<img src="https://d5nxst8fruw4z.cloudfront.net/atrk.gif?account=n/CSo1IWx810Y8" style="display:none" height="1" width="1" alt="">

Subscribe to Email Updates

Latest Blog Post

Business Valuation, Recapitalization, Selling Your Business

Debt Capital Market Update - Q1 2019

TKO Miller Debt Capital Market Analysis 

  • Leverage multiples remain at peak levels in M&A transactions due to an aggressive lending environment
  • Leverage multiples, as measured by Total Debt/EBITDA increased from 3.5x in 2012 to 3.9x in 2018 (as depicted in the graph below)
  • The low cost of debt will fuel aggressive growth initiatives for both strategic and financial buyers (i.e. greater ability to fund acquisitions)
  • The debt market is a key underlying driver of M&A valuations; valuations will decrease when leverage multiples fall and the cost of debt increases
  • Transactions will see increasing equity contributions in response to lower debt multiples and rising purchase price multiples compared to 2017 levels (as depicted in the graph below)
  • TKO Miller projects leverage conditions to remain highly supportive over the coming 9-15 months, but trade tariffs with China, a global economic downturn, or uncertain political conditions are capable of shifting conditions back to historical levels

Total Debt/EBITDA Multiples 

Debt and Equity Contribution by Year 

TKO Miller Recent Debt Financing Transaction 

TKO Miller Served as the Exclusive Debt Advisor for Oneida Airport Hotel Corporation 

Steve Yahnke
By Steve Yahnke
on Mar 27, 2019 7:05:00 AM
   
Debt Capital Market Update - Q1 2019

TKO Miller Debt Capital Market Analysis 

  • Leverage multiples remain at peak levels in M&A transactions due to an aggressive...
Steve Yahnke
By Steve Yahnke
on Mar 27, 2019 7:05:00 AM
Flexible Packaging Newsletter - Q1 2019

TKO Miller Market Analysis 

  • The Flexible Packaging Industry continued its strong growth trajectory in 2018 with an overall...
Joe Froehlich
By Joe Froehlich
on Feb 19, 2019 8:16:39 AM
All That Crazy Sh%t You Run Through Your Business - Your Business Broker Doesn't Care

Business owners are a funny bunch. They are almost universally type-A personalities and are stubbornly proud. There is a...

Tammie Miller
By Tammie Miller
on Nov 11, 2018 7:21:00 AM
Where Is Transaction Value Created When I Sell My Business?

As part of meeting with family-owned businesses, we often get asked how an entrepreneur can create value in his or her...

Tammie Miller
By Tammie Miller
on Nov 8, 2018 7:27:00 AM
Wall St. is Awash in Cash. What Does That Mean for the Private Business Owner?

So. Much. Money.

It's tough to be a private equity group right now. PE Funds have the unusual problem of having raised a lot...

Tammie Miller
By Tammie Miller
on Jul 20, 2017 1:28:12 PM
4 Ways to Increase Business Valuation and How Investment Bankers Can Help

We heard from a business owner, "I have people calling to buy my business every day, why do I need you to help me sell my...

Tammie Miller
By Tammie Miller
on May 18, 2017 7:34:00 AM
How Much Money is Your Business REALLY Making? 6 Things to Consider

As a business owner, your bottom line is likely a number that you think you know inside and out. When it comes to a...

Nick Kozik
By Nick Kozik
on Feb 7, 2017 7:37:00 AM
5 Secrets to Selling Your Business Quickly Without Settling for a Low Price Tag

One of the truisms of selling your business is that once you have made the decision, it is always in your best interest to...

Tammie Miller
By Tammie Miller
on Feb 1, 2017 7:30:00 AM

Leave a comment

Written by
Written by Author