By Alexandra Reed-Lajoux, J. Fred Weston
"M&A financing and refinancing could be a route to progressÑstarting this day, as you learn the information during this publication and dream up your own." --Alex Sheshunoff, From the Foreword. the growth of a enterprise via merger or acquisition comprises adventure. knowledge. the facility to examine how or extra mixed businesses can equivalent way over the sum in their elements. It additionally contains, typically, using "other people's money." THE paintings OF M&A FINANCING AND REFINANCING tells you the way to acquire and pay off that money, taking the advanced, technical points of M&A finance and making them transparent, comprehensible, and acceptable in your scenario. This complete reference instruction manual issues you to all of the proof, figures, names, and areas you want to finance your subsequent deal. exact in that it concentrates completely at the such a lot basic portion of the M&A transactionÑmoneyÑ THE artwork OF M&A FINANCING AND REFINANCING offers clear-headed recommendation and counsel on: the major monetary resources and tools you could useÑfor any form of deal; the best way to decide upon the main applicable kind of financingÑdebt, fairness, or a mix of the 2; Financing through debtÑloans, bonds, and leasesÑand the just about countless how one can borrow or lend; strategies to think about in contracts, together with contingent funds, earn-outs, and fairness kickers; tips on how to ascertain whilst refinancing is necessaryÑand plan for it as a chance; How risky worldwide occasions have an effect on financial systemsÑand the influence this has on M&A financing and refinancing; Debt/equity hybrids and the automobiles by which they travelÑincluding mezzanine financing and vendor takeback financing. the power of 1 corporation to procure one other has helped businesses all through heritage develop improved, extra vivid, and extra aggressive. simply as your online business needs to determine pleasurable relationships with exterior owners and providers for its part components and providers, it also needs to turn into familiar with utilizing exterior financing for progress. enable THE paintings OF M&A FINANCING AND REFINANCING make it easier to mix the "Main highway" of business banking with the "Wall highway" of funding banking, and assist you remain at the ecocnomic part of the M&A luck ledger.
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"M&A financing and refinancing could be a route to progressÑstarting this present day, as you learn the information during this ebook and dream up your individual. " --Alex Sheshunoff, From the Foreword. the growth of a enterprise via merger or acquisition contains adventure. knowledge. the power to check how or extra mixed businesses can equivalent way over the sum in their elements.
Extra resources for Art of M&A: Financing and Refinancing
In past markets, many stocks were undervalued by the public, and it was not unusual for a buyer to pay a 50 percent p r e m i u m over the publicly traded stock price after a DCF or other analytical method indicated that a premium price was in order. " Accounting variables are also important here. For instance, the prices and P / E ratios of several dozen property/casualty (P/C) insurance companies can be averaged, and the resulting number used to negotiate a purchase price. But insurance accounting is not uniform from company to company, and historically accurate numbers are difficult to come by, since they were never kept product by product.
Here is a partial list of M&A networks (which you can access by typing w w w . com (links to professionals, publications, and associations such as the Association for Corporate Growth and the International Mergers and Acquisitions Professionals). com (M&A classified, including buyers and sellers, organized by industry) Some sites specialize in industries. com (acquisitions, alliances, and investments in Internet-related businesses) Other sites specialize in countries or regions. no (for deals and financing in the Netherlands, Norway, and the United Kingdom—particularly in energy) Also, some links focus exclusively on financing.
This estimate is compared with the asking price for the company or is used as the basis for an offer and the subsequent negotiation. Properly done, it is the best of the valuation methods because it asks and answers the simple question "What will it cost the buyer to duplicate the company right n o w ? " without the complications of factoring in past or future accounting-based earnings that may or may not represent reality. CHAPTER 2 Assessing Financing Needs 27 Such a formal estimate of replacement value can be used in internal negotiations within the buying company, since it serves to support the argument that it is often cheaper to buy than to build.