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E-raamat: Middle Market M&A - Handbook for Advisors, Investors, and Business Owners, 2nd Edition: Handbook for Advisors, Investors, and Business Owners 2nd Edition [Wiley Online]

  • Formaat: 496 pages
  • Sari: Wiley Finance
  • Ilmumisaeg: 22-Sep-2022
  • Kirjastus: John Wiley & Sons Inc
  • ISBN-10: 1119828155
  • ISBN-13: 9781119828150
  • Wiley Online
  • Hind: 132,16 €*
  • * hind, mis tagab piiramatu üheaegsete kasutajate arvuga ligipääsu piiramatuks ajaks
  • Formaat: 496 pages
  • Sari: Wiley Finance
  • Ilmumisaeg: 22-Sep-2022
  • Kirjastus: John Wiley & Sons Inc
  • ISBN-10: 1119828155
  • ISBN-13: 9781119828150
An in-depth and practical exploration of middle-market mergers and acquisitions from leading experts in the field

In this Second Edition of Middle Market M & A: Handbook for Advisors, Investors, and Business Owners, M&A experts Kenneth H. Marks, Christian W. Blees, Michael R. Nall, and Thomas A. Stewart deliver a comprehensive overview of mergers, acquisitions, and divestiture transactions of privately held companies with annual revenues between $5 and $500 million.

This handbook is a practical, field-tested reference and playbook for selling, buying, and recapitalizing businesses with private equity and strategic buyers in mind. Middle Market M&A is written to provide a real-world roadmap for middle-market transactions. Rather than a purely academic treatment, it focuses on the actual frictions of privately held deals: imperfect information, tax complexity, financing constraints, and post-closing issues.

 Youll learn how to:





Prepare a middle-market business for sale and avoid mistakes that diminish value Design a sell-side process that attracts the right buyers Navigate deal structures, rollover equity, and management incentives Anticipate tax, legal, and financing issues that can derail middle-market transactions

