JD Supra: Mergers

SEPTEMBER 27, 2023

Certain high-growth sectors, meanwhile, require a level of investment that some European businesses cannot match, due to either high debt levels or dwindling profits. And the risk of. By: White & Case LLP

Debt 165

Debt Profitability Business Investment 165

The New York Times: Mergers, Acquisitions and Dive

JUNE 21, 2023

Two new books offer harsh assessments of private equity firms that specializes in buying up companies only to saddle them with debt and squeeze them for profits.

Private Equity 94

Private Equity Debt Profitability Equities 94

Sun Acquisitions

APRIL 26, 2024

Debt Financing: The Double-Edged Sword Debt financing is a standard route for companies pursuing M&A, offering the allure of leveraging existing assets to fund the transaction. High debt levels can burden the newly formed entity with interest payments, impacting its financial flexibility.

Mergers and Acquisitions 59

Mergers and Acquisitions Finance Finance Mergers 59

OfficeHours

OCTOBER 16, 2023

For the average person, rising interest rates are not ideal for those with significant amounts of debt, those looking to purchase a home with a mortgage, or many other use cases. Once the cash available is used to service the debt, whatever is left over is paid as dividends and used to calculate returns for private equity investors and LPs.

Investors 130

Investors Private Equity Debt Equities 130

OfficeHours

JUNE 6, 2023

Leveraged buyouts involve acquiring a controlling interest in a mature company, typically through a combination of equity and debt financing, using the acquired company’s assets as collateral to secure debt financing. Private equity firms also invest in distressed debt or provide private debt financing.

Private Equity 147

Private Equity Equities Debt Investors 147

How2Exit

MARCH 11, 2024

Anthony is the founder of Global Investment Capital Group and has successfully raised capital for his debt fund, which focuses on acquiring and operating group homes and assisted living facilities. rn Another funding option is to establish a debt fund. rn rn Notable Quotes: rn rn "You pay someone in life to go further.

Mergers and Acquisitions 130

Mergers and Acquisitions Funds Investors Debt 130

The New York Times: Banking

JULY 18, 2023

One of the nation’s largest banks reported across-the-board strength in its latest quarter, with sales and earnings that surpassed analysts’ expectations.

Bank 77

Bank Banking Profitability Sale 77

Wizenius

MARCH 30, 2023

The assets can include non-performing loans, bad debts, and other distressed assets. This can include restructuring the debt, liquidating assets, or selling them to other investors. Profit sharing : Once the assets are resolved, the ARC shares the profits with its investors.

Financial Institution 52

Financial Institution Business Debt Investors 52

Sun Acquisitions

FEBRUARY 14, 2024

In such cases, evaluating the financial health of target companies and understanding their debt structures is crucial. While it provides capital without the burden of debt repayment, it dilutes ownership and may involve relinquishing some control. Debt Financing: Debt financing involves borrowing money to fund your acquisition.

Acquisitions 59

Acquisitions Business Debt Finance 59

Business Standard - FInance

JUNE 13, 2023

The slightly low inflow in May compared to the preceding month could be attributed to profit booking. With gold prices still trading at high levels, some investors would have chosen to book profits or take on risk on approach with a view that central banks would pause furthe

Profitability 52

Profitability Debt Funds Investors 52

OfficeHours

JUNE 5, 2023

Balancing debt and equity components are crucial to minimizing the cost of capital while maintaining financial flexibility. In general, this focus on cash flow will enable timely debt servicing and can allow the acquired company to bounce back stronger than ever before being taken public or spun off to another private equity firm.

Private Equity 147

Private Equity Valuation Debt Equities 147

Focus Investment Banking

APRIL 7, 2024

Cost of Leveraged Buyouts: PE firms often use leveraged buyouts (LBOs) to acquire companies, relying heavily on debt financing. Lower interest rates make this debt cheaper, enabling PE firms to execute more buyouts or bid higher for target companies. This market trend can raise the comparative value of similar businesses.

Private Equity 52

Private Equity Valuation Equities Business 52

How2Exit

MARCH 5, 2023

Ali Taraftar left Canada in 2007 to go to the United States and met a couple of investment bankers who put together a firm to do debt restructuring and mortgage modifications. This includes having a plan for when to exit a position, when to take profits, and when to cut losses.

