{"product_id":"underwriting-business-acquisitions-copy","title":"Underwriting Business Acquisitions","description":"\u003cp class=\"x_MsoNormal\" data-olk-copy-source=\"MessageBody\"\u003eThis webinar examines the key risks and mitigation related to financing business acquisitions. As the Baby Boomer generation continues to retire, many small businesses are changing hands. Often these businesses are sold to relatives.  This change of ownership and the resulting debt adds significant layers of risk to the entity. Specific credit analysis and risk mitigation is warranted.\u003c\/p\u003e\n\u003cp class=\"x_MsoNormal\"\u003e\u003cb\u003e\u003cu\u003eTopics covered in this session\u003c\/u\u003e\u003c\/b\u003e\u003c\/p\u003e\n\u003cp class=\"x_MsoNormal\"\u003eIntroduction and statistics\u003c\/p\u003e\n\u003cp class=\"x_MsoNormal\"\u003eWhy are business acquisitions risky?\u003c\/p\u003e\n\u003col type=\"1\" start=\"1\"\u003e\n\u003cul type=\"disc\"\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eChange of ownership and leadership\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eCustomer and supplier considerations\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eSkeletons in the closet (seller withholding unfavorable information)\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eBalance sheet strain – increased leverage\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eCash flow strain – increased debt load\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eCollateral deficiency caused by financing goodwill\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/ol\u003e\n\u003cp class=\"x_MsoNormal\"\u003eDue diligence\u003c\/p\u003e\n\u003col type=\"1\" start=\"1\"\u003e\n\u003cul type=\"disc\"\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eDetails of the purchase agreement\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eStock sale or asset sale – pros and cons\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eBuyer’s character, management ability, financial strength, industry experience, etc.\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eNepotism concerns\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eSeller’s motivation and involvement going forward\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eSite visit\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eDetermining the sales price – sales price methodologies\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eHandling of existing liabilities and assets post-acquisition\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eCredit analysis: Day 1 balance sheet, projections, stress testing, needed working capital\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eFeasibility analysis\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/ol\u003e\n\u003cp class=\"x_MsoNormal\"\u003eHow to Structure the Financing Package\u003c\/p\u003e\n\u003col type=\"1\" start=\"1\"\u003e\n\u003cul type=\"disc\"\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eAll parties must have a vested interest\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eBuyer’s equity\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eSeller financing\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eSubordination\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eBank loan amount and structure\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eLoan covenants\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eCollateral coverage and additional sources\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eSBA options\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eOngoing monitoring\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eNoncompete\/nonsolicitation agreements\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eLegal counsel assistance\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/ol\u003e\n\u003cp class=\"x_MsoNormal\"\u003eUpside\u003c\/p\u003e\n\u003col type=\"1\" start=\"1\"\u003e\n\u003cul type=\"disc\"\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eLess bank competition given the perceived risk\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eHigher interest rates\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eFull relationships to include deposits and TM – requirements in the loan docs\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003eUntapped source of loan growth\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/ol\u003e\n\u003cp class=\"x_MsoNormal\"\u003eSummary, Conclusion, and Best Practices\u003c\/p\u003e\n\u003cp class=\"x_MsoNormal\"\u003e\u003cb\u003e\u003cu\u003e\u003cspan\u003eWho Should Attend:\u003c\/span\u003e\u003cspan\u003e\u003c\/span\u003e\u003c\/u\u003e\u003c\/b\u003e\u003c\/p\u003e\n\u003cul type=\"disc\"\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003e\n\u003cspan\u003eCredit analysts\u003c\/span\u003e\u003cb\u003e\u003cu\u003e\u003cspan\u003e\u003c\/span\u003e\u003c\/u\u003e\u003c\/b\u003e\n\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003e\n\u003cspan\u003eLenders\u003c\/span\u003e\u003cb\u003e\u003cu\u003e\u003cspan\u003e\u003c\/span\u003e\u003c\/u\u003e\u003c\/b\u003e\n\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003e\n\u003cspan\u003eLoan reviewers\u003c\/span\u003e\u003cb\u003e\u003cu\u003e\u003cspan\u003e\u003c\/span\u003e\u003c\/u\u003e\u003c\/b\u003e\n\u003c\/li\u003e\n\u003cli class=\"x_MsoListParagraph\"\u003e\u003cspan\u003eRegulators\u003c\/span\u003e\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e \u003c\/p\u003e\n\u003cp\u003e\u003cspan\u003e*This program does NOT qualify, nor meet the National Standard for NASBA accreditation. \u003c\/span\u003e\u003c\/p\u003e","brand":"BankersHub","offers":[{"title":"Default Title","offer_id":45874189402287,"sku":"ODC0911251","price":299.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0646\/2894\/9167\/files\/UnderwritingBusinessAcquisitions.png?v=1752680209","url":"https:\/\/www.bankershub.com\/products\/underwriting-business-acquisitions-copy","provider":"BankersHub","version":"1.0","type":"link"}