Global venture volume is down ~20% from the prior quarter, which isn’t surprising considering how heated the environment was last year, and now with the tanking of the public markets, especially within the technology sector. Despite this pullback, we’re...
Private equity firms paid an average of 13x a company’s annual EBITDA for U.S. leveraged buyouts in 2020 — an all-time high, according to a Reuters report quoting financial data provider Refinitiv. This is not surprisingly to see such report, considering the new...
Valuing a company is not a perfect science and the final valuation is ultimately a function of what buyers are willing to pay. However there are a variety of key drivers that can help estimate a valuation range for companies. We have created a valuation tool (see...
See video walk through here: https://www.loom.com/share/5f1845ee32a1408fb9fae06c7ce54bfd While our primary service offering is centered around an M&A and or financing transaction, we can provide ancillary services sought after by our client base, that supports...
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...
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...
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...
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...
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...
Harbor Ridge Capital has been covering the technology services and vertical software industries within the lower middle market ($5-50mm in revenue) for over 15 years, and while we primarily represent CEOs in a sale or capital raise, we’ve augmented this practice by...
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...
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...
Despite the overwhelming number of investors/acquirers approaching companies these days, we feel it makes sense to call out an investment option that not a lot of funds employ, and many entrepreneurs may not know about. Minority liquidity or a minority...
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...
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,...
Harbor Ridge Capital Launches Contract CFO Services to Companies Preparing for a Capital Raise or M&A Transaction We understand the hoops investors and buyers make you jump through Like many founders, running your business and making sure you hit your projections,...
A lot of us have witnessed what is referred to as a “heat check” in basketball, where James Harden or Steph Curry will jack up an ill advised three after having made a handful of buckets in a row, to assess how hot they are at the time. This may appear to the layman...
One of the most common questions I get asked when speaking with the many entrepreneurs of cloud and managed IT service companies, is “what are companies in my industry selling for, and how are they valued?”. My response varies depending on a culmination of factors,...
A liquidity event, or a sale of one’s business, can be the largest monetary event in a person’s lifetime, thus adequate preparation is key to ensuring a smooth, and successful outcome. Those who have been through a sale process may understand what’s involved, yet for...
Starting my career on the private equity side, we were taught and told that nothing is better than a “proprietary deal” which means, a deal which an investment banker or M&A advisor is not involved. The key reason is that you have a one-on-one dialogue with a...
