Debt, Equity or Both: Financing Add-on Acquisitions

Debt, Equity or Both: Financing Add-on Acquisitions

In the roll up example below, the acquirer would be seeking $11.2mm of capital to finance two acquisitions, which grows EBITDA from $2mm to $5.25mm. Based on the below scenario, we explore different financing options, to enable the most value creation. Debt...
Understanding Value Arbitrage from Tuck-In Acquisitions

Understanding Value Arbitrage from Tuck-In Acquisitions

While private equity and strategic acquirers are fully aware of the immediate value creation and arbitrage from add-on acquisitions, which Harbor Ridge Capital frequently sells companies to such parties, I repeatedly have discussions with founders that are interested...
Cherry-Pick the High Quality Buyers/Investors Who Reach Out

Cherry-Pick the High Quality Buyers/Investors Who Reach Out

Now more than ever entrepreneurs are being inundated with inbound inquiries about M&A and or funding. With the flooding of inquiries, and entrepreneurs busy running their companies, how are they to know who to speak with vs. ignore? See below for upfront questions...
Woeful Economy yet $2.4 Trillion of Capital to be Deployed

Woeful Economy yet $2.4 Trillion of Capital to be Deployed

As we plunge into this long overdue and pent up recession, a fact remains that is worth mentioning. Per Fortune, there exists $2.4 trillion of unspent private equity capital in the market, the highest total ever recorded. For those who don’t know, private equity funds...