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December 2021

Finance

Why Should You Consider Mergers & Acquisitions?

by Bayne Rradel on

Mergers and acquisitions are common occurrences in the business world. But do they exactly mean? And why is it worth it? Well, let’s find out as we discuss what these two terms are all about as well as their benefits. Let’s get started!

Mergers and acquisitions refer to the process of joining two companies to form a single identity. This includes the brand image and the assets. A number of people usually think that these two terms can be used in a similar way. But this isn’t the case because there is a slight difference between these two terms.

A merger means amalgamating two companies by mutual consent. It usually involves some form of share allocation in which the initiating company offers its shares in exchange for merging the company’s shares, thereby forming one entity.

Acquisition, on the other hand, slightly differs from a merger since money is usually exchanged in return for controlling a stake in the company. It could be through purchasing 50% of the company’s shares to give it full control over the company’s decisions. It can also buy the whole firm upfront. This approach is usually a perfect option for small companies that are striving to become larger.   If you are considering mergers and acquisitions for your business, you need to seek m&a advisory services.

With that said, let’s see some of the benefits of mergers and acquisitions.

  • Access to a wide talent

It is no secret that there are shortages of workers in certain industries, such as engineering, construction, and programming. For this, it is very challenging for these industries to find new, trained, and talented workers to fill vacant positions. This makes a merger and acquisition a better option since it retains previous employees. If one of the companies did not have access to extensively trained, skilled, and talented employees, it will now be easy to access them.

Mergers and acquisition firms can substantially benefit from economies of scale. It could be in the form of lower unit costs, facilitated by lower fixed costs.  For instance, there may be no need to have several stores open, particularly if they are closer to each other. Such companies may also benefit from efficiencies they can achieve.

  • A bigger market share

Of course, all businesses want to acquire a bigger market share. But this can be sometimes quite difficult to achieve, especially if a business is still at its initial stages and operating under a low budget. This is where mergers and acquisitions come in. Once the two companies amalgamate, they will become larger and expand their market share. M&A advisory services can become handy if you are considering mergers and acquisitions to acquire a bigger share market.

  • Tax advantages

There are plenty of tax advantages brought by mergers and acquisitions. For starters, companies with cash on hand can choose to assimilate rather than issuing dividends. Dividends are taxable while increasing shareholders’ value isn’t.

  • Reduced risk

Mergers and acquisitions tend to allow a company to diversify. Since mergers and acquisition firms have more streams of revenue, they are able to spread risks across those revenues rather than having to focus on one stream of revenue.

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News

Capital Solutions Approaches For Commercial Stage Healthcare and Life Science Companies

by Bayne Rradel on

SWK Holdings is an experienced finance company focusing on investment process opportunities in the global healthcare sector through innovative capital solutions. Capital Solutions enable a business or company to realize improvements in revenue and overall growth. The reliable capital sources provide the business with the necessary financial backbone to run their services and expand to achieve greater heights. The capital is provided to several business partners through the company balance sheet and the investment advisory clients, including institutional investors and family offices. The extensive management experience enables the management to understand business opportunities in the life science sector, specifically in healthcare-related principal investing and structured finance. The capital solutions approach include:

Investment Process

The investment process involves utilizing a disciplined and standardized underwriting process that comes in handy. Stress risk assessments and mitigation are some of the emphasis of the process, which further heightens the partner’s unique financing needs. Once the client signs a term sheet, the investment professionals work with a commitment to meet the aggressive timeframes that pull the client from the tight time-sensitive circumstances they find themselves in. The process involves opportunity identification which entails direct organization, brokers, and industry participants, which provide a more outstanding opportunity evaluation. Secondly, the funding consists of the term sheet, documentation, and closing, which handles the financial aspects and the necessary risk assessments.

Investment Criteria

SWK Holdings provides capital to several healthcare sectors, including biopharma, medical devices, diagnostics, life science tools, and chosen healthcare service and HIT companies. A few characteristics get considered when the investment process company seeks long-term partnerships with clients. One of the characteristics includes a product offering a compelling societal value through efficacy and safety improvement or providing savings to the healthcare system. Secondly, companies at a generally commercial-stage depended on the pre-approval situations having aligned and ethical management teams. With a selective consideration of large transactions, the investment process company focuses on transactions in the $5 – $20 million range. The criteria enable the company to work with the science companies, institutions, and investors, providing flexible and non-traditional sources of capital. The result of the process is the superior risk-adjusted returns on capital through the investment in marketed ethical product cash flow streams.

Creative Capital Solutions

The perfect combination of the company’s long-term investment strategy, permanent capital base, flexible mandate, and lack of regulatory constraints facilitate creative solutions. The combination enables the company to meet the needs of their investment process partners, ensuring that the entire client benefits from the process. One of the solutions is structured debt financings which are recourse obligations of the issuer and provide a more flexible source of credit capital than traditional lending institutions offer. Also, synthetic royalties or revenue interests enable the investment company to purchase new royalty interest in an existing revenue stream from the marketer. Another solution is the traditional royalty monetization which allows royalty owners to receive upfront capital for their expected future royalty payments.

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Finance

HOW TO GET A MORTGAGE WITH BAD CREDIIT

by Bayne Rradel on

Having bad credit can prevent you from getting the mortgage that you need. When you want to take a mortgage, the traditional lenders take the credit score into account. If you have a bad credit score, it can be difficult to qualify for a mortgage. However, that isn’t always true. You can still get a mortgage if you follow the proper steps and reach out to a bad credit Certified Mortgage Broker like https://certifiedmortgagebroker.com/bad-credit-mortgages-toronto/ to help you handle the case. Here is how they can help you.

