In the first quarter, corporate divestitures saw a resurgence, giving sellers increased flexibility and liquidity. According to PitchBook, this resurgence also presented private equity buyers with valuable acquisition opportunities, especially at a time of limited sponsor-to-sponsor activity. #PrivateEquity #MergersAndAcquisitions #MarketTrends
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Corporate divestitures - also known as carveout deals - saw a significant spike in Q1, accounting for 15.5% of buyout deals in the middle market, rebounding from a low of 7.6% in 2022. Such deals have become a more important piece of PE dealmaking, offering sellers flexibility and liquidity while providing private equity buyers with acquisition opportunities at a time of limited sponsor-to-sponsor activity. #privateequity #mergersandacquisitions #pitchbook #investmentbanking
Carveout deals stage a comeback - PitchBook
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📈 Corporate Divestitures Surge in Q1 2024! 📈 In Q1 2024, corporate divestitures surged, offering sellers flexibility and liquidity while giving private equity buyers prime acquisition opportunities amid limited sponsor-to-sponsor activity. According to PitchBook, carveouts spiked to 15.5% of middle-market buyouts, up from 7.6% in 2022 and above the 2010-2020 average of 12.1%. Key deals include Sentinel Capital Partners' $1.425B acquisition of Carrier Global's industrial fire business, and Francisco Partners and Clearlake Capital's $2.1B purchase of Synopsys' Software Integrity Group. Carveouts are set to remain robust as corporates focus on core assets and debt reduction. Carve-out's are often seen as an opportunity to pivot business models, or take 'known' brands and capitalise on market opportunities by going it alone! Camino Search have supported a number of PE investors to build operations, and C-suite teams from the ground up, as well as hiring Transformation leaders who build the infrastructure for newly formed organisations! If 'carve-outs' are on the agenda for you as an Investor, or if you're looking for your next opportunity drop me a note! #PrivateEquity #CorporateDivestitures #MiddleMarket #InvestmentTrends #Carveout #CFO #Tech #Software #Services #Healthcare https://lnkd.in/e6jBKs_F
Carveout deals stage a comeback
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As a Business Broker facilitating mergers, acquisitions and divestitures, I often encounter business owners who have misconceptions about how the M&A process works. Myths and outdated conventional wisdom frequently get passed around, creating unrealistic expectations. It's time to bust some of those persistent M&A myths wide open: Myth #1: My Business is Too Small for M&A Truth: Companies of all sizes pursue M&A as an exit strategy or growth play. From mom-and-pop operations to multi-billion dollar conglomerates, no business is too small or too large. Myth #2: I Need to Hire an Investment Bank Truth: While banks do facilitate large transactions, smaller deals don't require their services - or massive fees. Business brokers are better suited for most sale transactions. Myth #3: I'm in Control of the Negotiation Truth: Buyers call the shots - you're just along for the ride. Skilled brokers balance this by creating a controlled auction environment with multiple prospective buyers bidding. Myth #4: Valuation is an Exact Science Truth: Valuation is part art, part science. No business is "worth" a fixed dollar amount. Factors like timing, deal structure, and buyer motivations create a range of value. Myth #5: The Highest Offer is Always Best Truth: Price isn't everything. More stringent terms around asset vs. equity structure, earnouts, seller financing, reps/warranties, and more can erode that headline valuation number. The M&A process is extremely nuanced, with no one-size-fits-all formula for success. Working with an experienced business broker who understands these complexities is pivotal for owners looking to optimize their exit or growth pathway. #mergersandacquisitions #ma #exitplanning #divestiture #valuationmyths #dealmyths #buysideadvice #sellsideadvice #businessbrokers
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Build Better Mergers And Acquisitions With These Four Questions The M&A landscape has been quite tumultuous over the past year or so. With high interest rates, major geopolitical tensions, global economic uncertainty and a general lack of confidence in the economy, investors and banks are more cautious than ever, and the M&A market is seeing less action. While investors and companies alike are eager for an upswing, deal-makers can still secure strong, lucrative opportunities by implementing the right strategy and asking the right questions. https://lnkd.in/edUbNu7w #cronelaw The Crone Law Group, P.C.
