Farrel Fritz

JANUARY 2, 2024

This year, let business owners and their counsel resolve to carefully document their investment and ownership transactions. One of the most common disputes that a poorly documented investment in a closely held company will produce is one of characterization: is the investment a loan or an equity purchase? By Melwani or Cantal?

Equity 59

Equity Dividends 59

Brian DeChesare

OCTOBER 26, 2022

Collectively, these show you a company’s revenue, expenses, cash, debt, equity, and cash flow over time, and you can use them to determine why these items have changed. For example, if the company claims it will generate $5 billion of Free Cash Flow and use it to repay $1 billion of Debt and issue $4 billion in Dividends, is that realistic?

Dividends 72

Dividends Start-ups Finance Equity 72

Farrel Fritz

JANUARY 22, 2024

Equity dilution is another common method by which those in control of a corporation or LLC attempt to squeeze out a minority owner. Despite the potentially drastic consequences of stock dilution, many closely-held businesses we encounter fail to adequately address the issue of dilution in their governing documents.

Equity 59

Equity Dividends Appraisal Marketability 59

Farrel Fritz

NOVEMBER 20, 2023

If ownership of a corporation is disputed, a books and records demand in which the plaintiff’s right to the demanded documents hinges on his ownership status is an effective way to bring that issue to the forefront. Depending on the evidence required to establish ownership, that may or may not be a good thing.

Dividends 59

Dividends Equity Finance Technology 59

Benzinga

OCTOBER 18, 2022

The Federal Aviation Administration (FAA) has asked Boeing Co (NYSE: BA ) to reassess its safety paperwork for the 737 MAX 7, saying some key documents submitted are incomplete and others need a reassessment. Another Setback For Boeing's Potential 737 MAX 7 Approval, Some Submissions Rendered Incomplete.

Equity 98

Equity Marketability Dividends 98

Chris Mercer

FEBRUARY 8, 2024

Equity interests in a business enterprise are not necessarily worth the pro rata share of the business enterprise interest value as a whole. The only mention of dividends in the Professional Standards is in a list of factors from Revenue Ruling 59-60. 2) Generally accepted appraisal standards defined.

Appraisal 52

Appraisal Business Valuation Business Enterprise Dividends 52

Value Scout

DECEMBER 15, 2022

million shares for 14 cents per share in addition to interest and dividends. The contract usually has a high debt-to-equity ratio for which a high share of the purchase price is paid by borrowing against what is paid outright. The usual ratio is 90 percent debt and 10 percent equity. GE Credit Corporation purchased 2.3

Equity 52

Equity Finance Dividends Compliance 52

Brian DeChesare

OCTOBER 12, 2022

If you search for “how to start a private equity firm” online, you’ll find results that range from useless to tangentially useful to occasional nuggets of real wisdom. Starting a private equity firm is a bad decision for ~95% of people who work in the finance industry. How Does It Work? Degrees such as an MBA or a Ph.D.

Private Equity Firm 59

Private Equity Firm Equity Start-ups Marketability 59

Class VI Partner

JULY 28, 2021

Balance Sheet A Balance Sheet is an accounting record for a company that lists a company’s assets, liabilities, and shareholders’ equity. In particular, a Buy-Sell Agreement will typically provide for what happens in the event that one of the shareholders leaves the business and he or she needs to dispose of an equity stake in the business.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52

Benzinga

MAY 4, 2023

million to shareholders in the form of dividends and share repurchases in the third quarter of fiscal year 2023. Free copies of these documents may be obtained as described above. Adjusted EBITDA margin was 9.3%, up from 6.4% in the third quarter of 2022. Capital expenditures in the third quarter of fiscal year 2023 were $5.5

EBITDA 40

EBITDA Marketability Dividends Equity 40

Chris Mercer

MARCH 8, 2023

The dividend-paying capacity. The hypothetical parties have agreed to and signed the documentation customarily needed for a transaction prior to or on the valuation date. Similarly, the hypothetical transactions could not be concluded unless all customary documentation of the transactions had been completed.

Fair Market Value 52

Fair Market Value Marketability Appraisal Business Valuation 52

FE International

MARCH 23, 2022

Crucially, any owner salary/dividends can be added back to the profit number, too. Churn: It is well documented that customer metrics are of vital importance for SaaS business owners and consequently they are of great interest to investors. 4) Document the Source Code. Documentation. 5) Position the Product.

EBITDA 105

EBITDA Start-ups Business Valuation Marketability 105

Chris Mercer

APRIL 7, 2023

All marketing, due diligence and documentation has occurred before or on the valuation date and a hypothetical transaction occurs on the valuation date. XYZ Company (100% of equity). Importantly, the transaction occurs for cash and/or cash equivalent consideration. .”There Does anyone care? Not really.

Marketability 52

Marketability Fair Market Value Appraisal EBITDA 52

Cooley M&A

OCTOBER 25, 2018

In addition, certain acquisition documents are usually executed as deeds instead of simple agreements – usually when there is no clear consideration or in order to extend the statute of limitations governing the document from six to 12 years. There is no positive obligation to negotiate in good faith.

