Francine Way

JULY 17, 2017

Thus far, we have discussed three common valuation methods that most strategic and financial acquirers use when valuing a company for acquisitions or investments. This current post about Leveraged Buy Out (LBO) is about a valuation method used by a very specific type of financial acquirer: private equity (PE) firms.

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Francine Way

JULY 7, 2017

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. In Blog #02 of the M&A series, we discussed SWOT analysis. Consultants’ valuation, deal-structuring, and deal-financing expertise.

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Francine Way

JULY 8, 2017

Peaked market valuations: When market cycle peaks or an industry fully matures, it may be advantageous for shareholders to cash out. Lack of financial resources to grow: Lack of capital to properly market, R&D, and/or acquire may drive shareholders elsewhere.

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OfficeHours

JUNE 5, 2023

DO NOT let yourself fall victim to such a ploy – instead, follow the tips outlined below to stand out in the interview process: Understanding the Purpose of an LBO As you have likely heard time and time again, knowing WHY you are using a valuation method is just as important as knowing HOW to use a valuation method.

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Private Equity Valuation Equities Debt 147

Sun Acquisitions

NOVEMBER 17, 2023

Valuation is the process of determining the worth of a business, and it plays a pivotal role in M&A transactions. 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.

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RKJ Partners

AUGUST 6, 2017

As investment bankers, RKJ Partners possesses a breadth of knowledge and experience in advising clients that seek growth capital. In our latest blog installment, we define and outline the key elements involved in the process of raising capital. The projections should be optimistic yet achievable.

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The M&A Lawyer

OCTOBER 26, 2015

He and the Merit Harbor team work with middle-market business owners looking to grow, acquire or sell companies in the $10mm to $100mm valuation range. With recent high company valuations and other general macro-economic factors, investors need to get far more involved with a company in order to expect any type of fast growth.

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RKJ Partners

AUGUST 6, 2017

As investment bankers, RKJ Partners possesses a breadth of knowledge and experience in advising clients that seek growth capital. In our latest blog installment, we define and outline the key elements involved in the process of raising capital. Making equity dollars last is particularly important since they come at a high price.

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OfficeHours

MAY 19, 2023

If you’ve ever thought that Buyside might be for you — whether it be Growth Equity, Private Equity, Hedge Funds, Corporate Development, Venture Capital, etc. Learn to interpret anonymous blog critiques as a tool for professional success. Master valuation, drive decisions, and understand market dynamics.

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Discounted Cash Flow Financial Analysis Accountant DCF 130

Sun Acquisitions

SEPTEMBER 30, 2024

As you meticulously evaluate financial statements, assess market conditions, and fine-tune your pitch, it’s crucial not to overlook the less conspicuous elements that can significantly influence your business’s valuation in mergers and acquisitions (M&A).

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Mergers and Acquisitions Valuation Mergers Acquisitions 59

Sun Acquisitions

MAY 15, 2023

Here is a beginner’s guide to understanding valuation for family businesses. Identify Your Valuation Goal: Before getting started, you must identify the overall objective you are trying to achieve with this process. Doing research ahead of time will help determine which valuation methods are best suited for your needs.

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Focus Investment Banking

APRIL 7, 2024

One aspect that is often talked about and significantly impacts the business landscape is the relationship between interest rates, private equity groups, and business valuations. For private equity (PE) groups, these rates determine the cost of capital, which is essential for their investment strategies.

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Private Equity Valuation Equities Business 52

Sun Acquisitions

OCTOBER 4, 2024

Among the most critical factors to consider is the capital gains tax rate. An increase in capital gains taxes can directly and profoundly impact the valuation of M&A transactions. Understanding Capital Gains Taxes Capital gains taxes are levied on the profit realized from the sale of an asset held for more than one year.

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Sun Acquisitions

NOVEMBER 26, 2024

Imagine crunching historical data to identify potential synergies or using social listening tools to understand brand sentiment – all crucial information for making informed decisions about valuations and deal structures. This allows companies to capitalize on fleeting market opportunities and minimize disruption to ongoing operations.

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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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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. Establish Preliminary Valuation.

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Focus Investment Banking

MARCH 24, 2024

In the dynamic realm of direct-to-consumer (DTC) businesses, a clear hierarchy emerges in private equity valuations, largely based on the perceived stability, scalability, control over supply chains and customer experiences. The hierarchy in DTC business valuations reflects a balance between risk and reward.

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Private Equity Valuation Equities Business 52

How2Exit

FEBRUARY 27, 2023

They offer a range of assets, such as Shopify businesses, WordPress blogs, other content sites, and iOS or Android apps. Concept 6: Access to capital is difficult. However, despite all of the tools and resources that Flippa provides, accessing capital is still a difficult process. The blog was sold for $5.2

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Profitability Business Investors Investment 130

OfficeHours

JANUARY 26, 2024

That hadn’t previously been the case since 2009 and highlights how falling valuations and tighter credit markets have forced firms to keep assets for longer than typical five-year investment cycles. Private equity players have to face reality at some point,” said Per Franzen, head of private capital for Europe and North America at EQT AB.