Council Post: Build Better Mergers And Acquisitions With These Four Questions
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💡 Know your worth! In the intricate world of mergers and acquisitions, valuing a company accurately is crucial. But have you wondered how best to measure a company's worth? Enter the stage: Enterprise Value and Equity Value. Enterprise Value: The comprehensive gauge 🔸 Enterprise Value goes beyond just the equity standing to encapsulate the entire market value of a business. It's essentially the takeover price, considering not just what the shares are worth but also the debts owed and cash on hand. This last point is key, as the net debt will increase or decrease the "cash" at the end of the transaction. 🔸 To calculate Enterprise Value, add all debts, preferred shares, and interest obligations, then subtract any cash or cash equivalents. This figure offers a bird's eye view of a company's worth, unaffected by its capital structure. Equity Value: The shareholder's perspective: 🔹 Equity Value represents the section of company value attributable to shareholders. That is the value that remains for the shareholders after any debts have been paid off. 🔹 Equity Value is found by taking the Enterprise Value, adding all assets not essential to the company's primary business activities, and then deducting the net debt. It provides a snapshot of the company's value from the viewpoint of equity holders - both common and preferred. Both metrics serve different purposes but ultimately guide stakeholders through the complex valuation process in a transaction. At Vivero, we understand the complexities of running and adding value to your business. We have been there ourselves too. That's why our mission is to help you maximise your business potential. From growth and transformation to funding and selling, we simplify the whole process. #EnterpriseValue #MergersAndAcquisitions #BusinessValuation
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Build Better Mergers And Acquisitions With These Four Questions The M&A landscape has been quite tumultuous over the past year or so. With high interest rates, major geopolitical tensions, global economic uncertainty and a general lack of confidence in the economy, investors and banks are more cautious than ever, and the M&A market is seeing less action. While investors and companies alike are eager for an upswing, deal-makers can still secure strong, lucrative opportunities by implementing the right strategy and asking the right questions. https://lnkd.in/egxjWCk4 #cronelaw The Crone Law Group, P.C.
Council Post: Build Better Mergers And Acquisitions With These Four Questions
forbes.com
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💡 Know your worth! In the intricate world of mergers and acquisitions, valuing a company accurately is crucial. But have you wondered how best to measure a company's worth? Enter the stage: Enterprise Value and Equity Value. Enterprise Value: The comprehensive gauge 🔸 Enterprise Value goes beyond just the equity standing to encapsulate the entire market value of a business. It's essentially the takeover price, considering not just what the shares are worth but also the debts owed and cash on hand. This last point is key, as the net debt will increase or decrease the "cash" at the end of the transaction. 🔸 To calculate Enterprise Value, add all debts, preferred shares, and interest obligations, then subtract any cash or cash equivalents. This figure offers a bird's eye view of a company's worth, unaffected by its capital structure. Equity Value: The shareholder's perspective: 🔹 Equity Value represents the section of company value attributable to shareholders. That is the value that remains for the shareholders after any debts have been paid off. 🔹 Equity Value is found by taking the Enterprise Value, adding all assets not essential to the company's primary business activities, and then deducting the net debt. It provides a snapshot of the company's value from the viewpoint of equity holders - both common and preferred. Both metrics serve different purposes but ultimately guide stakeholders through the complex valuation process in a transaction. At Vivero, we understand the complexities of running and adding value to your business. We have been there ourselves too. That's why our mission is to help you maximise your business potential. From growth and transformation to funding and selling, we simplify the whole process. #EnterpriseValue #MergersAndAcquisitions #BusinessValuation
