RKJ Partners

AUGUST 6, 2017

Venture Debt is less expensive than equity … in the long run Perhaps the greatest benefit of venture lending is that it injects money into a business without heavily diluting the equity stake of the entrepreneur or venture capital investors. Fees overload – The true cost of debt is often increased by the inclusion of numerous fees.

Debt 40

Debt Capital Raising Capital Equities 40

Cooley M&A

SEPTEMBER 25, 2020

The decisions from the court on those preliminary matters, as well as the arguments raised by legal counsel, offer some valuable lessons for sellers considering sale transactions that require debt financing, and may motivate sellers to re-evaluate certain provisions and remedies that have become customary in those transactions.

Debt 40

Debt Finance Finance Private Equity 40

Growth Business

OCTOBER 25, 2024

The type of business and equity raise The key distinction to start with is the type of your business and, therefore, the style of investors you will be talking to. Suppose your business is a fast-growth technology startup, and you’re speaking to tech-focused angel investors or venture capitalists.

Equities 98

Equities Investment Private Equity Valuation 98

How2Exit

MARCH 21, 2023

Concept 4: Investor Cash Can Fund Purchase Investor cash can be a great way to fund the purchase of a business. Investor cash can provide a seller with the assurance that they will get their money at the end of the deal, as well as allowing them to pay a lower tax rate on the money they receive.

Business 130

Business Accountant Book-building Negotiation 130

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

Sun Acquisitions

MARCH 6, 2024

Acquiring a business is a significant milestone for entrepreneurs and investors alike. Negotiating interest rates, equity stakes, and purchase prices is a delicate process that involves convincing the other party that your terms are reasonable and beneficial. Build Trust: Establishing trust with lenders or investors is crucial.

Business 59

Business Securities Acquisitions Negotiation 59

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

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

Growth Business

JULY 17, 2024

Angel investors A business angel is someone who quite often has a background in business or finance, and has funds to invest in businesses. Equity finance Equity finance involves raising capital for a business by selling shares of ownership to investors in exchange for funding.

Funds 97

Funds Business Finance Finance 97

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. High debt levels can burden the newly formed entity with interest payments, impacting its financial flexibility.

Mergers and Acquisitions 59

Mergers and Acquisitions Finance Finance Mergers 59

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

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

Wizenius

MAY 4, 2023

It serves as a starting point for negotiations and helps both parties understand the structure of the proposed transaction. A term sheet is typically prepared by the investment bank or other financial intermediary that is assisting in the transaction, with input from both the investor and the company seeking funding.

Investment Banking 52

Investment Banking Investment Banking Bank 52

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. How to develop an acquisition strategy? How to create a target identification process? How to develop an integration playbook?

M&A 130

M&A Consulting Mergers and Acquisitions Valuation 130

How2Exit

MARCH 1, 2023

Joel believes that a lot of the stuff that people uncover during the negotiation process should have been known before the negotiations process. It requires a great deal of research, negotiation, and paperwork. The process of buying and selling a small business is complex and requires a lot of pieces to be put together.

M&A 130

M&A Business Mergers and Acquisitions Negotiation 130

Wizenius

JUNE 21, 2023

However, with careful planning and a solid strategy, it's possible to structure a project finance deal that attracts investors and mitigates risks. A detailed understanding of the project's viability will be crucial in attracting investors. This instills confidence in investors and lenders. Consider the following elements: a.

Finance 52

Finance Finance Debt Government 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

Focus Investment Banking

DECEMBER 5, 2024

Working within the tire and service industry, I’m often asked the steps companies can take to prepare a business for sale and attract investors. How do I prepare my business for sale or to attract investors? There are a few key areas to focus on when preparing to sell your business that are attractive to investors.

Business 52

Business Sale Negotiation Investors 52

Sun Acquisitions

OCTOBER 21, 2024

In exchange for an equity stake in the company, private equity investors provide capital to fund acquisitions and support growth initiatives. 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

Sun Acquisitions

SEPTEMBER 9, 2022

If it makes financial sense and you understand the dilution aspect of selling equity and the potential interference from investors, then yes, go ahead. One of the biggest advantages of raising capital via the selling of equity is that, unlike debt, the business owner isn’t weighed down with payback quotas and inflated interest rates.

