How To Sell Equity In Your Company
Benchmark Report
APRIL 29, 2024
Selling equity in your privately owned company can be an effective tool if you plan to grow your business or begin to plan your exit strategy.
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Benefits of Selling to a Private Equity Group
Viking Mergers
APRIL 29, 2022
To some, the topic of selling to private equity groups does not stir positive feelings. The reality is that for midsize, and even small, midsize businesses, these are not the predatory transactions you’ve heard about, and there can be significant benefits to selling part or all of your company ownership to a private equity group.
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Myths vs. Facts: What Do Private Equity Firms Do?
Viking Mergers
MAY 11, 2022
If you have ever looked into selling a business, you may have learned that there are many types of buyers and deal structures, from employee buyouts, strategic acquisitions, to private equity firms. We have noticed many misconceptions about a particular kind of buyer: the private equity firm. What Do Private Equity Firms Do?
SBA Issues Change of Conditions for a Seller Note
Viking Mergers
MAY 12, 2023
The SBA changed the conditions for a Seller Note to be considered part of the Buyers Equity Injection (aka Down Payment). Under the new guidelines, if the Seller Note is on Full Standby for 24 months, it can be considered part of the Buyers Equity Injection requirement.
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What is an equity rollover when selling your business?
Exit Strategy
FEBRUARY 21, 2024
In M&A, an equity rollover, or recapitalization (recap), occurs when a business owner sells their company but chooses to reinvest, or “roll over,” a portion of their proceeds into the newly acquired business. How […] The post What is an equity rollover when selling your business?
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Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?
Brian DeChesare
MARCH 13, 2024
Over the past few decades, growth equity (GE) has gone from an afterthought to a major asset class for huge investment firms. Some argue that GE offers the best of both worlds: the opportunity to fund innovation and growth – as in venture capital – plus the ability to limit downside risk and invest in proven companies – as in private equity.
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Top 7 Mistakes Business Sellers Make
Sun M&A
MARCH 14, 2024
While starting a business is easily one of the most challenging tasks for a business owner, selling that business isn’t without stress. We’ve helped hundreds of lower mid-market and mid-market companies with exit strategies. Here are the top seven mistakes business sellers make when selling their business.
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6 Good Reasons Startups Don't Pursue Venture Funding
Lighter Capital
AUGUST 25, 2023
Revered for its seemingly magical superpowers that promise a happy ending, venture capital (VC) is often seen as the secret to startup success, even though the real power to make your dreams come true lies within you. Venture capital funding is to tech startups what the Wizard of Oz was to Dorothy. Venture capital is absurdly hard to secure.
How to Sell Business Equity
Sun Acquisitions
SEPTEMBER 9, 2022
Should you sell business goodwill? If it makes financial sense and you understand the dilution aspect of selling equity and the potential interference from investors, then yes, go ahead. Whatever your motives for giving up part ownership in your company, there are things M&A brokers want you to be aware of.
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Business Advisor Highlight: Raleigh, NC
Viking Mergers
OCTOBER 3, 2022
Soon, Devak’s family began selling their DQ stores, and he got to see the business selling process firsthand. “I I saw how difficult the process was for my parents. There’s a learning curve when you sell a business… You’re selling what you’ve poured your life into.”. There was no personal touch.
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The Founder’s Guide to Equity Dilution
Lighter Capital
FEBRUARY 12, 2024
Equity dilution is simply the result of supply and demand. A startup founder begins the entrepreneurial journey owning 100% of the company, or a split of that if there are co-founders in the mix. Equity dilution occurs when new shares in a company are issued to individuals or entities. How Equity Dilution Works II.
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What Is Revenue-Based Financing and How Does It Work?
Lighter Capital
SEPTEMBER 9, 2023
Whether your startup just launched, has been in the market for a few years, or has grown to millions in sales, at some point, it will need funding to accelerate growth. Startups have traditionally sold a portion of their company (equity ownership) to a business partner — typically a venture capital (VC) firm — to raise growth capital.
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What Does An Exit Really Mean?
Scott Mashuda
JANUARY 16, 2023
This could include selling a controlling interest and retaining a minority stake or vice versa. This could also mean selling 100% of the company. Working with an investment bank to arrange the sale of your business empowers entrepreneurs to focus on defining their career objectives and financial goals.
Startup Stock Option Survival Guide: Essential Tips for Protecting Your Equity
RNC
JANUARY 16, 2024
Even if they have the potential to yield large financial gains, startup equity presents a complex terrain that calls for careful thought and deliberate planning. This Startup Stock Option Survival Guide will go over important pointers to keep your equity stake safe and enhance its worth.
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Division Highlight: Viking M&A is Growing in Nashville, TN
Viking Mergers
JULY 28, 2022
Ian is the most recent addition to our Nashville, TN, market, and he joins the Viking team from a private equity and portfolio management organization. Ian is the most recent addition to our Nashville, TN, market, and he joins the Viking team from a private equity and portfolio management organization. Why Viking is Here.
