M&A Mindset (Issue #2: December 19, 2023)

Welcome!
As always, the M&A Mindset keeps things simple in 3 separate sections:
INTERESTING M&A ARTICLES
INSIGHTS & INFOGRAPHICS
BOOKS OF INTEREST

This weeks focus area for INSIGHTS & INFOGRAPHICS:
Basic Financial Modeling Tips
What Exactly is EBITDA?
IOI vs. LOI

Check out the focus areas for next week at the end of the newsletter.

Enough chat. Let’s get to it.

ARTICLES
Interesting M&A/Finance Finds

• Backlogged M&A Pipeline Will Burst in 2024

• Navigating The Unpredictable: A Recap of M&A in 2023

• PE Firms Face Pressure To Deploy Record $2.6 Trillion of Dry Powder

• Adobe To Pay Figma $1B Breakup Fee

• New Merger Guidelines Likely To Impact Large Company Mergers

And just because…

• Blackstone’s Holiday Video

INSIGHTS & INFOGRAPHICS
Basic Financial Modeling Tips

• Regardless of the purpose of the model, there are some key tips and guidelines to follow to create a useful and easy-to-follow financial model in Excel

• The key is to remember that a good financial model should be self-explanatory and be able to sent to someone for use and analysis without much explanation required

• Use these tips when creating financial models and they will be more organized, easier to follow, and will avoid confusion

• Have other tips and tricks? Comment below.

INSIGHTS & INFOGRAPHICS
What Exactly is EBITDA?

• EBITDA is thrown around all the time assuming that everyone knows what it is, how to use it, and why it is important in M&A

• As with many things in M&A (and in business), that isn’t always necessarily true and we all need some insight on those things that “everybody knows”

INSIGHTS & INFOGRAPHICS
IOI vs. LOI

• Whether buying or selling a company, an IOI and/or LOI may be submitted as part of the process

• An IOI (Indication of Interest) and LOI (Letter of Intent) are actually different and serve different purposes in M&A deals

• Better understanding the purpose, scope, timing, use, and end goals of each will help determine which one to potentially use during an M&A process

BOOKS
Good Reads This Week

Thanks again for taking a look. If you haven’t done so already, please subscribe! Please pass along to your friends and colleagues! Thank you!

Look for these INSIGHTS & INFOGRAPHICS next week:
Buy Side - Deal Pipeline Development
Buy Side - Deal Execution
Buy Side - Post-Closing

Questions, comments, suggestions for topics?
[email protected]