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Question For Industrial Acquisition Modeling Pro's
I recently received my ARGUS certification. I have limited real world modeling experience except for case studies I have done via courses and from interviews. I recently built out an ARGUS model with information from an offering memorandum (broker provided) for a multi-tenant industrial opportunity...
SMB ETA: Evaluating 2 opportunities
Little background and a request for candid opinions: I’m a Chitown trading jock. Big 10 degreed in econ. Mid-career, late 30s and I'm looking for the next adventure: buying a small business. I realize this PE forum is for you big swinging D's, but hoping the experience and insight here can help me...
Post-Money Valuation Upon Close of a SPAC (23andMe and VGAC)
Hi all, I'm trying to understand how post-money valuations work upon SPAC closings. Looking at the transaction overview slide for the 23andMe/VGAC reverse SPAC merger (whose investor presentation can be found through Google), $759M funds the balance sheet ($696M) and the (transaction expenses) in...
Thoughts on Online Business Buying Marketplaces?? (BizBuySell, BizQuest, MicroAquire)
I'm in the process of sourcing a SMB to acquire and am curious what everyone's thoughts are re: the existing online business buying places? What Pros & Cons do you see with these sites? Should I be prospecting brokers directly?
Networking into Acquisitions Role Via NAIOP.
I recently just joined NAIOP as an associate in the developing leaders program in NYC. I was wondering if anyone had any advice or experience in networking via NAIOP, specifically which events to go to, how events go, what to expect, and how to present yourself. Personally, I am hoping to network...
AM doing acquistions?
I work for a foreign fund that has recently set up shop in the US and am a hiring manager for acquisitions analyst and associates. Am getting a lot of resumes of juniors with AM roles indicating that they do acquisitions. Do AMs actually do acquisitions? What do the acquisitions team do then?
REIT VS PE Acquisitions
How do compensation, hours, and career progression compare between acquisitions in REPE vs at a REIT?
Help Deciding On Job Offer
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Acquisition Strategy
Hello, we have been asked to look into an acquisition with the following situation. Single Owner (old aged) wants to exit the business, since 5 years the business, which is a profitable one is on the market, 3 potential buyers were interested, brought by the Single Owner but deal didn't go through...
Acquisition Entrepreneur Capital Requirement
Current A2A (~25 years old) with ~600k in net worth across equities and a few other alternative investments that have performed well (i.e. flipping houses pre-banking and not Crypto). Interested in eventually buying a business and was curious what those in the PE space would view as a good initial...
Acquisitions Analyst or Acquisition Analyst
The question im sure we have all been asking ourselves - Which is more correct Acquisitions Analyst/Associate or Acquisition Analyst/Associate? Seen it both ways but would love to get some feedback from the group.
Cold Calling Multifamily Owners
With fully marketed multifamily deals reaching insane pricing lately, I'm curious if anyone is having success cold calling for off-market acquisitions? I try to make a handful of calls each day and my results have been pretty weak. Most leads tend to fizzle out or eventually get listed. I'm starting...
business process mapping & M&A
Hi guys, We are doing quite well when it comes to doing DD and closing deals. Now: integration is a different ballgame where we have had various degrees of success. I realized a few times that at the fundamental level it comes from a lack of prep work on the existing processes of the target co and...
Price paid vs use/source of funds
Hi, I am a bit confused. Say you want to acquire a company and that you value it at $50m (5x LTM revenue, the EV correct?) which has $10m of debt and $5m in cash. The TEV is $50m, the Equity Price is $45m. Would the purchaser pay the TEV or the Equity price? What are the implications? To add to my...
Family Business Buyout
Hey All, Apologies in advance for the long post, but I'm in an interesting situation. I'm currently working in a Corp Dev job (about 3 years out of school), but have had serious talks with my grandpa to join his business - think Specialty Industrials company with highly engineered products, does...
Alternatives to REPE Acquisitions
Hey Monkeys, I've got a few years of CRE experience. I spent some time doing fp&a stuff, spent a year in REPE acquisitions at a boutique, spent a year as a debt/equity broker at a pretty well known shop / for a well known group, got canned due to Covid and have spent the last year-ish as one of two...
Top A&D groups
Hey guys, prospective intern here interested in Aerospace & Defense IB . Wanted to ask if anyone had any knowledge on which banks are generally considered top in the A&D space. Thanks!