Business 130

Business Capital Negotiation Debt 130

The Deal

FEBRUARY 2, 2024

The company has accumulated some debt to run business operations but has its sights set on reducing leverage over the next couple of years. Servexo, headquartered in Gardena, Calif., has been bootstrapped since it was founded in 2012 and incorporated in 2013.

Capital 111

Capital Private Equity Entertainment Education 111

The Deal

JUNE 23, 2023

The recent purchase of Riverbed Technology LLC reflects a burgeoning niche for middle-market technology turnaround investor Vector Capital Management LP: buying companies from lenders who converted debt to equity through reorganizations. ” Apollo is providing some of Riverbed’s debt. which Vector Capital acquired and sold.

Debt 52

Debt Middle Market Capital Profitability 52

Wall Street Mojo

JANUARY 15, 2024

Overcapacity often results in increased competition among businesses, leading to price wars and reduced profit margins. It can impact businesses financially by reducing profit margins, limiting revenue growth, increasing fixed costs per unit, straining cash flow, affecting investor confidence, and potentially leading to restructuring costs.

Profitability 52

Profitability Utilities Economics Debt 52

TKO Miller

AUGUST 30, 2023

An 8% decrease in overall middle market valuations is a relatively small drop given buyers’ limited access to debt, increasing interest rates, and persistent inflation. Polypropylene prices are down 15% and polyethylene prices have dropped almost 8% over the last year, resulting in improved profitability for both flexible and rigid packaging.

Middle Market 91

Middle Market Valuation S&P Debt 91

Wall Street Mojo

JANUARY 17, 2024

This differentiation helps identify a company’s profitability Profitability Profitability refers to a company's ability to generate revenue and maximize profit above its expenditure and operational costs. It is measured using specific ratios such as gross profit margin, EBITDA, and net profit margin.

Accountant 98

Accountant Finance Finance Profitability 98

Mergers and Inquisitions

SEPTEMBER 13, 2023

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 88

Debt Funds Investment Trading 88

Sica Fletcher

MAY 8, 2024

Other times, they are hoping to use their share of the sale to alleviate personal debt. This will give you time to make necessary changes to the operational structure to make your agency more profitable, thus increasing the probability of a higher payout when it goes to market. Manageable Debt. Are looking for a career change.

Insurance 52

Insurance M&A Valuation Advisory 52

Devensoft

JUNE 15, 2023

Essentially, strategic recapitalization involves changing a company’s capital structure to achieve specific financial goals, such as reducing debt or improving cash flow. One of the key advantages of this tactic is that it can help companies reduce their debt burden and improve their cash flow.

M&A 52

M&A Debt Capital Mergers and Acquisitions 52

Wall Street Mojo

JANUARY 15, 2024

Liabilities come next, divided into current liabilities (like debts and payables) and long-term liabilities (e.g., Most businesses generally use leverage to increase their profit margin. read more includes all the debt payments accruing within a year. read more includes all the debt payments accruing within a year.

Accountant 98

Accountant Financial Statement Debt Financial Modeling 98

Peak Frameworks

MAY 22, 2023

Liabilities represent the obligations a company has to outside parties, such as debts, loans, and accounts payable. These ratios are essential for assessing a company's performance, profitability, and financial health. Examples include accounts payable, short-term debt, and accrued expenses. For example, Apple Inc.

Accountant 52

Accountant Equities Debt Private Equity 52

Razorpay

AUGUST 20, 2023

They are set for a specific span of time and might impact profitability if not managed well. Impact on profit Variable costs are subtracted from revenue to determine the variable cost of goods sold. Fixed costs are subtracted from the total revenue to determine the profit. The other side of fixed costs is variable costs.

Business 52

Business Profitability Sale Utilities 52

Peak Frameworks

JUNE 27, 2023

The key components of public finance include tax policy, expenditure policy, debt policy, and fiscal policy, which includes adjusting the other components to affect macroeconomic variables. Corporate Tax: This is the tax charged on company profits. For instance, the US Treasury issues Treasury bonds to finance public debt domestically.

