Focus Investment Banking

FEBRUARY 4, 2025

What are the key terms I should negotiate in a sale or investment deal? Negotiation goes beyond just the price. Working Capital : Net working capital (NWC) directly impacts the purchase price. To ensure fairness, buyers and sellers agree on a working capital peg during negotiations.

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Sale Negotiation Business Private Equity 52

OfficeHours

JUNE 6, 2023

Venture capital focuses on early-stage companies with high growth potential. VC investors provide capital to startups and small businesses in exchange for equity ownership. These investments are typically made in companies that are seeking capital to fund expansion, acquisitions, or other strategic initiatives.

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H. Friedman Search

OCTOBER 24, 2024

Today’s blog looks at how to interview with more than one person. With time of the essence, it’s easier to present a panel interview to determine if the candidate is worth using political capital as well as financial capital to get him or her onboard. Harlan publishes a blog every Thursday here.

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Focus Investment Banking

JUNE 5, 2023

One of the most critical metrics to evaluate the financial health of a target business is its working capital, which measures the company’s operational liquidity. In M&A, working capital is often a significant area of negotiation between the buyer and the seller. What Is Working Capital?

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OfficeHours

AUGUST 25, 2023

They must take a capital charge against the capital reserve for this commitment (a charge that has generally increased over time to incentivize banks against risk-taking). This capital is released once investors buy the debt off the banks’ balance sheets. However, this business can be risky for banks.

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Private Equity Equities Debt Finance 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.

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Investment Book-building Sale Business 52

RKJ Partners

AUGUST 6, 2017

In our latest blog installment, we outline the eight basic steps involved in the buy side M&A process and related insights to assist in a successful execution. Of course, the amount of available capital to invest and the buyer’s personal financial strength are also important considerations. Launch Negotiations.

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Cooley M&A

JULY 14, 2017

The vast majority of private company acquisitions contain some type of purchase price adjustment to account for any changes in certain financial metrics (including working capital) of the target between a specified reference date (or target) and the closing date.

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Accountant Capital Financial Statement Business 52

Sun Acquisitions

MARCH 15, 2024

This blog post will explore why all-cash proposals are gaining traction and how they set themselves apart from other acquisition methods. Traditional financing methods often involve complex due diligence, negotiations with lenders, and lengthy approval periods, which can take months.

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Acquisitions Business Negotiation Debt 59

Focus Investment Banking

MARCH 3, 2024

The first is Private Capital Markets by Rob Slee (John Wiley & Sons: 2011). Private Capital Markets is the first book to present a theory of how the private markets work at the lower end of the middle markets. The second book I keep referencing is a book on negotiations – Getting More by Stuart Diamond (Crown Business, 2010).

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Negotiation Middle Market Private Equity Capital Market 52

Sun Acquisitions

NOVEMBER 26, 2024

This allows companies to capitalize on fleeting market opportunities and minimize disruption to ongoing operations. Technology cannot replicate the importance of human interaction and relationship-building skills during negotiations and integration. Faster Timelines: Seize the Moment The M&A world is all about speed and agility.

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M&A Mergers and Acquisitions Collaboration Valuation 59

OfficeHours

OCTOBER 16, 2023

For the company itself, an IPO is attractive for enhancing its brand and recognition, compensating employees with large payouts and incentivizing them to stay and create more value for the company as part of go-forward compensation packages, and raising capital for the company to pursue future growth initiatives.

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Sun Acquisitions

JANUARY 24, 2022

Because the LOI acts as a roadmap, a guide, a framework that sets the pace for future negotiation. Pitfall #7 Failing to understand working capital needs. Buyers cannot afford to overlook or underestimate the work in progress and working capital needs of the business. To do so can have costly repercussions later in the deal.

