Nearly 50% of business owners still can’t get financing, says Pepperdine private cost of capital survey
Here’s a surprise: The current market for raising private capital is still tight. “About half of [business] owners can’t get financing,” says Rob Slee (MidasNation), who partnered with Pepperdine University and Dr. John Paglia to survey private capital markets beginning four years ago and updated every six months since. “Only about a third of the owners [surveyed] [...]
Preview of new data from Pepperdine Private Capital Markets survey
New from the Pepperdine Private Capital Markets Project Fall ‘11 Survey: During the past year, the bank loan success rate was 44% for businesses with less than $5 million in revenues; 72% for businesses with $5 to $25 million in revenues; and 90% for businesses with greater than $25 million in revenues.
That’s just one data [...]
Don’t overlook your intangibles as collateral for financing
Bankers might have laughed at you if you suggested your intellectual property and other intangibles could be the basis for loans or financing in the past. Lindsay Moore, CEO of KLM (consulting) reminds us it wasn’t that long ago that “there was only one class of assets to leverage in enterprise strategy – the traditional [...]
Private Capital Markets: Valuation, Capitalization, and Transfer of Private Business Interests, Second Edition
Now fully revised and in its second edition, Private Capital Markets provides appraisers, accountants, lawyers, bankers, estate planners, intermediaries, and other professionals with a framework for making sound investment and financing decisions based on their own needs and experiences.
“In the years since publication of the first edition of Private Capital Markets, the concepts and ideas [...]
A new way to raise closely-held business capital quickly?
June 7th: The New Minority Share Exchanges: What do they Mean for Private Company Value and Strategy,”
This free webinar, sponsored by BVResearch (a joint project of Aranca and Business Valuation Resources), examines private company share exchanges and what they mean for businesses. Featuring appraiser Neil Beaton (Grant Thornton), banker Susan Casey (Square 1 Bank), [...]
Report from ACG: Transaction Costs And Risks Rise; Buyers Change
BV.com has attended three of the major “intermediary” meetings in the last several months, beginning with the IBBA and AM&AA Annual Meetings. But, the dean of the group is InterGrowth, held last month in San Diego. This is the largest gathering of members and leaders of the Association of Corporate Growth (ACG).
Different market segments, different [...]
Deadline for SEC registration for larger private equity funds approaches
The Dodd-Frank Act requires private equity funds with more than $150 million in total assets under management to register with the SEC starting in July.
The law allows the SEC to defer implementation of this rule for one year. The lobbying has, of course, started in earnest. Here’s a comment from the Association for Corporate Growth [...]
It’s better to invest in your own company
Here’s a startling and bizarre summary of the situation for those wealthy individuals and institutions who are limited partners in private equity firms–you’ve lost a ton of money since 2002 and you may be running out of cash. Though the news so far in 2011 seems closer to breakeven, Pitchbook, the leading provider of information [...]
Berkery Noyes offers another source of M&A research in the information industries
BN has spruced up its web offering with MandASoft–which as with so many other promoters of the transaction market shows increasing activity. Private equity seems particularly active in this market segment; the strategic buyers are there, but perhaps holding their cards a bit.
Further evidence that “strategic acquisitions” are leading M&A activity out of the slump
“M&A transaction activity saw significant improvement in 2010. A recovery in business valuations leading to more motivated sellers, an easing in the financial credit markets and the global economic recovery,” reports George Steinbarger (PCE Investment Bankers) in “State of the M&A Markets Year End 2010.” PCE’s report, based on data from Capital IQ, indicates “valuation multiples [...]
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