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Absent an eidetic memory, even the most accomplished M&A attorneys need precedent consents, agreements, certificates, checklists, filings and other documents to consummate a transaction, and the quality of the forms used directly impacts the allocation of rights and obligations of the parties and, ultimately, the success or failure of the deal.
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. and (4) support long-term business strategy. Any unions?
The seller’s advisors will pitch the target company, highlighting the most attractive elements of the opportunity, the target’s performance and market position, the investment thesis and fit with the prospective buyer, the details of the sales process, and next steps. The reason for this is time.
Before we move on to the buy-side and sell-side process of M&A next week, I’d like to wrap up this week by discussing the other capital structure component / tool: equity. We care about equity in M&A because a successful transaction is one that creates value for equity holders.
Many of these causes have their equivalences to the reasons behind the sale of a company (also known as a divestiture): Liquidity: As the equity holding period matured, investors (private equity funds behind companies) will look to sell. Once a sale has been decided, the process to look for a new owner is pretty well established.
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. Time certainly did fly by when one was having fun.
It is no different in M&A. The core element of M&A is company valuation. It is not an exaggeration to say that firm value is the most important characteristics in M&A. The range of value: Typically depends on performance variables (sales, margins, and capital requirements).
Thus far, we have covered four popular valuation methods in M&A (DCF, Comparable Company, Precedent Transaction, and LBO) and one less known one that is making its way out of the academic realm into the business world (Dividend Discount Method, DDM). Each asset class is revalued based on its sale in a 60-90 day sales process.
In all of these discussions, we assumed a set of static values for our variables. In other words, we assumed that each variable can have only one value. Well, in the real world, there is no certainties in business. Grays exist more than black and white; multiple possibilities exist, leading to multiple outcomes.
For those of us who have borrowed money based on collateral, this blog post will feel familiar. The concept can be extended to M&A. A retailer or a consumer electronics manufacturer see significant sales around those times of the year to use much more financing capacity. as a part of a multi-tier capital structure.
An example of this would be to state COGS and SGA as percentages of Sales Revenues, or to state Depreciation Expense as a percent of Plant, Property, and Equipment (PPE). For simplicity, I prefer to state everything but interest income and expense as percentages of sales revenue. Build proforma income statement and balance sheet.
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. Modeling the future exit.
In the last two blog posts, we walked through capital structure and how it impacts M&A activities and vice versa. We will now go through a series of four blog posts that dive deeper into debt - specifically, the various considerations one ought to take into account when planning to use debt for an acquisition.
An M&A lawyer runs the deal. The M&A lawyer serves as the primary point of contact for the rest of the deal team and has principal responsibility for shepherding the transaction to closing. She may be an in-house attorney but is more often an M&A specialist practicing with an outside law firm.
Introduction This article showcases how ChatGPT can serve as an effective M&A consultant by demonstrating how it can be used to help develop a best practices-based M&A playbook. An M&A playbook is a comprehensive framework that guides an organization’s M&A activities from start to finish.
Mike brings 25 years of experience in business ownership that includes start-ups, turnarounds, acquisition and sale of companies, specifically within media and IT industries. Mike specializes in establishing strategies for maximizing enterprise value and positioning a company for a sale to a synergistic buyer.
Ken brings over 30 years of experience in executive leadership, sales and operations. After his time as a business intermediary, Ken held several executive leadership positions with expanded sales and operations. Sun Acquisitions is pleased to announce that Ken Cisneros has joined our team as a Senior Advisor.
Micro M&A Strategies To Grow Your Business: 4 Strategies Bio: Mushfiq is a prolific investor who buys, grows, and sells online businesses, and specializes in content websites. He manages WebAcquisition.com , an M&A company that provides due diligence, growth strategies, mergers, and more services for acquisition entrepreneurs.
After the sale of this business, Matt Brunstrum noted, “We are pleased to help sell this very successful landscaping business. After the sale of this business, Matt Brunstrum noted, “We are pleased to help sell this very successful landscaping business. The business is based in the Greater Chicago area.
Sun Acquisitions is pleased to announce the successful sale of AMIC Global, Inc. After the sale of the business, Larry noted, “AMIC is an outstanding business built around quality products and will have a strong legacy going forward at CSI. to Component Sourcing International (CSI).
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.
Sun Acquisitions is pleased to announce the successful sale of Larry’s Cartage Co., After the sale of the business, Matt noted, “Larry’s Cartage Co., We work with clients that are interested in the confidential sale, acquisition, or valuation of privately held companies. Multimodal Group.
There remain thousands of companies around the world ripe for sale or mergers with other companies that we believe can keep the M&A momentum churning for many years to come. The post Photonics Blog Series appeared first on FOCUS Investment Banking LLC. Read full article here.
