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Start-Up Financing: Converts or SAFEs?

Deal Lawyers

A recent Nixon Peabody memo provides an overview for emerging companies of the differences between the use of convertible debt and simple agreement for future equity for early stage financings.

Finance 113
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The Road Ahead for Private Equity: Reflections and Predictions

JD Supra: Mergers

Traditional debt financing was expensive and scarce, expectations on valuations were tricky to navigate, portfolio companies required additional attention, fundraising was not easy and regulators continued to scale up their scrutiny of the industry and its transactions.

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M&A Blog #19 – valuation (Leveraged Buy Out - LBO)

Francine Way

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
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M&A Blog #14 – valuation (roles, types, equity & enterprise values)

Francine Way

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. It drives prices, ROI, and financing. Valuation focuses on two questions: 1. What is the company worth?

Valuation 130
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M&A Blog #15 – valuation (tools and data preparation)

Francine Way

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
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M&A Blog #21 – valuation (scenario / sensitivity analysis)

Francine Way

Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). So, a good valuation model has to take into account the possibilities of a variable having multiple values along with each value’s probability of occurring. To-date, we have lumped them together.

Valuation 130
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M&A Blog #24 - Merger Relative Valuation

Francine Way

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. Any debt drawdown and paydown schedule. Cash consumption: current and forecast, along with the degree of dependency on financing.

M&A 130