Remove Capital Raising Remove Debt Remove Profitability
article thumbnail

Distressed Debt Hedge Funds: How to Become a Vulture Capitalist

Mergers and Inquisitions

Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” Distressed debt investing offers advantages over other hedge fund strategies , but the marketing often oversells the benefits.

Debt 103
article thumbnail

How much equity should you give away when taking investment for growth?

Growth Business

In my experience, with eight years as a mid-market M&A advisor, SMEs traditionally trade for between four and seven times their profitability. To determine the value of the shares specifically, you need to adjust for the debt and cash in the business.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

12 Concepts We Can Learn About M&A Deals and Attorneys From How2Exit's Interview Mathew Saur

How2Exit

His advisory practice helps them through catalytic, transformational, and strategic events, such as mergers and acquisitions, governance issues, capital raising, and disputes. For example, one of the most popular industries for leverage debt for multiple expansion is the collision repair industry.

M&A 130
article thumbnail

How Merchant Banks Help Businesses Grow and Succeed

Razorpay

Example of Merchant Banking In 2021, merchant bank Avendus Capital helped the Indian company Piramal Enterprises acquire the debt-ridden assets of Dewan Housing Finance Corporation (DHFL) for ₹34,250 crore ($4.4 What is the role of merchant banks in the capital markets?

Bank 52
article thumbnail

11 Concepts We Can Learn About Chocolate, Roll-Ups, and Successful Exits From How2Exit's Interview W/ Gia Cilento and Walid Costandi

How2Exit

For example, one person may prioritize the liability of an industry due to having other assets to protect, while another person may prioritize the profitability of an industry. By building a scalable and profitable business, owners can increase its value and attract potential buyers.

Business 130
article thumbnail

Event-Driven Hedge Funds: The Best Home for Bankers Turned Investors?

Mergers and Inquisitions

Event-Driven Hedge Funds Definition: Event-driven hedge funds bet on specific corporate actions, such as M&A deals, divestitures, spin-offs, bankruptcies, and business reorganizations, and they profit based on changes in the value of a company’s debt or equity after the action.

Funds 64
article thumbnail

Single Store Generalist Shops | Why the Era is Coming to an End with Cole Strandberg

Focus Investment Banking

And in a lot of cases, these are very profitable services, but that specialization is going to lead to massive efficiencies throughout your organization. About 3 years ago, I joined the team at Focus Investment Banking, where I spend my time on mergers and acquisitions and capital raising within the collision repair industry.