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How the Growth of Private Credit is Impacting Private Equity

OfficeHours

In particular, new guidelines from the FDIC and Federal Reserve (among other governmental agencies) made it more difficult for banks to underwrite financings that resulted in debt-to-EBITDA ratios in excess of 6.0x. This capital is released once investors buy the debt off the banks’ balance sheets.

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Collateralized Debt Obligation (CDO)

Wall Street Mojo

What is a Collateralized Debt Obligation? It happens when capital borrowers like banks, big companies, and other financial institutions lose capital provider's trust like depositors, investors, and capital markets. Table of contents What is a Collateralized Debt Obligation? How does Collateralized Debt Obligation (CDO) Work?

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Capital Raise Blog Series - Vol 10 - What Is Venture Debt?

RKJ Partners

From a financial planning point of view, venture loans can be an attractive insurance policy. If there's risk that critical milestones may slip, having the ability to borrow and extend runway so those milestones can be safely achieved insures a trip to the equity fundraising market with a better valuation.

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Insurance Brokerage M&A in the First Half of 2020

Sica Fletcher

What the Data Is Telling Us In our last few posts, we reported on what we perceived to be the trends in insurance agency and brokerage M&A in light of the pandemic and analyzed the reasons for these trends. They have enormous amounts of dry powder that they must deploy and continue to have access to very inexpensive debt.

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10 Concepts You and I Can Learn About M&A and Creative Deal Structuring From How2Exit's Interview With Roland Frasier Investor, Business Mentor and Strategist

How2Exit

To do this, he obtained his insurance and securities licenses and started helping developers raise money. As the economy trends towards recession, debt becomes more expensive, making it harder for small businesses to sell. He wanted to be able to invest in larger projects and help developers raise money.

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The Sky Definitely Is Not Falling…At Least Not Yet

Sica Fletcher

Update on Private Equity and Insurance Brokerages In our ,, previous article , we reported that the COVID-19 pandemic had not diminished the pace of mergers and acquisitions transactions we are seeing in the insurance agency and brokerage sector. The number of transactions we are working on has not abated. The question is, “Why?”.

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

Devensoft

Debt and liabilities: assess the company’s debt levels and liabilities to determine whether it can manage its obligations during economic uncertainty. Investors must closely review financial statements to identify any potential red flags.