Why leverage multiples 'jump up' at $5M EBITDA: Debt-seeking lower-middle-market dealmakers will find the availability of leverage does a step change when a company reaches $5 million in EBITDA, according to Conor Tidgwell, Senior Vice President at Avidbank. The size threshold is an important one for the Entrepreneurship-Through-Acquisition (ETA) market, because ETA searchers often source potential investment businesses making as little as $1 million to $2 million EBITDA. Tidgwell says companies with less than $2 million become "more challenging" to finance, because there is "less margin for error." Tidgwell estimates businesses generating around $2 million in EBITDA might secure leverage of 2 to 2.5 times EBITDA, while businesses over the $5 million EBITDA threshold may be able to secure 3 times leverage. Tidgwell's comments are part of a Search Party episode, "Deal Dynamics in the Lower-Middle-Market: Software, Commercial Services, Software," also including Dustin Sellers and Anthony Walker, Managing Partners at ETA private equity firm Next Coast Legacy. Search Party Lead Sponsor: Next Coast Legacy https://lnkd.in/eSAuRW5p Search Party Sponsors: Avidbank https://www.avidbank.com/ Boulay https://boulaygroup.com/ Mayer Brown https://lnkd.in/gU7sPPSg Plexus Capital https://plexuscap.com/ Search Party video-podcast website: https://lnkd.in/efJEa6GV Watch the full episode on Youtube: https://lnkd.in/e7VchGCc Spotify: https://lnkd.in/eGSArRbh Apple Podcasts: https://lnkd.in/eQFREcbe Search Party Lead Sponsor: Next Coast Legacy https://lnkd.in/eSAuRW5p Search Party Sponsors: Avidbank https://www.avidbank.com/ Boulay https://boulaygroup.com/ Mayer Brown https://lnkd.in/gU7sPPSg Plexus Capital https://plexuscap.com/ Search Party video-podcast website: https://lnkd.in/efJEa6GV #margins #EBITDA #eta #privateequity #financing
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Debt-seeking lower-middle-market dealmakers will find the availability of leverage does a step change when a company reaches $5 million in EBITDA, according to Conor Tidgwell, Senior Vice President at Avidbank. The size threshold is an important one for the Entrepreneurship-Through-Acquisition (ETA) market, because ETA searchers often source potential investment businesses making as little as $1 million to $2 million EBITDA. Tidgwell says companies with less than $2 million become "more challenging" to finance, because there is "less margin for error." Tidgwell estimates businesses generating around $2 million in EBITDA might secure leverage of 2 to 2.5 times EBITDA, while businesses over the $5 million EBITDA threshold may be able to secure 3 times leverage. Tidgwell's comments are part of a Search Party episode, "Deal Dynamics in the Lower-Middle-Market: Software, Commercial Services, Software," also including Dustin Sellers and Anthony Walker, Managing Partners at ETA private equity firm Next Coast Legacy. Watch the full episode on Youtube: https://lnkd.in/e7VchGCc Spotify: https://lnkd.in/eGSArRbh Apple Podcasts: https://lnkd.in/eQFREcbe Search Party Lead Sponsor: Next Coast Legacy https://lnkd.in/eSAuRW5p Search Party Sponsors: Avidbank https://www.avidbank.com/ Boulay https://boulaygroup.com/ Mayer Brown https://lnkd.in/gU7sPPSg Plexus Capital https://plexuscap.com/ Search Party video-podcast website: https://lnkd.in/efJEa6GV
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Takeover mania grips the UK stock market! This episode of the Investor’s Champion Podcast focuses on the rampant takeover activity in the UK stock market, particularly in AIM quoted stocks. Chris and Lee delve into why takeovers are occurring at such a high rate, citing factors such as the UK's undervalued shares, the influx of private equity, and broader economic and political uncertainties including Brexit. https://lnkd.in/esNYU_4m
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The Behaviour Gap Investors naturally want more of what gives them security. And they tend to shrink from things that cause them pain. This can result in a ‘behaviour gap’ - the difference between the available return and the return they actually earn. In this podcast, US financial planner and New York Times columnist Carl Richards explains ways to close the gap. https://bit.ly/3x6B7Mz #knightswoodhouse #investing #financialadvice #financialplanning
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OUT NOW! Episode 85 of the Propertybuyer Podcast 🎙️ Join Rich Harvey, CEO & Founder of Propertybuyer, as he sits down with Josh Corley, Partner at The Brokerage, to discuss How to Finance Your Future with Property. Josh, a seasoned finance expert and former finalist for Mentor of the Year by the Better Business Awards 2023, shares his insights on building strong financial foundations for property investing. With years of experience and a passion for helping clients unlock their potential, Josh brings a wealth of practical advice to this episode. What you’ll learn in this episode: 💰 Establishing the Right Financial Structures – Why it’s crucial for long-term success. 🏦 Navigating Lending Options – How to leverage equity, manage LVRs, and diversify lender relationships. 📊 Adapting to Interest Rate Fluctuations – Strategies to make confident decisions in changing markets. 📈 Emerging Trends in Property Financing – How to stay ahead and grow your portfolio. Rich and Josh also delve into actionable strategies for first-time buyers, the role of the “Bank of Mum and Dad,” and the tax implications every investor should understand. Packed with expert advice and real-world examples, this episode is a must-listen for property buyers, sellers, and investors looking to finance their futures with confidence. 🎧 Tune in now ⬇️ https://lnkd.in/gtXnvex4 #Propertybuyer #PropertybuyerPodcast #FinanceYourFuture #PropertyInvestment #RealEstate #InvestmentStrategies
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"The End of Cheap Money - How PE is navigating interest rate rises globally" There are some great take-aways from this podcast by Private Equity International. I won’t bury the lead… Funds are adjusting to the new rate environment through meaningful investment in value-creation teams and operational improvements. “Leverage is no longer the driver of returns in PE, so the lack of leverage shouldn’t impact returns - it’s more now about what you do with the asset itself to drive those returns.” The whole episode was interesting (link in comments), but pay close attention to the two-minute exchange starting at 12:22. Some highlights… “A few GPs that I’ve been speaking to in recent months have been building up their operational improvement capabilities - hiring new people, hiring operating partners - because that lever of leverage is less usable in the current environment. …The value creation question as well is going to play into fundraising. Given the environment has become so much more challenging to raise now…(some funds) could get exposed for not having this value creation expertise that some of their peers have. Those who can demonstrate this value creation credibility may find fundraising easier now that LPs are clearly going to be prioritizing this and really scrutinizing who can generate returns through these operational improvements.” This new landscape requires new thinking and new capabilities. Funds and management teams must invest in the right operating talent, equip them with the right tools, and drive measurable value-creation initiatives to generate returns for their investors. If you’re seeking high-impact, low-touch solutions to enhance your value creation efforts, let’s connect. Chassi is thrilled to support those who are leading this transformative industry shift.
