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The Handbook of Financing Growth: Strategies, Capital Structure, and M&A Transactions, Second Edition
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The Handbook of Financing Growth: Strategies, Capital Structure, and M&A Transactions, Second Edition

by KENNETH H. MARKS, LARRY E. ROBBINS, GONZALO FERNÁNDEZ, JOHN P. FUNKHOUSER, D.L. WILLIAMS
September 2009
Intermediate to advanced content levelIntermediate to advanced
672 pages
18h 40m
English
Wiley
Content preview from The Handbook of Financing Growth: Strategies, Capital Structure, and M&A Transactions, Second Edition
CHAPTER 8
Closing the Deal

PROCESS CHECK-IN

In Chapters 1 and 2 we outlined the overall financing process and provided a flow chart (in Figure 1.1) to highlight the fundamental elements of capital formation and to provide a framework for discussion and analysis. We addressed the need to understand the current financial and strategic position of the company, the business plan, industry comparable performance, and the forecast and a go-forward strategy. Without a clear strategic vision and a disciplined business plan, companies seeking capital will be comparatively disadvantaged in their search, operating in a reactive rather than proactive mode. In addition, we presented the basic concepts used to establish the business valuation, and we emphasized the importance of securing buy-in among the stakeholders with respect to realistic valuations. Without a realistic sense of valuation, stockholders may cause management to expend significant time and organizational resources only to have a potential transaction fall apart in midstream.
In Chapter 3 we introduced an overview of the acquisition process and how to think about recapitalizations. In Chapter 4 we presented a framework to view the capital structure of start-ups, emerging growth companies, and middle-market companies. We highlighted the concept that raising capital is driven by “when a company can raise money” and not by “when it needs funds.” We provided a lookup table (Figure 4.2) indicating the major types of financing ...
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Publisher Resources

ISBN: 9780470525999Purchase book