Neglected websites are those that have been built up over the years by hobbyists or those who don’t understand the M&A space. Another way to find neglected websites is to look for the top blogs in a particular niche. The digital world is filled with opportunities to find and buy digital assets.
I'm noodling and tinkering with a new (free) hobby project called [link]. To some, Agent-based AI is a buzzword, to others, they are already commercialising it. I have a simplistic view of the tech itself – an agent will perform a specific task it is built for, in a particular sequence, to provide a specific output.
We were unable to answer every question from the engaged audience of M&A professionals during the session. We were unable to answer every question from the engaged audience of M&A professionals during the session. This is the second piece in a two-part blog series. Read the first part here.
In many public company M&A deals, the shareholders of the target or acquired company will file a lawsuit challenging the deal, generally alleging that the board violated its fiduciary duties or the law by selling the company for a below-market price.
In this role, Rodney will empower and enable Cisco’s g… Read more on Cisco Blogs Today, I am excited to share that Rodney Clark will be joining Cisco as our new Senior Vice President, Partnerships and Small & Medium Business.
Business owners, and their senior management teams, often underestimate the importance of planning for a business sale, which, when coupled with unwarranted optimism around transaction readiness, can often result in value being left on the negotiation table. It is crucial to understand the tax implications of a sale in advance.
When it comes to SMB, we have a $19B net-new logo (NNL) … Read more on Cisco Blogs Co-authored by Stephen Lawrence , Head of Global SMB, Distribution & E-commerce Marketing Cisco Partners, have we got news for you!
In the dynamic landscape of mergers and acquisitions (M&A), the intricacies of family business succession planning often need to be addressed. However, understanding and effectively managing this process is crucial for ensuring a smooth transition and long-term success, especially in M&A activities.
In our latest blog installment, we address common questions of business owners relating to the sell side M&A process. It is imperative to maintain confidentiality throughout the sale process and to take measures that will guard against competitors, employees, vendors and customers learning of an impending sale.
We were unable to answer every question from the engaged audience of M&A professionals during the session; however, below you will find these additional queries answered and organized into themes which broadly reflect the common challenges and unique circumstances of these types of deals. This is the first in a two-part blog series.
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. The following are fundamental steps for a potential buyer and his deal team in the buy-side M&A process: 1. The steps in acquiring a business are far from easy.
In our latest blog installment, we define and outline the key elements involved in the due diligence process from a buyer’s perspective. Buyers seek to satisfy themselves and their stakeholders as to the current state and condition of the business for sale, thus reducing the chance of any post closing surprises. What is due diligence?
In our latest blog installment, we define and outline the key elements involved in financing a business acquisition. At this stage in buy-side M&A process, the ability to finance the acquisition climbs to the top of the priority list and becomes the single most important focal point for both the buyer and the seller.
Co-authored by Ilham Rahali, Head of Commercial Partnerships at Orange Business, and Pascal Allochon, Partner Sales Leader at Cisco in France. Pascal Allochon, France Partner Sales Leader at Cisco Read more on Cisco Blogs
Yet, for many entrepreneurs, the journey doesn’t end with the sale—it merely enters a new chapter. Transitioning leadership and operations smoothly following the sale of a business is crucial not only for the success of the new owners but also for the well-being of the seller and the legacy they’ve built.
Business photo created by gpointstudio – www.freepik.com In the interconnected global business landscape, the ever-shifting tides of the economy play a pivotal role in shaping the fate of mergers and acquisitions (M&A). Conversely, lower interest rates may spur increased M&A activity as financing becomes more accessible.
Accelerate is the second of 3 steps in the Ecosystem Co-Sell Go-to-Market (GTM) sales execution. In this step, visibility and awareness of our Advisor and Developer partner capabilities and solutions… Read more on Cisco Blogs
In one of our previous posts, we looked at how to sell a business , but in this blog, you’re going to learn how to sell a business privately. In one of our previous posts, we looked at how to sell a business , but in this blog, you’re going to learn how to sell a business privately. Selling a business is a complex affair.
The intricacies of navigating regulations, oversight requirements and labor laws can make the entire Mergers and Acquisitions (M&A) process seem overwhelming. As a business changes hands, the process for both buyer and seller and can become emotionally fraught and highly complex.
Public Sector Sales and Mike Witzman to Senior Director of U.S. Public Sector… Read more on Cisco Blogs On behalf of Cisco, I am proud to announce the promotions of Gary DePreta to the role of Senior Vice President of U.S.
In our latest blog installment, we define and outline the key elements involved in valuing a target company. For the purposes of this article, we will focus on valuation from the perspective of a merger and acquisition transaction, and specifically from the viewpoint of a buyer evaluating a business for sale. What is Valuation?
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