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M&A Blog #19 – valuation (Leveraged Buy Out - LBO)

Francine Way

The major steps of LBO are: Building the Sources and Uses tables. Building a proforma balance sheet. Building a historical 3-statement model and a debt-interest schedule. Building the go-forward 3-statement model. Building the go-forward debt-interest schedule. Modeling the future exit.

Valuation 130
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The Great Game of Business: Teaching Financial Literacy and Ownership

How2Exit

He explains the concept of open book management and how it can demystify financials for employees. rn Steve and Ron discuss the challenges faced by businesses and the need to build a great company. They stress the importance of aligning education, accountability, and incentives to the goal of building a great company.

Business 130
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M&A Blog #16 – valuation (Discounted Cash Flow)

Francine Way

Build proforma income statement and balance sheet. Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC). For interest income and expense, I prefer to state them as percentages of the average debt balance of the last two years. Derive Free Cash Flow to Firm (FCFF).

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10 Concepts You and I Can Learn About Buying Businesses in the UK From How2Exit's Interview With John Andrews - London Attorney

How2Exit

This process involves researching the business’s financials, legal documents, and other relevant information. It is a process of researching and verifying the financials, legal documents, and other relevant information of the business. This is especially true for small businesses, as their financial information is often limited.

Business 130
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13 Concepts We Can Learn About Winning and Losing in Entrepreneurship on How2Exit's Interview W/Scott Duke

How2Exit

The impact of higher interest rates is felt in the form of debt servicing ratios. This is the amount of debt that a business can take on in order to finance an acquisition. When interest rates increase, banks are less likely to provide financing as the debt servicing ratio becomes more difficult to meet.

Sale 130
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10 Things We Learned About Buying or Selling a Business by interviewing Zoran Sarabaca - Business Broker

How2Exit

This pushed him to become a business broker himself, so he could treat clients better and build a better brokerage. He had to read books, do research, and figure out how to make it work. Without it, you will be unable to make informed decisions and you will be unable to capitalize on opportunities.

Broker 130
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10 Things You and I Can Learn about M&A and Entrepreneurship from Our Interview of Jeanette Holm - Award Winning Entrepreneur

How2Exit

With fifteen years of experience starting, growing, buying, and selling businesses, Jeanette is passionate about building value in a business through innovation and empowering people. She worked hard and the business quickly grew to the point where she was able to put a CEO in place and focus on learning how to build businesses.

M&A 130