The following is the Economic Dashboard for May 10, 2013. [More]
Most of our recent posts have been about loan pricing and structure, which should come as no surprise to most of you. This is THE topic for banks right now, from rural community banks to the Wall Street megabanks. This means it is also the primary topic in our strategy discussions with clients. Our Flex Loan program is certainly helping clients book longer loans without the interest rate risk, but many are still facing hurdles on prepayment language and prices that translate to spreads under 200 basis points. I had this on my mind when I saw this post from Seth Godin's blog called "Avoiding the Custom Bully." [More]
After an the exclamation point to 2012 that was the fourth quarter, there is sometimes a need to take in a deep breath; that is exactly what happened in private equity ("PE") markets during February and March of Q1 2013. After momentum from the end of 2012 carried through January, a huge drop ... [More]
The State of Kansas is one of the top ten states in the country for wind generation, with generating capacity of 2,713 MW according to the American WindEnergy Association. Kansas is certainly open for business!
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The following is the Economic Dashboard for March 22, 2013. [More]
Equity contributions in private equity-backed deals are trending lower as private equity buyers increase leverage with cheap debt, enabling them to write checks for a lower percentage of the entire deal. Equity contributions in leveraged buyouts averaged 39.4% in 2012, the lowest level seen si... [More]
There are many qualitative and quantitative factors to consider in determining the right price for an acquisition. Many of these factors, especially factors like impact on employees, corporate image, markets served etc. involve long term considerations and are difficult to quantify. [More]
How many times during our most recent election did you hear something negative about private equity and/or the Romney affiliated Bain Capital group? Once a day? Once a commercial break? The fact is, PE, venture capital and private turnarounds have received a bad rap from the media and politicians in... [More]
Worried about the US budget deficit? David Kemper, Chairman of Commerce Bank sets forth an ingenious tongue in cheek solution, that is short but fun read. [More]
Pitchbook has released their Q1 2013 PE Deal Multiples & Trends Report. Some excerpts are included below:
Two thirds of transactions involved EBITDA multiples greater than 5.0x.
The revenue multiple spectrum was fairly dispersed, although over one fourth of transactions inv... [More]