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Mergers & Acquisitions

John Wagner - working capital peg

Anatomy of a deal

There can be as many as four deal elements that make up an offer to acquire your company.
John Wagner - working capital peg

Five types of EBITDA

EBITDA is a term with a time-worn, clinical definition. It stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.
John Wagner - working capital peg

Three types of acquirers

There are three general classes of buyers that might acquire your company: 1) A Strategic Buyer (strategic), 2) a pure Private Equity Group (PEG), 3) a Merchant’s Bank.
John Wagner - working capital peg

The value of a good CPA

Fact is, a good CPA is worth their weight in gold, and well worth the expense to retain one.
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

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.

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