Income Record

When you have a bad credit mortgage, the main focus is on the ability to pay back the loan on time and not on the past failed payments. For that, you will have to prove to the lender that you are earning enough to cover the monthly payments until the mortgage term is over. Once the lender has gone through your records, they will use the Gross Debt Service Ratio or Total Debt Service Ratio to determine the amount to give you. Mostly, lenders only approve of applications that have less than 30% of the GDS and TDS.

Larger Down Payment

With a private mortgage, you are required to pay at least 20% as a down payment. When you have a large down payment amount, it helps to reduce the mortgage needed to top up the purchase price. In case of bad credit, it will help to bring down the risk involved. The more you can pay, the less the lender will have to lend to you. However, if you are unable to pay a large down payment you can always use one of your properties as cross collateral. Some mortgage lenders also give you the option to use property from a family member or a friend as collateral. When you have collateral properties, it increases the loan to value ratio. It helps to reduce the lender’s risk. When the lender’s risk is lesser, the interest rates are lower. It enables the lender to give you better payment plans.

Property Appraisal

Property appraisal tells you the value of the property. This will help the lender to determine the amount of bad credit mortgage to lend. You are required to have a property appraisal before taking any mortgage. It is essential to get your appraisal done by a reputable professional. Some lenders will request you to get it done by a company they have worked with before. However, the others will let you choose your appraisal company. It is highly suggested to get at least two appraisals. This will help you to get the average value and accurate results. As the appraisal gives you the property value, the lenders will use this information to calculate the loan-to-value ratio. This will help to ascertain the level of risk involved in lending you money. Some of the lenders will be able to give you up to 90% of the property value. However, most only give between 80 to 85%.

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Business

Quality Content Is Being Overlooked: An SEO Trend

by Bayne Rradel on

If you want to maintain a strong presence online in the current environment, you need to prioritize SEO. Search engine optimization is just as important as it has ever been, but a lot of people are overlooking the importance of quality content. If you run a small business, this is an opportunity for you to separate yourself from the crowd. Furthermore, you can rely on a professional SEO firm right here in Dallas that can help you make sure you have quality content on your website. What does quality content look like, and why is this being overlooked by so many businesses? Learn more about this below.

Businesses Are Falling Prey to Tech

The biggest reason why quality content is being forgotten is that businesses are falling prey to technology. It is true that you need to use advanced tools that can help you optimize your content, but you need to remember that your content is for visitors as well as search engines. If you focus all of your energy on search engines, You may not realize that your content is not readable. Yes, you need to make sure you put the right terms in the right locations, but you also need to make sure your content is attractive to your visitors.
With this in mind, what does quality content look like?

Quality Content Is Critical

Quality content comes in many shapes and forms, just like the websites they go on. There are a few important themes you need to think about if you would like to produce quality content.

The first thing you need to do is make sure your content is interesting to the reader. While you need to have a focus keyword, you also need people to stay on the page once they arrive. You can keep them interested by answering a common question. What are some common questions your readers ask? Answer them in a post.

Then, keep your sentences focused. Do not waver from the topic. Break up your content with headers to make it easier to read. You might also want to include images and videos to supplement your content and make it more interesting. Proofread your content to remove any errors that might make your content harder to read. Then, collect feedback from your readers on what they liked or didn’t like.

Trust a Professional SEO Team

If you want to have a strong online presence, you need to think about putting quality content on your website on a regular basis. Of course, you have a lot to do to keep your business running, and you might not have time to do this on your own. For this reason, you should trust a professional team that has the experience necessary to produce quality content for your site as well as the tools to track your rankings accordingly. If you want to save time and maximize the results of your SEO campaign, you need the help of experts.

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Business

Why You Need Quality Business Advisory Services

by Bayne Rradel on

In today’s dynamic environment it become very important for an organisation to evolve themselves in improving their overall performance and adopt different strategies for the long-term success and sustainability of an organisation.Various opportunities and challenges always come along the way for an organisation and with proper strategic planning they will be able to grasp these opportunities and increase the overall performance of the business. The right strategic planning makes an organisation make various decisions related to technology platform, new product development, manufacturing and supply chain as well as sales and marketing.

With the help of business advisory services, an organisation will be in an advantageous position as they will assist and advise their clients with strategic initiatives that help them to enhance their business value. These Agencies provide the right advisory support to a new business or an ongoing business that enable them to improve their performance and also support them to manage their risk and bring great financial transformation.

The business advisory services offerings include the following:

  • Consultation related technology and risk involved.
  • Various business Consulting including operation, strategy and market research
  • Provide transaction advice including economic analysis, valuations, due diligence and many more.
  • Analytics and intelligent automation
  • Process Consulting and financial advisory.

Most of the business advisory services offered structure services to address companies end to end business needs that further help them to achieve their mission and vision in the best way possible.They offer the right comprehensive services for the businesses that support them to leverage the right strategy while driving people, processes and information according to the need and requirements of the business for optimum utilisation of resources and people.

Business strategy

These advisory boards provide a roadmap to the company that helps a businessman to understand the customer insights and develop a vision and strategy to gain a more competitive advantage.

Program management and Enterprise portfolio

The business advisory services include the execution of a strategy along with the value realisation. They’ve worked their best to deliver the right Strategies and initiatives that align with the vision of the organisation and the professional team of staff helps the business organisation in the most efficient way to achieve their mission in the best possible manner.

The professional and experienced team of business advisory services help a business to adopt today’s market dynamics and make a strategy accordingly to compete in today’s cut-throat competition by facing various threats and grasping most of the business opportunities. These advisory services support the change to the organisation and provide tactical improvements that further helps in the large scale transformation of an organisation. The advisory boards are having experienced and professional practitioners and leaders who are experienced in their field and hence deliver excellent driver strategy that further helps the business to manage complex projects and work effectively towards the achievement of long term objectives of an organisation.

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