M&A
Business combinations are a constant. From mega-mergers to strategic bolt-on acquisitions, these deals reshape industries and create new market leaders. But what truly drives companies to combine forces? It's far more than just getting bigger. Below we explain the multifaceted reasons behind business combinations, categorizing them by their
M&A
Maximizing a company's valuation multiple is important for both sellers looking to achieve the best exit and buyers seeking to understand the true worth of an acquisition. While top-line revenue and EBITDA are critical, the multiple applied to these figures is where significant value can be created or
M&A
Behind every M&A deal are teams of highly specialized bankers working tirelessly to achieve their clients objectives. But how do these bankers get paid? The fee structure for buy-side and sell-side M&A bankers is a critical component of any deal. Let's break down the
M&A
Mergers and acquisitions (M&A) are transformative events for companies, offering pathways to growth, market expansion, and strategic advantage. But bringing two companies together requires more than just strategic alignment; it demands a clear understanding of how the transaction will be funded. M&A financing is the engine
M&A
While traditional bank loans and external investors are common financing routes, seller financing offers a compelling alternative that can unlock benefits for both the buyer and the seller. Put simply, seller financing occurs when the seller of a business acts as a lender to the buyer for a portion of
M&A
Acquiring another company can be a transformative step for growth, market expansion, or gaining competitive advantage. However, a successful acquisition doesn't happen by chance. It requires meticulous planning, thorough analysis, and careful execution. This guide outlines the essential components of an acquisition plan, helping you make informed decisions.
M&A
Mergers and acquisitions (M&A) are complex transactions with many moving parts. At their core, however, every deal involves two fundamental sides: the buy side and the sell side. Understanding the distinct roles, objectives, and processes of each is crucial to navigating the M&A landscape successfully, whether
M&A
For a private company, the decision to go public by issuing shares on a stock exchange is a monumental one. It's a complex process known as an Initial Public Offering (IPO), and it marks a significant transition in a company's life cycle. While the allure of
M&A
Whether advising on mergers and acquisitions, initial public offerings, or other strategic transactions, investment bankers rely on a suite of valuation methodologies to arrive at a supportable price or value for a business. While numerous approaches exist, four methods form the bedrock of most valuation analyses: Discounted Cash Flow, Comparable
M&A
Background - Operating as a Holding Company When we think of investing, we often picture asset management firms crafting portfolios of publicly traded stocks and bonds. But then there's Berkshire Hathaway, a colossus that operates on a fundamentally different playing field. While it manages a vast pool of
M&A
What is Net Working Capital (NWC)? NWC measures a company’s short-term liquidity by comparing its current assets to current liabilities: NWC = Current Assets (Accounts Receivable, Inventory, Prepaid Expenses) – Current Liabilities (Accounts Payable, Accrued Expenses) A positive NWC signals a company can meet near-term obligations, while a negative NWC may
M&A
Mergers and Acquisitions (M&A) are intricate processes where legal documents form the backbone of every transaction. These documents not only formalize the deal but also protect parties from risks and ensure compliance. Here’s a breakdown of the key legal paperwork involved in an M&A deal: