RKJ Partners

AUGUST 6, 2017

As investment bankers, RKJ Partners possesses a breadth of knowledge and experience in advising clients that seek growth capital. In our latest blog installment, we define and outline the key elements involved in the process of raising capital. Most entrepreneurs are very familiar with senior debt offered by traditional banks.

Debt 40

Debt Capital Raising Capital Equities 40

Periculum Capital

MARCH 12, 2022

Periculum Capital Company, LLC (“Periculum”) is pleased to announce it has completed a senior debt placement for Morgan Foods, Inc. The debt placement, structured as a working capital revolver and term loan, allowed the Company to refinance its existing debt and fund future growth. Morgan” or the “Company”).

Debt 52

Debt Food Debt Capital Markets Capital 52

RKJ Partners

AUGUST 6, 2017

As investment bankers, RKJ Partners possesses a breadth of knowledge and experience in advising clients that seek growth capital. In our latest blog installment, we define and outline the key elements involved in the process of raising capital. Venture lending is usually offered in two forms: "growth capital" and equipment financing.

Debt 40

Debt Capital Raising Capital Equities 40

Software Equity Group

SEPTEMBER 24, 2024

A term sheet is often used in the early stages of negotiating a venture capital investment or M&A transaction. Since SEG often helps facilitate term sheet discussions, we’ll also share some practical guidance on how to negotiate them and a term sheet template to show you what they look like. What is a Term Sheet?

Negotiation 52

Negotiation Business M&A Valuation 52

Francine Way

JULY 10, 2017

The range of value: Typically depends on performance variables (sales, margins, and capital requirements). Do they have the cash of debt/equity capacity to bid aggressively? The market conditions The context of the transaction: Privately negotiated sale will have different mechanics than an auction.

Valuation 130

Valuation M&A Equities Shares 130

Focus Investment Banking

JUNE 5, 2023

One of the most critical metrics to evaluate the financial health of a target business is its working capital, which measures the company’s operational liquidity. In M&A, working capital is often a significant area of negotiation between the buyer and the seller. What Is Working Capital?

M&A 52

M&A Capital Management Mergers and Acquisitions 52

IBG

AUGUST 21, 2023

A powerful tool in negotiating a business’s purchase price, an earnout can bridge the gap between the amount that a buyer is willing to pay and the seller is willing to accept. If the sale occurs in a high-interest-rate environment, an earnout can help narrow the gap created by debt coverage. You might be right, but we’re not so sure.

Negotiation 52

Negotiation Profitability Business Sale 52

Lake Country Advisors

OCTOBER 31, 2024

A local business broker can be invaluable in identifying opportunities, assessing the business’s financial health, and negotiating on your behalf to ensure a smooth transaction. General Partnerships In a general partnership, all partners are responsible for managing the business and are equally liable for debts and legal obligations.

Business 52

Business Profitability Debt Shares 52

Growth Business

OCTOBER 2, 2023

By Tim Bird on Growth Business - Your gateway to entrepreneurial success It was a buoyant 2018 for venture capital investment into UK and European companies – a trend which defied broader concerns about international trade tensions, economic growth prospects and, of course, Brexit.

Finance 52

Finance Finance Capital Funds 52

Sun Acquisitions

APRIL 26, 2024

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. While it provides a quick infusion of capital, the risks can be substantial.

Mergers and Acquisitions 59

Mergers and Acquisitions Finance Finance Mergers 59

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). Obviously, this doesnt fly with the buyer three days before close.

Investment 52

Investment Book-building Sale Business 52

Sun Acquisitions

FEBRUARY 28, 2024

Negotiation Skills Negotiation is an art in itself. Be prepared to negotiate favorable terms to your side while ensuring a mutually beneficial outcome. Good negotiation skills can save you money and reduce post-acquisition conflicts. Debt Financing Debt financing involves borrowing money to fund the acquisition.

Finance 59

Finance Finance Acquisitions Business 59

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

MARCH 15, 2024

Traditional financing methods often involve complex due diligence, negotiations with lenders, and lengthy approval periods, which can take months. In contrast, all-cash offers can be executed swiftly, allowing you to capitalize on opportunities before your competitors even start.

Acquisitions 59

Acquisitions Business Negotiation Debt 59

Growth Business

JULY 17, 2024

Venture capitalists Venture capital is finance provided for an equity stake in a potentially high growth company, and is behind some of the best know and most innovative businesses in the UK such as Pizza Express, Centre Parcs, Odeon, UCI cinemas and Spotify. More on venture capital backing How do you know it’s time to raise venture capital?

Funds 97

Funds Business Finance Finance 97

How2Exit

MAY 15, 2023

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

M&A Mergers and Acquisitions Private Equity Business 130

Lake Country Advisors

JULY 25, 2024

Examine debt and credit history. Investigate these aspects to grasp the company’s borrowing history and current debt obligations and gauge financial risks. Identify expansion opportunities and assess how well it capitalizes on future market trends. The report will keep your key stakeholders informed and guide negotiations.

Business 104

Business Mergers and Acquisitions Negotiation Risk Assessment 104

How2Exit

SEPTEMBER 9, 2024

They also touch upon the benefits of leveraging joint venture partners, the impact of AI on accounting, and the nuances of negotiating deal structures. Steve Rooms underscores the necessity of examining areas like cash flow, debt liability, and gross margins before even considering a purchase.

M&A 130

M&A Mergers and Acquisitions Financial Analysis Financial Statement 130

Growth Business

OCTOBER 25, 2024

This decision is critical and often complex, requiring a delicate balance between securing the necessary capital while retaining future financial benefits and operational control. To determine the value of the shares specifically, you need to adjust for the debt and cash in the business.

