Minimizing Risks in a Management Buy-Out Transaction

When a company has openly divulged that they are divesting a business unit there are different approaches a restructuring firm can take to provide the best possible outcome, one of them being a Management Buyout or MBO.  These types of plans can be used in large public companies moving away from a business unit, or … Continued

It’s Unprecedented Times in the Semiconductor Industry Too

By Rahn Amitai, Vice President at JD Merit The unprecedented times we are living in has not skipped over the semiconductor and advanced technology manufacturing industries. An amazing confluence of factors, years in the making, and converging at a dizzying speed, would leave any business owner reviewing their options and contemplating their path forward. Whether … Continued

Management Buyout Strategies

What is an MBO? A management buyout (MBO) is a transaction in which the company’s management team purchases theassets and operations of the business they manage. Typically, management teams enter into MBOs sothat a business can be carved-out in an effort to streamline operations, improve profitability, andbecome a platform for future growth and value creation. … Continued

How Existing Relationships Add Value to a Transaction

When engaging in either a sell or buy-side corporate restructuring, one necessary topic to explore is how existing relationships can benefit the transaction. Utilities Providers:    Purchasers can leverage existing contracts to justify offer price, just as a seller can use them to justify listing price. Vendors: (Consumables, Raw Materials, Logistics, etc) Divesting company can … Continued

Avenues to Explore for a Successful Supply Agreement

One aspect that has potential to add significant value to a divestment or acquisition is a mutually beneficial supply agreement.  This can be a positive for the incoming company because of the long ramp up times to inception for a new company. Having a supply agreement in place limits cash burn and adds stable income … Continued

Determining Value vs. Worth

When valuing a company, a distinction must often be made between the stand-alone value and the increase in value that can result for the buyer after purchase. The goals of the seller and the buyer are clear: The company buyer will try to base the assessment on the stand-alone value and skim off any additional … Continued

Management Buyout – From Management to Equity Ownership

The investment field of private equity extends over different company phases. The early-stage financing is referred to as venture capital, which is accordingly a sub-form of the PE. Other corporate phases in which private equity funds invest are the growth phase but also the crisis. An investment in a company that is in a corporate … Continued

5 Pillars of a Successful M&A Strategy

Successful mergers, acquisitions (M&A) but also divestments mostly serve to improve and thus enable the expansion of customer and market segments. In order for such transactions to strengthen a company and ultimately be considered successful, intensive preparations and the implementation of a structured M&A process are required.  The process of an M&A transaction can basically … Continued

Why A Private Equity Acquisition Can Be The Most Efficient Way

In a general sense, private equity firms invest in companies that are not listed on the stock exchange, influence management and employ their own highly qualified managers to make effective changes there. Their goal is to increase the value of the company through operational improvements or faster growth and to sell them again, sometimes after … Continued

FabExchange Blog

Top 5 Things to Consider When Undergoing a Divestiture In the basic sense, a divestiture is the opposite of an investment. It is a form of internal financing that enables companies to convert capital tied up in assets into cash. In order for a disinvestment to take place, capital must first have been invested in … Continued