Matching Financial Strategies to Business Acquisition Goals
Sun Acquisitions
FEBRUARY 14, 2024
In the ever-evolving landscape of business acquisitions, success is not solely determined by finding the right target company or striking a favorable deal. It also hinges on selecting the most appropriate financial strategy that aligns with your acquisition goals. What works for one purchase may be different from another.
5 SaaS Financing Options to Extend Your Runway in 2023
Lighter Capital
JULY 22, 2023
SaaS companies often start generating revenue much earlier compared to startups in other tech categories. When opportunity strikes, how do you extend your runway to reach that next level? Here are the most SaaS-friendly funding solutions to help your startup grow. For investors, SaaS means security. Maturity date.
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Data Update 4 for 2024: Danger and Opportunity - Bringing Risk into the Equation!
Musings on Markets
JANUARY 28, 2024
In my last data updates for this year, I looked first at how equity markets rebounded in 2023 , driven by a stronger-than-expected economy and inflation coming down, and then at how interest rates mirrored this rebound. What is risk?
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Looking to Sell a Healthcare Business?
Sun Acquisitions
JANUARY 17, 2023
If you’re planning on selling your healthcare business, you may be wondering who to sell it to and how you will accomplish this feat. This post examines five top ways to sell a healthcare business. Business brokers are experts who specialize in assisting business owners and investors to sell or buy companies.
Deal Structures: Legalities to Negotiate When Selling a Business
Viking Mergers
JUNE 14, 2022
When a buyer presents an offer document (LOI or Offer for Purchase are most often used) to purchase your business, besides the proposed purchase price, it will include proposed payment terms, conveyance of assets, legalities, post-closing transition period, and more. 4 Legalities to Negotiate When Selling a Business.
How to Increase Your Tech Startup's Valuation
Lighter Capital
AUGUST 10, 2023
If you’re a founder at an early stage SaaS startup, you’re always looking for ways to drive higher and higher company valuations, especially as you move from one round of funding to the next. With the multiples approach, a multiple is applied against a company metric, like revenue, for example.
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The Seven Samurai: How Big Tech Rescued the Market in 2023!
Musings on Markets
FEBRUARY 8, 2024
While I will use the "Magnificent Seven" moniker attached by these companies by investors and the media, my preference would have been to call them the Seven Samurai. With them, US equities had price appreciation of 23.25% for the year, but without them, the year would have been an average one, with returns on 12.6%.
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The Ultimate Angel Investors Checklist
Startup Valuation Blog
AUGUST 2, 2022
An angel investor is an individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. They will be happy to invest in a company that has 4 characteristics: 1.Return Have the company developed a new technology? What is the company’s MRR?
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The Growth Equity Case Study: Real-Life Example and Tutorial
Brian DeChesare
JANUARY 24, 2024
Let’s start with the elephant in the room: yes, we’ve covered the growth equity case study before, but I’m doing it again because I don’t think the previous examples were great. So, you can think of this example and tutorial as “Growth Equity Case Study: The Final Form.” Walk us through your thought process.
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Sell an IT Business Successfully in 5 Steps
Sun Acquisitions
FEBRUARY 3, 2023
To sell an IT business successfully, there are a couple of steps you can follow to streamline the process. 1. Preparation for Sale If your exit strategy is a sale, it’s important that you take sufficient time to get the business ready to be put on the market. A first step may be cleaning up your financial records.
Private Equity Exit Opportunities: How to Check Out of Hotel California
Brian DeChesare
NOVEMBER 30, 2022
Your first thoughts reading this article might be, “Wait a minute, why are ‘private equity exit opportunities’ a topic? But despite the hype, people do leave private equity all the time, whether it’s voluntary or forced. So, as with every other career, it’s important to understand your exit options. Good questions.
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E-commerce Is Booming – What Does That Mean for Me as a Seller?
FE International
APRIL 20, 2022
At the lower end of the market, individuals are still leaving their jobs to buy businesses and at the higher end, institutional investors and private equity firms have more capital available than ever before. 2021 was a year where the world adjusted to the new normal of the COVID-19 pandemic. Key Statistics. Invested Capital.
How to Grow a SaaS Business, Fast
Lighter Capital
MAY 1, 2024
It can also be advantageous to delay an equity funding round and focus on strengthening the business’ financial metrics, which can help not only avoid a potential down round but also increase the startup’s valuation. Nearly all SaaS startups will use the first three strategies above to grow their businesses.
Good Debt vs. Bad Debt: Know the Difference to Fund Your Startup Wisely
Lighter Capital
SEPTEMBER 26, 2023
For tech startups that need capital to grow fast when opportunity arises, there are two main funding paths to choose from: debt and equity. Equity funding from angel investors or venture firms, which requires selling a stake in the company in exchange for capital, is seen as high-risk, high-reward, and it comes with a certain prestige.
Long/Short Equity: Full Guide to the Most Accessible Hedge Fund Strategy
Brian DeChesare
APRIL 13, 2022
They all think they can make a fortune buying and selling stocks; in other words, they’re fans of the long/short equity strategy. When the average person thinks of hedge funds, long/short equity is often the first thing that comes to mind. Probably 90% of hedge fund stock pitches use long/short equity or related strategies.
