Explore mergers and acquisitions from every angle — from deal structures and valuation methods to strategy, divestments, and private equity insights.
M&A
What is Net Working Capital (NWC)? NWC measures a company’s short-term liquidity by comparing its non-cash current assets less non-interest bearing current liabilities. It represents ongoing cash needs to fund the business operations. NWC = Non-Cash CAs (Accounts Receivable, Inventory, Prepaid Expenses, etc.) – Non-Interest Bearing CLs (Accounts Payable, Accrued Expenses,
M&A
Mergers and Acquisitions (M&A) are complex transactions where legal documents form the backbone of the process. These documents not only formalize the deal but also protect both buyers and sellers from risks while ensuring regulatory compliance. In this guide, we’ll break down the key legal documents in
M&A
In mergers and acquisitions, the Confidential Information Memorandum (CIM) is the document that can make or break a deal. It’s a strategic blueprint that shapes buyer perceptions, accelerates due diligence, and ultimately drives valuation. Think of it as the ultimate pitch deck for your business, designed to transform interest
M&A
Quick Answers * A binding offer is a legally enforceable agreement that commits both buyer and seller to the deal. * A non-binding offer, often in the form of a Letter of Intent (LOI), is an expression of interest that outlines terms but allows either party to walk away without penalty. What
M&A
When a company considers an acquisition, one question dominates boardroom discussions: Will this deal create or destroy value for shareholders? Accretion/dilution analysis is a financial modeling tool that answers this by quantifying how a merger or acquisition impacts earnings per share (EPS). Understanding this analysis is key to separating
M&A
Much like a planned expedition, each phase of an M&A deal—from initial strategy to post-merger integration—demands precision, foresight, and collaboration. Let’s break down the six pivotal phases of an M&A deal, revealing what buyers, sellers, and advisors must accomplish at each step. Phase
M&A
When navigating a business acquisition, one of the most critical decisions is choosing between an asset sale vs stock sale. The structure of the deal can significantly impact tax obligations, liabilities, contracts, and overall business continuity. This guide breaks down the differences, advantages, and drawbacks of asset sales and stock
M&A
Private equity firms are constantly seeking innovative strategies to generate outsized returns. One of the most potent and widely used tactics in their arsenal is the roll-up strategy, also known as an industry consolidation approach. What is a Private Equity Rollup? A private equity roll-up involves an investor (typically a
M&A
The LP-GP Relationship Private equity operates as a partnership between two distinct groups: * General Partners (GPs): The architects of the fund. They’re the dealmakers, strategists, and operators who identify opportunities, manage investments, and drive returns. * Limited Partners (LPs): The financial backbone. These institutional investors (pension funds, endowments, high-net-worth individuals)
M&A
A company looking to sell will typically encounter two primary types of buyers: financial buyers and strategic buyers. While both are keen to acquire, their motivations, approaches, and the value they place on a target company can differ significantly. Financial Buyers: The Investment Play Financial buyers are primarily investment firms
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