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A collection of articles based on our experiences.

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Selling a company
EBITDA Multiple Valuation for Determining Enterprise Value

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 …

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Selling a company
Benefits of a Vendor Due Diligence (VDD)

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.

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Selling a company
Representations and Warranties Insurance in M&A Transactions

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 …

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Selling a company
Minimum Working Capital Threshold in M&A Transactions

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 …

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Management Buy-out
MBO – Management Buyout – Key Takeaways

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.

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Management Buy-out
Key Elements for a Successful Management Buyout (MBO)

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 …

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Other subjects of interest
What Have We Learned From our Past Transactions?

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 …

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Other subjects of interest
In House Counsel Vital to M&A… an Investment Banker’s Perspective

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 …

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Financing a company
Family Offices – A Growing Breed of Investor

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

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Financing a company
Raising Equity – “Strategics”, Private Equity or Family Offices?

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.

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Selling a company
The True Value of Your Business – Normalized EBITDA and Synergies

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.

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Other subjects of interest
CETA – The Comprehensive Economic and Trade Agreement

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 …

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Selling a company
The Right Buyer for Your Company

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.

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Selling a company
Selling Your Business – The European Advantage

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 …

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Acquiring a company
Finding the Right Company to Buy

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 …

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Acquiring a company
Post-merger Integration – Reaping the Benefits of Your Acquisition

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 …

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Acquiring a company
Indications of Interest, Letters of Intent, Sale/Purchase Agreements

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

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Other subjects of interest
Advisory Committees for Small & Medium Enterprises

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 …

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The investment banker
The Investment Banker – Benefits and How to Choose the Right One

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 …

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The investment banker
Outsourcing your Corporate Development Department

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.

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Selling a company
What is your business worth?

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 …

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Financing a company
Credit Evaluations …why you didn’t score

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

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Acquiring a company
Startups … a few keys to success

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 …

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Financing a company
Export Credit Agencies as a Source of Financing

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 …

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Financing a company
Real estate as a source of financing

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’ …

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Financing a company
Asset Based Lending… not just for the bad times

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 …

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Other subjects of interest
Joint Ventures… an attractive strategy for expansion

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 …

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Other subjects of interest
Buying an insolvent company… there is a way

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 …

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Selling a company
The Earnout Clause – Closing the Gap in Valuations for M&A Deals

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 …

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Selling a company
The Process of Selling Your Business

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.

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