Compliance 40

Compliance Dividends Finance Equity 40

Cooley M&A

APRIL 5, 2024

The stockholder agreement gave the founder a number of rights and protections, specifically: “Veto rights” over 18 corporate actions, including stock issuances, financings, dividend payments and senior officer appointments. A “board size requirement” that the board size not exceed 11 members.

Dividends 52

Dividends Marketability Compliance Banking 52

Benzinga

NOVEMBER 2, 2022

million of undrawn forward equity, the net debt to annualized adjusted EBITDA ratio would be 6.0x. million in preferred equity directly with its RGMZ joint venture partners, Zimmer Partners and Monarch Alternative Capital LP, which will earn a fixed return of 7.0%. Proforma for the $14.0 million or $0.7 WHOLLY-OWNED DISPOSITIONS.

Dividends 52

Dividends Equity Net Debt Finance 52

Cooley M&A

OCTOBER 4, 2023

Boards should remain mindful of the public disclosure requirements that could apply to certain advanced (but not yet finalized) discussions regarding material transactions, in the event the company first pursues a debt or equity offering or files a related registration statement.

Equity 52

Equity Finance Equity Financing Marketability 52

Musings on Markets

NOVEMBER 15, 2022

While this may strike some as giving up, it does provide a pathway for Facebook to become a cash cow, investing just enough in R&D to keep its existing business going for the foreseeable future, while returning huge amounts of cash to its investors each year (as dividends or buybacks).

Start-ups 90

Start-ups Marketability Market Capitalization Technology 90

Benzinga

APRIL 18, 2022

Return on average tangible common equity (1). . . The return on average tangible assets was 1.07%, compared to 1.30%, and the return on average tangible common equity was 10.31%, compared to 12.37%. million lower unrealized gains from equity method investments included in the prior quarter and $0.7 0.60. . $. 0.74. . $.

Banking 40

Banking Book Value Equity Intangible Assets 40

ThomsonReuters

JULY 13, 2021

The Tax Equity and Fiscal Responsibility Act of 1982 and Interest and Dividend Compliance Act of 1983 requires payers to backup withhold tax from certain reportable payments. This 24% is taken from any future payments to make sure the IRS receives the tax due on this income and is known as backup withholding (BWH).

Treasury 98

Treasury Dividends Compliance Equity 98

Reynolds Holding

SEPTEMBER 11, 2023

While the Final Rules grant limited legacy treatment for certain restricted activities and preferential treatment provisions —to avoid mandating amendments to existing fund documents — most requirements will apply to both existing and new funds. Methodology Disclosure and Cross-references to Fund Documents.

Compliance 40

Compliance Marketability Start-ups Banking 40

Reynolds Holding

JANUARY 4, 2023

If the financial results of a CAMT taxpayer are reported on the AFS of a group of entities, the portion of the AFSI allocated to the taxpayer is determined by relying on the taxpayer’s source documents that were used to create the consolidated AFS. PIPEs are commonly structured as redeemable preferred equity.

Treasury 45

Treasury Dividends Marketability Finance 45

Reynolds Holding

APRIL 11, 2023

The constituent documents may also contain limitations on the voting rights that may be granted to preferred stock, and the company’s existing capital structure should be reviewed to ensure any new issuance does not violate the terms of existing securities. Following the initial dividend, APEs have traded at a discount to AMC’s common stock.

Dividends 45

Dividends Capital Structure Equity 45

Musings on Markets

APRIL 20, 2021

Financing Mix : Companies can raise capital either from equity or debt, and the costs of equity and debt can be altered when the tax rate changes. In addition, changes in tax law take a while to work their way into corporate behavior. Am I hopeful that Congress will keep these in mind, while it writes new tax laws?

Start-ups 52

Start-ups Debt Financing Finance Equity 52

Reynolds Holding

APRIL 11, 2022

If adopted, such rules would significantly impact many of the common practices that companies and their insiders have come to rely on to manage equity award programs and to conduct share repurchases and personal trading. The board should discuss and document the goal of the repurchase. Why should a company repurchase its shares?

Banking 45

Banking Marketability Equity Compliance 45

Benzinga

JUNE 20, 2022

"The transaction also provides flexibility for the Combined Company to add capabilities in Leonardo DRS' core markets through targeted acquisitions and strategic investments as we expect to supplement strong organic growth with M&A and dividend distributions as part of our overall strategy going forward.".

Technology 52

Technology EBITDA Marketability Dividends 52

Reynolds Holding

AUGUST 30, 2023

Meanwhile, companies with robust balance sheets continue to face calls to return more cash to investors in the form of buybacks and special dividends.

Equity 40

Equity Dividends Total Shareholder Return Finance 40

Reynolds Holding

SEPTEMBER 7, 2022

In addition, the line between hedge fund activism and private equity continues to blur, with some activist funds becoming bidders themselves for all or part of a company, and a handful of private equity funds exploring activist-style investments in, and engagement with, public companies.

Equity 45

Equity Dividends Total Shareholder Return Marketability 45

Musings on Markets

FEBRUARY 4, 2023

Adani's Debt Load The investment side of the Adani story is not complete without bringing in the financing part, since the money for these investments has to come from somewhere, either internally, residual cash flows from existing operations, or externally, from new debt or equity.

Start-ups 100

Start-ups Market Capitalization Marketability Equity 100