Sector Updates, Ideas, Articles and Whitepapers
DEBT STRUCTURING SOLUTIONS
Whether to fund organic growth, acquisitions or shareholder liquidity, the use of debt offers many advantages, including structuring flexibility and speed to close. Moreover, a manageable amount of debt can help companies and shareholders accelerate growth and more quickly build shareholder value.
FACTORS THAT INFLUENCE VALUATION
Shareholders of closely held companies, as well as parent corporations of publicly held divisions, often seek advice as it relates to corporation valuation and the value of their holdings. While determining the value of a corporation is a complex analytical exercise, there are a number of qualitative factors that indirectly affect value as well as the interest level by prospective acquirors or investors.
DEVELOPING AND EXECUTING AN ACQUISITION GROWTH STRATEGY
If planned and executed successfully, acquisitions can accelerate growth and shareholder value for acquiring companies seeking greater market share and/or further diversification. While acquisitions can accomplish what takes years to build organically, a well-developed and well-executed acquisition plan is critical to achieving positive results.
ASSESSING STRATEGIC OPTIONS FOR A COMPANY OR DIVISION
Corporations, boards and shareholders may struggle with determining the strategic direction of their businesses, whether for a division or standalone company. Evaluating corporate finance strategies that maximize shareholder value and proceeds can provide clarity to an otherwise challenging decision-making process.
CHARACTERISTICS OF ATTRACTIVE ACQUISITION CANDIDATES
Highly acquisitive companies as well as institutional private equity funds review numerous acquisitions on a recurring basis. But only a select number of target companies make the cut based primarily on the potential to create and realize future incremental value.
STRUCTURING A MANAGEMENT BUYOUT (MBO)
Senior executives have the ability to own meaningful equity stakes in the companies they run whether employed at privately held companies or divisions of public companies. A company sale or divisional divestiture can provide a unique opportunity for a management buyout involving some or all of the senior management team.
THE ESOP LEVERAGED BUYOUT
Compared to a traditional company sale, an employee stock ownership plan (ESOP) may provide a more flexible and economically attractive solution for company owners or shareholders seeking exit liquidity. Some advantages include corporate and personal tax benefits, structuring flexibility, a simplified transaction process, and employee ownership.
GROWTH THROUGH ACQUISITIONS
Many companies focus growth efforts on organic strategies only. However, implementing a program of strategic acquisitions, if done correctly and in conjunction with organic growth initiatives, can generate sustainable shareholder value more rapidly and effectively.