iMerge Advisors

APRIL 14, 2025

But in nearly all cases, the quality and clarity of your financial documentation will directly impact valuation, deal structure, and buyer confidence. What Financial Documentation Are You Overlooking? A well-documented EBITDA bridge can materially impact valuation. Here are several that should be on your radar: 1.

Sale 40

Sale M&A Valuation Private Equity 40

How2Exit

MARCH 21, 2023

This process involves researching the business’s financials, legal documents, and other relevant information. Another important part of due diligence is researching the legal documents associated with the business. This includes contracts, leases, and other documents that are relevant to the business.

Business 130

Business Accountant Book-building Negotiation 130

How2Exit

APRIL 4, 2023

He explains that when the Small Business Administration (SBA) looks at a business for a loan, they want to make sure that the business can cover its debt service. They do this by giving it a coverage ratio of one dollar and thirty-five cents for every dollar of debt service after certain expenses.

Business 130

Business Management Negotiation Sale 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. Review corporate documents. The report will keep your key stakeholders informed and guide negotiations. Negotiate the terms and conditions.

Business 104

Business Mergers and Acquisitions Negotiation Risk Assessment 104

How2Exit

MAY 15, 2023

I also wanted to outsource the labor-intensive pieces of the job, such as the diligence and documentation work. Concept 4: Leverage Debt For Multiple Expansion Leveraging debt for multiple expansion is a strategy used by private equity firms to increase their value and profitability.

M&A 130

M&A Mergers and Acquisitions Private Equity Business 130

Sun Acquisitions

APRIL 17, 2024

You need to understand how much your company is worth, which is essential for setting realistic expectations and negotiating with potential buyers. Organize Financial Documents Buyers will scrutinize your financial records, so ensure that your financial documents are in impeccable order.

Mergers and Acquisitions 59

Mergers and Acquisitions Business Mergers Acquisitions 59

Wizenius

MAY 4, 2023

In investment banking, a term sheet is a non-binding document that outlines the basic terms and conditions of an investment or financing deal between two parties. It serves as a starting point for negotiations and helps both parties understand the structure of the proposed transaction.

Investment Banking 52

Investment Banking Investment Bank Banking 52

Sun Acquisitions

APRIL 10, 2024

You need to understand how much your company is worth, which is essential for setting realistic expectations and negotiating with potential buyers. Organize Financial Documents Buyers will scrutinize your financial records, so ensure that your financial documents are in impeccable order.

Mergers and Acquisitions 59

Mergers and Acquisitions Business Mergers Acquisitions 59

Sun Acquisitions

APRIL 24, 2024

You need to understand how much your company is worth, which is essential for setting realistic expectations and negotiating with potential buyers. Organize Financial Documents Buyers will scrutinize your financial records, so ensure that your financial documents are in impeccable order.

Mergers and Acquisitions 52

Mergers and Acquisitions Business Mergers Acquisitions 52

Focus Investment Banking

MARCH 10, 2025

Pass on domain knowledge to team members or document it. 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).

Investment 52

Investment Book-building Sale Business 52

How2Exit

MARCH 24, 2023

They can help them with things such as accounting, profit and loss statements, and other financial documents. As the economy trends towards recession, debt becomes more expensive, making it harder for small businesses to sell. Concept 9: Negotiate Creative Deals Negotiating creative deals is a key component of successful acquisitions.

M&A 130

M&A Business Mergers and Acquisitions Investors 130

Lake Country Advisors

DECEMBER 5, 2024

Financial Statements Start with a thorough review of financial documents. Maintaining well-documented and error-free financial records boosts your credibility and supports a smooth valuation process. Ensure these are properly documented and appraised. Liabilities : Consider all outstanding debts, loans, and lease obligations.

Business 52

Business Valuation Negotiation Profitability 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

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

Lake Country Advisors

JUNE 20, 2024

Buyers must know what they’re getting into and the hidden problems that may derail negotiations. Here are some of its examples: Outstanding debts and obligations. Gathering and Organizing Essential Documents Next, gathering and organizing essential documents is critical. Outstanding debts and obligations.

Sale 52

Sale Business IT Utilities 52

Sun Acquisitions

OCTOBER 21, 2024

Additionally, the application process can be lengthy and rigorous, requiring detailed financial documentation and due diligence. Mezzanine Financing: Mezzanine financing offers a hybrid form of debt and equity financing that can be used to fund M&A transactions.

M&A 59

M&A Finance Finance Business 59

Wizenius

JUNE 21, 2023

Debt Financing: Explore options for debt financing, such as loans from local or international banks, multilateral development banks, or export credit agencies. Tailor the terms of the debt to reflect the risks associated with regulatory uncertainties, such as higher interest rates or shorter tenors.

Finance 52

Finance Finance Debt Government 52

iMerge Advisors

APRIL 14, 2025

A closing binder (also called a closing book) is a comprehensive, organized collection of all final, executed documents related to the acquisition. What You Need Ready Before Closing By the time you reach the closing table, most of the heavy lifting due diligence, negotiation, and documentation should be complete.

Acquisitions 40

Acquisitions Mergers and Acquisitions M&A Sale 40

Lake Country Advisors

JANUARY 8, 2024

However, when selling a company, one must understand who the potential buyers are and what their capabilities are of servicing any new debt they take on from the acquisition, as most buyers will borrow money to acquire the business. Expert negotiation strategies are crucial here.

Business 52

Business Valuation Mergers and Acquisitions Negotiation 52

iMerge Advisors

APRIL 8, 2025

litigation, debt) are disclosed Team & Org: Document key roles, retention plans, and any dependencies on founders or key personnel Many founders underestimate the time and effort required here. Close and Transition After diligence and final documentation, the deal moves to closing.

