OfficeHours

OCTOBER 16, 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 100

Investors Private Equity Equities Debt 100

Sica Fletcher

JULY 11, 2024

While the cost of debt has increased to the point that buyers often acquire brokerages at an initial loss, insurance brokerage M&A multiples have not only held steady but are actually seeing all-time highs. Equity used to consist of senior debt (i.e., This means brokerages are generating more revenue now than ever before.

Insurance 52

Insurance M&A Debt Equities 52

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 Debt 130

Focus Investment Banking

JANUARY 18, 2024

The S&P 500 has recently traded near 4800, close to its record at the end of 2021. While the company generated over $260 million in revenues through the first three quarters of 2023, its stock price is trading under a dollar a share, as the company is burdened with substantial debt. As 2024 starts, the U.S.

IPO 52

IPO Consulting Corporate Finance Professional Services 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

The Deal

JUNE 22, 2023

Reed and Michael P. Chief legal officer Joshua S. billion of debt issued before the deal’s closing, which the parties hope will occur in six to nine months. Keeley of longtime counsel Kirkland & Ellis LLP for counsel on the deal. Evercore Inc., HSBC Securities (USA) Inc., Jefferies LLC and Piper Sandler Cos. stake in Nasdaq.

Private Equity 98

Private Equity S&P Equities Finance 98

InvestmentBank.com

MAY 26, 2021

As the world headed into the uncharted territory of a worldwide pandemic, investors in both debt and equity markets reacted to shifts and changing conditions in several interesting ways, and the lessons they learned and the actions they take this year will set the stage for everyone’s access to capital in the years to come.

Capital Raising 52

Capital Raising Capital Debt Private Equity 52

Mergers and Inquisitions

JANUARY 31, 2024

They might have separate teams for specific strategies or markets, but everything is run under a single Profit & Loss statement (P&L). There are very few real “requirements” besides the single PM / single P&L one above and the standard Limited Partner / General Partner structure that all hedge funds use.

Funds 59

Funds Management S&P Recruitment 59

Mergers and Inquisitions

MAY 3, 2023

In other words, you profit based on the company’s dividend s and the potential increases in its stock price over time. Also, the Terminal Value is normally based on a P / E multiple or a Net Income Growth Rate. In our forecast, Cash rises too much, and Debt / EBITDA goes from 5.0x

Valuation 64

Valuation DCF Debt Financial Modeling 64

Wall Street Mojo

JANUARY 15, 2024

About Loan [P*R*(1+R)^N]/[(1+R)^N-1] Wherein, P is the loan amount R is the rate of interest per annum N is the number of period or frequency wherein loan amount is to be paid Loan Amount (P) The loan Amount $ ROI per annum (R) Rate of Interest per annum % No. How to Calculate? for 5 years with monthly repayment.

Education 52

Education S&P Financial Modeling Financial Models 52

Sica Fletcher

MAY 15, 2024

In addition, third-party M&A institutions like S&P Global Data or Statista can provide more generalized data. Founders Michael Fletcher and Al Sica are two of the industry's leading dealmakers who have advised on over $16 billion in insurance agency and brokerage transactions since 2014.

Insurance 52

Insurance S&P M&A Valuation 52

Sica Fletcher

MARCH 8, 2024

EBITDA Multiples for Insurance Agencies, 2018-2024 (Projected) M&A Deal Volume for Insurance Agencies, 2018-2024 (Projected) *S&P Global Data taken from ,,, “Insurance Brokers and Servicers Sector View 2024” The most important news this data offers is that insurance M&A is not actually in the tailspin that many “experts” claim it to be.

Insurance 52

Insurance M&A S&P Valuation 52

Francine Way

JULY 12, 2017

Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC). For interest income and expense, I prefer to state them as percentages of the average debt balance of the last two years. It is a good practice to verify the intended debt-vs-total-capital balance post-transaction when possible.

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

Francine Way

JULY 11, 2017

Access to credible sources of information such as SEC EDGAR database , Treasury.gov , OECD GDP Forecast , Mergent Online, S&P Capital IQ, Hoovers, ValueLine, Yahoo Finance , MarketWatch , and Damodaran Online. longer-term loans (term loans, senior bonds, unsecured debts), and (small portion of) cash on hand.

Valuation 130

Valuation M&A DCF Financial Statement 130

Sica Fletcher

MAY 8, 2024

Other times, they are hoping to use their share of the sale to alleviate personal debt. Manageable Debt. seller's discretionary earnings, discounted cash flow), they are so rarely used in insurance M&A that we do not include them here. Are looking for a career change. Should I Sell My Insurance Agency?” Let’s Talk.

