Francine Way

JUNE 22, 2020

It has been roughly three years since my last blog post at the completion of my fellowship. To pick up where we last left off with valuation, I will cover the topic of a Merger Relative Valuation in this blog post and move on to other non-valuation topics from here. Any debt drawdown and paydown schedule.

Valuation 130

Valuation M&A Mergers Mergers and Acquisitions 130

Francine Way

JULY 19, 2017

Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). So, a good valuation model has to take into account the possibilities of a variable having multiple values along with each value’s probability of occurring. To-date, we have lumped them together.

Valuation 130

Valuation M&A DCF Stock 130

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. Any unions?

M&A 130

M&A Acquisitions Consulting Capital 130

Francine Way

JULY 9, 2017

After the prospective buyers review the CIM and conduct their own preliminary diligence analyses to determine their level of interest and initial valuation of the sale, they will typically solicit internal support for the acquisition. We have discussed the sell-side of an M&A transaction in the last two blog posts.

M&A 130

M&A Acquisitions Valuation Sale 130

TechCrunch: M&A

JUNE 29, 2023

million debt. A widely circulated blog post claiming knowledge of the matter said Wang had been diagnosed with depression, sparking discussion on entrepreneurs’ mental health issues in China’s tech community. million in debt. million in cash. It’s also taking on the startup’s $50.66

Debt 187

Debt Investors Recruitment Food 187

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.

Private Equity 147

Private Equity Valuation Equities Debt 147

RKJ Partners

AUGUST 6, 2017

In our latest blog installment, we define and outline the key elements involved in the process of raising capital. Yet, taking this equity investment means accepting painful ownership dilution due to the low valuations given to companies at this early stage. So, what's the alternative?

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. Cost of Leveraged Buyouts: PE firms often use leveraged buyouts (LBOs) to acquire companies, relying heavily on debt financing.

Private Equity 52

Private Equity Valuation Equities Business 52

OfficeHours

OCTOBER 20, 2023

Inflation can also have an impact on the cost of debt required to finance an investment. Inflation itself does not directly affect the cost of debt or interest; rather, since inflation and interest rates are very closely related, changes in inflation impact changes in interest rates. Great, I’m learning a ton!

Investors 130

Investors Private Equity Equities Debt 130

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.

Valuation 52

Valuation Business M&A Debt 52

RKJ Partners

AUGUST 6, 2017

In our latest blog installment, we define and outline the key elements involved in valuing a target company. What is Valuation? Valuation can be simply defined as the process of assigning an estimated dollar amount or range to the worth of an item, good, or service.

M&A 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40

OfficeHours

OCTOBER 16, 2023

Inflation can also have an impact on the cost of debt required to finance an investment. Inflation itself does not directly affect the cost of debt or interest; rather, since inflation and interest rates are very closely related, changes in inflation impact changes in interest rates.

Investors 100

Investors Private Equity Debt Equities 100

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.

Private Equity 130

Private Equity Equities Investment Mergers and Acquisitions 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. Strategy 5: Consider Subordinated Debt as an Alternative to Equity Most CFOs are familiar with the two financing products: senior debt and equity. Probably the most exotic of the instruments is subordinated debt.

Capital Raising 40

Capital Raising Capital Debt Finance 40

Sun Acquisitions

APRIL 26, 2024

This blog post delves into the intricacies of different financing models, shedding light on the associated risks and rewards. Debt Financing: The Double-Edged Sword Debt financing is a standard route for companies pursuing M&A, offering the allure of leveraging existing assets to fund the transaction.

Mergers and Acquisitions 59

Mergers and Acquisitions Finance Finance Mergers 59

OfficeHours

JULY 4, 2023

Getting someone to listen Read More Blogs Visit OfficeHours Blog and follow us on our social media accounts: Instagram , YouTube , TikTok , and Twitter for our latest updates. Celebrating 5 Years of Placements (2020-2024) – Empowering Dreams and Unlocking Opportunities! “I’m

Sale 130

Sale Private Equity Recruitment Equities 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). These are called addbacks, and are extremely important to valuation.

Investment 52

Investment Book-building Sale Business 52

Sun Acquisitions

NOVEMBER 7, 2022

The long and short is yes, it’s possible, however, there’s a series of considerations from the Small Business Administration (SBA), the holder of your PPP loan debt that you need to comply with. You want to be free of this debt as soon as possible. Perhaps you’ve asked, “Can I sell my business if I got a PPP loan?”.

