News & Analysis as of

EBITDA Buyers

Whiteford

Private Company M&A - Reverse Diligence: Questions Sellers Should Ask of Bidders

Whiteford on

When selling a private company, Sellers understandably focus on providing bidders with a comprehensive data room packed with detailed documents and information about every aspect of their business. They expect bidders to pore...more

Whiteford

Private Company M&A - Earn-Outs: Gravy on Top?

Whiteford on

Periodically, particularly during economic downturns or times of market uncertainty, the private M&A market experiences a significant increase in the use of earnouts. As was the case following the Great Recession and the...more

Orrick, Herrington & Sutcliffe LLP

UK Tech Exit Series – The Term Sheet

Orrick’s Tech Exit Series suggests tips for tech companies looking toward an exit. Our market-leading London M&A and Private Equity team writes instalments in the series with contributions from specialists across our broader...more

Robinson+Cole Manufacturing Law Blog

Multiples, Multiples, Multiples! Why Manufacturing Companies Should Look Beyond EBIDTA Multiples

What are you hearing? What do the “multiples” look like in my [insert sub-industry] in manufacturing?...more

Levenfeld Pearlstein, LLC

M&A Segment Trends, Seller and Buyer Motivations, and Process Strategies: A Conversation with Robert Meyer at Peakstone Group

To help businesses, investors, and deal professionals better understand the evolving M&A market, Rob Connolly – a partner in and leader of LP’s Corporate Practice Group – shares a series of conversations with M&A experts. ...more

Womble Bond Dickinson

Earnout Deals Surge in Uncertain Times – What M&A Professionals Need to Know About Earnouts

Womble Bond Dickinson on

The M&A market has witnessed a major increase in the use of earnout deal terms after 2021. The number of deals with earnout provisions jumped from around 20% in 2021 to 33% in 2023....more

Levenfeld Pearlstein, LLC

M&A Insights and Outlooks Regarding Financing: A Conversation with Gary Grote of Bridgepoint Investment Banking

Below is his conversation with Gary Grote, Managing Director at Bridgepoint Investment Banking, which focuses on capital raising and M&A advisory solutions. Gary focuses on deals in the healthcare, leveraged finance,...more

Barnea Jaffa Lande & Co.

Conditional Payment (Earn-Out)

In merger and acquisition (M&A) transactions, the earn-out mechanism serves as a strategic tool for conditional payment based on the prospective performance of the acquired entity. This mechanism is particularly prevalent in...more

Tonkon Torp LLP

Earn-Outs: Bridging the Valuation Gap

Tonkon Torp LLP on

Do we value our possessions more just because we own them? Sometimes. Does this association of value apply to businesses? Almost always. The Cost of Risk- Buyers and sellers of a business often find themselves with a...more

Buckingham, Doolittle & Burroughs, LLC

Selling a business in the current high-deal volume environment

Selling a business in any environment can be challenging when planning is not addressed early in the M&A process. The challenges are heightened in the current environment where buyers are looking at multiple potential deals...more

Stikeman Elliott LLP

Choose Your Words Carefully: Three Recent Earnout Cases Under Delaware Law

Stikeman Elliott LLP on

When the prospects of an acquired business are uncertain, an earnout can bridge the valuation gap between buyer and seller and help get the deal done. Taking this route is not without risk, however, particularly where...more

Fox Rothschild LLP

Understanding the Differences in the Enforcement of Arbitration Awards and Expert Determinations

Fox Rothschild LLP on

Is there a difference in enforcement between an arbitration award and an expert determination pursuant to a contract? The answer is yes, according to a recent ruling by the 3rd Circuit U.S. Court of Appeals that includes...more

Goodwin

Use of EBITDA in Earnouts Increased 22% in Two Years

Goodwin on

From 2020 to 2022, EBITDA became almost as prevalent as revenue metrics for determining earnout payments, according to analysis of the Goodwin Private Equity Deals Database. In 2022, EBITDA was used in 40% of earnouts, up 22%...more

Rivkin Radler LLP

Letters of Intent – Negotiating the Framework of Your Transaction

Rivkin Radler LLP on

In our last installment, we discussed some of the initial steps involved in the process of selling a dental practice, including preparing your practice for sale and finding a potential suitor. Specifically, we described ways...more

Levenfeld Pearlstein, LLC

2023 Insurance Brokerage M&A Survey: 5 Key Takeaways for the Industry

During the second quarter of 2023, LP’s insurance brokerage team surveyed many respected professionals in the insurance brokerage M&A industry, including M&A advisors and highly acquisitive buyers. All are experienced in the...more

Rivkin Radler LLP

Contemplating Selling Your Practice? Consider These First Steps

Rivkin Radler LLP on

In our last installment, we discussed that the dental services industry has undergone large-scale consolidation in recent years, primarily driven by Dental Services Organizations (DSOs) and private investors. We described...more

DarrowEverett LLP

New M&A Broker Exemption: To Be Or Not To Be, That Is The Question

DarrowEverett LLP on

On March 29, 2023, a new exemption from SEC registration for brokers providing services in mergers and acquisitions (“M&A”) transactions officially went into effect. The exemption, outlined in Section 501 of the Consolidated...more

Balch & Bingham LLP

Private Company M&A Trends For 2023

Balch & Bingham LLP on

As interest rates increased in the second half of 2022 to levels not seen in over a decade, certain trends in deal-making began to appear. With continued uncertainty over higher interest rates and fear of economic downturn,...more

White & Case LLP

What’s next for US M&A?

White & Case LLP on

As predicted in our previous M&A report, 2022 has not lived up to the runaway performance of 2021. As activity—still at impressive levels considering everything that has been thrown at the deal market—takes a breather, we...more

McDermott Will & Emery

Value Investing Forum 2022: Maximizing Value for Stakeholders

McDermott Will & Emery on

In this session, Stephanie McCann, Partner and Co-Head of McDermott’s Finance Practice Group, and Frank Steinherr, Partner and Co-Head of McDermott’s Private Equity Practice Group, hosted a discussion that explored strategies...more

Greenbaum, Rowe, Smith & Davis LLP

Earnouts a Complicated but Useful Option in Mergers and Acquisitions

The purchase price is an integral component of any purchase and sale of an operating business, if not the integral component. As in the purchase and sale of anything, the seller and the buyer often have different opinions...more

McDermott Will & Emery

Top Ten Investment Trends and Opportunities in the Healthcare Market

As the world enters a phase of the global pandemic marked by an increasing rate of vaccinations, investors are looking for global (particularly, European) healthcare market opportunities. With the emergence of certain...more

McDermott Will & Emery

The Private Equity Market in Italy: Past, Present and Future

McDermott Will & Emery on

Past: Once Upon a Time - Thinking back to pre-pandemic times, it cannot be said that the Italian private equity (PE) and venture capital (VC) market was particularly flourishing or on the rise. Funding was decreasing...more

McDermott Will & Emery

Mind the Gap: Strategies for Addressing the Valuation Gap in European M&A Deals During and After COVID-19

McDermott Will & Emery on

In a climate where there are so many unknown factors challenging valuation methodologies, we explore a number of mechanisms that European dealmakers may consider during the Coronavirus (COVID-19) pandemic in order to bridge...more

King & Spalding

M&A Purchase Price Considerations in the Context of COVID-19

King & Spalding on

Much like everything else in the world, M&A transactions must adjust in order to account for the impact of COVID-19. Arguably the most important feature in any M&A transaction is the purchase price. Set forth below are...more

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