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  • Earnouts: More important than ever
    Dec 9, 2010 - Corum Group Ltd.

    In today's difficult economic times, mergers and acquisitions are still happening, but it takes more creativity to get the deal done. Often, that means negotiating deal structures that get sellers the value they need but also mitigate risks for the buyers. Earnouts have often been used in transactions and, in the current market, earnouts are increasingly common to bridge the growing gap between buyer and seller expectations. Not only are more deals including earnouts, but also the amount of transaction consideration payable under earnout terms is increasing, ranging from 15% to 40% of transaction proceeds depending on risks as perceived by the buyer.

  • Obtain Financing By Leveraging Your Company’s Top-Line Revenues
    May 14, 2009 - Corporate Finance Associates

    Despite interest rates being lowered to historical levels, companies remain severely challenged in obtaining corporate financing. In the wake of the Credit Crunch, lenders have imposed stricter lending requirements, while equity investors will only invest at much lower valuations than just a few months ago. As a result, many well-managed middle market companies which do not qualify for (additional) business loans, and/or do not want to dilute shareholder equity at today’s lower valuations, are frustrated by their inability access capital for growth and recapitalizations.