Bankruptcy and Restructuring in the Age of COVID
28 August, 2020Explore the current trends in turnarounds and restructuring and what it means for distressed companies in today’s environment.
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Explore the current trends in turnarounds and restructuring and what it means for distressed companies in today’s environment.
The coronavirus (COVID-19) has impacted just about everything, including the global M&A market. In a short period of time, businesses of all types have been forced to either shutter their doors or significantly cut back on operations. Millions of employees have been laid off or furloughed and consumer spending has been drastically reduced. Supply chains have been disrupted and shelter-in-place orders have greatly reduced the demand for gasoline and other energy resources.
Navigating cross-border M&A transactions has always been fraught with nuances and challenges, but what does it mean when the global economy is affected adversely by a worldwide pandemic?
The theoretical metrics of company valuations are well known: compare similar public companies, review precedent M&A transactions and throw in a discounted cash flow (DCF) model for good measure. Then how does this theoretical valuation model account for Facebook's acquisition of WhatsApp in 2014 for $19 billion when WhatsApp had $20 million in revenue, a 950x revenue multiple? Why is Airbnb worth $31 billion, which is more than Hilton at $27 billion. Why is Uber worth $72 billion, which is more than GM at $58 billion?
Less than 10% of sellers engage in patent transactions prior to the company being sold. Meaning at least 90% of transactions have non-core IP and tech that is not monetized, thus effectively gifting it to the buyer.
In August of 2019, ShareVault founder and CEO Richard Andersen participated in a web panel hosted by Expert Webcast to share his entrepreneurial expertise in concert with corporate counsel, due diligence and investment banking professionals from Blank Rome, FTI Consulting and DelMorgan & Co.
Every negotiation is unique, and the tactics outlined here will not apply to every business situation. But these best practices make for a good foundation.
Every negotiation is unique, and the tactics outlined here will not apply to every business situation. But these best practices make for a good foundation.
Every negotiation is unique, and the tactics outlined here will not apply to every business situation. But these best practices make for a good foundation.
Let's Make a Deal! 5 Tactics for Becoming a Better Negotiator – Part II READ PART I Many people think talented negotiators were born with innate skills. And although there is an element of truth to...