Connecting Entrepreneurs to Capital

Roughly seven years ago, the economy dipped into a deep recession and the ensuing “credit crunch” made it difficult for many small businesses to secure the capital they needed. Banks effectively closed the door on many small businesses seeking capital that did not fit their “deal” requirements.  Seeing an opportunity, many alternative lenders jumped into the marketplace, willing to provide capital at a time when traditional lenders were reluctant to take on risk. Fast forward to today: the rise of online and marketplace lending means small business owners have access to more options than ever to fund their strategic growth objectives. So what’s the right choice for your business? The answer might not be so simple.
Much like first time home buyers trying to pick the right loan for their mortgage, many business owners are overwhelmed by the countless options available in the capital market.  So many choices can lead to a lot of confusion.  Some lenders will talk to you about APR, others will offer you a short-term cash advance, and more will throw in various hidden fees that may be difficult to discern from all the details –and the list goes on and on.  Taking into consideration all the variables, the real challenge is not merely finding financing or capital resources, but ensuring they are a good fit for both you and your organization’s needs.
For over 25 years Talley & Company has managed complex financial transactions that maximize value for our clients while earning their trust and building a strong network within the banking and private equity industries. Securing financing or capital resources can be a complex process. Structuring a favorable deal requires extensive knowledge of debt and equity capital markets and sources, the analytical skills to compare competing offers, and the transaction expertise of a knowledgeable advisor to maximize after-tax value. Talley & Company can help you develop your best financing options, identify prospective banking institutions or private equity groups that fit your deal, and work with you diligently to obtain the capital that is suitable for your organization’s unique needs.
For more information about how Talley & Company can help you plan, negotiate, structure and execute on your growth strategy, contact us today.
In a landmark agreement, Iran and six world powers have reached a deal to lift sanctions that have been in place for 12 years, in exchange for the nation’s agreement to limit its nuclear program. While both supporters and critics alike consider the agreement historic, many argue that the U.S. may not be on the best side of the deal. Here’s our take on what the Iran nuclear deal can teach us from a business perspective.
Robert Gates, former Secretary of Defense for George W. Bush and Barack Obama, made it clear he felt the nuclear agreement left much to be desired from an American position: “We must now face the reality that there are serious consequences to voting down the agreement or pulling out of it,” he said. “I think we swallow hard, acknowledge our negotiators got out-negotiated, and that we have a flawed deal, and make the best of it.”
Let’s hypothetically apply these comments to a business transaction. Does this sound like a deal that you would want to be on the wrong end of? Probably not.
While we are not discounting the argument that a deal of this magnitude and historical significance has its own playbook and set of rules, what transpired in the US-Iran negotiations can be illuminating to those involved in any type of business transaction.
Getting a deal done is easy, but getting the right deal done is a challenge.
  • Always keep the original strategy in front. Yes, closing a deal is ultimately a transaction and there are mechanical details that need to be handled. But don’t sacrifice the original strategic intent for expediency in getting the deal done.
  • Don’t “need” the deal. If you are in a negotiation and you give the other party the impression that you must make this deal, you may be at a huge disadvantage at the negotiation table.
  • An agreement is only as good as the parties signing it. Many commentators have pointed out that the key to the Iranian deal is trusting Iran to stick with the deal. As in business, it’s essential to assess levels of trust throughout a negotiation and factor it into the structure of any deal you hammer out.
Only time will tell if this remarkable deal will stick and bring about the benefits hoped for by all the parties concerned, however these insights are worth remembering before you enter into any buy/sell transaction.  Talley and Company has negotiated hundreds of M&A transactions and can help you make the most of a transaction based on your goals and priorities. 

Donald Trump wants to make sure you know these two facts: he is a very rich man ($4.1 – $8.7 billion rich depending on who you ask) and that he is the wealthiest presidential candidate for 2016. “I have a total net worth of $8.73B,” he said. “I’m not doing that to brag. I’m doing that to show that’s the kind of thinking our country needs.” But does that mean Trump has enough money to make a legitimate run for President in 2016?

Trump’s wealth matters because rather than rely on rich donors and Super PACs who will ask for future political favors in return, Trump plans to pay for his own campaign run.

Amazingly enough, Trump might not have enough cash to finance a presidential campaign by himself if he plans to compete against the likes of front-runners Hilary Clinton and Jeb Bush.

To put it in perspective, President Obama and his supporters spent $1.1 billion to win in 2012, while Romney spent $1.2B in his losing effort. In both cases, Super PACs and donors were responsible for funding a significant portion of their campaigns.

Fast forward to the 2016 election: Preliminary reports estimate that total spending for the Republican and Democratic nominees’ campaigns could reach $2 billion each.

According to his recently released financial summary, Trump has $302 million (what a paltry amount, right?) in liquid assets. It’s certainly a lot of money, but not enough to run a successful campaign. Most of Trump’s wealth appears to be tired up in real estate, business partnerships and endorsement deals. Those assets, while contributing to his net worth, would do little good unless Trump plans to liquidate or borrow against them.

Yes, even one of the richest men in the world might find himself in the capital market looking for help financing his campaign if he decides to go it alone. And like any type of capital acquisition/growth strategy, it could prove to be a complex venture to undertake.

Regardless if you are planning to run for President or not, Talley & Company knows how critical funding a business’ growth is to entrepreneurs and family-owned businesses. We are here to help connect you to the right lender or equity group to fit your unique growth plan, present your company’s financials and “story” in a manner that increases favorability with lenders or equity groups and structure the transaction in the most tax-efficient manner.

For more information about how Talley & Company can help you plan, negotiate, structure and execute on your growth strategy, contact us today.

August 1, 2014
Former Microsoft CEO Steve Ballmer’s $2 billion bid for the Clippers looks to be a gross over-valuation, at least according to the bid book of sale put together by Bank of America. Reporters from ESPN.com got hold of the valuation numbers through documents introduced in the trial determining whether Shelly Sterling has the right to sell the team without Donald.
The bid book showed Ballmer’s $2 billion offer for the Clippers is 12.1 times the expected 2014 revenues of the team. Purportedly, Bank of America also showed the average of teams sold over a five-year period was 3.4 times total revenue, and that no team has been purchased for more than five times its total revenues.
In the case of the Clippers, revenue alone might present an under-valuation if the team’s alleged years of mismanagement were to be taken into account. The Clippers also have a pending national TV deal that could be a slam dunk to raising the franchise’s popularity and profits.  
Of course, Ballmer’s serious bid is probably about a lot more than him just wanting to make another profitable business deal. Among the billionaire set who have most of what money can buy, we expect there’s immeasurable enjoyment and prestige to owning one of 30 teams that besides their exclusivity, hardly ever go up for sale. For this alone, any team on the NBA is a statistical anomaly in the world of business dealings. Like any near-priceless objet d’art up for auction, the emotional value of ownership can be equal to, if not greater than, the investment value.  
Outside of these outliers, most buyers looking to acquire a business, whether as a singular investment or a complement to an existing company, are more likely to focus on the financial returns they can expect to get for their purchase price. B2B valuation and legal advisory professionals, including those at Talley and Company, can provide comprehensive data and due diligence in these situations to enable decision-makers to make the most profitable investment choices. 
Before entering into any buy/sell agreement, Talley & Company can help you determine both optimal deal pricing and structure to achieve your goals from an ROI and tax perspective, accounting for factors that include revenues, future opportunities and contracts, industry trends, and market share. Of course, if you just plan to make a must-have power bid like Ballmer, at least you’ll know what you’re getting into and how far from the baseline to overshoot.

1 2 3
Archives