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9 Factors That Affect The Value Of A Startup
Startup Valuation Blog
DECEMBER 15, 2021
As we have already mentioned the importance of valuing your startup, an increased startup value directly means that you are excelling in your startup, and your continuous struggle will indeed bear fruit. However, how can you ensure that your startup value is increasing? 2. Business Idea.
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Acquisitions Often Fail. So Are They Worth the Risk?
M&A Leadership Council
FEBRUARY 27, 2024
To begin with, let’s consider the clearly positive case of one small company buying another in an emerging industry. To begin with, let’s consider the clearly positive case of one small company buying another in an emerging industry. In the worst-case scenario, it could all but foreclose access to the equity markets.
Discover Success Together: Collaborative Steps Between REAG and CEPAs
Scott Mashuda
APRIL 15, 2024
How REAG Supports the CEPA and their clients through M&A REAG supports CEPAs with essential expertise to clarify strategies, ensure informed decision-making and deliver successful outcomes. Building the Foundations for Enduring Success How does REAG help CEPAs during The Discovery Gate of the Value Acceleration Methodology?
How to Sell a Manufacturing Business
Sun Acquisitions
DECEMBER 16, 2022
Selling a manufacturing business doesn’t have to be complex. If you know what to do you can cut down on the time-consuming process of selling a business. In this post, we present six steps to guide you on how to make the selling process smoother. This may involve: Getting company financial records in order.
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What Is Revenue-Based Financing and How Does It Work?
Lighter Capital
SEPTEMBER 9, 2023
Whether your startup just launched, has been in the market for a few years, or has grown to millions in sales, at some point, it will need funding to accelerate growth. Startups have traditionally sold a portion of their company (equity ownership) to a business partner — typically a venture capital (VC) firm — to raise growth capital.
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Unlocking Financial Multiples: Why They’re Holding Strong Amid Rising Debt Costs
Scott Mashuda
NOVEMBER 13, 2023
The Rising Cost of Debt: What this means for Entrepreneurs The cost of debt, encompassing interest payments and associated expenses, is a critical factor that influences a company’s financial decisions. How Does the Cost of Debt Influence M&A?
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Deal Killers, War Stories & The Ugly Truth About the Long No
Scott Mashuda
MAY 17, 2023
That’s why it’s essential to have experienced investment bankers on your team to keep the deal on track. In “ Mergers & Acquisitions: Deal Terms, Deal Killers and War Stories ”, REAG will share real-life deal stories, highlighting some of the most significant deal killers and how to avoid them.
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From Due Diligence To Deal Completion: The Ultimate Checklist For Selecting A Mergers And Acquisitions Advisor
Benzinga
MARCH 9, 2023
Most entrepreneurs work toward the sale of their companies for years, decades, or even their entire careers, so making a poor choice in your M&A advisor can have a large negative impact on the transaction outcome. Selling a business is a complicated matter that requires specialized expertise.
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The Full Guide to Healthcare Private Equity, from Careers to Contradictions
Brian DeChesare
NOVEMBER 1, 2023
When you hear the words “healthcare private equity,” two thoughts probably come to mind: Wait a minute, isn’t healthcare a risky/growth-oriented sector? Don’t they need companies with stable cash flows? Are there many private healthcare companies for PE firms to acquire? Why do PE firms operate there?
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An Adventure in Acquisition Entrepreneurship
Viking Mergers
NOVEMBER 28, 2022
I actually thought about starting something like a consulting business or a publishing company,” Ken recalls. “I I actually thought about starting something like a consulting business or a publishing company,” Ken recalls. There is a great deal of insight to glean from Ken’s journey, which he generously shared with us.
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Capital Markets vs. Investment Banking: Deals, Careers, Recruiting, Exits, and Offer Decisions
Brian DeChesare
OCTOBER 18, 2023
Investment Banking: Deals The basic difference is that in “investment banking” groups, such as technology , TMT , healthcare , or consumer retail , you work on various deal types: sell-side and buy-side M&A, leveraged buyouts, IPOs, follow-on offerings, and bond issuances. Do you work or get paid less in capital markets?
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How to Start a Private Equity Firm – and Why You Probably Shouldn’t
Brian DeChesare
OCTOBER 12, 2022
If you search for “how to start a private equity firm” online, you’ll find results that range from useless to tangentially useful to occasional nuggets of real wisdom. That said, much of it is better than the junk found on generic websites about how to start a hedge fund. How Does It Work?
Appraiser Newsroom - Untitled Article
Appraiser Newsroom
MAY 14, 2024
Join us online this summer as our industry experts dive into the intricacies of employee stock ownership plans (ESOP) and how they affect experts in or adjacent to the appraisal profession. Don’t miss out—reserve your spot today to enhance your understanding of ESOP complexities and elevate your expertise in the field.
How to Calculate EBITDA Margin and What It Says About Your Financial Health
Lighter Capital
AUGUST 31, 2023
Before we show you how to calculate EBITDA margin and how to interpret it, we’ll define EBITDA, discuss its importance, and clarify how EBITDA margin compares to other profitability measures. This percentage indicates how much of a company’s operating expenses are eating into profits. What is EBITDA?
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