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John D. Wagner

John Wagner is a managing director at 1st West Mergers and Acquisitions, which offers a specialty practice in the LBM sector. To learn more, contact John at: j.wagner@1stWestMA.com, or visit www.1stwestma.com.
John Wagner - working capital peg

Mind the spread between OPEX and EBITDA

A (hypothetical) Mr. Coyle started two identical lumber dealerships years ago in a thriving area of New England. When he retired, he gave one location to one son, named Mark, and one to another son, Chris.
John Wagner - working capital peg

What is a pre-empt?

The longer I am in the M&A business, the more I realize how fragile deals can be, and how easily acquirers can walk away.
John Wagner - working capital peg

Roll-up acquisitions: How they work

The term “roll-up” describes a financial engineering process used by private equity and strategic investors, where multiple smaller companies, typically in the same market sector, are acquired and merged.
John Wagner - working capital peg

How an acquisition’s working capital peg is calculated

As an acquisition closes, the investment banker representing the seller calculates the working capital peg.
John Wagner - working capital peg

Don’t take low acquisition offers personally

A neighborhood friend stormed into my house recently, fuming. He’d just put his house on the market and gotten a bid the very first day.
John Wagner - working capital peg

Creative earnout structures in the lumber and building materials industry

Even with the hot M&A market, where there is enduring support for strong acquisition values, buyers of LBM companies are not exactly splashing cash around like drunken sailors or newly elected presidents.
John Wagner - working capital peg

Already have a buyer? Why even use an investment banker?

Our investment bank will often get a call from a company that has just been approached by an acquirer.
John Wagner - working capital peg

How to pocket cash from your balance sheet in the sale of your company

In a debt-free/cash-free sale, you, the seller, must resolve any long-term debt out of the proceeds of the deal at the closing.
John Wagner - working capital peg

Time is the enemy in deal making

An acquirer spots your business, gets the deal book from your investment banker, and then—all of a sudden—there’s a rush of conference calls.
John Wagner - Acquisition offers

What explains the white-hot LBM M&A market?

There was already a steady low-boil of M&A activity in early 2020. But then, last November, fuel was thrown on the M&A bonfire.

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