Stambaugh Ness’ Post

The tide is turning in M&A financing! After a period of hesitation, the bond markets are once again buzzing with activity. This time, it's to fuel the ambitious plans of corporations looking to expand through mergers and acquisitions. Investors are showing renewed confidence, pouring their money into corporate bonds. This shift marks a significant change from last year's cautious stance. It's a clear signal that the appetite for major M&A deals is back, and with it, the mechanisms to fund these expansive endeavors. Why does this matter for businesses and investors alike? First, it indicates a robust recovery and optimism in the economy, encouraging companies to pursue growth through acquisitions. Second, for investors, it's an opportunity to back these ambitious plans, potentially reaping the benefits of the enhanced value these mergers can create. As we navigate this resurgence, it's crucial to stay informed and agile. The landscape of M&A is dynamic, and with the bond markets bustling, the possibilities are vast. Let's keep a keen eye on how these developments unfold, ready to seize the opportunities they present. For those involved in M&A Analytics, Data Analytics, and Due Diligence, this is your arena. The game is changing, and your expertise is more valuable than ever. Stay ahead, stay informed. Check this out: https://lnkd.in/e3Yz2-r6

Today’s financing and economic environment has created specific challenges for private equity sponsors, prompting management teams to be more prepared than ever to provide a successful sales process and maximize exit value. Expert sell-side readiness is at a premium. Are you ready to take your portfolio companies to market? Learn more here: https://ow.ly/S7mr50QuqBc #CrossCountryConsulting #ABetterExperience #SellSideReadiness #MergersAndAcquisitions

Read our latest piece below to see how CrossCountry can help you prepare and maximize value in your sale process.

Blackstone’s Michael Zawadzki predicts the private credit market could grow from $1.7 trillion to $25 trillion, driven by needs in data centers and energy transitions. Read the full interview on Mergers and Acquisitions - themiddlemarket.com. https://lnkd.in/gvWkhsC5 #PrivateDebt #PrivateCredit

Over the past two years, private credit has gone from a supporting role to a starring role in financing transactions such as leveraged buyouts, bolt-on acquisitions, and refinancings, says KKR! Are you looking for financing? Make sure you get in touch... #privatedebt #alternativefinancing #corporatedebt #lbo #assetbackedfinancing #laenancapital

Hello LinkedIn Community, In the fast-paced realm of Mergers and Acquisitions, finding the equilibrium between Cash Flow and Debt Management is akin to mastering a delicate dance. Let's explore the significance of striking the right balance in this intricate financial choreography. 1. The Yin and Yang of M&A: Cash flow and debt are like partners on the M&A stage – intertwined yet distinct. Achieving harmony involves understanding their symbiotic relationship and aligning their roles in the broader financial strategy. 2. Balancing Act in Deal Financing: In M&A transactions, judicious use of debt can amplify financial firepower, facilitating acquisitions that might be challenging with cash alone. However, the key lies in striking a balance that optimizes leverage without compromising long-term financial health. 3. Cash Flow Resilience: Maintaining robust cash flow is a linchpin for M&A success. It provides the liquidity needed for seamless operations during transitions and acts as a safety net in unpredictable market conditions. Striking the right balance ensures resilience in the face of uncertainties. 4. Debt as a Strategic Tool: Strategic use of debt can be a catalyst for growth, but it requires finesse. Leveraging debt for value creation, such as funding strategic initiatives or optimizing capital structure, demands a nuanced approach to avoid overburdening the organization. 5. Mitigating Risks and Enhancing Value: Balancing cash flow and debt management is not just about financial arithmetic; it's a risk mitigation strategy. Prudent debt management safeguards against unforeseen challenges, while a healthy cash flow enhances the overall value proposition in M&A. 6. Communication and Transparency: Transparent communication about the debt position and cash flow dynamics is paramount. Whether engaging with stakeholders or potential acquirers, clarity fosters trust and demonstrates a proactive approach to financial management. As we navigate the complex world of M&A, let's embrace the art of balancing cash flow and debt management. How have you approached this delicate phase in your M&A experiences? Share your insights and let's keep the conversation flowing. #MandA #CashFlowManagement #DebtManagement #FinancialStrategy #BusinessInsights

Citywire’s private equity advice leaderboard is back for another year. We look at the (now) 36 PE-backed advice firms and see how debt levels have led to a 19% drop in acquisitions in 2023. But private equity’s reach in the market continues to grow, with an increase of 814 advisers across the firms and AUM now at a combined £261.6bn, the march of these investors continues. With Alicja H. Selin Bucak Zach Sharif https://lnkd.in/enj7q3tT

#Dealmakers faced a tough year in 2023 as M&A and buyout deals fell YoY, with a volume and value down 15.8% and 16%, respectively. Now, in 2024, financing is expected to be the most challenging part of the M&A process. How will dealmakers solve the funding conundrum? Is there cause for concern? Learn more in this insightful article: https://lnkd.in/d4uTkU_n #MergersAndAcquisitions #BusinessNews Thanks for sharing Jon!

When considering a potential acquisition or capital raise, founders are usually most excited about major details like valuation and working with high-profile acquirers/investors. While these aspects of a transaction are certainly important, founders are often unaware of how seemingly minor details of a transaction—like security structure or provisions for exclusivity—can have a significant impact on the final outcome of the transaction. A perfect example of a seemingly minor detail that can have a significant impact on what the founder ends up taking home is the adjustment for net working capital. Our team put together an article discussing this detail *in detail.* Click the link below to learn more. https://lnkd.in/gyJpFTPd #founders #mergersandacquisitions #investmentbanking

Distressed debt players say restructuring processes are undergoing a shift, one that might take investors away from a scenario where they operate individually, to where cooperation among creditors is key. PitchBook LCD’s Jack Hersch has more on co-op agreements in his latest Distressed Deep Dive, as well as a look at where managers see opportunity, and potential pitfalls, in the quarters ahead. https://lnkd.in/eAY-dVQB PitchBook Jack Hersch #distresseddebt #PrivateEquity