article thumbnail

The Power of Synergy: How Mergers Create Exceptional Value

Sun Acquisitions

Financial Synergies: Mergers can optimize capital structure, improve credit ratings, and enhance access to financing, leading to lower borrowing costs and increased financial flexibility. Human Capital Synergies: Bringing together talented individuals from different companies can foster innovation, creativity, and knowledge sharing.

article thumbnail

How to Avoid Chapter 22 in Restructuring Work for Energy Companies

Value Scope

The cash flows we isolate are tested for their ability to support debt, the new capital structure of the restructured firm. Probabilistic modelling provides real decision makers with a range in which they can negotiate and design a better capital structure for the most likely economic forecast. Conclusion.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

“Dual Class”? How About “Dual Series”?

John Jenkins

Here’s a post I recently shared on TheCorporateCounsel.net blog: The Goodwin team that represented the issuer in the first IPO by a traditional venture-backed technology company in more than 18 months recently wrote an alert explaining why the company’s high vote/low vote capitalization structure — which is very common in venture-backed technology (..)

article thumbnail

Navigating the Risk-Reward Equation in Mergers and Acquisitions: Unveiling the Dynamics of Financing Models

Sun Acquisitions

This blog post delves into the intricacies of different financing models, shedding light on the associated risks and rewards. This financing model typically involves a combination of debt and equity instruments, providing flexibility in structuring the deal.

Finance 59
article thumbnail

How to Value My Business to Sell

Sun Acquisitions

Your business’ capital structure makeup. Disclaimer: Any information provided in this blog is not intended to replace legal, financial, or taxation advice given by qualified professionals. Rather, it’s the price that analysts have pegged your business as being worth , after considering (among other factors): Business management.

article thumbnail

Innovative Financing Strategies for M&A Deals Amid Economic Uncertainty

Sun Acquisitions

Mezzanine Financing: Mezzanine financing sits between equity and debt in the capital structure and is often used to fund M&A transactions. Mezzanine lenders provide capital in exchange for a combination of interest payments and an equity stake in the target company.

Finance 59
article thumbnail

Understanding Business Valuation: Why & When You Need One

GCF Value

The business valuation will also likely consider additional factors: The capital structure of the business Prospects for future earnings The market value of physical assets.