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💡 Know your worth! In the intricate world of mergers and acquisitions, valuing a company accurately is crucial. But have you wondered how best to measure a company's worth? Enter the stage: Enterprise Value and Equity Value. Enterprise Value: The comprehensive gauge 🔸 Enterprise Value goes beyond just the equity standing to encapsulate the entire market value of a business. It's essentially the takeover price, considering not just what the shares are worth but also the debts owed and cash on hand. This last point is key, as the net debt will increase or decrease the "cash" at the end of the transaction. 🔸 To calculate Enterprise Value, add all debts, preferred shares, and interest obligations, then subtract any cash or cash equivalents. This figure offers a bird's eye view of a company's worth, unaffected by its capital structure. Equity Value: The shareholder's perspective: 🔹 Equity Value represents the section of company value attributable to shareholders. That is the value that remains for the shareholders after any debts have been paid off. 🔹 Equity Value is found by taking the Enterprise Value, adding all assets not essential to the company's primary business activities, and then deducting the net debt. It provides a snapshot of the company's value from the viewpoint of equity holders - both common and preferred. Both metrics serve different purposes but ultimately guide stakeholders through the complex valuation process in a transaction. At Vivero, we understand the complexities of running and adding value to your business. We have been there ourselves too. That's why our mission is to help you maximise your business potential. From growth and transformation to funding and selling, we simplify the whole process. #EnterpriseValue #MergersAndAcquisitions #BusinessValuation
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💡 Know your worth! In the intricate world of mergers and acquisitions, valuing a company accurately is crucial. But have you wondered how best to measure a company's worth? Enter the stage: Enterprise Value and Equity Value. Enterprise Value: The comprehensive gauge 🔸 Enterprise Value goes beyond just the equity standing to encapsulate the entire market value of a business. It's essentially the takeover price, considering not just what the shares are worth but also the debts owed and cash on hand. This last point is key, as the net debt will increase or decrease the "cash" at the end of the transaction. 🔸 To calculate Enterprise Value, add all debts, preferred shares, and interest obligations, then subtract any cash or cash equivalents. This figure offers a bird's eye view of a company's worth, unaffected by its capital structure. Equity Value: The shareholder's perspective: 🔹 Equity Value represents the section of company value attributable to shareholders. That is the value that remains for the shareholders after any debts have been paid off. 🔹 Equity Value is found by taking the Enterprise Value, adding all assets not essential to the company's primary business activities, and then deducting the net debt. It provides a snapshot of the company's value from the viewpoint of equity holders - both common and preferred. Both metrics serve different purposes but ultimately guide stakeholders through the complex valuation process in a transaction. At Vivero, we understand the complexities of running and adding value to your business. We have been there ourselves too. That's why our mission is to help you maximise your business potential. From growth and transformation to funding and selling, we simplify the whole process. #EnterpriseValue #MergersAndAcquisitions #BusinessValuation
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💡 Know your worth! In the intricate world of mergers and acquisitions, valuing a company accurately is crucial. But have you wondered how best to measure a company's worth? Enter the stage: Enterprise Value and Equity Value. Enterprise Value: The comprehensive gauge 🔸 Enterprise Value goes beyond just the equity standing to encapsulate the entire market value of a business. It's essentially the takeover price, considering not just what the shares are worth but also the debts owed and cash on hand. This last point is key, as the net debt will increase or decrease the "cash" at the end of the transaction. 🔸 To calculate Enterprise Value, add all debts, preferred shares, and interest obligations, then subtract any cash or cash equivalents. This figure offers a bird's eye view of a company's worth, unaffected by its capital structure. Equity Value: The shareholder's perspective: 🔹 Equity Value represents the section of company value attributable to shareholders. That is the value that remains for the shareholders after any debts have been paid off. 🔹 Equity Value is found by taking the Enterprise Value, adding all assets not essential to the company's primary business activities, and then deducting the net debt. It provides a snapshot of the company's value from the viewpoint of equity holders - both common and preferred. Both metrics serve different purposes but ultimately guide stakeholders through the complex valuation process in a transaction. At Vivero, we understand the complexities of running and adding value to your business. We have been there ourselves too. That's why our mission is to help you maximise your business potential. From growth and transformation to funding and selling, we simplify the whole process. #EnterpriseValue #MergersAndAcquisitions #BusinessValuation
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