Capital Archives - Page 7 of 8 - M&A

The fees charged for sell-side M&A by investment bankers vary from deal to deal. Every deal typically includes some type of up-front engagement fee either paid in a lump sum or on a monthly engagement or retainer. Most of an investment banker’s fee (and your cost) is couched in the back-end success fee. In some...

Timing is a large consideration in mergers and acquisitions. Because no two deals are the same, no two marketing approaches are likely to mirror one another. And while some businesses can and will be sold quickly, others may take more time to find the right buyer willing to pay a bit more premium. Timing considerations...

You’ve spent many months and countless hours conducting due diligence, hammering out terms with the target and arranging financing. Finally, the big day has arrived: the signing! After the pens are put down and hands are shaken you can pat yourself on the back and enjoy a little celebration. However, now is not the time...

In general terms, the capital markets are any place where securities can be purchased and sold. In most cases, these securities are debt and equity. In the real estate world, there are private debt, private equity, public debt and public equity options in the capital markets. Some such “markets” occur on exchanges such as the...

Cash — Cash is king, but not always. Cash is only king when cash is either needed or when cash trumps a bigger potential strategy. Stock — This could include private and public stock mergers. In almost all cases, I would advise against the former. The latter can be a great boon or bust. It...

Regardless of whether you are a solo business owner or if you are in business with another partner, it’s important to consider the organization’s overall value proposition and mission to customers and how it serves stakeholders as well as the business valuation as a whole. These are both crucial areas to consider in the event...

Garage Ventures has a great piece outlining some of the blunders they have experienced in startup pitchbooks. While some of what is included there seems a bit contrarian–either to make a point or to stir a conversation–many of the points are especially poignant as it relates to startups, but meaningless for a business performing sell-side...

Building any business requires a lot of time and effort in the initial startup and product launch phases. But building a B2B business is a little different. The sales cycle is often longer (sometimes taking up to 90 days to close), and building a solid foundation of client relationships can take even more time. In...

If done correctly, selling your business can take a year or more and requires a steady, but controlled hand in guiding the process from start to finish. Sellers often wonder, “why does the process take so long?” Let’s reverse engineer it to show why this is the case. Deal Prep–While a good hustle can shorten...