Leveraged buyouts, (LBOs), have become a more accepted means for companies to achieve their growth, sustainability, and diversification objectives. Given that target companies must demonstrate a number of strengths to fulfill desired ROI expectations, the acquiring company’s key priority is to complete the transaction by committing as little of their own capital as possible. Newly announced services at venture capital and investment advisory firm Solomon RC Ali give established companies the fundraising expertise they need to move forward on a planned LBO.
More information is available at https://www.solomonrcali.com/services/leveraged-buyouts
While rising interest rates and economic uncertainty led to a decline in deal activity in 2022, private equity buyouts enjoyed their second-busiest year in over a decade. On average, deal value was 61 percent higher than pre-pandemic levels thanks to a bear market that drove company valuations down. Fundraising expertise recently announced by the advisors at Solomon RC Ali Corporation will help established companies close on their target LBOs in a timely manner to create the profitability and shareholder value today’s market conditions stand to facilitate.
“Of all the LBOs on record in the US since last year, none were funded by the banks,” says Ali. “Companies don’t want to deal with today’s interest rates and that’s where we come in. We prepare companies to significantly leverage funds in ways that don’t necessarily involve the banks, helping them meet their acquisition goals.”
LBO funding can come from loans, bonds, private notes, mezzanine financing, and even seller financing. With less money upfront, a successful LBO leads to higher ROI than an investment supported by the company’s own capital.
Due diligence and in-depth LBO analysis are needed to determine the anticipated value of the target company after a specified number of years post-acquisition. By calculating these figures, Ali says estimating the projected total rate of return is fairly straightforward, and helps his team determine the associated fundraising strategy.
Ali focuses on providing his clients with the financial consulting services they need to settle on strategic fundraising strategies so they can execute more successfully on their target LBOs. He and his team have completed over 140 mergers and acquisitions and have raised nearly $1 billion in structured investment capital and financing.
With expertise in LBO fundraising now available to established companies, Ali helps today’s business leaders looking to move forward on planned acquisitions secure the financing they need to achieve their equity goals.
Learn more at https://www.solomonrcali.com/biography
Solomon RC Ali Corporation
5940 South Rainbow Boulevard
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Sahyadri Times journalist was involved in the writing and production of this article.