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Cash Sweep
A cash sweep is the use of a company's excess cash to pay outstanding debts ahead of the scheduled payment date instead of giving it to their investors or shareholders. This process helps a company to minimize risk and liability as well as pay its debt at a faster rate than what is…
Sweet Equity
Sweet equity is a type of financial instrument that represents any form of non-monetary equity that the owners or employees of a business contribute to the venture. Sweet equity can come in the form of options, rights, warrants, restricted stocks and RSUs or other forms of equity. Sweet…
Investment Criteria
Investment criteria are the defined set of parameters used by financial and strategic buyers to assess an acquisition target. Sophisticated buyers will usually have two sets of criteria: The parameters that are disclosed publicly to intermediaries such as investment bankers, so they know…
EBITDAC: The Mother of All Add-backs
Note: This content originally appeared in Carter Morse & Goodrich’s Insights in 60 seconds marketing post, and has been published here with permission. For those involved in M&A, EBITDA (earnings before interest, taxes, depreciation and amortization) is the often-referenced,…
The Reasonable Payback Period for an Investment in a Small- or Medium-sized Business
When people ask about the payback period their intended question is "When will I get my money back?" In order to answer this question, the payback period must deal with cash flows — e.g., invest € 100 today, receive € 20 in year 1, € 30 in year 2 and €…
A Summary of M&A Fees for Sell-Side Transactions
Investment banks offer expertise and know-how that can add significant value to any transaction, but complicated fee structures can be daunting and confusing in picking an investment banker. In negotiating fee structures, a business owner should consider the goal he or she seeks to…
What are the current challenges concerning valuation uncertainty?
Note: This content originally appeared in T/A Economics and has been published here with permission. The International Valuation Standards Council (IVSC) provided insight in how to deal with valuation uncertainty. First of all, the difference between market risk and valuation uncertainty…
By: Kenny Van Tulder | Senior Manager
