Record Low Interest Rates?

Dec 27, 2019

After nine interest rate increases since December 2015, the US Federal Reserve lowered the rate for the first time in July this year, followed by another deduction in September. Both the long-term and short-term interest rates are now at an almost 5,000-year historical low

Continue Reading

Management Buyout (MBO)

Mar 27, 2019

What is a Management Buyout (MBO)? Management Buyout is a transaction where the management team is involved in the acquisition in part or all of the business they manage. Financing sources of an MBO transaction may be obtained from a combination of personal funds, bank loan, equity finance, seller finance, and mezzanine finance.

Continue Reading

Be Prepared!

Sep 6, 2018

Business owners today can take their strong balance sheets and earnings to senior banks or other capital providers to begin discussions on improving their borrowing terms. To be recession ready, ask for:

Continue Reading

Interest Rates Set to Spring as Valuations Look to Fall

Mar 6, 2018

Since February 3, 2018, when Jerome Powell succeeded Janet Yellen as the US Federal Reserve Chairman, the Fed has been poised to be more aggressive in raising interest rates from 3 to 4 times in 20181. We compare the Risk/Reward (Figure 1) benchmark curve (May 2005)2 against the 0% policy curve (Oct 2014) and the Current […]

Continue Reading

Middle Market Divergence Ahead

Dec 13, 2017

Looking Back: Institutional lenders have been adding money supply to the credit market, reducing interest rates on Middle Market loans Looking Around: The Upper Middle Market is benefitting the most from this borrower-friendly market. Looking Forward: The lower Middle Market may expect debt pricing to increase. Capital continues to flow into institutional leveraged loan funds, […]

Continue Reading

Sailing Through the Storm of Rising Interest Rates

Sep 13, 2017

We are moving away from an era of cheap capital. The US Federal Funds rate has increased by 25 Basis Points four times since December, 2015. The Bank of Canada overnight rate has had two hikes of 25 Basis Points in 2017.

Continue Reading