OfficeHours

AUGUST 25, 2023

In particular, new guidelines from the FDIC and Federal Reserve (among other governmental agencies) made it more difficult for banks to underwrite financings that resulted in debt-to-EBITDA ratios in excess of 6.0x. This capital is released once investors buy the debt off the banks’ balance sheets.

Private Equity 130

Private Equity Equities Debt Finance 130

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. Since SEG often helps facilitate term sheet discussions, we’ll also share some practical guidance on how to negotiate them and a term sheet template to show you what they look like. What is a Term Sheet?

Negotiation 52

Negotiation Business M&A Valuation 52

Periculum Capital

MARCH 12, 2022

Periculum Capital Company, LLC (“Periculum”) is pleased to announce it has completed a senior debt placement for Morgan Foods, Inc. The debt placement, structured as a working capital revolver and term loan, allowed the Company to refinance its existing debt and fund future growth. Morgan” or the “Company”).

Debt 52

Debt Food Debt Capital Markets Capital 52

OfficeHours

JUNE 6, 2023

Leveraged buyouts involve acquiring a controlling interest in a mature company, typically through a combination of equity and debt financing, using the acquired company’s assets as collateral to secure debt financing. Private equity firms also invest in distressed debt or provide private debt financing.

Private Equity 147

Private Equity Equities Debt Investment 147

PE Hub

JANUARY 25, 2024

Based in West Palm Beach, Florida, Catera will continue to help lead the investment team and focus on structuring, negotiating and advising portfolio companies on debt and equity financings. The post Siris promotes Catera to partner appeared first on PE Hub.

Debt 73

Debt Negotiation Portfolio Finance 73

IBG

AUGUST 21, 2023

A powerful tool in negotiating a business’s purchase price, an earnout can bridge the gap between the amount that a buyer is willing to pay and the seller is willing to accept. If the sale occurs in a high-interest-rate environment, an earnout can help narrow the gap created by debt coverage. You might be right, but we’re not so sure.

Negotiation 52

Negotiation Profitability Business Sale 52

Software Equity Group

JUNE 14, 2023

And there may be intense negotiations concerning this number that could delay the closing or impact how much you ultimately take away from the deal. For that reason, it can pay to learn more about NWC, what it might or might not include, and how an M&A advisor can help you negotiate more favorable terms to maximize your proceeds.

M&A 93

M&A Capital Negotiation Accountant 93

Francine Way

JULY 10, 2017

Do they have the cash of debt/equity capacity to bid aggressively? The market conditions The context of the transaction: Privately negotiated sale will have different mechanics than an auction. These equity transactions between related parties are not negotiated purely on economic / financial terms.

Valuation 130

Valuation M&A Equities Shares 130

RKJ Partners

AUGUST 6, 2017

Capital is generally grouped into three main classifications: Senior Debt, Mezzanine Capital and Equity Capital. Most entrepreneurs are very familiar with senior debt offered by traditional banks. Senior debt is first in seniority and is often secured by collateral in the form of a lien.

Debt 40

Debt Capital Raising Capital Equities 40

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

Lake Country Advisors

OCTOBER 31, 2024

A local business broker can be invaluable in identifying opportunities, assessing the business’s financial health, and negotiating on your behalf to ensure a smooth transaction. General Partnerships In a general partnership, all partners are responsible for managing the business and are equally liable for debts and legal obligations.

Business 52

Business Profitability Debt Shares 52

Global Newswire by Notified: M&A

FEBRUARY 6, 2024

The terms of the agreement are set out in a term sheet signed by both of the parties, and it is anticipated that a definitive agreement regarding the transaction will be negotiated and entered into in due course. As described in greater detail below, ABR is a related party of the Company.

Debt 45

Debt Investment Negotiation Equities 45

Sun Acquisitions

MARCH 15, 2024

Traditional financing methods often involve complex due diligence, negotiations with lenders, and lengthy approval periods, which can take months. This can give you a competitive edge in negotiations, as sellers may be willing to accept a slightly lower offer if they believe the transaction will be smooth and hassle-free.

