Additional Paid-In Capital in M&A: What Buyers and Sellers Need to Know
Additional paid-in capital, often shortened to APIC, represents the amount investors pay above the par value of a company’s stock.
It reflects the extra money shareholders are willing to contribute because they see greater value in the business than its stated minimum share price.
Read the full article to better understand what additional paid-in capital is and why it matters.
Interest Coverage Ratio: The Hidden Indicator That Defines Deal Strength
When buying or selling a business, one number speaks volumes about financial health: the interest coverage ratio.
It shows how easily a company can pay its interest expenses using its earnings.
A higher ratio means more comfort for lenders and buyers.
A lower ratio signals financial strain.
Understanding this ratio helps you see how stable a business truly is before any deal.
Understanding Operating Leverage in Mergers and Acquisitions
When it comes to buying or selling a business, operating leverage can make or break the deal.
It shows how sensitive profits are to changes in sales.
At Elkridge Advisors, we help you understand these numbers and use them to your advantage.
Deferred Revenue in M&A: What Buyers and Sellers Must Know
When buying or selling a business, understanding deferred revenue can make or break your deal.
It is one of those accounting terms that many overlook, yet it has a powerful impact on valuation and negotiation.
Understanding Gearing Ratio in Mergers and Acquisitions
When buying or selling a business, one financial term you’ll often hear is “gearing ratio.” It may sound technical, but it’s actually simple, and very powerful. It helps investors and buyers understand how much of a company’s growth is funded by debt compared to its own money. At Elkridge Advisors, we help business owners and […]
Understanding Cyclical Unemployment And How It Affects M&As
When buying or selling a business, timing is everything.
One major factor that can change the game is cyclical unemployment.
It affects how people spend, how businesses earn, and ultimately, how deals get made.
YOY (Year Over Year) Meaning and Why It Matters in Mergers & Acquisitions
When buying or selling a business, numbers tell a story.
But not just any numbers, the ones that show progress.
That’s where Year over Year (YoY) comes in.
It’s a simple way to compare how a company performs this year versus last year.
And in mergers and acquisitions (M&A), it can make or break a deal.
Understanding Phantom Equity: How It Can Increase the Value of Your Business Before You Sell
When preparing to sell your company, one of the most powerful, yet often overlooked, tools at your disposal is phantom equity.
It can motivate key employees, improve company performance, and make your business far more attractive to potential buyers.
At Elkridge Advisors, we often meet owners who want to sell for top dollar but haven’t yet set up the right internal incentives to make that happen.
Phantom equity can be a smart and flexible way to do just that, without giving away actual ownership.
How to Sell a Small Business by Owner & Get the Best Possible Price
Selling a small business on your own can be one of the most rewarding, and challenging, experiences of your career.
Whether you’ve built your company from the ground up or inherited it, knowing how to sell a small business by owner requires careful preparation, strategic thinking, and an understanding of what buyers truly value.
At Elkridge Advisors, we’ve helped countless business owners navigate this exact process.
We specialize in helping entrepreneurs like you prepare, position, and sell their businesses for maximum value, while also connecting you to qualified buyers already looking for companies like yours.
