Remove Debt Remove Definition Remove M&A
article thumbnail

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

Francine Way

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. Essentially, it is a way to value a company based on cash generated from operation, taking into account all major expenses.

article thumbnail

M&A Blog #13 – sell-side acquisition (execution)

Francine Way

The comparisons can be based on several factors: Valuation: Total value, structure, contingencies, forms of payment (cash, buyer’s stocks, target’s stocks, seller’s notes, post-transaction debt, and more), and deferred payments (payments based on future performance) should be evaluated. The reason for this is time.

M&A 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

Distressed Debt Hedge Funds: How to Become a Vulture Capitalist

Mergers and Inquisitions

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!” Distressed debt investing offers advantages over other hedge fund strategies , but the marketing often oversells the benefits.

Debt 103
article thumbnail

Creating an M&A Playbook with ChatGPT as Your Consultant

Midaxo

Introduction This article showcases how ChatGPT can serve as an effective M&A consultant by demonstrating how it can be used to help develop a best practices-based M&A playbook. An M&A playbook is a comprehensive framework that guides an organization’s M&A activities from start to finish.

M&A 130
article thumbnail

Expert or Arbitrator? Resolving Purchase Price Adjustment Disputes

JD Supra: Mergers

Acquisition agreements in M&A transactions frequently include provision for payment to be made at closing based on estimates of certain financial metrics that are later subject to a purchase price adjustment based on a final determination (referred to as a “true-up”) within a few months following closing.

Debt 130
article thumbnail

Why is Net Working Capital Important in M&A?

Software Equity Group

For that reason, it can pay to learn more about NWC, what it might or might not include, and how an M&A advisor can help you negotiate more favorable terms to maximize your proceeds. By its simplest definition, NWC measures the short-term financial health of a business, or its ability to fulfill its near-term obligations.

M&A 93
article thumbnail

Comprehensive Guide to M&A Due Diligence in Today’s Turbulent Economic Environment

Devensoft

Chapter 1: A Modern Due Diligence Guide for Today’s Economy Merger and acquisition (M&A) due diligence is a crucial process for businesses looking to acquire or merge with another. According to a study by Deloitte, over 90% of M&A deals fail to achieve their objectives, often due to inadequate due diligence.