Tag: In-house Analysis

Understanding Seller Rollover Equity

Selling a business represents a significant decision for any business owner, often embodying the culmination of years, if not decades, of hard work and dedication. As owners approach a potential sale, one of the most pressing questions beyond valuation or deal structure is understanding what their involvement will be once a transaction is complete.

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Earnouts in Middle-Market M&A: A Strategic Tool for Structuring Transactions

In middle-market mergers and acquisitions (M&A), earnouts have become an increasingly popular mechanism for structuring transactions. This contingent payment arrangement, in which a portion of the purchase price is linked to the future performance of the selling company, offers benefits to both buyers and sellers, especially in uncertain economic conditions.

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Investing in Qualified Opportunity Zone Businesses

Initially conceived by the Economic Innovation Group (EIG) and formally established by the Tax Cuts and Jobs Act of 2017 (TCJA), Opportunity Zones serve as an economic development initiative enabling investors to channel capital into underserved areas across the United States.

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The Exit Planning Process: Selling a Lower Middle Market Private Business

Deciding to sell a private business is one of the most significant choices a business owner will ever face. This is particularly true for those in the lower middle market, where businesses typically range in value from $5 million to $100 million. The stakes are high, and the process can often be complex. However, a well-crafted exit plan can help maximize the business’s value, mitigate risks, and ensure a smooth transition to the owner’s next chapter—be it retirement, a new venture, or simply reaping the benefits of their hard work.

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The Purpose of Representations and Warranties Insurance in an M&A Transaction

R&W insurance provides private equity firms, strategic and corporate buyers, risk managers, and other stakeholders with a risk mitigation solution for uncertainties in a merger or acquisition. The policy is available to either the buyer or seller and provides protection against financial loss, including defense costs for certain unintentional or unknown seller breaches.

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