M&A 40

M&A Valuation Private Equity Negotiation 40

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. For reference, the case document said to expect profitability by the end of the 5 years. multiple with mid-teens IRRs: This isn’t a great result, but it’s still above the minimum targets in the case document.

Equities 105

Equities Valuation Financial Statement Financial Modeling 105

Cooley M&A

APRIL 26, 2022

In the acquisition of a private company, a scheme can offer a solution that avoids requiring 100% of shareholders to sign deal documentation when the target’s governing documents don’t include drag-along provisions (and it’s not possible or deemed too risky to introduce such provisions prior to the deal taking place).

Mergers and Acquisitions 59

Mergers and Acquisitions Shares Stock Acquisitions 59

Sun Acquisitions

FEBRUARY 20, 2024

Ensure there are no outstanding debts or legal disputes that could affect the transaction or your future ownership. Negotiating the Terms of Seller Financing Once due diligence is complete and you’re satisfied with the findings, it’s time to negotiate the terms of the seller financing arrangement.

Finance 52

Finance Finance Financial Statement Business 52

Lake Country Advisors

NOVEMBER 16, 2023

Preparing for the Sale Preparing to sell your business is a critical step, demanding a clear understanding of its value and organized documentation. Prospective buyers conduct thorough due diligence, and well-maintained, up-to-date financial documents like income statements, balance sheets, and tax records are crucial.

Broker 52

Broker Business Sale Negotiation 52

How2Exit

MARCH 15, 2023

Furthermore, it is important to be realistic when pricing the business and not to overvalue it in order to leave room for negotiation. Furthermore, it is important to be realistic when pricing the business and not to overvalue it in order to leave room for negotiation. Accurately pricing a business is essential for it to be successful.

Broker 130

Broker Business Book-building IT 130

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

Lake Country Advisors

AUGUST 6, 2024

Documentation : Ensure that all necessary documentation, including financial records, asset inventories, and operational details, is provided to the valuation service. By providing a solid basis for your asking price, it can streamline negotiations. Debt and Liabilities : Document any outstanding debts, loans, and liabilities.

Manufacturing 52

Manufacturing Business Valuation Sale 52

Focus Investment Banking

SEPTEMBER 3, 2024

The teaser is a two-page document that is intended to get a buyer to want to learn more, which they can do after signing a confidentiality agreement. You should assume that the company is free of cash and third-party debt. This article was previously published on Modern Tire Dealer.

Sale 52

Sale Business Negotiation Valuation 52

Cooley M&A

MAY 21, 2021

In reaching this order, the court applied the prevention doctrine, finding that the unavailability of buyer’s debt financing did not permit buyer to circumvent its obligation to close because buyer materially contributed to the debt financing being unavailable. All of those demands were rejected by the lenders.

M&A 40

M&A Debt Private Equity Finance 40

Lake Country Advisors

AUGUST 28, 2024

An effective valuation sets realistic negotiation expectations and attracts qualified buyers. Equally critical is the evaluation of liabilities, including debts and loans, which profoundly affect your business’s market value. Particularly in manufacturing, significant investments in equipment and property are examined.

Business 52

Business Sale Valuation Manufacturing 52

Growth Business

OCTOBER 2, 2023

The healthy appetite among VC investors and venture debt providers was particularly evident when it came to opportunities in technology. Here is a snapshot of some of the specific business activities that are likely to attract the most VC and venture debt this year. This is not just a legal necessity.

Finance 52

Finance Finance Capital Funds 52

Lake Country Advisors

SEPTEMBER 30, 2024

Conducting thorough due diligence is crucial to uncover hidden issues, such as undisclosed debts or potential legal disputes. Key areas to examine include: Missing Financial Documents : Ensure you receive a complete set of financial statements—balance sheets, income statements, and cash flow statements for the past three to five years.

Business 52

Business Valuation Financial Statement Broker 52

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. This confidence allows the business to negotiate a lease that provides the same level of control and operational flexibility as ownership.

Sale 130

Sale Mergers and Acquisitions Business Funds 130

RKJ Partners

AUGUST 6, 2017

As a buy-side advisor, in addition to analytical support, the investment banker shields the buyer during the diligence and negotiation processes by working directly with seller to establish a framework and basis for assigning a value to the business. As a result, the value of the company lies in its ability to repay the debt.

M&A 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40

Lake Country Advisors

NOVEMBER 20, 2023

Acquisitions may involve other forms of financing, such as cash or debt. From the initial discussions to the final closure of the deal, the process requires careful planning, thorough analysis, and strategic negotiations. Negotiation and Purchase Agreement Following successful due diligence, the negotiation phase ensues.

Mergers and Acquisitions 52

Mergers and Acquisitions Mergers Acquisitions M&A 52

Software Equity Group

JULY 1, 2024

A QoE report is a document from a third-party accounting firm that objectively presents the company’s financial position after a comprehensive analysis. It is advantageous for the seller to identify and negotiate any issues upfront, while multiple buyers are still in play and leverage is on the seller’s side.

M&A 52

M&A Accountant Financial Statement Business 52

Software Equity Group

MAY 28, 2024

Focusing your efforts on improving those metrics will make your company more attractive and give you a leg-up in negotiations. Founder Tips for Selling Your SaaS Company Within One Year By now, you have improved all the metrics, tech-debt, and related things that you can do (won’t be everything)!

M&A 52

M&A Private Equity Valuation Equities 52