of Capital: The cost of capital, a critical factor, combines the cost of equity and debt weighted by the firm’s capitalization. Brian Goodhart is Capstone’s Director of M&A Advisory Services and the host of the multi-part webinar series, “The Verdict is In on the Sell Side.” Visit [link] to view past episodes.
There are now significantly more buyers in the market as more PE firms have become bigger players in insurance M&A, and the range of valuations and deal structures has also changed appreciably, with buyers relying more on equity in transactions than in years past.
Highlight any involvement in M&A transactions, such as due diligence, financial analysis, deal structuring, or client advisory. Highlight your involvement in structuring and executing successful fundraising strategies, such as equity offerings, debt issuances, or private placements.
Since H2 2022, industries across the board (including insurance) have seen declines in deal volume as prospective buyers have withheld their funds for more favorable conditions in which the cost of debt is not so high. On average, modern deal structures typically consist of about 75% equity, with only 25% in actual cash.
We organize all of the trending information in your field so you don't have to. Join 38,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content