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Private Equity Equities Mergers and Acquisitions Investors 130

OfficeHours

JUNE 12, 2023

At the junior level, running the model and valuation analyses will be one of your primary workstreams as a private equity professional. To do so, you can either get experience at your job or supplement it by taking relevant courses or certifications on LBO modeling, valuation techniques, and general investment analysis.

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Accenture Capital Markets

SEPTEMBER 5, 2023

And only a handful of processes such as reconciliations, valuation, portfolio company information gathering and financial reporting typically account for most of the RPA opportunity. The post Three Ways Institutional Investors Could Increase RPA Success appeared first on Accenture Capital Markets Blog.

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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! This will be helpful!

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Investors Private Equity Equities Debt 130

OfficeHours

JULY 18, 2023

In a roll-up strategy, a private equity firm will attempt to consolidate a large number of smaller firms into a single, professionalized company with numerous benefits, including economies of scale and fixed cost leverage, valuation uplift (so-called “multiple arbitrage”), and acquisition expertise, among others.

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Private Equity Equities Investment Mergers and Acquisitions 130

Sun Acquisitions

JUNE 15, 2022

Business valuation, according to the Corporate Finance Institute , is the “process of determining the present value of a company or an asset.”. Your business’ capital structure makeup. Why Is Business Valuation Needed Prior to Selling? Valuations are conducted on liabilities as well as company assets. Future earnings.

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Focus Investment Banking

AUGUST 15, 2024

This represents significant investment of time and capital from the contractors, who highlight their special qualifications to seek positions on the “favored to win” team(s). Companies with capacity within their operations for growth that doesn’t require major capital investments is another attractive quality.

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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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Sun Acquisitions

APRIL 7, 2022

CSI is owned by private equity firm Argosy Capital based in Wayne, PA. We work with clients that are interested in the confidential sale , acquisition or valuation of privately held companies. CSI is a leader in the sourcing and distribution of engineered component parts and assemblies serving OEM’s and is based in Charlotte, NC.

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Sun Acquisitions

MAY 17, 2024

This blog post will delve into the intricate relationship between global economic shifts and M&A activities, examining the challenges and opportunities they present for businesses engaged in these transactions. Exchange rate changes can impact asset valuation, creating uncertainties for both buyers and sellers.

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Sun Acquisitions

MARCH 8, 2022

The business was acquired by Bell Valley Capital to use as a platform landscaping company for future growth. We work with clients that are interested in the confidential sale, acquisition or valuation of privately held companies. Matt Brunstrum was the lead advisor and managed all aspects of this client engagement.

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Profitability Sale Business Acquisitions 98

Wizenius

JUNE 5, 2023

In this blog post, we will highlight five essential keywords that you should incorporate into your resume to increase your chances of getting those sought-after investment banking interview calls. Valuations: Demonstrate your expertise in valuations, as it is a fundamental skill for investment banking professionals.

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Software Equity Group

MARCH 26, 2024

Main Capital Partners Founded in 2003, Main Capital Partners has been among the most active private equity firms in the software space, making 10 SaaS deals in 2023 alone. Thoma Bravo maintains an active portfolio of 76 firms, with $134B in AUM and a $435M median valuation. The firm currently employs 31 professionals.

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Sica Fletcher

SEPTEMBER 25, 2019

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.

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Wizenius

MAY 19, 2023

In this blog post, we will explore an influential concept coined by finance guru Ashwath Damodaran—the Golden Triangle. The Golden Triangle: Growth = ROC * RR Ashwath Damodaran's Golden Triangle encapsulates the fundamental relationship between growth, return on capital (ROC), and the retention ratio (RR).

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Cooley M&A

JANUARY 19, 2023

This post highlights key guidance from the Notice as it relates to common M&A and capital market transactions. Even if a Covered Corporation issues more shares than it repurchases in a taxable year, timing and valuation differences can prevent the netting rule from eliminating its Excise Tax liability.

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OfficeHours

OCTOBER 16, 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.

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Focus Investment Banking

SEPTEMBER 19, 2024

Here’s how: Lower Cost of Debt Private equity firms typically use leverage (borrowed capital) to finance a significant portion of their acquisitions. Valuation Dynamics While lower interest rates may fuel M&A activity by making financing cheaper, they also influence company valuations.

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Focus Investment Banking

NOVEMBER 19, 2023

In this final segment we examine the risks photonics companies run by not seriously considering exiting now when buyers are able and willing to pay premium prices and valuations. In the f i rst and second parts of this series we explored the reasons behind the rapid consolidation of the photonics industry. DOWNLOAD THE FULL ARTICLE.

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