Acquisitions: Earnings Multiples or Absolute Valuations?

How is it possible to make an acquisition valuation based only upon earnings multiples in disparate economic environments and business climates? And how heavily should we rely upon “standard” earnings multiples for comparable transactions in an industry?

Lending for Business – Debt Ceiling Concerns?

In April and May, commercial and industrial lending was strong, companies were opening up new revolvers and refinancing at reduced rates. Banks were allowing extended maturities and were eager to put money to work; so much so, that some banks were loosening lending standards to offer favorable terms to those with less than strong credits.

Implications of Earnouts when you sell your business – Tax Focus

First, a couple of thoughts on earnouts when you sell your business. While an earnouts is often seen as a mechanism to defer payment of the purchase price; if used correctly, it should in fact be consideration to the seller of a company over and above full cash paid at closing. Earnouts should not be considered part of the purchase price if/until they materialize and are paid to the seller, but why not set additional opportunities to increase the purchase price paid, over and above the full cash price paid? If “x” is the maximum that a buyer will pay for a company in cash at closing, it is still possible to negotiate “x” at closing, plus an additional 25-50% or more after closing. As with most things in life and business, it is not the tool that is at fault, it is the way that it can be misused and misunderstood.

How would high inflation affect Oklahoma businesses?

Well, this may seem a strange day to write about inflation – I just read this morning that fixed-rate mortgage rates have dropped this week to the lowest level this year, with a 15-year available at 3.75%. However, it doesn’t do much good to dwell on the past or present – we should always be considering other scenarios in the future to stay ahead of the competition.

When should you sign a Letter of Intent – Business Buyer vs. Business Seller?

One purpose of a LOI is to document a mutual agreement between the buyer and seller on the major points of the purchase and sale of a business. With this in mind, a LOI is often signed much too early in the process. There is an understandable eagerness if you are selling a business to receive a Letter of Intent from a prospective buyer as early as possible. In some cases, business owners are even advised that they should request a LOI in order to learn price and terms from the prospective buyer.

Consolidation in Oklahoma’s Community and Regional Banks?

If Oklahoma follows the national trend, there is likely to be consolidation in Oklahoma’s regional and community banks. At the same time, we would expect some of Oklahoma’s banks to double or triple in size in the coming years. We’re going to consider the reasons behind this and some of the implications.

Building a bridge to the other side: Plan and process for strategic success.

How do you determine where to start in a new strategic business project? In simple terms, you need to be in clear and detailed agreement among all stakeholders on where you are and where you want to get to before you start planning how you want to get there. Clear communication between a Company’s senior management and their advisors is also critical. If we’re engaged on a M&A, restructuring or corporate finance project, there is a lot at stake and this blog highlights some of our planning considerations.

Winter storm hit your deal?

What happens when an unexpected winter storm hits your deal and what can be done to prevent this happening? If you can’t prevent it, how do you reduce the negative impact? In the same way as with this historic winter storm that hit our region, you may not be able to prevent it, but at least with the storm we had meteorologists predicting significant snowfall before it happened. We may have thought they were exaggerating the extent of the storm a few days out, but by the day before, most people had acknowledged that it was going to be severe and took the necessary precautions. Can you imagine the impact if we hadn’t had any forecast and preparation time in advance?

Mergers & Acquisitions Report and Outlook Q1 2025

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
In 2024, the U.S. mergers and acquisitions (M&A) landscape experienced a notable resurgence, setting the stage for continued growth in 2025. Deal Volume and Value: Through September 2024, both private equity and corporate M&A deal volumes increased by 17% year-to-date compared to the prior year. Despite this uptick, momentum decelerated later in the year due to elevated uncertainty, in part related to the outcome of the presidential election. In 2025, consensus among analysts is for a ...

Innovex completes acquisition of Downhole Well Solutions

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
Innovex International, Inc. (NYSE: INVX) ("Innovex"), a leading provider of products and technologies to the oil and gas industry, has completed the acquisition of the remaining equity ownership of Downhole Well Solutions. DWS engaged ClearRidge to advise on acquisition strategy. The ClearRidge team managed the process and due diligence.
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