31 May Understanding Deal Structures as part of an M&A Transaction
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Listen in as the team dives into best practices on understanding deal structures as part of an M&A transaction. From earn outs, to equity, to cash – we’re covering all you need to know about deal structures.
We’re diving into a lot of different structures and what they mean:
- There is a correlation between a higher Enterprise value and structure used
- Earn outs need to focus on your company’s growth goals with defined targets
- Earnouts need to be built on non-fungible and defined; Revenue Targets
- You have to earn out your earn out!
- Earn outs can lead to higher enterprise values
- Attainable but profitable; Collars can be used
- Timing of payments should align with return on investments – Buyers should consider the timing out payment terms
- Seller notes: are they guaranteed payments? Should they be tied to performance?
- Equity is a strong tool and is the largest wealth creation tool within the other structures
- Cash is a great way to show that you believe in the business
- Creativity wins!
- Work with an advisor that understands EVERYTHING in your industry and market
More questions about Deal Structures? reach out: info@revenuerocket.com
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