Hilco Corporate Finance Delivers Cautionary M&A Perspective As Massive Aramco IPO, Walgreens Boots LBO Loom Ahead

Hilco Corporate Finance has issued a timely and relevant perspective on the highly competitive environment surrounding the current global M&A market, as sellers are firmly in control and transactions are being valued and, ultimately, bid-up to excessive multiples. 

Buyers and Sellers Require an Abundance of Advice to Get a Deal Done in Today’s M&A Market authored by Jason Frank, CEO of Hilco Corporate Finance, looks at key the factors contributing to high multiples and seller control in the M&A market and the three distinct methods most commonly used to determine valuation in current M&A transactions. 

The perspective explores the importance of extensive due diligence and careful scrutiny of the underlying assumptions presented in any deal.  It emphasizes that that when these assumptions are accurate, properly analyzed and applied within the chosen valuation method, much of the subjectivity is eliminated and the valuation becomes more of a “science.” 

“Sellers and their IBs are well aware of their advantaged position and are relying more than ever on auctions to market their assets,” says Frank. “This is resulting in motivated financial and strategic buyers bidding up the transaction price.  We have seen these deals valued between 8x-10x EBITDA, or even higher in specific instances and industries.”

To obtain a copy of the perspective or schedule an interview with Jason Frank, contact Gary Epstein- Chief Marketing Officer, Hilco Global at 847-418-2712 or gepstein@hilcoglobal.com.

About Hilco Corporate Finance: Hilco Corporate Finance, LLC(“HCF”), a subsidiary of Hilco Global, is a licensed broker dealer focusing on Buy-side and Sell-side Representation, Debt & Equity Capital Raises, and Strategic Advisory Services. HCF specializes in the needs of the middle-market: Transactions from $20 million to $500 million (we will consider transactions outside of this range); Small and middle-market companies headquartered in North America; Larger companies wishing to acquire, merge or divest divisions. We cover multiple industries, but have interest in those specializing in Industrials, Retail, Consumer, Business & Professional Services, and Financial.