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Thanks to the Search Party Video-Podcast for having us on recently! In the latest episode, my Boulay colleague Ryan Turbes, CPA and I join Anthony Walker, Bob Boniface and host David Snow to discuss the critical role of Quality of Earnings (QofE) in due diligence for lower-middle market acquisitions. QofE goes beyond verifying financials—it uncovers key insights that build trust between buyers and sellers, clarify complex decisions, and set the stage for post-acquisition value creation. Catch the full episode on YouTube! https://lnkd.in/guh7ZSyS Connect with Boulay’s #SearchFund team: https://lnkd.in/gZda4npw
What happens when valuations shift during due diligence? In the most recent episode of the Search Party Video-Podcast, Boulay Partner Clay Brownlee, CPA discusses how Quality of Earnings (QofE) providers can help educate sellers on cash-to-accrual conversions and align expectations throughout the Entrepreneurship-Through-Acquisition (#ETA) process. While a potential shift in revenue—and by extension, valuation—can lead to "difficult conversations," Clay says these revelations can be made less jarring if the sellers understand that all parties to the transaction are on a level playing field, as the QofE figures are being produced entirely with the seller's own data. Catch the full episode, featuring both Clay and Ryan Turbes, CPA, on YouTube: https://lnkd.in/g_TZh-DF Get in touch with Boulay’s #SearchFund Team to learn more: https://lnkd.in/gP-tYgp7
What happens when valuations shift during due diligence?
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Our relationships with private equity sponsors are a significant competitive advantage. A recent Churchill survey found that LP relationships are the number one factor driving GPs’ decisions when considering a co-investment partner - ahead of check size, speed, and certainty of close. On the latest episode of @The Deal’s Behind the Buyouts podcast, @Anne Philpott, Managing Director, Junior Capital & Private Equity Solutions, explained why our deep relationships position us well in the marketplace as deal momentum continues into the second quarter. With more certainty in the financial markets driving dealmakers’ confidence, we’ve been able to transact high-quality assets across the platform. Tune in to learn more about which sectors we’re favoring today, why we continue to focus on the traditional middle market as BSL activity picks up, and the exciting opportunities we’re seeing in secondaries.
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Our relationships with private equity sponsors are a significant competitive advantage. A recent Churchill survey found that LP relationships are the number one factor driving GPs’ decisions when considering a co-investment partner - ahead of check size, speed, and certainty of close. On the latest episode of @The Deal’s Behind the Buyouts podcast, @Anne Philpott, Managing Director, Junior Capital & Private Equity Solutions, explained why our deep relationships position us well in the marketplace as deal momentum continues into the second quarter. With more certainty in the financial markets driving dealmakers’ confidence, we’ve been able to transact high-quality assets across the platform. Tune in to learn more about which sectors we’re favoring today, why we continue to focus on the traditional middle market as BSL activity picks up, and the exciting opportunities we’re seeing in secondaries.
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Our relationships with private equity sponsors are a significant competitive advantage. A recent Churchill survey found that LP relationships are the number one factor driving GPs’ decisions when considering a co-investment partner - ahead of check size, speed, and certainty of close. On the latest episode of @The Deal’s Behind the Buyouts podcast, @Anne Philpott, Managing Director, Junior Capital & Private Equity Solutions, explained why our deep relationships position us well in the marketplace as deal momentum continues into the second quarter. With more certainty in the financial markets driving dealmakers’ confidence, we’ve been able to transact high-quality assets across the platform. Tune in to learn more about which sectors we’re favoring today, why we continue to focus on the traditional middle market as BSL activity picks up, and the exciting opportunities we’re seeing in secondaries.
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Our relationships with private equity sponsors are a significant competitive advantage. A recent Churchill survey found that LP relationships are the number one factor driving GPs’ decisions when considering a co-investment partner - ahead of check size, speed, and certainty of close. On the latest episode of @The Deal’s Behind the Buyouts podcast, @Anne Philpott, Managing Director, Junior Capital & Private Equity Solutions, explained why our deep relationships position us well in the marketplace as deal momentum continues into the second quarter. With more certainty in the financial markets driving dealmakers’ confidence, we’ve been able to transact high-quality assets across the platform. Tune in to learn more about which sectors we’re favoring today, why we continue to focus on the traditional middle market as BSL activity picks up, and the exciting opportunities we’re seeing in secondaries.
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