A subordination agreement is created when a lender is given first priority to a company’s business assets with no regards to the outside lenders’ provision of organization loans. The secured lender has all of the rights to the company’s assets, including contract rights and cash, which… View Full Term
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In the world of business, mergers and acquisitions (M&A) are often perceived as cold, calculated transactions driven by financial metrics and strategic objectives.…
By: Exit Planning Institute
(Article originally posted here.)In the M&A world, there are few terms as dreaded as the “Re-Trade”. The continued market uncertainty, coupled with…
By: Michael Carter
How does working capital impact the value of my business? Firstly, an overriding principle of valuation, particularly in valuing operational going concerns businesses,…
By: Equicapita Income LP
EBITDA is an oft-used but controversial measure that cut its teeth during the leveraged buyout frenzy of the '80s. EBITDA is ubiquitous in financial circles and is…
By: Chris Stavrou
Numbers are black and white, right? Not really. When you hire an investment banker to sell your business, they "normalize" the company's numbers to present…
By: John Carvalho | President, Divestopedia Inc.
Note: This content originally appeared in Carter Morse & Goodrich’s Insights in 60 seconds marketing post, and has been published here with permission.For…
Whether looking at acquisitions or divestitures, understanding the factors that drive the valuation of a company is a crucial first step in the process, but one that…
By: Adam Croft
An earnout is a financing arrangement for the purchase of a business in which the seller finances a portion of the purchase price, and payment of this amount is…
By: George Deeb
I’ve had a lot of conversations lately about EBITDA multiples. Generally, the question I receive is, “What do you think about this multiple? Is it…
By: Brad Mewes
Owners often say they want to sell for strategic value. But when they’re questioned further, what they really mean is they want to sell for more than an EBITDA…
By: Dave Kauppi
Recasting EBITDA is an accepted practice in the presentation documents that are produced to facilitate a business sale by a sell-side M&A firm. The purpose is to…
Anyone with even a basic exposure to the financial world will have at some point come across the term “EBITDA.” Despite not being officially recognized under GAAP,…
By: Puneet Gandhi | Financial Advisor
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