OfficeHours

JUNE 5, 2023

The paper LBO is one of the most commonly used and intimidating interview techniques for private equity. Many candidates dread the paper LBO, but simply put, it is one of the most definitive “weeder” techniques used by many private equity firms and investment banking to lower the applicant pool.

Private Equity 147

Private Equity Valuation Equities Debt 147

How2Exit

NOVEMBER 25, 2024

This episode is a goldmine for anyone interested in understanding the intricate strategies that private equity employs to rapidly grow companies through acquisitions. Key Takeaways: Roll-ups serve as a potent strategy for rapid company growth, often offering a de-risked investment decision that private equity firms leverage.

Business 130

Business Mergers and Acquisitions Finance Finance 130

Growth Business

MARCH 1, 2024

By Dom Walbanke on Growth Business - Your gateway to entrepreneurial success Raising private equity funds is seen as the holy grail for businesses who want to grow quickly, simply because the strength of capital opens the door for rapid growth.

Private Equity 59

Private Equity Equities Investment Business 59

Mergers and Inquisitions

NOVEMBER 1, 2023

When you hear the words “healthcare private equity,” two thoughts probably come to mind: Wait a minute, isn’t healthcare a risky/growth-oriented sector? In most of the world, healthcare is either government-run or a mixed public/private sector. Are there many private healthcare companies for PE firms to acquire?

Private Equity 59

Private Equity Healthcare Equities Middle Market 59

Wizenius

SEPTEMBER 28, 2024

Leverage Buyouts (LBO) are a strategic financial maneuver where a financial sponsor, typically a private equity firm, acquires a target company by utilizing a substantial amount of debt alongside a smaller portion of equity. In an LBO scenario, both debt and equity investors commit capital to the target company.

Debt 52

Debt Funds Private Equity IPO 52

Focus Investment Banking

APRIL 7, 2024

One aspect that is often talked about and significantly impacts the business landscape is the relationship between interest rates, private equity groups, and business valuations. For private equity (PE) groups, these rates determine the cost of capital, which is essential for their investment strategies.

Private Equity 52

Private Equity Valuation Equities Business 52

OfficeHours

JULY 4, 2023

Going to keep today rather simple — we want to celebrate and kick off the second half of the year with a simple offer for the first 10 people that take advantage of the below — PE Platform Access for $225 OFF = $74 out of pocket for lifetime access Our flagship program has placed mentees into most major private equity firms since launching in 2020.

Sale 130

Sale Private Equity Recruitment Equities 130

Growth Business

OCTOBER 25, 2024

In my experience, with eight years as a mid-market M&A advisor, SMEs traditionally trade for between four and seven times their profitability. To determine the value of the shares specifically, you need to adjust for the debt and cash in the business.

Equities 98

Equities Investment Private Equity Valuation 98

The Deal

FEBRUARY 2, 2024

The company has accumulated some debt to run business operations but has its sights set on reducing leverage over the next couple of years. What we’re looking for in a private equity firm is to bring their management, executive team and board to help support and run the day-to-day operations.

Capital 111

Capital Private Equity Entertainment Business 111

How2Exit

MARCH 11, 2024

Anthony is the founder of Global Investment Capital Group and has successfully raised capital for his debt fund, which focuses on acquiring and operating group homes and assisted living facilities. One approach is to raise capital through a private equity fund. rn Another funding option is to establish a debt fund.

Mergers and Acquisitions 130

Mergers and Acquisitions Funds Investors Debt 130

Mergers and Inquisitions

OCTOBER 30, 2024

Corporate finance jobs at normal companies are bad … …if you’re using them to break into a deal-based field, such as investment banking , private equity , or venture capital , or as a “Plan B” if you interview around but do not get into one of these. The size and importance of these groups vary by company stage and industry.

Corporate Finance 105

Corporate Finance Finance Finance Corporation 105

Focus Investment Banking

JANUARY 10, 2025

And in a lot of cases, these are very profitable services, but that specialization is going to lead to massive efficiencies throughout your organization. All of this combines to lead toward perhaps the biggest benefit of specialization or maybe the second biggest benefit behind proper and safe repairs and that is increased profitability.

Private Equity 52

Private Equity Mergers and Acquisitions M&A Equities 52

Growth Business

JUNE 29, 2023

The objectives you set for the business will dictate the type of finance you should raise: the two key options being equity (selling shares in your company) and debt (borrowing from a bank or financial institution). If growth and sale are not part of your plan, then an equity raise is not the right choice for you.

Finance 110

Finance Finance Equities Business 110

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

Peak Frameworks

MAY 22, 2023

The accounting equation is a fundamental concept in finance that every private equity professional, investment banker, and corporate , finance expert should be familiar with. If you're interested in recruiting for private equity and mastering concepts like the accounting equation, you should check out our Private Equity Course.

Accountant 52

Accountant Equities Debt Private Equity 52

Wall Street Mojo

JANUARY 17, 2024

This differentiation helps identify a company’s profitability Profitability Profitability refers to a company's ability to generate revenue and maximize profit above its expenditure and operational costs. It is measured using specific ratios such as gross profit margin, EBITDA, and net profit margin.

Accountant 98

Accountant Finance Finance Profitability 98

Peak Frameworks

MAY 8, 2024

If you're interested in breaking into finance, check out our Private Equity Course and Investment Banking Course , which help thousands of candidates land top jobs every year. corporate structure and a type of private company. Tax Advantages: Profits and losses can be passed through to members without facing corporate tax.

Corporation 52

Corporation Business Finance Finance 52

How2Exit

MAY 23, 2023

Castle Placement specializes in raising private equity and debt capital for clients. These investments offer businesses the chance to access capital from a variety of sources, including venture capitalists, private equity firms, and even large corporations.