This is an excellent guide for owner transitions and exit planning. Grounded in extensive transaction experience and industry knowledge, this handbook provides proven strategies, frameworks, perspectives, and concepts to improve the likelihood of getting a middle market transaction completed while preserving and enhancing value. It is a go-to resource for attorneys, accountants, investment bankers, M&A advisors, exit planners, investors, corporate development, and business owners.
Preface xxiii
Acknowledgments xxix
PART ONE Middle Market Overview
1(44)
Chapter 1 The Middle Market
3(8)
Performance and Impact
4(1)
Definition
5(2)
Characteristics of Middle Market Companies
7(4)
Ownership
7(1)
Access to and Use of Capital
8(1)
Organization
8(3)
Chapter 2 Private Capital Markets
11(20)
Segmented Markets
12(5)
How Market Players View Risk
17(9)
Capital Providers
17(1)
Owners' and Managers' Views of Risk/Return
18(2)
Buyers
20(6)
Market Activity
26(5)
Chapter 3 Valuation Perspectives for the Private Markets
31(14)
Private Business Valuation Can Be Viewed Through Different Standards of Value
32(9)
Market Value
34(3)
Investment Value
37(1)
Fair Market Value
37(1)
Fair Value
37(1)
Incremental Business Value
38(1)
Owner Value
38(1)
LBO Value
39(1)
Collateral Value
39(1)
Book Value
39(1)
Valuing Intangibles
39(2)
Why the Different Versions of Value?
41(1)
Valuation as a Range Concept
42(1)
Value Worlds and Deals
43(2)
PART TWO Fop the Business Owner/Operator and Entrepreneur
45(30)
Chapter 4 Transition, Succession, and Exit Planning
47(8)
A Decision Framework
49(4)
1 Owner Ambitions and Goals
50(1)
2 Industry Cycle
51(1)
3 Business Cycle
52(1)
4 Company Foundation
53(1)
A Team Approach
53(2)
Chapter 5 Value Growth and Optimization
55(20)
Increasing the Return on Invested Capital
57(5)
Strategic Position
58(1)
Customer Base
59(1)
Cost Structure and Scalability
60(1)
Working Capital
60(1)
Human Capital
61(1)
Reducing the Risk of Investment
62(5)
Awareness and Planning
63(1)
Growth Plans and Relative Position
63(1)
Leadership Team
63(2)
Predictability of Revenues and Earnings
65(1)
Concentrations
65(1)
Compliance
66(1)
Keeping Current
67(1)
Ease the Transfer of Ownership
67(4)
Financial Information
68(1)
Contracts
69(1)
Title to Assets
69(1)
Corporate Structure and Attributes
70(1)
Don't Lose Focus on the Core Business
70(1)
Summary
71(4)
Formula Definitions
72(3)
PART THREE The M&A Practice and Processes
75(102)
Chapter 6 Practice Management
77(21)
Primary M&A Advisors
78(2)
Marketing the M&A Practice
80(3)
Target Audience
80(1)
Networking
81(1)
Marketing and Advertising
81(1)
Pretransaction Consulting
82(1)
Valuation Services
82(1)
Other Consulting Services
82(1)
Becoming an Expert
82(1)
Client Acceptance
83(1)
Confidentiality
84(1)
Client Engagement
84(14)
Identification of the Parties
85(1)
Scope of Service
85(1)
Limitations and Disclosures
86(1)
Fees--Selling Advisor
86(2)
Example Fee Structures
88(1)
Termination and Tail
89(1)
Buy-Side Engagements
89(1)
Licensure Issues in the M&A Business
90(8)
Chapter 7 Sell-Side Representation and Process
98(29)
Selling Process Overview
93(1)
Step 1 Preliminary Discussions with Seller
94(3)
What Is the Transaction?
95(1)
Value Expectations
95(1)
Process
96(1)
Step 2 Data Collection
97(3)
Step 3 Industry Research and Identifying Buyers
100(1)
Research Market Buyers
101(1)
Step 4 The Marketing Book
101(5)
Preparation
103(1)
Seller Motivation
104(1)
Financial Disclosures
105(1)
Specific EBITDA Presentations
105(1)
Balance Sheet Presentation
105(1)
Other Financial Disclosures
106(1)
Prospective Financial Presentation
106(1)
Step 5 Marketing Process
106(3)
Clear the List with the Seller
107(1)
Initiate Contact with Buyers
107(1)
Obtain Nondisclosure Agreements
108(1)
