Buy and Build Ep 44: How Will Inflation Impact SMEs and Acquisitions? Sara Yates [Novastone Capital Advisors]
19 snips
Jul 18, 2022 AI Snips
Chapters
Transcript
Episode notes
Managing Leverage
- Consider increasing the equity-to-debt ratio to manage risk in a rising interest rate environment.
- Look for companies with strong balance sheets and low existing leverage.
Interest Rate Impact
- Current interest rate increases, while significant percentage-wise, are small in absolute terms.
- High leverage magnifies the impact of these increases, making it crucial to assess a company's debt levels.
Buying Opportunities
- Current market conditions may present opportunities to acquire good companies at favorable prices due to owner anxiety.
- This is similar to the buying opportunities that arose during the COVID-19 pandemic.