A poorly worded or structured letter of intent (LOI) is one of the main reasons M&A deals blow up. This is often the case when people try to either navigate this process without an advisor or save money. As with most of the things in...
Benjamin Franklin is credited with once saying, "if you fail to plan, you are planning to fail". For investment bankers this saying should hit close to home. Planning is an extremely important part of our job. A plan is needed to determine which types of...
When engaging in the sale of your business it is important to consider all of the factors that will help you receive the maximum value. One area a seller should not forget to examine is goodwill. In a nutshell, goodwill is the value of intangible...
At the most basic level, companies pursue a merger or acquisition because they believe the combined entity will be better off than the two individual parts. In equation form, this could be represented by 1 + 1 = 3. Synergies are the advantages that come...
Mergers and acquisitions may evoke thoughts of change, due diligence, legal documents, multiple Excel spreadsheets, and integration. During the M&A process it is no doubt that all of these will play a critical role. While it is understandable that buyers will want to dissect the...
When it comes to financing an acquisition, the capital obtained can come from a variety of sources. One common source is a Small Business Administration (the "SBA") Loan. SBA loans are not made directly by the SBA. Rather, it provides guarantees to financial institution that...
This is a continuation in a multi-part series that will focus on buy-side strategies in the medical device manufacturing industry, a member of the manufacturing sector. The medical device manufacturing industry has been supported by an aging American population, rapid advancement in medical technology driven by...
Every deal, regardless of whether it closes or not, is a roller coaster ride. Throughout the journey, it may constantly feel like the deal is on the verge of failing. This is normal. Although the purchase price is often never changed drastically (once the...
Whatever your reason, we published a blog on this recently, at some point in time you will look to exit your company. One thing to keep in mind is that selling a company is the same as selling an asset. In reality, it is...
A liquidity event is a merger, purchase or sale of a business. In other words, this is called your exit strategy, and typically converts the equity held by the owners into cash. Owners and investors will generally have to plan a strategy in advance, and...