Insurance 52

Insurance M&A Valuation Advisory 52

Peak Frameworks

OCTOBER 17, 2023

Commercial paper is a form of unsecured short-term debt. Because of its short duration, commercial paper allows issuers to manage immediate liquidity needs without locking into long-term debt. Absence of Covenants Unlike some longer-term debt instruments, commercial papers usually don’t come with restrictive covenants.

Finance 52

Finance Finance Debt Investors 52

Francine Way

JUNE 22, 2020

A discussion of the target’s financials typically starts with the P/L or Income Statement, followed by the Balance Sheet, and then the Cash Flow Statement. In discussing the P/L, I typically comment on: Revenue - by lines of business, whether they appear to be gross or net, and if there is any meaningful customer concentration.

Valuation 130

Valuation M&A Mergers S&P 130

The Harvard Law School Forum

JUNE 27, 2023

government’s battle over the debt ceiling, though resolved in early June, destabilized markets in May when it appeared lawmakers might not come to a resolution. [5] 7] A pause may be more beneficial to investors than a direct rate cut would be; the S&P 500 has historically climbed 16.9% 3] [4] The U.S. 3] [4] The U.S.

Financial Institution 83

Financial Institution Bank Banking Consulting 83

Sica Fletcher

AUGUST 18, 2020

They have enormous amounts of dry powder that they must deploy and continue to have access to very inexpensive debt. We thought that the best way to highlight the current trends in the marketplace would be to show the data as initially reported by S&P for each quarter.

M&A 52

M&A Insurance S&P Broker 52

Sica Fletcher

JULY 23, 2024

Since H2 2022, industries across the board (including insurance) have seen declines in deal volume as prospective buyers have withheld their funds for more favorable conditions in which the cost of debt is not so high. Consult data sources like S&P Global data to get an idea of a firm’s activity within the industry.

Insurance 52

Insurance M&A S&P Valuation 52

Wall Street Mojo

JANUARY 15, 2024

Financial Modeling & Valuation Courses Bundle (25+ Hours Video Series) –>> If you want to learn Financial Modeling & Valuation professionally , then do check this ​ Financial Modeling & Valuation Course Bundle ​ ( 25+ hours of video tutorials with step by step McDonald’s Financial Model ).

Accountant 98

Accountant Financial Modeling Financial Models Valuation 98

Sica Fletcher

JUNE 20, 2024

PE firms rely on leveraged buyouts (LBOs) for the lion's share of their deals, which often involve using the acquired company’s assets as collateral to insure the loan used to purchase it. It used to be the case that equity structures consisted of senior debt (i.e., the total value of ownership held by common stockholders).

Insurance 52

Insurance M&A Valuation Equities 52

Sica Fletcher

APRIL 11, 2024

personal debt, business/legal liabilities, time-sensitive investment opportunities) may prompt owners to sell quickly. The most commonly used source for this is S&P Global data, which ranks the performance of M&A advisory firms across a variety of different metrics and industries. ( Financial Need.

Insurance 52

Insurance Advisory M&A Investment Banking 52

The Harvard Law School Forum

JUNE 27, 2023

government’s battle over the debt ceiling, though resolved in early June, destabilized markets in May when it appeared lawmakers might not come to a resolution. [5] 7] A pause may be more beneficial to investors than a direct rate cut would be; the S&P 500 has historically climbed 16.9% 3] [4] The U.S. 3] [4] The U.S.

Financial Institution 52

Financial Institution Bank Banking Consulting 52

OfficeHours

JULY 18, 2023

It quickly became uneconomical for exploration and production companies to keep on drilling, meaning there was no need for the equity and debt capital that was typically raised on a quarterly basis. The same thought process can be used when deciding whether it makes sense to take out debt or instead finance an expenditure with your savings.

Investment Banking Analyst 130

Investment Banking Analyst Funds Recruitment Investment Banking 130

Street of Walls

SEPTEMBER 10, 2012

Sandler O’Neill’s Weekly M&A Trends: The S&P 500 had its best week since early June The S&P 500 rose by 2.2% In 3Q12, the S&P 500 has risen by 5.6% s $2 billion offering of its shares in the A.I.A. Corporate debt underwriting volumes of $98 billion nearly tripled from the prior week.

