How2Exit

MAY 15, 2023

Concept 3: Lawyers Provide Beneficial Skills Ronald talks about his economics professor who had a law degree and was a successful real estate investor. 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

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

The M&A Lawyer

SEPTEMBER 23, 2015

Interestingly, while M&A lawyers often get fairly animated in negotiating whether to include the word “prospects” in the MAE definition, they do not similarly struggle with inclusion of the “could reasonably be expected to have” language, which should be viewed by a court as having the same effect.

M&A 130

M&A Mergers and Acquisitions Negotiation IT 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

Wall Street Mojo

JANUARY 15, 2024

It can result from factors such as rapid technological advancements, economic downturns, strategic misjudgments, globalization, and government incentives that encourage excessive production. Firstly, economic downturns can trigger overcapacity as reduced consumer spending leads to weakened demand for goods and services.

Profitability 52

Profitability Utilities Economics Debt 52

Wizenius

JUNE 21, 2023

Assess the technical, economic, and legal aspects of the project. Debt Financing: Explore options for debt financing, such as loans from local or international banks, multilateral development banks, or export credit agencies. A detailed understanding of the project's viability will be crucial in attracting investors.

Finance 52

Finance Finance Debt Government 52

Lake Country Advisors

DECEMBER 5, 2024

Liabilities : Consider all outstanding debts, loans, and lease obligations. Buyers will factor these into their valuation, so being upfront about liabilities ensures transparency and avoids potential issues during negotiations. Real Estate : Owned properties, such as office buildings or storage facilities, are valuable assets.

Business 52

Business Valuation Negotiation Profitability 52

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

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 reflects a company's capacity to reinvest in its business, repay debt and reward shareholders over the long haul.

Debt 52

Debt Profitability Investment Retail 52

Focus Investment Banking

OCTOBER 30, 2023

You probably couldn't do an ESOP with a small proprietorship because you may not be able to raise the debt involved and there are ongoing expenses to managing an ESOP a business must be able to afford. And if the bad times come every five to seven years, which is a typical economic cycle, you can work through that. continues Beard. “I

Debt 52

Debt Retail Business Private Equity 52

Sun Acquisitions

MAY 15, 2023

Consider Various Factors During Valuation: Various factors should be considered, such as cash flow, debt levels, earnings history, and growth prospects. Market-based valuations compare the target company to similar businesses and use market trends to estimate value.

Valuation 52

Valuation Business M&A Debt 52

Sica Fletcher

JULY 31, 2024

In addition to the high cost of debt interfering with their bottom line, they also have to contend with a buyer pool that’s larger than ever before , with 50+ buyers in the current pool where there used to be ~5. Sellers are remaining patient and working with M&A advisosr to identify areas of opportunity.

M&A 52

M&A Insurance Debt Equities 52

How2Exit

MARCH 5, 2023

Ali Taraftar left Canada in 2007 to go to the United States and met a couple of investment bankers who put together a firm to do debt restructuring and mortgage modifications. Concept 3: Debt Restructuring Can Save Businesses The current economic climate has put many businesses in a precarious situation.

Business 130

Business Capital Negotiation Debt 130

Intrepid Banker Insights

OCTOBER 17, 2022

2022 has seen rising inflation and interest rates, twin global disruptions in Ukraine (invasion) and China (shutdowns), and an overall economic slowdown. In the current circumstances, particularly when days must be seized, negotiate for the best terms (low coupons, participation that diminishes with growth, etc) and seize away.

Valuation 52

Valuation M&A Middle Market Capital 52

Sica Fletcher

JUNE 20, 2024

This is even more interesting when we view the rate of return for these insurance agencies, which has actually dropped below the cost of acquiring debt for a transaction, creating a negative spread for the first time in M&A history. It used to be the case that equity structures consisted of senior debt (i.e., in 2020 to 9.5%

M&A 52

M&A Insurance Valuation Equities 52

Software Equity Group

MAY 28, 2024

To start, your company should have strong unit economics and maintain a balance between growth and profitability. Focusing your efforts on improving those metrics will make your company more attractive and give you a leg-up in negotiations. For more on this subject, see our 20 Factors to Track when Valuing Your Software Company report.

M&A 52

M&A Private Equity Valuation Equities 52

Software Equity Group

MAY 28, 2024

To start, your company should have strong unit economics and maintain a balance between growth and profitability. Focusing your efforts on improving those metrics will make your company more attractive and give you a leg-up in negotiations. For more on this subject, see our 20 Factors to Track when Valuing Your Software Company report.

Sale 52

Sale Private Equity Valuation M&A 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

Devensoft

AUGUST 22, 2023

Properly valuing a company involved in an M&A transaction allows stakeholders to make informed decisions and negotiate effectively. Enterprise Value Calculators are financial tools designed to help businesses and investors determine the total value of a company, including its equity and debt.

Valuation 52

Valuation M&A Utilities Mergers and Acquisitions 52

How2Exit

AUGUST 28, 2023

However, he also connects clients with M&A attorneys who can help with drafting an LOI, negotiating closing deals, and other legal aspects of the transaction. They need to look for businesses that are solid and can withstand economic downturns.

