article thumbnail

Merger and Acquisition Due Diligence Checklist

The Startup Magazine

When it comes to mergers and acquisitions, taking due diligence takes center stage. On these lines, this guide is going to take you through the Prolifogy Mergers & Acquisitions Checklist and how to take due diligence. Also, review past acquisition agreements and equipment leases. If there are many warrant issues, take note.

article thumbnail

How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

He or she wants to know how long the money you will raise will last and whether this is long enough to warrant taking a risk on funding you. A VC wants to know that you have a solid plan to execute a stand-alone business and if you require capital for an acquisition they’d rather evaluate it at the time rather than over-fund you now.

Burn Rate 247
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

You name the price; I’ll name the terms.

Berkonomics

Offering too little in an acquisition to satisfy the seller? Satisfy the seller’s need to claim a higher sales price victory by moving a substantial part of the price into a future earn–out or using the target company’s own cash to pay part of the price, or asking the seller to finance a significant piece of the sale.

Naming 62
article thumbnail

Who are the Major Revenue-Based Investing VCs?

David Teten

Since 2017 we’ve managed $3 million in revenue-based financing, which helps cash-strapped technology companies grow. According to John Borchers, Co-founder, Decathlon is the largest revenue-based financing investor in the US. “ You qualify if you have $5k+ MRR. Bigfoot Capital. Earnest Capital : Earnest is not technically RBI.

Revenue 60
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” 15-20% sold per round.

article thumbnail

Using warrants to pump up your VC valuation

www.mattbartus.com

One possibility is to negotiate a higher valuation and offer warrants (i.e., Take a look at the numbers when you increase the fully diluted pre-money valuation from $3 million to $5 million and include warrants: Pre-Money. Warrants. -. 1,333,333 warrants x $0.50 1,333,333 warrants x $0.50 and the acquisition price.

Warrant 40
article thumbnail

Strategy Roundtable For Entrepreneurs: Non-dilutive Financing Through Revenue Sharing

ReadWriteStart

For a more elaborate explanation of the deal, please read my blog post 1M/1M: Alternative Financing For Startups Using A Sales Channel Partner. And a few words about Persistent Systems, an outsourced software product development (OPD) company that is navigating its next phase of evolution are also warranted. Brainscape.

Dilution 114