Scott Mashuda

NOVEMBER 13, 2023

How Does the Cost of Debt Influence M&A? While debt is cheaper than equity , cost of debt plays a pivotal role in shaping M&A activity in the lower middle market. Valuation in the private markets is often defined by a business’ EBITDA. What is EBITDA?

EBITDA 89

EBITDA Equity Marketability Debt Financing 89

Brian DeChesare

MAY 4, 2022

The key problems are: Very High Purchase Multiple: The historical (FY 21) EBITDA multiple here is 52x , and the FY 22 multiple based on consensus estimates is 28x. Its ARPU is around $41, it has billions of users, and it has EBITDA margins of 40-45%. billion of Debt Service vs. FY 23 EBITDA of $1.9 Total wipeout.

EBITDA 109

EBITDA Start-ups Finance Equity 109

Lighter Capital

AUGUST 10, 2023

Use EBITDA from your P&L as a proxy for net burn, and pull your current cash from your balance sheet: Runway = Current cash balance ÷ EBITDA 2. Pay close attention to the term length and payment terms if you’re considering debt financing.

Start-ups 93

Start-ups Finance EBITDA Debt Financing 93

Benzinga

JUNE 16, 2022

times estimated 2023 adjusted EBITDA multiple. Targa now estimates standalone 2022 adjusted EBITDA to be between $2.675 billion and $2.775 billion and year-end leverage ratio of about 2.7 Fully cash and debt-financed transaction; expect pro forma year-end 2022 leverage ratio around 3.5 times and improving thereafter.

EBITDA 40

EBITDA Debt Financing Dividends Finance 40

Class VI Partner

AUGUST 4, 2022

Investors we have spoken to have indicated that their lender networks have remained eager to provide considerable debt for higher quality deals. Conservative investors are unlikely to opt for more than 3x debt financing for acquisitions during a period of market volatility.

EBITDA 52

EBITDA Debt Financing Equity Marketability 52

IT Valuations

MARCH 1, 2021

The right fit for your acquisitions should increase shareholder value, diversify your services, expand your geographic footprint, and improve your EBITDA/profitability. Profit margins for the business and trends of growth, or a deterioration Have EBITDA and any adjustments been properly calculated?

Technology 40

Technology EBITDA Debt Financing Specific Risk 40

Benzinga

OCTOBER 27, 2022

Regal Rexnord has fully committed debt financing and there are no financing conditions associated with the transaction. Non-GAAP adjusted EBITDA* was $92.1 The Company ended the quarter with total gross debt of $1.06 billion and net debt* of approximately $860 million. million, or 7.2% of revenues.

Gross Debt 40

Gross Debt Net Debt Debt Financing Enterprise Value 40