Capital 130

Capital Investors Business Investment 130

Sun Acquisitions

FEBRUARY 14, 2024

Financial strategies involve leveraging existing assets as loan collateral or tapping into private equity partnerships to support this goal. In such cases, evaluating the financial health of target companies and understanding their debt structures is crucial.

Acquisitions 59

Acquisitions Business Debt Finance 59

How2Exit

JULY 3, 2023

The presence of both talented entrepreneurs and individuals solely motivated by profit further complicates the industry. The speaker mentions that if the seller's main goal is to retire or spend more time with their family, a private equity firm may not be the right buyer.

Mergers and Acquisitions 130

Mergers and Acquisitions Business Negotiation Private Equity 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

Focus Investment Banking

JULY 31, 2023

This article focuses on how medical practices are valued by private equity-backed groups, and to an extent, health systems and other strategic acquirers. Physician practices are almost always valued on a multiple of EBITDA basis in transactions with private equity groups or similar buyers. We explore each in turn below.

Medical 52

Medical Private Equity Healthcare Professional Services 52

The Deal

JUNE 23, 2023

The recent purchase of Riverbed Technology LLC reflects a burgeoning niche for middle-market technology turnaround investor Vector Capital Management LP: buying companies from lenders who converted debt to equity through reorganizations. ” Apollo is providing some of Riverbed’s debt. billion in 2015.

Debt 52

Debt Middle Market Capital Profitability 52

Wall Street Mojo

JANUARY 4, 2024

A Paper LBO, also called a Pen and Paper LBO, usually prepared by candidates during private equity interviews, is a miniature paper version of a full Leveraged Buyout (LBO) Model. Beyond this, it enables interviewers to decide if a particular acquisition or merger is promising and potentially profitable. What Is A Paper LBO?

Debt 52

Debt Private Equity Mergers and Acquisitions Investment 52

OfficeHours

MAY 16, 2023

Additionally, liquidity is important for governments because it gives them access to debt markets to sell securities to fund deficits. By engaging with company management and advocating for changes that improve efficiency and profitability, hedge funds can help improve market efficiency. investment banking, private equity , VC, etc.)

Financial Market 130

Financial Market Funds Risk Management Trading 130

Focus Investment Banking

FEBRUARY 22, 2024

For restaurant owners seeking capital or an exit, there is ample dry powder in the private equity markets – upwards of $3 trillion, a near record amount. While some restaurant chains are candidates for private equity transactions, others are targets for strategic buyers.

Private Equity 52

Private Equity Valuation Food Equities 52

Peak Frameworks

JUNE 21, 2023

In return, each partner shares in the profits and losses of the business. Each partner is personally liable for the partnership's debts and obligations. Here, partners are not personally responsible for the business debts and liabilities or the misconduct of other partners.

Business 52

Business Finance Finance Corporate Finance 52

Focus Investment Banking

MAY 3, 2024

With higher interest rates, the same cash flow of years past now supports a lower amount of balance sheet debt. Also buyers like to use mezzanine and senior bank debt. The equity check writer will walk away in these cases because they can’t make the return on equity that they seek without the debt.

M&A 52

M&A Middle Market Private Equity Debt 52

Software Equity Group

JUNE 27, 2023

This concept is called rollover equity and is common for private equity transactions. These types of deals have become common, particularly when the buyer is a private equity firm. While taking equity in any business comes with a risk, a rollover equity offer can present a significant upside for the seller.

Equities 52

Equities IT Private Equity M&A 52

Peak Frameworks

OCTOBER 30, 2023

A business structure defines the legal and operational boundaries of the business, stipulating how activities such as governance, taxation, liabilities, and profit-sharing are to be approached. Some entities allow profits and losses to pass directly to owners' personal income, while others tax profits at the corporate level.

Business 52

Business Mergers and Acquisitions Corporation Profitability 52

Software Equity Group

AUGUST 24, 2023

In this post, we will closely examine recapitalization and explore its crucial role in financial restructuring for private software companies. Recapitalization is a process of restructuring a company’s debt and equity mix, also known as its capital structure. What is Recapitalization?

Debt 52

Debt Equities M&A Investors 52

Peak Frameworks

MAY 23, 2023

All profits generated by the business are yours alone , and tax procedures are relatively straightforward, given that they're filed as personal and not corporate income. If your business, for instance, a hypothetical bike repair shop incurs debt or faces a lawsuit, your personal , assets could be at risk.

Corporation 52

Corporation Private Equity Business Finance 52

IBG

SEPTEMBER 11, 2024

That is especially true when the buyer is a private equity group or other type of “financial” buyer, which is the case in seven out of 10 deals that we have closed over the last several years. The emphasis here is on profit “add-backs” – i.e., discretionary or peculiar expenditures that can be added back to the profits of the business.

Sale 52

Sale Business Financial Statement Profitability 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 strategy involves a business, private equity owner, or sponsor selling its company-owned real estate that is considered mission-critical to its operations.

Sale 130

Sale Mergers and Acquisitions Business M&A 130

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. Changes in the buyer pool.

M&A 52

M&A Insurance Debt Equities 52

Growth Business

JULY 17, 2024

Equity finance Equity finance involves raising capital for a business by selling shares of ownership to investors in exchange for funding. Unlike debt financing, which involves borrowing money that must be repaid with interest, equity financing does not require repayment. Then the partnership might succeed.

Funds 97

Funds Business Finance Finance 97

Sica Fletcher

MARCH 26, 2020

These strategic acquirors typically have both their equity and debt facilities in place, so there is no shortage of capital. Also, over the past few weeks, a number of private equity firms have expressed their continued interest to us in investing in growth strategies in the brokerage sector.

Insurance 52

Insurance M&A Broker Economics 52