OfficeHours

JUNE 30, 2023

Are you preparing for upcoming private equity interviews? If so, understanding the mechanics of a leveraged buyout is paramount… Paper LBOs are an important part of any private equity interview. To go from equity value to enterprise value, add the net debt (debt minus cash) of the company to equity value.

Private Equity 130

Private Equity Equities Debt Recruitment 130

Francine Way

JULY 17, 2017

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. Building a historical 3-statement model and a debt-interest schedule. Building the go-forward debt-interest schedule. Building a proforma balance sheet.

Valuation 130

Valuation M&A Debt Book-building 130

OfficeHours

OCTOBER 20, 2023

For private equity investors who have been monitoring the situation around inflation for the last few months to a year, many have been disappointed to see the slow trajectory with which inflation has been coming down from highs. Explore the role of private equity now. Currently, inflation in the U.S.

Investors 130

Investors Private Equity Equities Debt 130

OfficeHours

OCTOBER 16, 2023

For the average person, rising interest rates are not ideal for those with significant amounts of debt, those looking to purchase a home with a mortgage, or many other use cases. Therefore, ideal private equity target companies have steady cash flows and minimize variable or unexpected costs.

Investors 130

Investors Private Equity Debt Equities 130

OfficeHours

JUNE 5, 2023

The paper LBO is one of the most commonly used and intimidating interview techniques for private equity. Many candidates dread the paper LBO, but simply put, it is one of the most definitive “weeder” techniques used by many private equity firms and investment banking to lower the applicant pool.

Private Equity 147

Private Equity Valuation Equities Debt 147

OfficeHours

AUGUST 20, 2023

Written by a Top OfficeHours Private Equity Coach Is PE a Good Fit for you? To know if the buyside is right for you, let’s start with a textbook understanding of “What is private equity?” Many first-year (and some second-year) analysts are unsure if private equity should be their next step.

Private Equity 130

Private Equity Equities Investment Banking Finance 130

OfficeHours

OCTOBER 23, 2023

However, for private equity investors, this uncertainty represents a unique opportunity to take advantage of investment opportunities in public markets. A “take-private” transaction in the context of private equity is a process by which a PE firm acquires a publicly listed company and converts it into a privately held entity.

Investors 130

Investors Private Equity Equities Investment 130

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.

Private Equity 52

Private Equity Equities Insurance Capital 52

OfficeHours

OCTOBER 16, 2023

For private equity investors who have been monitoring the situation around inflation for the last few months to a year, many have been disappointed to see the slow trajectory with which inflation has been coming down from highs. Instead, inflation of 5% would mean that the private equity firm’s real return would be reduced to 15%.

Investors 100

Investors Private Equity Debt Equities 100

OfficeHours

JULY 4, 2023

Going to keep today rather simple — we want to celebrate and kick off the second half of the year with a simple offer for the first 10 people that take advantage of the below — PE Platform Access for $225 OFF = $74 out of pocket for lifetime access Our flagship program has placed mentees into most major private equity firms since launching in 2020.

Sale 130

Sale Private Equity Recruitment Equities 130

RKJ Partners

AUGUST 6, 2017

In our latest blog installment, we define and outline the key elements involved in the process of raising capital. Capital is generally grouped into three main classifications: Senior Debt, Mezzanine Capital and Equity Capital. Most entrepreneurs are very familiar with senior debt offered by traditional banks.

Debt 40

Debt Capital Raising Capital Equities 40

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.

Private Equity 52

Private Equity Valuation Equities Business 52

OfficeHours

OCTOBER 17, 2023

So you want to pursue a role in Private Equity and Growth Equity? Existing Debt The US is a country riddled with debt. Others may have car payments, mortgages, credit card debt, or other debt that could hang over their head as a large liability. How are you liking these recent blog posts?

Private Equity 130

Private Equity Debt M&A Investment 130

OfficeHours

OCTOBER 16, 2023

However, for private equity investors, this uncertainty represents a unique opportunity to take advantage of investment opportunities in public markets. A “take-private” transaction in the context of private equity is a process by which a PE firm acquires a publicly listed company and converts it into a privately held entity.

Investors 100

Investors Private Equity Equities Debt 100

Focus Investment Banking

NOVEMBER 27, 2023

At this year’s West Coast M&A/Private Equity Forum, which took place on September 28th in East Palo Alto, those differences were on full display. In the 1980s, the caravan touted junk bonds; in the 1990s, dotcoms; in the 2000s, collateralized debt obligations; and more recently, crypto and cannabis.

Private Equity 52

Private Equity M&A Equities Mergers and Acquisitions 52

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

Chesapeake Corporate Advisors

SEPTEMBER 13, 2024

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.

Private Equity 52

Private Equity Funds Equities Debt 52

OfficeHours

OCTOBER 16, 2023

Existing Debt : The US is a country riddled with debt. Others may have car payments, mortgages, credit card debt, or other debt that could be hanging over your head as a large liability. investment banking, private equity , VC, etc.) and how our process works.

Debt 113

Debt Investment Healthcare Accountant 113

Sun Acquisitions

OCTOBER 21, 2024

Private Equity Investment: Private equity firms can be strategic partners for mid-sized businesses looking to finance M&A transactions. In exchange for an equity stake in the company, private equity investors provide capital to fund acquisitions and support growth initiatives.