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M&A Mergers and Acquisitions Business Acquisitions 98

Sun Acquisitions

JANUARY 8, 2024

However, navigating the complexities of M&A requires strategic insight, careful negotiation, and a deep understanding of the business landscape. This insight guides decision-making and forms the foundation for negotiations. Smooth transitions are essential to preserving the value envisioned in the deal.

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Mergers and Acquisitions Broker Mergers Business 59

Midaxo

APRIL 25, 2023

The rest of the blog consists almost entirely of questions and prompts that were posed to ChatGPT to obtain answers on how to create a company-specific M&A playbook. How to outline the process for negotiating deal terms and determining valuation? Fortunately, ChatGPT can make the process much easier.

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M&A Consulting Mergers and Acquisitions Valuation 130

OfficeHours

OCTOBER 20, 2023

Since private equity firms use a significant amount of debt and comparatively very little equity to finance transactions, anything that impacts the cost of debt or the ability to raise debt is a very sensitive consideration when considering the capital structure of a potential investment. Great, I’m learning a ton!

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Investors Private Equity Equities Debt 130

Sun Acquisitions

FEBRUARY 1, 2024

In this blog post, we will delve into the pros and cons of these methods to help potential buyers and sellers make informed decisions. Negotiable Terms: Buyers and sellers have greater flexibility to negotiate the loan terms, including interest rates, repayment schedules, and down payments.

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Finance Finance Equities Investment 59

Sun Acquisitions

MARCH 8, 2022

The business was acquired by Bell Valley Capital to use as a platform landscaping company for future growth. Matt is a senior advisor with Sun Acquisitions with significant deal making and negotiation experience. Matt Brunstrum was the lead advisor and managed all aspects of this client engagement.

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Profitability Sale Business Acquisitions 98

The M&A Lawyer

AUGUST 25, 2015

In later posts on The M&A Lawyer Blog, I will examine each of these sections more closely and provide a more detailed and nuanced discussion of their contents. Article 1 of most SPAs provides an alphabetical list of definitions of important (usually capitalized) terms used throughout the agreement. capitalization and ownership.

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Stock M&A Government Mergers and Acquisitions 130

Focus Investment Banking

FEBRUARY 12, 2024

I recently learned that two separate tire/service chains I had met with over the years had each transacted with single buyers that knocked on their doors in what we call a “negotiated” transaction. Now, in the private capital markets, sellers are more concerned with confidentiality, so no one finds out a business is for sale.

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Negotiation Mergers and Acquisitions Business Private Equity 52

Sun Acquisitions

FEBRUARY 28, 2024

Negotiation Skills Negotiation is an art in itself. Be prepared to negotiate favorable terms to your side while ensuring a mutually beneficial outcome. Good negotiation skills can save you money and reduce post-acquisition conflicts. Hire experts if necessary and leave no stone unturned in your investigation.

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Finance Finance Acquisitions Business 59

The M&A Lawyer

SEPTEMBER 8, 2015

A substantial amount of the time and energy involved in papering and negotiating the deal is usually devoted to reps and warranties. Parties are well-served to remember this risk-shifting function during negotiations. capitalization and ownership. Why do representations and warranties get so much attention? Disclosure.

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Focus Investment Banking

JUNE 17, 2024

One typically sees escrows in two areas: working capital and in enforcing a seller’s representations and warranties. Working capital escrows work in this way. A target working capital amount that needs to be left in the business is determined for the transaction. This blog was previously published on Modern Tire Dealer.

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OfficeHours

OCTOBER 23, 2023

This results in the target company receiving a potentially very different capital structure than they previously had, typically with higher debt levels. 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. Great, I’m learning a ton!

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Investors Private Equity Equities Investment 130

Sun Acquisitions

APRIL 26, 2024

This blog post delves into the intricacies of different financing models, shedding light on the associated risks and rewards. While it provides a quick infusion of capital, the risks can be substantial. Equity Financing: Dilution vs. Stability Equity financing involves issuing new shares to raise capital for the M&A transaction.