Distribute the Book
108(1)
Follow Up, Discuss, and Set Expectations
108(1)
Step 6 The Auction Dynamic and Negotiations
109(4)
Negotiated Sale
109(2)
Private Auction
111(1)
Public Auction
112(1)
Step 7 Buyer Interest and Transaction Structure
113(7)
Term Sheets
114(1)
Indication of Interest (IOI)
114(1)
Letters of Intent
114(2)
Deal Structure
116(1)
Asset versus Stock Structure
116(1)
Other Tax Deferral Techniques
117(3)
Step 8 Due Diligence
120(1)
Step 9 Definitive Agreements
121(1)
Step 10 Closing Process
122(5)
Price and Valuation Changes
123(1)
Terms and Conditions Changes
123(1)
Third-Party Challenges
123(1)
Allocation of Risk
124(1)
Other Preclosing Mistakes
124(1)
Postsale Integration
124(3)
Chapter 8 Corporate Development and the Buy-Side Process
127(24)
Why Acquire?
129(3)
The Dismal Ds
130(1)
Alternatives
131(1)
The Acquisition Process
132(14)
The Pipeline and Filter
133(1)
Approaching the Target
134(1)
The Balance between a Deep Dive and Locking In the Deal
135(1)
Lower-Middle Market versus Middle Market Deals
136(1)
Valuation from a Strategic's Perspective
137(3)
Structuring the Transaction
140(1)
The Bid
141(1)
Due Diligence
141(3)
Integration
144(2)
Practical Tips and What Causes Deals to Fail
146(5)
What Should We Acquire?
146(1)
Why Are We Doing This?
147(1)
Alignment of Interests
147(1)
Recruit the Right Advisors Early
148(1)
Allocate Enough Resources
148(1)
Every Interaction Is a Negotiation
149(1)
If It Can Go Wrong, It Will Go Wrong
149(2)
Chapter 9 Buy-Side Representation
151(6)
Buyer Clients
151(1)
Strategy
152(1)
The Filter
153(1)
Financing
154(1)
Quality of Earnings
154(2)
Coordination
156(1)
Integration
156(1)
Chapter 10 Technology In the M&A Process
157(11)
Virtual Data Room
158(1)
Market Insight and Data
159(3)
Deal Sourcing and Exchanges
162(1)
Due Diligence Software
163(1)
Project Management Software
164(1)
Comprehensive M&A Software
164(1)
Supporting Tools
165(1)
Artificial Intelligence and Technology Trends
165(2)
Technology Providers
167(1)
Chapter 11 Professional Standards and Ethics
168(9)
Holistic Advice
171(1)
Ethical and Professional Standards
172(3)
Competence and Professionalism (Reputation)
173(1)
Best Practices (Activities)
173(1)
Ethics (Behavioral Boundaries)
174(1)
The Middle Market Standard
175(2)
PART FOUR M&A Technical Discussions
177(700)
Chapter 12 Financial Analysis
178(7)
Financial Reporting Motivation
179(2)
EBITDA
181(3)
Balance Sheet Analysis
184(1)
Working Capital
185(5)
Normalization
190(5)
Chapter 13 Market Valuation
195(1)
Reasons for Appraisal
196(1)
Determine the Value Subworld
196(1)
Calculate the Benefit Stream
197(8)
Synergies
203(2)
Determine Private Return Expectation
205(3)
Specific Investor Return
206(1)
General Acquisition Selling Multiples
207(1)
Derive Value
208(10)
Chapter 14 Doal Structure
218(11)
Structural Priorities
213(11)
Business and Economic Terms
214(4)
Tax Structure
218(4)
Legal Structure
222(2)
Mergers
224(5)
Initial Analysis of Both Entities
224(1)
Strategic Rationale
225(1)
Valuation Modeling
225(1)
Understanding Cost, Operational, and Cultural Differences
226(1)
Developing the Integration Plan
227(1)
Deal Structure and Negotiations
227(2)
Chapter 15 Financing Sources and Capital Structure
229(26)
Perspective
229(1)
Financing Primer
230(7)
Capital Structure
230(4)
Factors Shaping the Capital Structure
234(3)
Basic Deals
237(8)
Buyouts
237(5)
Recapitalizations
242(1)
Acquisitions
243(2)
Sources and Types of Funding
245(5)
Debt
246(3)
Private Equity
249(1)
Personal Guarantees
250(5)
Chapter 16 Due Diligence
255(16)
Due Diligence Process
256(1)
The Diligence Team
256(15)
Traditional Due Diligence
257(1)
Financial Matters
258(1)
Quality of Earnings Analysis
258(2)
Balance Sheet Analysis
260(1)
Ratio Analysis
260(1)
Other Risks
261(1)
