Explore mergers and acquisitions from every angle — from deal structures and valuation methods to strategy, divestments, and private equity insights. We also breakdown prominent IPOs.
M&A
What Does It Mean to Go Public? A company goes public when it sells shares on a stock exchange through an Initial Public Offering (IPO). This process allows the business to raise capital, provide liquidity to investors, and gain market credibility. While the move opens new opportunities, it also introduces
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 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
Introduction: The Rollup Strategy Has Grown Up Private equity rollups were once viewed as a relatively mechanical strategy: buy small businesses at low multiples, combine them, and sell the larger entity at a higher valuation. For years, that formula worked remarkably well. But by the mid-2020s, the strategy has fundamentally
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)
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