Francine Way

JULY 10, 2017

The core element of M&A is company valuation. Strategy, due diligence, financing, purchase price, and buyer-seller alignment all revolve around valuation and the enterprise value for the buyer and the seller. Valuation focuses on two questions: 1. Do they have the cash of debt/equity capacity to bid aggressively?

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Valuation M&A Equities Shares 130

Francine Way

JULY 13, 2017

As I mentioned in my valuation preparation post , Comparable Company is a valuation method that uses metrics of other similar businesses (same industry, size, geography, valuation multiples, etc.) Calculating cost of debt, cost of equity, and weighted average cost of capital (WACC).

Valuation 130

Valuation M&A DCF Book-building 130

Francine Way

JULY 17, 2017

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.

Valuation 130

Valuation M&A Debt Book-building 130

How2Exit

MARCH 5, 2023

8 We learned by interviewing Labruta Capital who Has a Unique Way To Avoid Bankruptcy E2 - Watch here The How to Exit podcast recently interviewed two industry leaders, Brooker Kraft and Ali Taraftar, who have created a company that is addressing a unique market opportunity.

Business 130

Business Capital Negotiation Debt 130

Francine Way

JULY 11, 2017

Just as any home appraiser or credit officer does before going through the analytical exercise to produce a score for a home or a borrower, valuation professionals go through several steps of preparation before the actual exercise of producing a number that can be used as a value of a company.

Valuation 130

Valuation M&A DCF Financial Statement 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

Devensoft

AUGUST 22, 2023

Navigating M&A valuations with precision is paramount for informed decision-making. Our guide equips you with step-by-step instructions on employing the Enterprise Value Calculator effectively, complete with insights into optimal practices for precision valuations. Let’s dive into the intricacies of this invaluable resource.

Valuation 52

Valuation M&A Utilities Mergers and Acquisitions 52

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

Lake Country Advisors

AUGUST 8, 2024

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. However, company valuation isn’t as simple as slapping a price on your business. It’s a delicate balancing act, as inaccurate valuations have polarizing consequences.

Valuation 97

Valuation Discounted Cash Flow S&P DCF Analysis 97

Mergers and Inquisitions

MAY 3, 2023

To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology. And Equity Real Estate Investment Trusts (REITs) must distribute almost all their Net Income, so the DDM can work well in REIT valuations. But outside of those, its status is murkier.

Valuation 64

Valuation DCF Debt Financial Modeling 64

Francine Way

JUNE 22, 2020

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. Working Capital deficit. Any debt drawdown and paydown schedule. Cash balance on the books without Restricted Cash. Negative equity balance.

Valuation 130

Valuation M&A Mergers Mergers and Acquisitions 130

How2Exit

NOVEMBER 11, 2024

Engagingly, Coffey addresses the topics of market volatility, the significance of debt coverage ratios, and the ripe opportunity landscape for acquisitions, particularly for service-based businesses with recurring revenue streams. It's essential to maintain a healthy debt service coverage ratio, especially in uncertain economic climates.

Private Equity 130

Private Equity Equities Business Economics 130

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

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

The Deal

JANUARY 31, 2024

On the latest episode of The Deal’s Behind the Buyouts podcast, Macquarie Capital global head of financial sponsors Tom Amster details his expectations for private equity dealmaking in the coming months following a muted 2023. “Private equity as a business, they’re not stores of capital, they recycle capital,” he said.

Private Equity 59

Private Equity Capital Valuation Equities 59

Mergers and Inquisitions

MARCH 13, 2024

Some argue that GE offers the best of both worlds: the opportunity to fund innovation and growth – as in venture capital – plus the ability to limit downside risk and invest in proven companies – as in private equity. Debt financing is much more common, and the GE firm is often the first institutional investor.

Private Equity 105

Private Equity Equities Capital Portfolio 105

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. The stake will depend directly on the amount you want to raise compared to your business’s total valuation.

Equities 79

Equities Investment Private Equity Valuation 79

Mergers and Inquisitions

OCTOBER 18, 2023

Even though we’ve covered industry groups vs. product groups and teams such as M&A , ECM , DCM , and Leveraged Finance , we continue to get questions about capital markets vs. investment banking. The questions usually go like this: Are capital markets teams (ECM, DCM, and LevFin) “real” investment banking? Do you learn anything?

Investment Banking 59

Investment Banking Capital Market Recruitment Capital 59

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

InvestmentBank.com

MAY 26, 2021

A liquidity crisis slammed businesses across the board, and COVID-19 added a new layer of complexity for companies who tried to obtain capital to weather the storm. Debt Markets Prior to COVID-19, some analysts and debt underwriters encouraged debt issuers to exercise caution after the tenth straight year of economic expansion [1].