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Mergers and Acquisitions Finance Finance Mergers 59

Sun Acquisitions

FEBRUARY 12, 2024

Financially literate buyers can determine the business’s fair market value, ensuring they don’t overpay and enabling them to negotiate effectively. Financing Strategy: Buyers face many financing options – from conventional bank loans to seller financing and venture capital.

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Education Finance Finance Acquisitions 59

Sun Acquisitions

SEPTEMBER 9, 2022

People sell business ownership for a variety of reasons: Needing capital to actually start the company; Swapping equity for additional capital to grow the business; Sourcing money to pay down existing liabilities and debts; Raising venture capital to expand into new markets and; Desiring to diversify their own business risk as the sole owner.

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Equities Business Broker Investors 52

OfficeHours

JUNE 5, 2023

Occasionally, once a potential acquisition is identified, consultants help private equity firms structure investment deals by advising on optimal capital structures, negotiating terms and conditions, and evaluating potential exit strategies, while also sometimes providing valuation services to determine the fair value of target companies.

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Private Equity Consulting Portfolio Equities 147

Razorpay

JUNE 16, 2023

In this blog post, we will delve into the top three cash-flow challenges faced by the ed-tech sector and provide expert insights and solutions to overcome them. However, the process of hiring new personnel can pose financial challenges, as it requires a significant capital investment for salaries, benefits, and training.

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Education Management Negotiation Collaboration 52

OfficeHours

JUNE 27, 2023

Maximize success with expert tips on promotion, salary negotiations, and more. Visit the OfficeHours Blog and follow us on our social media accounts: Instagram , LinkedIn , YouTube , TikTok , and Twitter for our latest updates. Partial list of confirmed interviews happening TONIGHT below and more being added as we go.

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Recruitment Private Equity Investment Banking Analyst Equities 130

Deal Law Wire

FEBRUARY 9, 2021

Retail investors are becoming an increasingly significant source of capital on public markets, and dealmakers should be aware of how this development can impact M&A transactions and the decision to go public. The author would like to thank Arron Chahal, Articling Student, for his significant contribution to this blog post.

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Sun Acquisitions

OCTOBER 21, 2024

It can provide quick access to capital, making it an attractive option for M&A financing. In exchange for an equity stake in the company, private equity investors provide capital to fund acquisitions and support growth initiatives.

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M&A Finance Finance Business 59

Sun Acquisitions

DECEMBER 16, 2022

assist you in securing potential buyers, negotiate the asking price and, manage all the legal aspects of the deal. You can use this price to list your company and use it as a starting point during negotiations. 5. Assess Offers and Negotiate a Sale. 1. Engage a Business Broker. An experienced broker will.

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Manufacturing Business Broker Negotiation 52

OfficeHours

JULY 18, 2023

Finally, roll-up players are likely to have a cost of capital advantage through the clever use of debt financing or other “financial engineering” tactics in which private equity firms specialize. Acquisition Expertise At their core, private equity firms are mergers and acquisitions specialists.

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Sun Acquisitions

NOVEMBER 17, 2023

In this blog post, we will dive into different market value methods and strategies used in M&A, shedding light on the secrets to successful M&A transactions. Accurate valuation is essential for the following reasons: Price Negotiation: Valuation provides a starting point for negotiations.

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Mergers and Acquisitions Valuation M&A Mergers 59

The M&A Lawyer

AUGUST 31, 2015

Article 1 of most APAs provides an alphabetical list of definitions of important (usually capitalized) terms used throughout the agreement. capitalization and ownership. The post Anatomy of an Asset Purchase Agreement appeared first on The M&A Lawyer Blog. Article 1: Definitions. authority and enforceability. inventories.

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Sun Acquisitions

AUGUST 19, 2024

Companies can explore options like private equity investments, venture capital funding, mezzanine financing, and strategic partnerships. These alternative sources of capital can offer innovative structures tailored to specific deal requirements, helping companies secure funding even when traditional lenders are conservative.

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