We have mentioned that long-term investments generate superior returns, but just how much higher are these returns? This is what we wanted to find out, so we created a simple model which shows that long-term investment returns are significantly higher when compared to a standard private equity hold. Read on to understand our methodology. The […]
At the first glance, private equity and venture capital appear quite similar. Indeed, they have comparable structures: in both, firms invest in private companies with plans of selling down the road and making a profit. If you own a company and are considering how outside investors could help you, understanding private equity vs venture capital […]
Understanding enterprise value vs. equity value helps in interpreting business valuations. While both metrics give insight into the value of a business, they differ in a key way: enterprise value denotes the entire value of a business without considering its capital structure, and equity value describes the value that belongs to shareholders. This post will […]
An asset based working capital line of credit— or revolver— provided by a lender typically incorporates a provision called a “borrowing base”. A borrowing base is a calculated dollar value that sets the upper limit on how much money the company can borrow from its lender on the line of credit. This borrowed working capital […]
You have decided you are ready to sell your business. So, what next? The “how” of selling is complex and can be time consuming. In this post, we cover how to sell a small business, from preparing to sell to whether or not to engage a broker. Know Why You are Selling The first question […]
When a business owner is looking to sell their company, making sure the business remains in good hands is often a priority. It can be hard to trust that the buyer will carry on the company’s legacy and provide for future success. In these cases, a management buyout can ease the owner’s concerns and help […]
The working capital adjustment is an important part of most merger and acquisition (M&A) transactions. A working capital adjustment adjusts the purchase price of the company based on the actual working capital delivered at closing. If working capital is above the working capital target, the purchase price increases, and if the working capital at closing […]
If it is your first time selling a company, the M&A due diligence process can be overwhelming. The amount of time spent responding to buyer’s questions might make you question if you choose the right buyer, or if you want to sell your company at all. But as time consuming as due diligence is and […]
1719 Partners is excited to announce it, alongside existing management, has acquired F/S Manufacturing of West Fargo, ND. F/S Manufacturing is an agricultural equipment supplier specializing in designing, manufacturing, and assembling top-quality liquid material handling equipment. This specialty equipment includes sprayers, mixing tanks, liquid or fertilizer storage tanks, hose reels, tenders, and trailers. 1719 partnered […]
As a business owner, it can be hard to decide between maintaining business ownership or selling. Many business owners are passionate about their companies and want to remain tied to future growth. At the same time, running a company can be stressful, or the company can get large enough that additional expertise is necessary to […]