Q&A: Non-Target State School with 3.1 GPA to REPE Acquisitions in Major Market
Hello fellow RE monkeys! Finally got my certified star, and figured now is a good time to do a Q&A to continue to give back to the community. Truly, WSO is one of the best resources available online for people trying to break into high finance. As corny as it sounds, without the content on this...
Why would a multi-family developer look to sell a project prior to stabilization?
Question for the acquisition and development monkeys: My group is looking at a 135 unit multifamily acquisition in a third tier suburban market. The broker is marketing at a favorable cap rate for new, luxury, amenitized multifamily. Here is the rub - construction is still ongoing, the owners are at...
Deferred Revenue write downs
Hi guys, Say target company A (Software business) expects to make $10m dollars in revenue in FY20 for $2m in EBITDA and that they currently have $2m in deferred revenue (for prepaid services) to be recognized in FY20. If company B takes over A and writes down DRs to their fair value (say 100%...
Acquisitions / Merger, Target Company has large Non-controlling interest, all stock transaction
how do I treat the non controlling interest as the acquirer? the nci is $480 m while if I simply paid a 15% premium to current price i would pay ~ $250m. I am supposing an all stock transaction. Nci is added to common equity, so the book value of the target is ~$790 hence my concern of not...
Changing careers to RE (PE/AM or both)
Hi All, I currently work as an Associate in S&T Capital Markets covering Fixed Income Institutional clients on the sales side. Over the years I have gained a strong appreciation for real estate (through a little bit of capital market txn and personal endeavors). Is there any possibility to move into...
Sweat Equity Partnerships ?
In this discussion I'd like to receive others perspectives on "Sweat equity partnerships". After speaking with an attorney last week, he mentioned one of his clients being only eighteen years old and owning twelve income producing MF properties. I do not know the number of units in each property,...
Opinions on REFM or BIWS RE course?
I wanted to get peoples opinions on both of these courses. I have done some research online and found that these two were the most recommended. * Is one superior than the other in regards to total content? * Which one is better for learning to underwrite commercial investment properties? * What are...
Single Family Homes vs Retail
I am currently weighing two job offers. One is at a development shop that focus's on shopping centers and STNL properties, the other is in an acquisitions role for single family homes at a tech startup. I see pros and cons to both roles. Would you choose experience in single family homes or in...
Purchase Options
What are the benefits for the buyer and seller, when entering into a purchase option for commercial property? Recently screened a deal between two family offices/boutique investment firms that agreed upon a purchase option for a mixed-use property in Soho in 2014 and are now moving forward with the...
Incentive Structure - Deal Acquisition
In Companies that have incentives on acquisition other than end year bonus, what is the basis of allocation of sourcing incentives (IPO/Sell Side) (for sourcing/acquisition of deals), who all get the incentives? Is it given to the entire team who have worked on acquiring, deal executing and closing...
KPMG Corporate Finance Info
I saw a posting for an Associate role in KPMG's Corporate Finance Group. I was hoping to get some information on the group. Does anyone have much info on compensation (including progression), culture, working hours, travel potential, etc. Any information would be appreciated!
Blackstone Real Estate London Interviews
Hello everyone, I have an upcoming interview for the SA program at Blackstone London, they have not specified whether I will be rotating or working in a particular team, so I want to be prepared for anything. What technical questions will they likely ask me? What should I know about Real Estate?...
Is this still considered a LBO?
Is it still considered a LBO if a public corporate acquires another corporate (private) using 100% debt? I know the term LBO is typically used in the context of a sponsor using a significant amount of leverage to acquire a company, but wasn't sure if LBO could also just be used as a highly leveraged...
Biotech PE to Healthcare IBD?
Ladies and gentlemen of WSO , I could really appreciate your input on what you would do in my situation. I'm posting in the investment banking forum because I'm considering trying to lateral to bb / mm ibd from my pe role. If you have other ideas please let me know. I'm in a very small VC firm,...
Buying REO from Special Servicers
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On the Road to Acquistions
I'm planning on leaving my current position in a Big 4 firm after realizing that an internal switch to a more RE transaction focused advisory role would take almost the same amount of time as finding a new job altogether (if not longer). Like everyone, acquisitions positions are my goal, but I...
New to Argus (AE) - Best Practices
I am new to CRE and just started working as an analyst for a REPE firm. I have never used Argus before but started using it today. I have a lot of questions and am hoping someone on WSO can help me out. I am working for a small firm in the Midwest and am the only analyst (only person that has an...
