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...