Thrasio: M&A Value Arbitrage at Another Level

Thrasio: M&A Value Arbitrage at Another Level

In our previous posts, we talked about how to significantly grow and arbitrage equity value from M&A, along with the right type of acquisition financing. You can read about it here. In short, larger strategic acquirers that trade at higher multiples are purchasing...
2021 M&A Predictions – The Froth Continues

2021 M&A Predictions – The Froth Continues

As we finish off a very strange year, where M&A/financing activity went from a complete halt to roaring back, reflecting pre-Pandemic levels, it begs the question, what’s in store for 2021? What are the current trends and drivers that are likely to continue into...

Much Bigger Factors to Affect M&A than Trump vs. Biden

Many people, including M&A peers of mine are sending around analysis that suggests a heavy tax bill for sellers under a Biden administration, that looks something like the following: While this analysis suggests an initial sticker shock when comparing the...
Financing Add-on Acquisitions: Debt, Equity or Both

Financing Add-on Acquisitions: Debt, Equity or Both

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...
M&A Advisory Drives Significant ROI

M&A Advisory Drives Significant ROI

You hear more and more about the importance of ROI-based selling, to demonstrate to customers the potential tangible value of your product and service, especially as we may be heading into a recession where expenses tighten up. This is no different in investment...
Buy-Side Advisory Grew Client EBITDA from $3mm to $25mm Overnight

Buy-Side Advisory Grew Client EBITDA from $3mm to $25mm Overnight

When first learning of this acquisition opportunity, the first thought was, this will take a miracle to get done. The Client (“RM”), the second largest player in the domain name monetization space, a form of internet marketing, with roughly $3mm of EBITDA,...