Equities 52

Equities Business Broker Investors 52

Sun Acquisitions

JULY 21, 2023

It also includes analyzing cash flow, debt obligations, and potential liabilities. It enables the acquirer to make informed decisions, negotiate better terms, and potentially avoid costly mistakes. It provides a solid negotiation foundation and ensures the transaction aligns with the acquirer’s strategic goals.

M&A 52

M&A Mergers and Acquisitions Negotiation Mergers 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. Investors in sale-leasebacks are willing to pay more for the property because they have confidence in the certainty of the long-term lease and the business's inability to leave.

Sale 130

Sale Mergers and Acquisitions Business Funds 130

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.” One of the most vocal critics of EBITDA is Warren Buffett, the legendary investor and CEO of Berkshire Hathaway.

Debt 52

Debt Profitability Investment Retail 52

How2Exit

OCTOBER 8, 2023

Whether it's negotiating a deal or face-to-face combat, people smell fear." - Arthur Petropoulos rn "There's riches in the niches. They specialize in working with entrepreneurs, families, and small groups of investors who own businesses that are not institutionally capitalized.

M&A 130

M&A Capital Securities Mergers and Acquisitions 130

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.

Finance 52

Finance Finance Capital Funds 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

Focus Investment Banking

OCTOBER 30, 2023

Lower margins, in many cases, make these businesses unattractive to all but a small handful of financial investors like private equity groups, who look to invest, build a company up and then often sell to a larger private equity group. And by the way, this valuation is always negotiated. continues Beard. “I It's deferred.

Debt 52

Debt Retail Business Private Equity 52

iMerge Advisors

APRIL 8, 2025

Your answers will shape the type of buyers you target from strategic acquirers to private equity firms or growth investors. 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.

M&A 40

M&A Valuation Private Equity Negotiation 40

Wall Street Mojo

JANUARY 15, 2024

It can impact businesses financially by reducing profit margins, limiting revenue growth, increasing fixed costs per unit, straining cash flow, affecting investor confidence, and potentially leading to restructuring costs. Investor Confidence: Overcapacity can erode investor confidence, leading to a decline in the company’s stock value.

Profitability 52

Profitability Utilities Economics Debt 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

Focus Investment Banking

SEPTEMBER 4, 2024

Beyond retirements, another key driver of industry consolidation is investor interest. While there are a few public investment opportunities in the heavy-duty parts and service sector, such as Dorman Products (NASDAQ: DORM) and Ryder Systems (NYSE: R), many investors have turned to Private Equity (PE) for investments in the industry.

Business 52

Business M&A Private Equity Investors 52

MergersCorp M&A International

JANUARY 23, 2024

Whether it’s structuring debt or equity financing, identifying potential investors, or managing negotiations with financial institutions, MergersCorp M&A International brings a wealth of expertise to the table.

Consulting 52

Consulting Finance Finance Financial Institution 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

Intrepid Banker Insights

OCTOBER 17, 2022

Big Tech, is often much more susceptible to broader economic swoons and who may rely more heavily on debt for acquisitions, has seen a significant slowdown so far this year in deals over $1 billion in size, with only 15 in the third quarter. The first area of bifurcation is between the large cap and middle market Tech M&A markets.

Valuation 52

Valuation M&A Capital Middle Market 52

How2Exit

MARCH 18, 2023

This can be increased by negotiating better prices with suppliers or by increasing the price of the products or services. This can be a great way to get started, as it allows entrepreneurs to access funds without having to take on too much debt. This can be increased by offering more expensive products or services.

M&A 130

M&A Profitability Business Book-building 130

Devensoft

AUGUST 22, 2023

Are you a business leader eyeing expansion through acquisitions or an investor weighing potential mergers? Properly valuing a company involved in an M&A transaction allows stakeholders to make informed decisions and negotiate effectively. Navigating M&A valuations with precision is paramount for informed decision-making.

Valuation 52

Valuation M&A Utilities Mergers and Acquisitions 52

Growth Business

MARCH 1, 2024

Private equity investors are always looking for the next big thing and they will offer their expertise for a slice of future profits. Capital is available, valuations have started to normalise and the debt markets are still supportive – albeit with greater scrutiny and higher costs. What is private equity and how does it work?

Private Equity 59

Private Equity Equities Investment Business 59