Government 52

Government Finance Finance Management 52

Wall Street Mojo

JANUARY 15, 2024

Tax accounting refers to the methods and policies used for the preparation of tax returns and other statements needed for tax compliance and therefore, it provides frameworks and guidelines for arriving at a taxable profit. read more , and taxable profit arises due to a timing issue. read more , which can happen in the coming years.

Accountant 52

Accountant Profitability Financial Modeling Financial Models 52

Focus Investment Banking

MAY 3, 2024

With higher interest rates, the same cash flow of years past now supports a lower amount of balance sheet debt. Also buyers like to use mezzanine and senior bank debt. The equity check writer will walk away in these cases because they can’t make the return on equity that they seek without the debt.

M&A 52

M&A Middle Market Private Equity Debt 52

Peak Frameworks

JUNE 21, 2023

In return, each partner shares in the profits and losses of the business. Each partner is personally liable for the partnership's debts and obligations. Here, partners are not personally responsible for the business debts and liabilities or the misconduct of other partners.

Business 52

Business Corporate Finance Finance Finance 52

Focus Investment Banking

JANUARY 22, 2024

Some owners will only include half of Mary’s salary in Cost of Goods Sold, (as those were the only hours where Mary generated revenue) and put the rest of her salary in Sales, General and Administrative (SG&A) costs, below Gross Profit/Gross Margin. Contact Kelly at Kelly.Kittrell@focusbankers.com.

Professional Services 52

Professional Services Corporate Finance Mergers and Acquisitions Consulting 52

Wall Street Mojo

JANUARY 17, 2024

Convertible securities combine features of both debt and equity instruments. For issuers, they offer a cost-effective method to raise capital, often with lower interest rates than traditional debt. read more have features of equity as well as debt. #2 The higher the earnings per share (EPS), the more profitable the company is.

Securities 98

Securities Investors Shares Financial Modeling 98

Wall Street Mojo

JANUARY 4, 2024

Beyond this, it enables interviewers to decide if a particular acquisition or merger is promising and potentially profitable. In its essence, this test requires candidates to determine and present a deal’s profitability in a few minutes, armed only with a pen and paper. After this, deduct applicable expenses.

Debt 52

Debt Private Equity Mergers and Acquisitions Investment 52

Wizenius

APRIL 9, 2023

FCFF represents the cash flow that is available to all of the providers of capital to the firm, including equity holders and debt holders. Although CAPEX is an expense that reduces profits, it does not necessarily represent a cash outflow in the current period.

Capital 52

Capital Accountant Funds Debt 52

Peak Frameworks

MAY 2, 2024

Bad Debt Management: Estimating the likelihood of non-payment and accounting for bad debts is crucial for providing a realistic view of financial health. Cash Flow Challenges: Deferred payments can strain a company’s cash flow, making it essential to balance credit sales with sufficient cash reserves or financing options.

Sale 52

Sale Accountant Financial Statement Business 52

Software Equity Group

AUGUST 24, 2023

Recapitalization is a process of restructuring a company’s debt and equity mix, also known as its capital structure. Debt Recapitalization In contrast to equity recapitalization, debt recapitalization focuses on reshaping a company’s existing debt obligations. What is Recapitalization?

Debt 52

Debt Equities Investors M&A 52

Growth Business

MAY 15, 2024

You can keep all the profits your business makes. More on sole traders Sole trade budgeting tips to avoid debt How to scale your business quickly The post Can a sole trader employ staff? A sole trader is someone who works for themselves, runs a business themselves and is solely responsible for it. Can a sole trader employ staff?

Business 72

Business Insurance Trading Debt 72

The TRADE

DECEMBER 18, 2023

Convertible bonds will also provide cheaper financing options to those companies with other types of debt coming due which will lead to greater primary issuance. All of this points toward a good year for convertible bonds. When volatility rises, convertible bonds tend to outperform equities.

Trading 62

Trading Bank Banking Investors 62

Growth Business

JUNE 29, 2023

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.

Finance 91

Finance Finance Equities Business 91