Acquisitions 59

Acquisitions Business Negotiation Debt 59

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. Great, I’m learning a ton!

Investors 130

Investors Private Equity Equities Debt 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

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

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. The report will keep your key stakeholders informed and guide negotiations. Negotiate the terms and conditions. Verify accounts receivables and payables.

Business 104

Business Mergers and Acquisitions Negotiation Risk Assessment 104

How2Exit

SEPTEMBER 9, 2024

They also touch upon the benefits of leveraging joint venture partners, the impact of AI on accounting, and the nuances of negotiating deal structures. Steve Rooms underscores the necessity of examining areas like cash flow, debt liability, and gross margins before even considering a purchase.

M&A 130

M&A Mergers and Acquisitions Financial Analysis Financial Statement 130

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

How2Exit

MAY 15, 2023

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. For example, one of the most popular industries for leverage debt for multiple expansion is the collision repair industry.

M&A 130

M&A Mergers and Acquisitions Private Equity Business 130

Sun Acquisitions

MARCH 6, 2024

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. Negotiating Interest Rates Interest rates play a pivotal role in the financing of a business acquisition. Negotiation Skills: Develop your negotiation skills.

Business 59

Business Securities Acquisitions Negotiation 59

How2Exit

MARCH 24, 2023

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. Additionally, it is important to be creative in the negotiation process.

M&A 130

M&A Business Mergers and Acquisitions Investors 130

Focus Investment Banking

MARCH 10, 2025

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). Why It Matters: Healthy working capital keeps the business running smoothly day-to-day.

Investment 52

Investment Book-building Sale Business 52

Focus Investment Banking

MARCH 17, 2024

Earnouts in M&A deal negotiations are a vital tool, offering sellers of fast-growing companies potential extra compensation and providing buyers with a risk-reduction method. However, negotiations hit a snag when the seller proposed retaining total operational control during the earnout period.

Professional Services 52

Professional Services Corporate Finance Mergers and Acquisitions Negotiation 52

Chesapeake Corporate Advisors

JUNE 26, 2024

CCA had a long-standing relationship with the buyer, including advising on the debt refinancing of their family-owned business. The family office especially appreciated CCA’s ability to assist in evaluating targets, construct cash flow models, and negotiate with lenders to successfully obtain debt financing.

Investment Banking 52

Investment Banking Debt Corporation Advisory 52

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

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

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. Q7: How to outline the process for negotiating deal terms and determining valuation? How to develop an acquisition strategy?

M&A 130

M&A Consulting Mergers and Acquisitions Valuation 130

Wizenius

MAY 4, 2023

It serves as a starting point for negotiations and helps both parties understand the structure of the proposed transaction. As such, it is subject to change and revision during the negotiation process, and the final agreement may differ in some respects from the original term sheet. Thanks, , Pratik S

Investment Banking 52

Investment Banking Investment Banking Bank 52

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

How2Exit

MARCH 21, 2023

It is important to understand the financials of the company, including their profits and losses, their cash flow, and their debt. Once the buyer has created a business plan, they should negotiate with the seller. This includes negotiating the purchase price, the terms of the deal, and the payment structure.

Business 130

Business Accountant Book-building Negotiation 130

Focus Investment Banking

JUNE 5, 2023

In M&A, working capital is often a significant area of negotiation between the buyer and the seller. It is determined by taking the difference between current assets and current liabilities, which encompasses cash, inventory, accounts receivable (A/R), accounts payable (A/P), and other short-term debt obligations.

M&A 52

M&A Capital Management Mergers and Acquisitions 52

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

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. Address any pending lawsuits, regulatory compliance concerns, or contract disputes before entering negotiations. They can help you navigate the complexities and protect your interests.

Mergers and Acquisitions 59

Mergers and Acquisitions Business Mergers Acquisitions 59

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. Address any pending lawsuits, regulatory compliance concerns, or contract disputes before entering negotiations. They can help you navigate the complexities and protect your interests.

Mergers and Acquisitions 59

Mergers and Acquisitions Business Mergers Acquisitions 59