Audited Financial Statements
261(1)
GAAP Compliance
262(1)
Tax Structuring and Compliance
262(1)
Compensation and Benefits
263(1)
Legal
264(2)
Technical Due Diligence
266(1)
Business Due Diligence
267(4)
Chapter 17 Tax Provisions Used In M&A
271(537)
Tax Fundamentals
272(3)
Transaction Tax Basics
275(12)
Asset Transactions
275(2)
Stock Transactions
277(1)
Stock versus Asset Sale Example
278(2)
Asset Transaction Details
280(5)
Buyer Tax Issues
285(2)
Detailed Tax Structuring
287(6)
Installment Sales
287(1)
Risk of Forfeiture
288(1)
Assets That Qualify for Installment Treatment
288(1)
Installment Planning Opportunity
289(1)
Partnership M&A
289(1)
General Partnership Doctrine
290(1)
Partnership versus's Corporation
290(2)
Partnership Gain Tracking Rules
292(1)
Purchase Price Allocation for Partnership Buyers
293(1)
Corporate M&A Issues
293(9)
Contributions to Corporations
294(1)
Stock/Asset Sale Election: Section 338
295(1)
Mergers and Reorganizations
296(4)
S Corporation Issues
300(2)
Tax Glossary and Reference
302(506)
Chapter 18 Legal Documentation
808(20)
The Attorney's Role
309(2)
Preliminary Legal Documents
311(5)
Nondisclosure and Confidentiality Agreement
311(1)
Letter of Intent
312(4)
Acquisition Agreements
316(1)
Structure of the Deal
316(2)
Stock Sale/Merger
316(1)
Asset Purchase
317(1)
Representations and Warranties
318(4)
Qualifications to Representations and Warranties
319(1)
Indemnification
320(1)
Transaction Statistics
321(1)
Consulting and Employment Agreements
322(1)
Regulatory Compliance
322(506)
Chapter 19 Regulation and Compliance
828(30)
Protecting Investors: Securities Act of 1933
324(5)
Exemptions under the 33 Act
326(1)
Commonly Used Private Placement Exemptions
327(2)
Keeping The Markets Honest: Securities Exchange Act of 1934
329(2)
Requirements and Rules
329(1)
Williams Act
330(1)
Antitrust Issues and Laws You May Encounter in the Deal
331(3)
Hart-Scott-Rodino Act
332(1)
Transactions Involving Foreign Investors, Foreign Trade, and National Defense Matters
333(1)
Other Regulatory Issues and Laws You May Encounter in the Deal
334(2)
Bulk Sales Laws
334(1)
The WARN Act
335(1)
The Investment Banker's Perspective
336(14)
SEC Provisions Regulating Broker-Dealers
336(2)
M&A Brokers No-Action Letter
338(6)
Finders
344(1)
Investment Advisers Act and Investment Company Act of 1940
345(2)
FINRA Provisions for Broker-Dealers
347(3)
The Company's Perspective
350(5)
Process of Issuing, Selling, or Exchanging Securities for a Deal
351(3)
State Blue-Sky Laws
354(1)
Considerations for Public Companies
355(503)
Chapter 20 Cross-Border Considerations
858(19)
Is Cross-Border M&A the Right Move?
360(1)
Culture
361(4)
Country Risk
365(1)
Financial Risk
365(2)
Market and Operational Risks
367(1)
The Legal Environment
367(3)
Labor and Employment
370(1)
Negotiations
371(1)
Due Diligence
372(1)
Integration
372(3)
Summary
375(42)
Glossary 417(1)
Notes 417(1)
About the Authors 418(9)
About the Contributors and Reviewers 427(18)
Index 445
KENNETH H. MARKS is Founder and Managing Partner of High Rock Partners, a boutique firm of strategic and M&A advisors. He is an expert in mergers, acquisitions, and financing of emerging growth and middle market companies.

CHRISTIAN W. BLEES is President and CEO of BiggsKofford Certified Public Accountants and BiggsKofford Capital Investment Bank. He is the lead instructor of the Certified Merger & Acquisition Advisor (CM&AA) credentialing program.

MICHAEL R. NALL is Founder of Alliance of Merger & Acquisition Advisors and a recognized speaker on the valuation, growth, and sale of middle market companies.

THOMAS A. STEWART served as Executive Director of the National Center for the Middle Market, and Editor-in-Chief and Managing Director of Harvard Business Review.