Equities 98

Equities Investment Private Equity Valuation 98

Wizenius

MAY 4, 2023

It serves as a starting point for negotiations and helps both parties understand the structure of the proposed transaction. Venture Capital (VC) Term Sheet: In a venture capital deal, a term sheet might include the following key terms: The amount of funding being offered by the VC firm The valuation of the company (i.e.

Investment Banking 52

Investment Banking Investment Banking Bank 52

Sun Acquisitions

OCTOBER 21, 2024

It can provide quick access to capital, making it an attractive option for M&A financing. 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

OfficeHours

OCTOBER 23, 2023

Once the terms are agreed upon, the acquisition is financed through a combination of debt and equity from the PE firm , as with a typical transaction. This results in the target company receiving a potentially very different capital structure than they previously had, typically with higher debt levels.

Investors 130

Investors Private Equity Equities Investment 130

OfficeHours

JULY 18, 2023

If the larger roll-up acquirer has the ability to finance these acquisitions with incremental debt capacity, the equity value uplift may be even greater (although the reasons for this are beyond the scope of this article). This begs an important question: why do roll-ups receive a higher value than smaller acquisition targets?

Private Equity 130

Private Equity Equities Investment Mergers and Acquisitions 130

How2Exit

JULY 3, 2023

They act as intermediaries between buyers and sellers, helping to facilitate negotiations, conduct due diligence, and ensure a smooth transition. Whether it is in a specific industry or as a generalist, a skilled advisor can provide valuable insights, facilitate negotiations, and ensure a successful outcome.

Mergers and Acquisitions 130

Mergers and Acquisitions Business Negotiation Private Equity 130

How2Exit

AUGUST 8, 2023

The funds generated from the sale can be used to finance the M&A transaction, invest in growth opportunities, or pay down debt. Firstly, they provide immediate access to capital. This infusion of capital allows the business to have higher and better use for its funds than being tied up in property.

Sale 130

Sale Mergers and Acquisitions Business M&A 130

How2Exit

MARCH 21, 2023

For buyers, investor cash can provide the capital necessary to make the purchase without having to put down any of their own money. For buyers, investor cash can provide the capital necessary to make the purchase without having to put down any of their own money. This includes researching the company, the industry, and the market.

Business 130

Business Accountant Book-building Negotiation 130

Midaxo

APRIL 25, 2023

How to outline the process for negotiating deal terms and determining valuation? It provides a strategic roadmap for identifying, evaluating, negotiating, and integrating potential M&A transactions. This analysis will help you set objectives that address your company’s needs and capitalize on its strengths.

M&A 130

M&A Consulting Mergers and Acquisitions Valuation 130

Cooley M&A

JULY 28, 2022

In the US, it is common to adjust the purchase price for cash, any excess or deficit of net working capital relative to a required level of net working capital, unpaid debt, and unpaid transaction expenses of the target business as of the closing, with an adjustment done at closing based on estimates and followed by a post-closing true-up.

M&A 59

M&A Debt Accountant Business 59

Focus Investment Banking

DECEMBER 19, 2023

“Investment bankers and leveraged buyout investors in the 1980’s adopted EBITDA as a tool for figuring out whether a company had a profitability needed to service the debt that would need to be taken on to buy the company.” It’s what us investment bankers use when presenting our client’s businesses for sale. which took a nearly $1.6

Debt 52

Debt Profitability Investment Retail 52

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

IBG

FEBRUARY 6, 2024

Helping the seller anticipate and negotiate issues that can cause deviations from the expected sale proceeds can add unexpected value to involving an experienced M&A intermediary. From the outset, price is front and center in the negotiations. In a business sale, forewarned is forearmed.

Sale 52

Sale Business Negotiation M&A 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. Next, 12.8%

M&A 52

M&A Middle Market Private Equity Debt 52

Wall Street Mojo

JANUARY 4, 2024

They may also be required to calculate the Internal Rate of Return (IRR) and Multiple on Invested Capital (MOIC). It includes the acquisition date, purchase price, parties involved, capital structure , capital expenditure, and expenses , among other relevant data points. After this, deduct applicable expenses.

Debt 52

Debt Private Equity Mergers and Acquisitions Investment 52

Devensoft

JUNE 1, 2023

By following these guidelines, businesses can make informed decisions, negotiate favorable terms, and mitigate risks to maximize the value of their M&A transactions. It helps the acquiring company to make informed decisions and negotiate the deal’s terms and conditions. Don’t have time to read it now?

Economics 98

Economics M&A Management Financial Statement 98

Cooley M&A

OCTOBER 8, 2024

the Chancery Court ordered specific performance and enforced a reasonable best efforts provision to require a buyer to secure debt financing and close the transaction, where all of the buyer’s closing conditions (other than the condition to complete buyer’s financing) had been satisfied. KCake Acquisition Inc. , Hill-Rom Inc. ,

M&A 52

M&A Mergers and Acquisitions Debt Finance 52

Focus Investment Banking

DECEMBER 5, 2024

The seller’s counsel is responsible for negotiating the key legal terms of the purchase agreement. Using an experienced M&A attorney is critical to move the transaction forward while avoiding costly legal fees negotiating on terms that are not critical. The terms of the earn-out can be negotiated with your advisor and buyers.

Business 52

Business Sale Negotiation Accountant 52

Mergers and Inquisitions

JANUARY 24, 2024

minutiae about issues like OID for debt issuances ) and did not accurately represent a 1- or 2-hour case study. But the secondary purchase does not create new shares , so we do not add the €50 million of capital to calculate the post-money valuation for use in the ownership calculation: 50 / 800 = 6.3% trailing revenue multiple and 4.4x

Equities 105

Equities Valuation Financial Statement Financial Modeling 105