Mergers and Acquisitions 40

Mergers and Acquisitions Underwriting Mergers Acquisitions 40

Street of Walls

SEPTEMBER 4, 2012

Sandler O’Neill’s Weekly M&A Trends: The S&P 500 declined for the second consecutive week but ended positive for the month The S&P 500 declined by 0.3% In 3Q12, the S&P 500 has risen by 3.3% Corporate debt underwriting volumes of $30.8 in the week. Announced M&A volumes of $39.8

M&A 40

M&A Underwriting S&P Debt 40

Street of Walls

OCTOBER 1, 2012

Sandler O’Neill’s Weekly M&A Trends: Equity markets declined for the second week in a row The S&P 500 declined by 1.3% In 3Q12, the S&P 500 rose by 5.8% Both announced and completed M&A improved but remain light while equity and debt underwriting were solid on the week Equity underwriting volumes of $19.4

Investment Banking 40

Investment Banking Investment Underwriting Banking 40

Street of Walls

SEPTEMBER 24, 2012

Sandler O’Neill’s Weekly M&A Trends: Equity markets pulled back modestly on lighter trading volume The S&P 500 declined by 0.4% In 3Q12, the S&P 500 has risen by 7.2% s $102 million offering highlighting the week, returning over 40% on its first day of trading. in the week. Average daily U.S.

Mergers 40

Mergers Underwriting Acquisitions M&A 40

Street of Walls

AUGUST 27, 2012

Sandler O’Neill’s Weekly M&A Trends: The S&P 500 declined after six consecutive weeks of gains The S&P 500 declined by 0.5% In 3Q12, the S&P 500 has risen by 3.6% Corporate debt underwriting volumes of $33.5 in the week and the Russell 2000 growth index declined by 1.3% in the week.

M&A 40

M&A Investment Banking Investment Bank 40

Mergers and Inquisitions

FEBRUARY 28, 2024

Partially, it’s an issue of accessibility: Everyone understands what happens to the stock price if a company beats earnings… …but few people understand what it means if a company is set to violate a debt covenant on page 214 of its credit agreement. the appropriate debt vs. equity mix, and additional capital needs over the next few quarters.

Equities 59

Equities Debt Asset Management Recruitment 59

Mergers and Inquisitions

JULY 31, 2024

In the early days of institutional private equity, many industrial companies were perceived to be stable, cash-flow-generation machines with significant hard assets that could be used as collateral for debt. billion with Debt of $2.1 No Debt has been repaid, so the Exit Equity Proceeds are $3.6 billion – $2.1 billion = $1.5

Private Equity 59

Private Equity Equities Middle Market Debt 59

Successful Acquisitions

SEPTEMBER 11, 2023

It’s a balance where numbers meet intuition, and neither aspect should be ignored. Purposes of Valuation Before diving into the nuts and bolts of valuation, it’s crucial to understand its purposes. It’s where the art of valuation truly comes into play.

Valuation 64

Valuation Business Discounted Cash Flow S&P 64

Cooley M&A

FEBRUARY 1, 2024

2023’s much-discussed downturn in mergers & acquisitions – with global M&A volume and value down 6% and 17%, respectively, from 2022 – was largely driven by the slowdown in the tech sector, with global tech M&A volumes down 51% year over year, while other sectors saw marked increases. [1] in 2022 to 5.9x

M&A 59

M&A Mergers and Acquisitions Private Equity Acquisitions 59

How2Exit

MARCH 12, 2023

This includes examining the company’s financials, contracts, and other documents that will help them to determine the value of the business. Having the right documents in place, such as an operating agreement, P&Ls, meeting minutes, and resolutions, can make the process of selling the business much smoother and easier.

M&A 130

M&A Business Insurance Mergers and Acquisitions 130

FineMark

OCTOBER 17, 2023

Equities and the S&P 500 At the onset of each new year, like clockwork, we’re asked for our near-term view. benchmark equity index, the S&P 500. Consequently, by the end of July 2023, the S&P was up more than 20% for the year. This year was no different.

S&P 52

S&P Investment Portfolio Corporation 52

Mergers and Inquisitions

MAY 24, 2023

Event-Driven Hedge Funds Definition: Event-driven hedge funds bet on specific corporate actions, such as M&A deals, divestitures, spin-offs, bankruptcies, and business reorganizations, and they profit based on changes in the value of a company’s debt or equity after the action. EBITDA multiple , matching its own.

Funds 64

Funds Investors Mergers and Acquisitions Mergers 64