This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
What began as a side hustle while maintaining his W2 job quickly escalated into a sophisticated capital raise and a deal structure far beyond his original expectations. Within a few years, he became both a guest and a sponsored entrepreneur through Mines Capital. in equity and securing SBIC-backed debt financing.
Know the timeline After a sale, buyers often expect you to stay on for one to two years as an employee or consultant. Missing this detail could complicate or kill the deal, delay your plans, or reduce the sale price. Corporate structure Whether youre a C-Corp or S-Corp can affect taxes at sale. This derisks the org.
Even if you interview in capital markets or restructuring , using an M&A or LBO deal is fine. If you go against my advice and discuss an equity or debt deal instead, you’d have to search for documents like the S-1 for an IPO or a credit rating update issued by the credit rating agencies. What about their investors? Why or why not?
In this guide, we’ll explain the key metrics buyers care about, why each matters, and how you can get your numbers in shape before a sale. Why Financial Metrics Matter in a Business Sale Most deals fall apart not because the business lacks potential, but because the numbers don’t hold up under scrutiny.
Citadel Securities Citadel Securities has named Scott Rubner the firm’s new head of equity and equity derivatives strategy. Before his time at Goldman Sachs, Rubner worked at Merrill Lynch for more than ten years, most recently serving as a director.
For software and technology founders considering a sale, the CIM is a strategic asset that can shape buyer perception, drive valuation, and accelerate deal momentum. Whether you're preparing for a full exit or exploring growth capital, understanding how to craft a compelling CIM is critical to a successful outcome.
The difference is that IB is more of an explicit sales job , as deals must close for the bank to earn fees. Equity research at the senior levels does require sales skills, but its more about being a conduit than a closer. If you do IB, you can get into deal-based roles ( private equity , corporate development , venture capital , etc.),
Sports Investment Banking Definition: In sports IB, bankers advise on equity and debt issuances, mergers, acquisitions, and restructuring deals for sports teams and leagues, sports-adjacent technology and services firms, and facilities such as arenas, stadiums, and racetracks. Can teams carry debt? What is Sports Investment Banking?
The move will see him reporting to head of markets sales for Japan, Asia North and Australia and Asia South, Cecile Gambardella, who said: He [Chang] will work closely with our productpartners and across banking, wealth and international to bridge the best of Citis capabilities and deliver value to both our clients and Citi.
At early-stage companies , the role often involves investor relations and debt/equity fundraising as well, since there may not be separate teams for these. Meanwhile, in Accounting/Controllership, you might spend a lot of time reviewing receivables and payables and determining whether certain spending should be capitalized or expensed.
About 3 years ago, I joined the team at Focus Investment Banking, where I spend my time on mergers and acquisitions and capital raising within the collision repair industry. They’re doing $3,000,000 in sales at a 10% EBITDA profitability margin. By the time of this recording for 2023, sales for Gerber were $2.9
billion debt, coupled with high capital expenditures for international galleries, strains cash flow in a rising-rate environment. Net debt has roughly doubled over the past five years, and the $30.4 The enterprise value-to-sales ratio is just over 2x, 12% higher than the 5-year lows also seen in mid-2022. RH's $3.9
This includes historical income statements, an employee census, customer contracts, third-party contractors, sales booking data, detailed revenue tracing, and at-risk customers. Pricing books, average selling price, and historical sales productivity are all included in this area.
Well, they have allocation of capital, they have top line revenues, they have a, you know, 5-7 year runway. And then we’re sitting there and sales are good, profits good. Cole Strandberg: 100% and you open up a a unique addition to that question and that is a lot of small business owners view debt as just a bad word.
In the last two blog posts, we walked through capital structure and how it impacts M&A activities and vice versa. To be explicitly clear, I am recommending the use of the following ranked capital sources when paying for an acquisition: cash (from the balance sheet), debt (at a reasonable level), and equity.
Thus far, we have discussed many aspects around capital structure and debt financing, including how debt levels are determined by a company’s cash flows, enterprise value, and asset values. This post is the last one of our debt discussion. ABL can exists alongside other types of debt (revolver, term loan, etc.)
Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” These are nice sales pitches, but the reality is quite different. Distressed investing offers equity-like returns with lower risk.”
Fixed income investment banking boutique KNG Securities has appointed Fernando Ortega as its new head of emerging market sales. He joins KNG Securities from VTB Capital, where he served as global head of fixed income sales over the last 10 years.
One such metric is net working capital (NWC). What is Net Working Capital? Net working capital plays a central role in running your business on a daily basis because it tells you how much capital you have available (or could have in the near term) to cover the company’s near-term obligations.
As investment bankers, RKJ Partners possesses a breadth of knowledge and experience in advising clients that seek growth capital. In our latest blog installment, we define and outline the key elements involved in the process of raising capital. Most entrepreneurs are very familiar with senior debt offered by traditional banks.
Uplift had raised nearly $700 million in equity and debt, securing $123 million at a reported $195 million valuation in its Series C round alone. ” Laplanche is referring to the BNPL-style product that Upgrade launched in October 2021, which lets users pay down their debt over six to 36 months with a fixed interest rate.
Leverage Buyouts (LBO) are a strategic financial maneuver where a financial sponsor, typically a private equity firm, acquires a target company by utilizing a substantial amount of debt alongside a smaller portion of equity. In an LBO scenario, both debt and equity investors commit capital to the target company.
Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC). An example of this would be to state COGS and SGA as percentages of Sales Revenues, or to state Depreciation Expense as a percent of Plant, Property, and Equipment (PPE). Build proforma income statement and balance sheet.
Before we move on to the buy-side and sell-side process of M&A next week, I’d like to wrap up this week by discussing the other capital structure component / tool: equity. The concept can be extended to corporation: equity owners (shareholders) own the company alongside debt holders (banks). However it is also the most flexible.
Building a historical 3-statement model and a debt-interest schedule. Building the go-forward debt-interest schedule. Implied Equity Purchase Price = Transaction Value - Debt + Cash. For this table, recall that LBO transactions are heavily financed with debt (it can go up to 90% of the capital structure for some deals).
Optimal Capital Structure Designing an optimal capital structure is critical to the success of a paper LBO. Balancing debt and equity components are crucial to minimizing the cost of capital while maintaining financial flexibility. Remember, this is private equity, NOT angel investing.
Some argue that GE offers the best of both worlds: the opportunity to fund innovation and growth – as in venture capital – plus the ability to limit downside risk and invest in proven companies – as in private equity. Debt financing is much more common, and the GE firm is often the first institutional investor.
As investment bankers, RKJ Partners possesses a breadth of knowledge and experience in advising clients that seek growth capital. In our latest blog installment, we define and outline the key elements involved in the process of raising capital. Venture lending is usually offered in two forms: "growth capital" and equipment financing.
When companies need to raise capital, they have two primary options: Debt involves borrowing money, while equity involves issuing shares of ownership in the company. Let's take a look at examples of companies that raised capital through debt, and analyze the factors that influenced their decision.
One specific real estate strategy that has gained popularity in recent years is the sale-leaseback arrangement. rn A sale-leaseback is a transaction where a business sells its owned real estate to a third party and then leases it back for a specified period. Firstly, they provide immediate access to capital.
The range of value: Typically depends on performance variables (sales, margins, and capital requirements). Do they have the cash of debt/equity capacity to bid aggressively? The market conditions The context of the transaction: Privately negotiated sale will have different mechanics than an auction.
Periculum Capital Company, LLC (“Periculum”) is pleased to announce it has completed the sale of Central States Enterprises, LLC’s (“CSE” “Company”) two grain terminal elevators to ADM (NYSE: ADM). The firm’s primary services include M&A, capital markets, and restructuring advisory, as well as specialized merchant banking services.
Periculum Capital Company, LLC (“Periculum”) is pleased to announce it has completed the sale of Central States Enterprises, LLC’s (“CSE” or “Company”) Feed and Bagging Operations located in Lake City, Florida (“Lake City”) to Furst-McNess Company. Periculum represented the Company in the sale of its grain operations to ADM in 2021.
This is because the cost of capital is the number one driver of business value. When interest rates increase, the cost of capital also goes up, which reduces the price of businesses when they are sold. The impact of higher interest rates is felt in the form of debt servicing ratios.
Rick Galloway, Senior Vice President and Chief Financial Officer, commented, “The proceeds from the sale of GSF will be utilized to reduce our total debt, putting us in a better position to begin implementing a more balanced capital allocation strategy, which includes share repurchases.”
It is based on the accounting equation that states that the sum of the total liabilities and the owner's capital equals the total assets of the company. Liabilities come next, divided into current liabilities (like debts and payables) and long-term liabilities (e.g., read more all the income and expenditures of the business.
In the event of a sale, would it be you who is receiving liquidity—or are you the one providing it? The younger partners were presented with a dilemma: They could each increase their stakes in the business and collectively control it but would have to take on—and be personally liable for—the $25 million in debt. If so, congratulations.
In most business sales, the purchase price is largely based on some multiple of the subject company’s net revenues and adjusted earning capacity. Strengthen your ratios: working capital, debt-to-equity, “quick,” price-to-earnings, return on equity, etc.
One of the most critical metrics to evaluate the financial health of a target business is its working capital, which measures the company’s operational liquidity. In M&A, working capital is often a significant area of negotiation between the buyer and the seller. What Is Working Capital?
Even though we’ve covered industry groups vs. product groups and teams such as M&A , ECM , DCM , and Leveraged Finance , we continue to get questions about capital markets vs. investment banking. The questions usually go like this: Are capital markets teams (ECM, DCM, and LevFin) “real” investment banking? Do you learn anything?
This can be achieved by following certain steps, such as understanding the market, preparing for a sale, and understanding the legal aspects of the transaction. Additionally, it is important to understand the value of the business and the factors that may affect the sale price. Concept 6: Help others in need.
By Tim Bird on Growth Business - Your gateway to entrepreneurial success It was a buoyant 2018 for venture capital investment into UK and European companies – a trend which defied broader concerns about international trade tensions, economic growth prospects and, of course, Brexit.
The objectives you set for the business will dictate the type of finance you should raise: the two key options being equity (selling shares in your company) and debt (borrowing from a bank or financial institution). If growth and sale are not part of your plan, then an equity raise is not the right choice for you.
Helping the seller anticipate and negotiate issues that can cause deviations from the expected sale proceeds can add unexpected value to involving an experienced M&A intermediary. In a business sale, forewarned is forearmed. Payment of deal-related sales or transfer taxes can substantially impact deal value.
We organize all of the trending information in your field so you don't have to. Join 38,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content