Business 98

Business Mergers and Acquisitions Sale Debt 98

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

OfficeHours

JUNE 6, 2023

Mastering financial modeling techniques and demonstrating proficiency in valuation methods, cash flow analysis, and financial statement analysis are critical skills for private equity professionals. Understand the key components that firms evaluate, such as market analysis, financial modeling, valuation, due diligence, and risk assessment.

Private Equity 147

Private Equity Equities Financial Models Financial Modeling 147

Sun Acquisitions

FEBRUARY 28, 2024

Valuation and Due Diligence Accurate valuation is essential to avoid overpaying for the target company. 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

Sun Acquisitions

APRIL 17, 2024

In this blog post, we’ll explore the key steps to prepare your business for potential buyers in mergers and acquisitions. Valuation can be done through various methods, such as market analysis, income approach, or asset-based valuation.

Mergers and Acquisitions 59

Mergers and Acquisitions Business Mergers Acquisitions 59

Sun Acquisitions

APRIL 10, 2024

In this blog post, we’ll explore the key steps to prepare your business for potential buyers in mergers and acquisitions. Valuation can be done through various methods, such as market analysis, income approach, or asset-based valuation.

Mergers and Acquisitions 59

Mergers and Acquisitions Business Mergers Acquisitions 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.

M&A 130

M&A Consulting Mergers and Acquisitions Valuation 130

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.

Investment Banking 52

Investment Banking Bank Banking Investment 52

Sun Acquisitions

NOVEMBER 29, 2022

billion valuation by 2030. The first step in positioning your HVAC business for a favorable acquisition is increasing its current valuation. This can be done by paying off as many outstanding debts as possible, renegotiating terms for business loans, securing new clients, and getting your receivables paid up.

Business 52

Business Valuation Broker Book-building 52

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

Sun Acquisitions

APRIL 24, 2024

In this blog post, we’ll explore the key steps to prepare your business for potential buyers in mergers and acquisitions. Valuation can be done through various methods, such as market analysis, income approach, or asset-based valuation.

Mergers and Acquisitions 52

Mergers and Acquisitions Business Mergers Acquisitions 52

Focus Investment Banking

OCTOBER 30, 2023

You probably couldn't do an ESOP with a small proprietorship because you may not be able to raise the debt involved and there are ongoing expenses to managing an ESOP a business must be able to afford. First, the valuation you get can be very fair,” says Beard. And by the way, this valuation is always negotiated. It's deferred.

Debt 52

Debt Retail Business Private Equity 52

Sun Acquisitions

MARCH 6, 2024

In this blog post, we will explore the strategies for mastering this art and achieving your goals in business acquisition. Ensure your credit score is healthy and prepare comprehensive financial statements demonstrating your ability to manage the debt. Multiple Financing Options: Don’t put all your eggs in one basket.

Business 59

Business Securities Acquisitions Negotiation 59

Sun Acquisitions

JULY 21, 2023

In this blog post, we will explore the role of due diligence in successful M&A transactions and why it should be a top priority for companies. It also includes analyzing cash flow, debt obligations, and potential liabilities.

M&A 52

M&A Mergers and Acquisitions Negotiation Mergers 52

Sica Fletcher

JULY 1, 2020

This reflected the impact of valuations on deal flow and an increasing imbalance of potential sellers and buyers. This was symptomatic both of how the PE industry expanded in recent years and the impact of sky-high valuations on deal making activity. Dry powder reached $1.4 trillion as of December 2019, a record high.

Private Equity 52

Private Equity Insurance Debt Equities 52

Sun Acquisitions

OCTOBER 25, 2022

The process begins with a business valuation to establish how much the company is worth. It’s worth noting that this type of deal structure works best when the business valuation is at least $5 million. The business is plunged into debt. In this post, we’re going to explore the pros and cons of each strategy mentioned above.

Business 52

Business Broker Finance Finance 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. When you first start the model, make sure to follow a clean structure so that your interviewer can follow along, whether you present the model live or send it to them via email.

Investment 130

Investment Business Underwriting IT 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

FEBRUARY 22, 2024

The methodology shared here is to help restaurant owners better understand how investors typically arrive at a valuation. The other variable that goes into valuation is the multiple these buyers will use. An experienced advisor will walk through these methodologies and factors to provide guidance on valuation.

Private Equity 52

Private Equity Valuation Food Equities 52

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