Q&A - I worked on the Amazon / Whole Foods acquisition
Hi WSO! Since the Amazon/Whole Foods acquisition seems to be the "hot topic of the day", I figured I'd help pay back the community for all the guidance and advice I've received from this forum over the many years. I am one of the employees with direct insight into the Amazon / Whole Foods deal when...
The Walgreen-Rite Aid Merger: Help or More Stagnation?
Fred's Inc. is proposed to step in and invest in Rite Aid in order to facilitate Rite Aid's merger with Walgreen. But, the merger is once again stalled with the concern that Fred's does not have enough money to buy all of Rite Aid's stores and run them efficiently. An unknown source blatantly said...
Comp analysis adjustment for acquisition from 8K
Hey everyone, New to WSO here. I am doing a comparable company analysis and had a little question. I noticed for one of the comps that an 8K came out since the latest 10q and reported a recent acquisition (all cash transaction). Obviously this will affect cash, debt (if taking on acquired company's...
Wanda Not Buying Dick Clark Anymore?
Dalian Wanda, the world's largest cinema chain operator based in China, terminated its deal to buy Dick Clark Productions. Since Dick Clark Productions runs the Golden Globes and Miss America competitions, this purchase would ultimately increase the Chinese conglomerate's power in Hollywood....
What are the best acquisitions of 2016?
After all the talk of AT&T's acquisition of Time Warner, I was wondering: what are some of the best acquisitons of this year thus far? CNBC states Charter Communication's acquisition of Time Warner as especially beneficial: The merger expanded Charter's footprint in the U.S. by 84,000 square miles,...
Is Oracle's NetSuite acquisition a good idea?
As of this week, Fortune reports: The Oracle $9.3 billion acquisition of NetSuite will officially close on Monday, Oracle said early Saturday morning. After conflict surrounding price negotiations, in which investment firm T Rowe Price claimed that $9.3 billion for NetSuite was too low, Oracle's...
Spinning off Twitter
There have been a multitude of rumors concerning the possible sale of Twitter to a variety of suitors. The underlying problem has been the method of valuing the struggling tech company. This article from Bloomberg highlights one of the many complications that exist with valuing the company. What do...
Big 4 M&A opportunity
Hi All, I'm hoping for some advice. I'm currently working in technology consulting revolving around SAP. I had previously worked on a global M&A project, and some of the big4 guys reached out and want me to join their M&A practice. My question is what exactly would that look like work wise. It is...
how much debt could company issue in merger or acquisition
How much debt could a company issue in merger or acquisition? (from interview prep) The provided answer was as follows; You would use the combined company’s LTM (Last Twelve Months) EBITDA figure , find the median Debt/ EBITDA ratio of whatever companies you’re looking at, and apply that to your...
Effect of the Acquisition of a Company on the Acquiring Company's Fundamentals
Is it true that when a company acquires another company then most of its important fundamentals and valuation multiples are at a premium/higher (less favorable) than most of its peers? Also, does the change in the company's fundamentals occur once it is announced that the acquisition is complete or...
Purchase Price Allocation in Real Estate Portfolio Acquisition
Have a question on purchase price allocation. I have drawn up an example below. Portfolio - 100 industrial buildings - 250 tenants - Average size building 200,000 SF - 20,000,000 SF - Occupancy 95% - Market Rent $0.50 NNN / month - Yr 1 NOI - $114,000,000 ($1.14M) - $1,900,000,000 ($1.9B) Purchase...
How would amortization of intangibles make an acquisition dilutive?
I understand that logically, if intangible assets are amortized, then the company is going to take a hit to the income statement. But this doesn't happen right away, right? I mean, the company would have to re-asses its assets (like Ebay/Skype) and then do a goodwill impairment. So how does...
Modeling a Private Company Acquiring Another Private Company
I see lots of resources for modeling the acquision of a public company by another public company. But I have seen very little resources for modeling a private co acquiring another private co. Can anyone point to some resources or give a detailed explanation of how it is done? For example, private co...
What to study? Transitioning from brokerage to acquisitions
Hey guys, Recently, I was able to secure a position at a small retail investment company as a deal guy (
Firepower Analysis - General&Interview question
1. What is firepower in M&A? 2. How do you calculate the firepower of a company exactly?
How to treat target's debt in an acquisition
So more of an informational thread for newbies like me who have a general idea but not any real experience regarding this. so a company has long term debt of diff forms (senior notes at diff rates at a few hundred million dollars each, convertible notes at a couple million dollars and minimal Lease...
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