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. This will be helpful!

Investors 130

Investors Private Equity Equities Investment 130

Cooley M&A

SEPTEMBER 25, 2020

In a May blog post we discussed several initial observations regarding the dozens of M&A transactions that were signed prior to March 2020 and that were in jeopardy as a result of COVID-19. In other words, the specific performance remedy is conditional, and neither buyer nor the sponsor can be forced to close without the debt financing.

Debt 40

Debt Finance Finance Private Equity 40

OfficeHours

JUNE 6, 2023

Naturally, proficiency in Excel is of the utmost importance, but ensuring you understand the right financial model is equally important; be sure to practice your paper LBO and Excel debt-focused models through courses to give yourself an edge. Understand the Firm Research the private equity firm thoroughly.

Private Equity 147

Private Equity Equities Financial Modeling Financial Models 147

OfficeHours

MAY 16, 2023

Additionally, liquidity is important for governments because it gives them access to debt markets to sell securities to fund deficits. Hedge funds often use a variety of investment strategies and invest across multiple asset classes, which can help diversify their portfolio and reduce risk.

Financial Market 130

Financial Market Funds Risk Management Trading 130

Sun Acquisitions

FEBRUARY 14, 2024

Diversification: Diversifying your business portfolio can be a prudent goal. In such cases, evaluating the financial health of target companies and understanding their debt structures is crucial. While it provides capital without the burden of debt repayment, it dilutes ownership and may involve relinquishing some control.

Acquisitions 59

Acquisitions Business Debt Finance 59

Focus Investment Banking

SEPTEMBER 19, 2024

For buyers, who rely heavily on debt financing to fund acquisitions, a rate cut—especially one larger than expected—creates immediate opportunities. Here’s how: Lower Cost of Debt Private equity firms typically use leverage (borrowed capital) to finance a significant portion of their acquisitions.

Mergers and Acquisitions 52

Mergers and Acquisitions Acquisitions Mergers Debt 52

Sun Acquisitions

FEBRUARY 28, 2024

The business world is dynamic, and growth often requires expanding one’s portfolio through strategic acquisitions. If you have substantial cash reserves, you may opt for an all-cash deal, reducing debt burden and interest costs. Debt Financing Debt financing involves borrowing money to fund the acquisition.

Finance 59

Finance Finance Acquisitions Business 59

OfficeHours

AUGUST 20, 2023

You must be able to consider long-term goals, assess risk, and craft plans to enhance the value of portfolio companies. On the other hand, working at a GP shop, your firm will source the deal and put together all the pieces, including raising equity and coordinating debt (together known as the capital stack, or cap stack for short).

Private Equity 130

Private Equity Equities Investment Banking Finance 130

OfficeHours

AUGUST 9, 2023

You must be able to consider long-term goals, assess risk, and craft plans to enhance the value of portfolio companies. On the other hand, working at a GP shop, your firm will source the deal and put together all the pieces, including raising equity and coordinating debt (together known as the capital stack, or cap stack for short).

Private Equity 130

Private Equity Equities Investment Banking Investment 130

Focus Investment Banking

MARCH 17, 2024

Despite the potential value at stake, the buyer balked at the idea of relinquishing control, envisioning strategic integration and synergy across their portfolio of Professional Services businesses. However, negotiations hit a snag when the seller proposed retaining total operational control during the earnout period.

Professional Services 52

Professional Services Corporate Finance Mergers and Acquisitions Negotiation 52

Chesapeake Corporate Advisors

SEPTEMBER 13, 2024

This blog will offer a high-level overview of the distinguishing factors and potential post-transaction outcomes that you should keep in mind when comparing offers from private equity groups. Use of Leverage Private equity firms often use debt to finance acquisitions to maximize the returns they receive on their investments.

Private Equity 52

Private Equity Funds Equities Debt 52

M&A Leadership Council

APRIL 6, 2023

If you reinvest divestiture proceeds to acquire faster growth and higher-margin businesses or strategic, transformative technologies; reduce debt, conduct share buy-back programs and the like, you will meet – but not exceed -- analyst expectations. Strategic Use of Net Proceeds Frankly, this step is a given… nothing more than table stakes.

M&A 52

M&A Sale Mergers and Acquisitions Business 52

Focus Investment Banking

FEBRUARY 22, 2024

Specific value to a buyer: A buyer may see strategic value in the restaurant, whether it is a concept that bolsters its portfolio of brands or a restaurant group with advantageous locations. Economic Market and Industry Dynamics: Factors such as interest rates can also influence investor activity and in turn, valuation multiples.

Private Equity 52

Private Equity Valuation Food Equities 52

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. Customer base: Consider companies with a customer base that complements or expands your company’s existing client portfolio.

M&A 130

M&A Consulting Mergers and Acquisitions Valuation 130

GillAgency

FEBRUARY 10, 2022

For example, a buyer may not assume a debt or take over a piece of real estate. We will be creating a project timeline template that you can use – please stay tuned for that by subscribing to our blogs and newsletters. They may exclude some assets and/or liabilities based on mutual negotiations. Risk Management Every project has risks.

Business 52

Business Sale Broker IT 52

Tyton Partners

MAY 30, 2023

Plan strategically Although we may not see the dip in enrollment that some are expecting, even modest declines may add financial pressure to institutions on top of what many are already facing due to high fixed costs, student debt aversion, high competition, and a variety of other complications.

Education 52

Education Private Equity IT Recruitment 52

Cooley M&A

JANUARY 25, 2024

The higher interest rates escalated borrowing expenses, making mega-deals (deals valued at $5 billion or more) significantly more expensive, due to their heavy reliance on debt financing, and impacted valuation multiples with higher discount rates. The aggressive rate hikes contributed to the decline in M&A activity in 2023.

M&A 52

M&A Mergers and Acquisitions Investment Government 52

Cooley M&A

FEBRUARY 1, 2024

billion sale of portfolio company Adenza to Nasdaq – PE-backed tech exits also took a hit in 2023, with total deal values declining 35% versus 2022. [2] Continuing the trend we noted for 2022 , sponsors increasingly used private credit sources in lieu of the syndicated debt markets to finance buyouts in 2023. in 2022 to 5.9x

M&A 59

M&A Mergers and Acquisitions Private Equity Equities 59

Cooley M&A

JANUARY 25, 2023

While direct lenders have historically struggled to compete with the syndicated lending market on price and covenant packages, as the year progressed, sponsors increasingly spurned the syndicated lending market in favor of debt packages arranged solely by direct lenders.

M&A 52

M&A Mergers and Acquisitions Private Equity Mergers 52

OfficeHours

JUNE 13, 2023

According to US government estimates, the private equity industry employs almost 12 million people through its portfolio companies. debt – hence “leveraged buyout”) to finance their acquisitions. Private equity has come to control a massive swath of the American economy.

Private Equity 130

Private Equity Equities Debt Corporation 130

OfficeHours

JULY 7, 2023

According to US government estimates, the private equity industry employs almost 12 million people through its portfolio companies. debt – hence “leveraged buyout”) to finance their acquisitions. Private equity firms typically use a high degree of financial leverage (i.e.

Private Equity 100

Private Equity Equities Corporation Debt 100