M&A 59

M&A Finance Finance Business 59

Focus Investment Banking

JANUARY 28, 2024

The younger partners were presented with a dilemma: They could each increase their stakes in the business and collectively control it but would have to take on—and be personally liable for—the $25 million in debt. It would take years before the debt could be paid down. What would happen if there was a downturn in their industry?

Professional Services 52

Professional Services Sale Private Equity Debt 52

Sica Fletcher

JULY 1, 2020

Update on Private Equity and Insurance Brokerages In our ,, previous article , we reported that the COVID-19 pandemic had not diminished the pace of mergers and acquisitions transactions we are seeing in the insurance agency and brokerage sector. The number of transactions we are working on has not abated.

Private Equity 52

Private Equity Insurance Debt Equities 52

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 14, 2024

Financial strategies involve leveraging existing assets as loan collateral or tapping into private equity partnerships to support this goal. In such cases, evaluating the financial health of target companies and understanding their debt structures is crucial.

Acquisitions 59

Acquisitions Business Debt Finance 59

Sica Fletcher

JUNE 2, 2020

This blog is an effort to answer that question. Furthermore, as we have reported in previous blogs, these agencies already had their equity and debt capital lined up before the full force of the pandemic hit. As a result, they had and continue to have large pools of equity and debt capital to deploy in acquisitions.

Insurance 52

Insurance Broker Private Equity M&A 52

OfficeHours

MAY 16, 2023

Additionally, liquidity is important for governments because it gives them access to debt markets to sell securities to fund deficits. investment banking, private equity , VC, etc.) This helps to ensure that businesses can access the funding they need to grow and invest in new projects. and how our process works.

Financial Market 130

Financial Market Funds Risk Management Trading 130

Focus Investment Banking

FEBRUARY 22, 2024

For restaurant owners seeking capital or an exit, there is ample dry powder in the private equity markets – upwards of $3 trillion, a near record amount. While some restaurant chains are candidates for private equity transactions, others are targets for strategic buyers.

Private Equity 52

Private Equity Valuation Food Equities 52

Focus Investment Banking

MAY 3, 2024

With higher interest rates, the same cash flow of years past now supports a lower amount of balance sheet debt. Also buyers like to use mezzanine and senior bank debt. The equity check writer will walk away in these cases because they can’t make the return on equity that they seek without the debt.

M&A 52

M&A Middle Market Private Equity Debt 52

OfficeHours

AUGUST 7, 2023

Start with assumptions towards the top, followed by sources and uses, the income statement, cash flow build, debt schedule, and finally returns. investment banking, private equity , VC, etc.) and formatting for numbers, dollars, and percentages. You can also check our various course curriculums for different careers (i.e.

Investment 130

Investment Business Underwriting IT 130

Focus Investment Banking

OCTOBER 30, 2023

Lower margins, in many cases, make these businesses unattractive to all but a small handful of financial investors like private equity groups, who look to invest, build a company up and then often sell to a larger private equity group. The debt in an ESOP is very, very difficult to restructure,” says Beard. “In

Debt 52

Debt Retail Business Private Equity 52

OfficeHours

JULY 18, 2023

It quickly became uneconomical for exploration and production companies to keep on drilling, meaning there was no need for the equity and debt capital that was typically raised on a quarterly basis. investment banking, private equity , VC, etc.) By December of that year, prices had fallen to $59 per barrel.

Investment Banking Analyst 130

Investment Banking Analyst Funds Recruitment Investment Banking 130

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.

Equities 52

Equities Business Broker Investors 52

Focus Investment Banking

JANUARY 18, 2024

While the company generated over $260 million in revenues through the first three quarters of 2023, its stock price is trading under a dollar a share, as the company is burdened with substantial debt. So, is a public offering even a consideration for some of the large, privately held consulting companies?

IPO 52

IPO Consulting Corporate Finance Professional Services 52

Focus Investment Banking

JULY 3, 2024

Written by Claire McDonnell IT-focused managed service providers (MSPs) appear to be an ideal investment pick for private credit lenders and private equity sponsors alike. Another example, Integris, a “merger of equals” between Domain and Tier One, was completed by private equity sponsor Frontenac in 2020.

IT 40

IT Private Equity Debt Finance 40

Sun Acquisitions

OCTOBER 25, 2022

With a leveraged management buyout, the buyer or seller can opt to bring on board a third party in the form of a private equity firm (PE), venture capitalist (VC), or conventional lender. Employees are given an opportunity to grow their equity stake in the company over time. The business is plunged into debt.

Business 52

Business Broker Finance Finance 52

Sica Fletcher

AUGUST 18, 2020

Private equity firms continue to drive transaction pace and value. They have enormous amounts of dry powder that they must deploy and continue to have access to very inexpensive debt. This blog post analyzes the significance of the statistics included in our ,, Second Quarter 2020 Sica Fletcher Agency & Broker Buyer Index.

M&A 52

M&A Insurance S&P Broker 52

Chesapeake Corporate Advisors

SEPTEMBER 13, 2024

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. For a more detailed look at what it means to become a PE group’s platform company vs. an add-on to an existing platform, read our latest blog on this topic.)

Business 52

Business Equities Debt Corporation 52

Focus Investment Banking

SEPTEMBER 4, 2024

While there are a few public investment opportunities in the heavy-duty parts and service sector, such as Dorman Products (NASDAQ: DORM) and Ryder Systems (NYSE: R), many investors have turned to Private Equity (PE) for investments in the industry. However, offers do fall on either side of this range, depending on various factors.

Business 52

Business M&A Private Equity Investors 52