Mergers and Acquisitions 130

Mergers and Acquisitions M&A Business Acquisitions 130

RKJ Partners

AUGUST 6, 2017

To be more specific, business valuation is a process involving a set of procedures and approaches used to gauge the economic value of an ownership interest in a business as a going concern. The method assumes leveraging, whereby the cash flow of the company is used to pay-off the debt—ultimately building equity.

M&A 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 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. Business brokers provide critical insights into how local economic elements influence these valuations.

Business 52

Business Sale Valuation Manufacturing 52

Focus Investment Banking

SEPTEMBER 4, 2024

In other words, they look for businesses that are resilient during economic downturns. are all on the table to be negotiated. Lower borrowing costs will make debt-financed acquisitions more attractive, further driving the consolidation of the industry. Legacy, deal structure, business value, family matters, etc.

Business 52

Business M&A Private Equity Investors 52

The TRADE

OCTOBER 26, 2023

It might look like as though you’re sat there trading and negotiating prices all day, but in actual fact there’s quite a lot of price discovery that happens beforehand that you need to be able to relay back to PMs and senior traders,” she explains. As a jack of all trades, she covers most developed markets products.

Trading 98

Trading Asset Management Management Electronics 98

How2Exit

JULY 13, 2023

They stress the need to clearly communicate expectations from the beginning of negotiations, avoiding surprises later on. In the current uncertain economic climate, buyers are looking for sure deals that are less impacted by the economy. In conclusion, the podcast transcript highlights how "scared money" affects buyer's decisions.

Business 130

Business Collaboration Mergers and Acquisitions Valuation 130

Growth Business

MARCH 1, 2024

Capital is available, valuations have started to normalise and the debt markets are still supportive – albeit with greater scrutiny and higher costs. Nonetheless, the economic and political uncertainty associated with the Brexit process has made investing in the UK relatively more challenging.

Private Equity 59

Private Equity Equities Investment Business 59

Cooley M&A

DECEMBER 15, 2020

billion, a portion of which was to be funded with third-party debt. In February 2020, Mirae was close to executing a debt financing commitment when title issues were discovered by the lenders, suggesting that the target hotels were the subject of a larger fraudulent scheme perpetuated by “a shadowy and elusive figure named Hai Bin Zhou”.

M&A 40

M&A Business IT Negotiation 40

Cooley M&A

MAY 11, 2020

We have seen this exclusion receive increased attention in ongoing negotiations, but expect it to become commonplace consistent with the prevailing theory underlying MAE definitions that exogenous factors generally should not count toward a material adverse effect (except to the extent they disproportionately affect the relevant company).

Mergers and Acquisitions 40

Mergers and Acquisitions M&A Finance Finance 40

Solganick & Co.

NOVEMBER 15, 2023

This thorough assessment facilitates more effective negotiations and strategic decision-making, leading to successful mergers and acquisitions that create sustainable value for the acquirer and the target company.

Financial Analysis 52

Financial Analysis Mergers and Acquisitions Profitability Accountant 52

GillAgency

FEBRUARY 10, 2022

They may exclude some assets and/or liabilities based on mutual negotiations. For example, a buyer may not assume a debt or take over a piece of real estate. Remember, everything is negotiable up to the point of accepting or rejecting the deal. If you have multiple offers you might be able to negotiate as well.

Business 52

Business Sale Broker IT 52

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. 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 M&A 130

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

Cooley M&A

JANUARY 25, 2023

Lastly, many public life sciences companies that had their market capitalizations fall in 2022 also found it more difficult or more expensive to secure debt financing as compared to a year or two ago, and many private life sciences companies saw that venture capital debt carried with it more dilutive terms in 2022.

M&A 40

M&A Mergers and Acquisitions Pharmaceutical Collaboration 40

How2Exit

MAY 27, 2024

rn rn rn Article: rn Thriving in the E-Commerce M&A Space: Strategies for Buyers and Sellers rn Navigating the intricate world of buying and selling businesses requires a nuanced understanding of market trends, valuation practices, and strategic negotiation. Great investment." No one wants to buy that."

Business 130

Business Mergers and Acquisitions Valuation M&A 130

Cooley M&A

MARCH 17, 2020

As a result of this unprecedented social and economic uncertainty, we are counseling clients interested in mitigating impacts of COVID-19. M&A Negotiations and Deal Terms. Highlighted below are key issues that touch governance and M&A matters in our current environment: Public Company Clients.

Negotiation 40

Negotiation M&A Stock Insurance 40

Lake Country Advisors

JANUARY 21, 2025

It reflects its ability to generate consistent revenue, maintain profitability, and sustain operations during economic fluctuations. Debt-to-Equity Ratio: A ratio below 2:1 is considered manageable. Businesses with excessive debt could face challenges during downturns or struggle to finance future growth.

Business 105

Business Investment Profitability S&P 105