Buying a Business That Is Larger Than Yours

hosted by: David Mariano, Director and head

of the firm’s Buy-Side advisory practice

Buying a Business That Is Larger Than Yours

Every company seems to want to grow by acquisition these days. But what if the ideal target is larger than you? Buying a larger business may not be as far-fetched as you think.

We are delighted to have Rebecca White back in the studio today. Rebecca, Director of Capital Raising at Western Reserve Partners, has returned to discuss the seemingly impossible with David.

Key questions in this episode:

* How is it even possible?

* Is it possible to fully finance a transaction without using equity?

* What does the modeling and analysis look like when combining two businesses?

* How can a buyer avoid feeling over leveraged when buying a larger company?

* Which kind of scenario would be best for bringing on an equity partner?

* What details need to be considered when purchasing a “carve out” ?

* Does diligence take longer with carve outs?

Key points in this episode:

* The magic of a strong balance sheet.

* How showing expense improvement and modeling future cash flows can reassure banks and lenders.

* Why you need a properly timed, strong integration plan.

* How combining senior financing with junior capital gives more flexibility (at 08:26).

* Why a buyer should not fear an equity partner.

* When buying a corporate carve out makes sense.

* Fear not, the technology transition (with good planning).

Resources mentioned in this podcast

* Click here for access to training and templates

Listen to Fully Invested below: