Blog Posts in 2015
Posted on Nov 1, 2015 By Davis Blaine
Post-closing working capital adjustments is the most common change to the purchase price. Typically, a well-crafted Letter of Intent (LOI) will detail how the adjustments are computed (both positive ...
Continue reading "WORKING CAPITAL ADJUSTMENTS" »
Posted on Sep 1, 2015 By Davis Blaine
The primary valuation formula understood by nearly every participant in an M&A deal follows: Multiple X EBITDA. Additionally, many technology firms are valued as a multiple (not necessarily > ...
Continue reading "How Is a Multiple Derived?" »
Posted on Aug 1, 2015 By Davis Blaine
The definition of working capital (W/C) is rather simple: current assets less current liabilities. The ratio is current assets/current liabilities. Any ratio below 1 is negative. For most companies a ...
Continue reading "WORKING CAPITAL" »
Posted on Jul 1, 2015 By Davis Blaine
Under the amended Regulation A, certain public securities offerings are exempt from SEC registration. The amended exemption is informally known as Regulation "A+". The amended Regulation A+ ...
Continue reading "Regulation "A+"" »
Posted on Jun 2, 2015 By Davis Blaine
Under Section 363(f) of the Bankruptcy Code, the trustee or debtor-in-possession may sell the bankruptcy assets "free and clear of any interest in the property". This provision of "free ...
Continue reading "Bankruptcy Sale of Business" »
Posted on May 1, 2015 By Davis Blaine
From a macro viewpoint, potential deal flow in 2015 is on pace with 2014, where megadeals accounted for more than 35% of all transactions in Q1 and Q2. In that same first half of 2014, deals were up ...
Continue reading "M&A Q1 Outlook" »
Posted on Apr 6, 2015 By Davis Blaine
When contemplating a capital raise or M&A transaction, the parties should be aware of the costs. The following are current, typical ranges of returns for debt and equity sources: Senior ...
Continue reading "Transaction Costs" »
Posted on Mar 18, 2015 By Davis Blaine
Since 2008, many private equity and hedge funds have raised capital but placed only part of these monies into deals. Thus, there is a pent up demand to acquire for sound, growing businesses. In ...
Continue reading "M&A Drivers in 2015" »
Posted on Feb 20, 2015 By Davis Blaine
The year 2015 has started well for us. We understand that other I Bankers are getting busy as well. Highlights some of our newer clients are the following: Capital raise – very high end speaker ...
Continue reading "Client Highlights" »