Remove Book-building Remove Debt Remove M&A
article thumbnail

M&A Blog #19 – valuation (Leveraged Buy Out - LBO)

Francine Way

The major steps of LBO are: Building the Sources and Uses tables. Building a proforma balance sheet. Building a historical 3-statement model and a debt-interest schedule. Building the go-forward 3-statement model. Building the go-forward 3-statement model. Building the go-forward debt-interest schedule.

Valuation 130
article thumbnail

M&A Blog #17 – valuation (Comparable Company)

Francine Way

Building the proforma income statement, proforma balance sheet, and Free Cash Flow to Firm (FCFF). Building the proforma income statement, proforma balance sheet, and Free Cash Flow to Firm (FCFF). Calculating cost of debt, cost of equity, and weighted average cost of capital (WACC). TEV stands for Total Enterprise Value.

Valuation 130
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

M&A Blog #16 – valuation (Discounted Cash Flow)

Francine Way

Build proforma income statement and balance sheet. 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. Derive Free Cash Flow to Firm (FCFF).

article thumbnail

10 Things You and I Can Learn about M&A and Entrepreneurship from Our Interview of Jeanette Holm - Award Winning Entrepreneur

How2Exit

With fifteen years of experience starting, growing, buying, and selling businesses, Jeanette is passionate about building value in a business through innovation and empowering people. Ron Concept 1: Start Small, Dream Big When it comes to starting a business, it is easy to be overwhelmed by the thought of the potential risks and obstacles.

M&A 130
article thumbnail

9 Things We Learned About the Legal Side Of Acquiring Businesses From Interviewing Joel Ankney - Attorney and Author in the SMB M&A and Commercial Real Estate

How2Exit

Ron Concept 1: Bring the Lawyer in Last When buying or selling a small business, Joel recommends bringing the lawyer in last. He believes that attorneys often have a reputation for killing deals and that they should only be brought in once the deal is nearly done and due diligence needs to be completed.

M&A 130
article thumbnail

7 Things I Learned from Lana Coronado - Author and Chair for MBH who have acquired 25 companies in less than 2 years.

How2Exit

7 Things My Team and I Learned About SMB M&A On My Episode With Lana Coronado - Watch E1 Here As I release this nearly 2 years later, I want to give a special thank you to Lana; even though you have "retired," you have continued to be a stand for me and my success. Lana also co-authored a book about investing in real businesses.

article thumbnail

The Great Game of Business: Teaching Financial Literacy and Ownership

How2Exit

He explains the concept of open book management and how it can demystify financials for employees. rn Steve and Ron discuss the challenges faced by businesses and the need to build a great company. rn Steve and Ron discuss the challenges faced by businesses and the need to build a great company.

Business 130