Capital Raising 52

Capital Raising Capital Debt Private Equity 52

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

Wall Street Mojo

JANUARY 15, 2024

It is based on the accounting equation that states that the sum of the total liabilities and the owner's capital equals the total assets of the company. Liabilities come next, divided into current liabilities (like debts and payables) and long-term liabilities (e.g., read more all the income and expenditures of the business.

Accountant 98

Accountant Financial Statement Debt Financial Modeling 98

TechCrunch: M&A

JULY 27, 2023

Uplift had raised nearly $700 million in equity and debt, securing $123 million at a reported $195 million valuation in its Series C round alone. ” Laplanche is referring to the BNPL-style product that Upgrade launched in October 2021, which lets users pay down their debt over six to 36 months with a fixed interest rate.

Finance 223

Finance Finance IPO Debt 223

Sun Acquisitions

FEBRUARY 28, 2024

Valuation and Due Diligence Accurate valuation is essential to avoid overpaying for the target company. Factors Influencing Financing Choices Available Capital Your existing financial resources play a crucial role in determining your financing choices. However, too much debt can strain your finances and hinder growth.

Finance 59

Finance Finance Acquisitions Business 59

Software Equity Group

MARCH 21, 2023

There are several resources for growth capital: debt from a lender or financial institution, minority equity financing, or majority equity financing through a control transaction. Growth debt, also called venture debt, most often comes as a principal loan accompanied by an interest payment.

Finance 52

Finance Finance Debt Equities 52

Peak Frameworks

MAY 22, 2023

Liabilities represent the obligations a company has to outside parties, such as debts, loans, and accounts payable. Importance of Asset Valuation and Management Proper asset valuation and management are essential for businesses to maintain a healthy balance sheet and maximize their potential. For example, Apple Inc.

Accountant 52

Accountant Equities Debt Private Equity 52

Wall Street Mojo

JANUARY 4, 2024

read more is that amount of interest, which is due for a debt or bond but not paid to the lender of the bond. Investors and financial professionals must be aware of accrued interest when engaging in transactions to avoid discrepancies in the valuation and pricing of securities. Table of contents What is an Accrued Interest Formula?

Accountant 98

Accountant Financial Modeling Financial Models Financial Statement 98

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. Valuation A buyer’s proposed valuation of your SaaS company is one of the first and foremost items typically addressed in their term sheet.

Negotiation 52

Negotiation Business M&A Valuation 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.

Investors 130

Investors Private Equity Equities Debt 130

The Deal

SEPTEMBER 20, 2023

company, which raised billions in debt and equity this year from Magnetar Capital LLC, Blackstone Tactical Opportunities Fund LP, Nvidia Corp. As for CoreWeave’s own financing, the company’s efforts in 2023 suggest it is a capital intensive business. CoreWeave Inc. The Roseland, N.J., Magnetar co-led a $2.3

Equities 59

Equities Debt Finance Finance 59

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

MergersCorp M&A International

JULY 5, 2024

Convertible bonds are a type of security that offers a steady stream of income but also holds the potential for capital appreciation in the form of a stock. Therefore, in the case that the company performs well, and the stock price climbs above the conversion price investors can convert their bonds into shares and capitalize on the growth.

Debt 52

Debt Stock Initial Public Offering Capital 52

Software Equity Group

AUGUST 24, 2023

Recapitalization is a process of restructuring a company’s debt and equity mix, also known as its capital structure. In practice, this often involves issuing new shares of common or preferred stock to raise additional capital and may involve existing shareholders selling their shares. What is Recapitalization?

Debt 52

Debt Equities M&A Investors 52

Wizenius

JUNE 25, 2023

Weighted Average Cost of Capital (WACC): Calculate the Weighted Average Cost of Capital (WACC), which represents the average rate of return required by the company's investors. The WACC considers the cost of debt and equity financing and reflects the risk associated with the company's capital structure.

Financial Modeling 52

Financial Modeling Financial Models Investment Banking DCF Analysis 52

Lake Country Advisors

JANUARY 8, 2024

Whether you’re considering a sale, seeking funding, or making strategic business decisions, an accurate valuation is key. This guide will take you through the basic essentials of business valuation, helping you establish a foundational understanding of business valuation. grasp its significance in small business ownership.

Business 52

Business Valuation Mergers and Acquisitions Negotiation 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

How2Exit

SEPTEMBER 9, 2024

Tune in to explore the fascinating journey of Steve, his approach to valuations, and how he successfully navigated his first acquisition during the tumultuous COVID-19 period. Preparing for Sale: Business owners should invest time in preparing their businesses for sale to maximize valuation and attract potential buyers.

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M&A Mergers and Acquisitions Financial Analysis Financial Statement 130