Newsletters

Private Equity Funds - what are they? In this newsletter, we review what PE Funds are, how they work, how they get funded, how big is the industry, how they get compensated and what are they looking for.

In many transactions an earnout clause (the “Earnout”) can bridge a valuation gap between the Seller and the Buyer.

In this newsletter, we outline some key elements that should be considered to effectively prepare oneself a few months or even years prior to a sale process in order to maximize value.

There exist different strategies for selling your company. This newsletter examines three distinct ways of putting your company up for sale.

Retention bonuses are a financial incentive to keep employees with a company.

There are two ways to grow a business; either through organic growth or through acquisitions. This newsletter summarizes the main steps involved in acquiring a business as part of a structured process.

EBITDA or Rental Income — What Is Your Choice? Owning real estate in an operating company or leasing it from an affiliate can have a significant impact on enterprise value and the net disposal proceeds to vendors in an …

The Conglomerate Discount and the Danger of Over Diversifying a Business Diversification is good. For personal savings, diversification prevents concentrating too much risk on a single stock or investment type. For companies …

The key steps to selling your business successfully are illustrated in this complete roadmap and timeline. Business owners looking to sell their business frequently ask us what the steps and roadmap are to a successful …

The Customer Due Diligence is often overlooked or afforded less importance in an acquisition due diligence; yet a company's customers are probably one of its most important assets. In addition to being the ‘raison d’être’ …

EBITDA multiple valuation is one of the most commonly used methods in determining enterprise value. As you may remember from our newsletter, “What your business is worth”, there are three main valuation metrics used to value …

Mandating a vendor due diligence prior to launching a sale process can show the company with its best foot forward and initiate the sale process with foresight into the concerns that may be raised by the buyer.

In an M&A transaction, the vendor must typically indemnify the buyer (subject to certain limits and exclusions) for any violations of the representations and warranties made in the sale transaction. The representations typically …

When a business is bought or sold it is understood that the assets and certain liabilities shall include a minimum amount working capital at closing (the “Minimum Working Capital”, the “Working Capital Threshold” or the “Working …

Cafa Corporate Finance has been involved in several Management Buyouts (MBOs) acting either on behalf of the senior management team or on behalf of the seller.

Most MBOs turn out to be successful for all parties involved, but occasionally a transaction fails to close. A failed MBO can be costly for sellers, as they can demotivate the management team who may have to be relied upon …

Since Cafa’s beginnings in the mid-80’s we handled hundreds of acquisitions and dispositions, sourced billions in financing, and advised upon countless restructurings and turnarounds. We've seen an incredible variety of deals …

The day-to-day role and responsibilities of in-house counsels are well known. What is less known is the essential role counsels play in M&A transactions. In our experience, an in-house counsel can make or break a deal. This …

Over the past few years we’ve witnessed a heightened global, intergenerational wealth transfer.

We are often asked what it takes to successfully raise equity and which of “Strategics”, Private Equity (“PE”) or Family Offices (“FO”) may be the better partner.

As a buyer’s notion of value is most often a function of profitability, a seller should accurately reflect his company’s true profitability and demonstrate the probable synergies a strategic buyer could capture.

Economic, historical and cultural ties between Canada and the European Union (EU), especially with France, the United Kingdom, Italy, Germany, Spain and Portugal, make them ideal partners for trade and investment. Due to …

This newsletter summarizes the different types of potential buyers, their basic characteristics and motivations and the related implications for you in terms of risk to a successful closing.

Over the past several years an increasing number of small to medium size enterprise (“SME”) owners have been looking to retire, either to enjoy life or simply because they no longer have the energy to continue. Sadly, for …

Cafa is approached on a weekly basis by individuals, private equity firms, search funds, wealthy investors, family offices and even sovereign wealth funds, asking if we have any companies for sale. Cafa is approached on a …

Over the years we have found that many people who acquire businesses rarely plan adequately for the day after the closing; all too often they end up losing momentum and opportunities. Our observation parallels continued research …

Navigating through the sale or purchase of a business for the first time can be a daunting task.

Cafa’s partners are regularly invited to sit on their clients’ advisory committees which, more often than not, were initiated on Cafa’s recommendation. This article will shed some light on the role of the advisory committee …

People often ask why they should use an investment banker when they already have their own in-house staff, auditor, tax adviser and lawyer. To answer this question one has to understand the various services provided by investment …

Unless yours is a very large company you probably cannot justify having your own in-house, full-time, corporate development team. Fortunately, this doesn’t necessarily mean you can’t afford the expertise.

Much has been reported recently about the record number of privately-owned businesses expected to be sold in the coming decade as baby boomers decide to cash-in and take their retirement. While this is a topic of great interest …

When is the last time you’ve failed to score? Could it be the last time you asked your banker for credit?

Entrepreneurs often wonder if they’re really doing all they can to ensure their new venture will be successful. We all know that success is the product of proper planning and execution which are unfortunately subjected to …

In today’s tight credit environment, borrowers with viable projects are finding it difficult to convince lenders to open up their wallets, be it for equipment, project, or even for working capital financing. Our experience …

Once all traditional sources of financing have been exhausted, many companies turn to subordinated debt to bridge their capital needs. In other cases, equity offerings may be considered, but this dilutes existing shareholders’ …

One of the more innovative financial products gaining popularity in the Canadian market is Asset Based Lending or “ABL” financing. Asset Based Lending has been available in the United States for several decades, and although …

Sales and market share growth are always challenging either in the national or international markets. As a means to an end, many companies elect for a joint venture approach to obtain their full market potential. Over the …

Buying or selling a financially distressed company often looks like an improbable, if not impossible task, especially in the context of preserving the customers, suppliers, key employees and salvaging some minimum value for …

One of the most common stumbling blocks in negotiating the acquisition of a company is the difference between the vendor’s and the buyer’s perception of value. Sometimes, despite references to comparables, industry price …

Selling a business can be one of the most stressful events the business owner will ever encounter. The business sale process is complicated and most of the time, this will be the entrepreneur’s first experience.