On Monday morning, you receive two phone calls from business owners wanting to borrow money from your bank. The first is an existing customer who needs $1 million to build a new warehouse. Her company has never missed a loan payment with your bank, and it has a solid business credit score. The other has never applied for a bank loan. Instead, the owner has borrowed money from wealthy family members to grow his business. This borrower needs $1 million to build a warehouse. Which banking opportunity sounds more attractive?
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Topics: Advisory, Commercial Banking, Commercial Lenders, due diligence, Uncategorized
Five Factors to Consider for Your Due Diligence Approach
Posted by bgoricki on Oct 25, 2016 3:26:19 PM
Before reviewing a borrower’s financial statements, consider the industry in which it operates to determine what’s most relevant. Doing so will help frame your due diligence efforts and credit risk assessment.
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Topics: Commercial Lenders, due diligence, Uncategorized
Mergers and acquisitions (M&As) are an ambitious way to gain traction in today’s competitive construction marketplace. With so many baby boomers approaching retirement age, market analysts expect that there will be plenty of bargains for small to midsize businesses in the coming years. In fact, $10 trillion worth of baby-boomer-owned companies are expected to soon change hands, according to the Exit Planning Institute.
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Topics: Construction, due diligence, Mergers & Acquisitions, Uncategorized, Valuations
Sell-side due diligence, or valuing the company’s assets and examining and documenting the health of the organization, is a fundamental component of the sale process. This procedure, even for small businesses, will help drive a selling price that satisfies ownership while reassuring a buyer of sufficient return on investment.
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Topics: Accounting Practices, Asset Valuation, Business Relationships, due diligence, Estimate Value, Market-based Valuation, Sales Forecasts, Uncategorized
Commercial Lending Report: Beware of M&A Rules of Thumb
Posted by jbarnes on Jan 17, 2014 12:00:00 AM
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Topics: Commercial Lenders, due diligence, M&A, Uncategorized