Articles

As the Fall begins and vacations become a far-off memory, you may be getting that back to school feeling about preparing for your first Deal Market at the M&A Source Conference this November. As Director of Business Development at a private equity fund, I get the opportunity to speak with a lot of advisors and have attended […]

Takeaway: Working capital can be the biggest chip at the table during your negotiations. Here is everything you need to know to calculate working capital before you enter the sale process. In most of the M&A deals that I am involved in, working capital is one of the most complicated areas to navigate when trying to close a transaction. Here […]

We believe the small-to-midsize business mergers and acquisitions market looks positive going into 2021.  More Clarity and Certainty  As we put 2020 behind us, what does 2021 hold for us in the SMB M&A industry? We are now entering a new year where lockdowns give way to a vaccine, and there is more clarity around taxation, spending, and related policy from an […]

In our previous article, we broke down one of the most considerably penetrating compliance changes in over a decade (Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09)) and its significant impact on private equity groups. Between May 2014 and today, amendments and implementation guidance for both companies and practitioners have […]

Back in May of 2014, FASB issued one of the most considerably penetrating compliance changes in over a decade (Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09)). Between May 2014 and today, amendments and implementation guidance for both companies and practitioners have been released with Topic 606 effective for private […]

A Private Equity Perspective on Budget Planning It’s time for the next stage of business ownership: Bringing on an investment partner. Finding the right fit is an inexact science – some combination of due diligence, reference checks, and “gut feel.” These ten questions can help sellers find the right match for their personality, business style, […]

When Distress Means Opportunity: The Value of Article 9 Re-organizations for Private Equity Investors and the impact to Seller Subordinated Debt. As a private equity investor group, subordinate debt is the single greatest challenge to the efficiency of any model — whether that model involves investing in equity, debt or assets. Add business distress to that […]

I am a big fan of Robert Slee, an investment banker, author, and investor in the middle market. His most well-known book is Private Capital Markets: Valuation, Capitalization, and Transfer of Private Business Interests, and his teachings are centered around the following key fundamentals issues plaguing the lower middle market: Value creation occurs when returns on equity are greater […]

By Heather Endresen Takeaway: New entrepreneurs are flocking to the previously obscure search fund model in droves. No generation has had the impact on small business creation that the baby boomers have had over the past 50 years. As they look to retire, a new model of entrepreneurship is emerging and these new entrepreneurs are flocking to […]

1. Does the private equity firm proactively provide complete references? A potential partner should offer access to the management of all companies with whom it has worked over the years, whether or not the transactions have gone well. “Sellers should be able to choose which references to call,” says Prospect Partners’ Vice President Brett Holcomb. […]