Articles

Mezzanine Debt—A Source Of Secondary Capital In An Improving Economy

Often an improving economy and renewed growth put more stress on corporate balance sheets than the recession itself. During a business decline, liquidity is generated through the impact of lower sales which leads to lower receivables outstanding, and a net generation of cash (after some lag). Similarly, as inventories are worked off, the need for …

Where to Go When the Bank Says No

(The characters in this story are fictional, but unfortunately, the experience described below is all too real.)

For more than twenty years, Al Rodriguez lived the American Dream. Recently, his dream became a nightmare. Al and his family had immigrated as political refugees to the United States from Nicaragua in the early 1980’s following the …

All About AIM: London Stock Exchange’s Alternative Investment Market

London Stock Exchange’s Alternative Investment Market (AIM) has been around since 1995, but until a couple of years ago virtually was unknown in the US. Now, AIM is beginning to attract serious attention from US companies, with a record number of American firms considering as an alternative the AIM market as a means of raising …

Your Corporate Development Strategy: Five Questions to Ask When Selecting an Investment Banking Partner

white paper cover reading "Your corporate development business strategy: five questions to ask when selecting an investment banking partner"

Most corporate executives fully understand the “strategic planning” process that projects the enterprise’s corporate objectives and initiatives over a five to seven year period. Many corporate management teams employ a strategic planning firm to facilitate the planning process which levels the playing field and results in the most objective and targeted strategic plan.

Corporate owners …

Closing the Gap between Valuation and Proceeds: What Every Business Owner Needs to Know

By G. Stanley Cutter, Partner, FOCUS Enterprises, Inc.

Many business owners mistakenly assume that they will receive the “value” of their firm in cash as proceeds during a sale. This expectation is further compounded if the business owner has received a formal valuation from a valuation professional.

While any experienced M&A professional can cite numerous …

Keys to Successful Buy Side M&A Transactions

Many investment bankers believe that buy side M&A transactions are more diffi cult than those on the sell side and that such projects have a substantially lower probability of closing. Therefore, they avoid these engagements altogether. While their concern is warranted in many situations, it arises from problems that, while understandable, can be addressed and …

Timing the Sale of a Business for the Best Return

As with every human endeavor, timing is a critical element in the sale of a business. Often timing is driven by essentially involuntary factors such as an owner reaching retirement age, resignation of a key employee, an offer out of the blue from a prospective buyer, or, in a worst case, financial desperation. Lack of …

Can You Hear Me Now? Really Listening to a Client

Read any "how to" manual on mergers and acquisitions and you'll find checklist after checklist about how to prepare to buy a business, how to sell a business, how to value a business, how to do due diligence, how to get the best price, how to reduce the price, how to find fraud, how to put lipstick on a pig. Many intermediaries not only know the checklists cold but can recite them from memory, and probably have written three books full of checklists. But the most important checklist that every successful intermediary should know is the shortest.