Musings on Markets

JANUARY 31, 2024

Your answer to that question will determine not just how you approach running the business, but also the details of how you pick investments, choose a financing mix and decide how much to return to shareholders, as dividend or buybacks. Does profitability vary across the globe?

Equity 82

Equity Book Value Start-ups Corporate Finance 82

Musings on Markets

FEBRUARY 27, 2022

When profits are scaled to revenues, you get margins, and as with absolute earnings, margins come in various forms, as can be seen below: In addition to margins based upon income measures (gross, operating, after-tax operating and net), there are other margin variations, with EBITDA and after-tax operating margins coming into play.

Start-ups 99

Start-ups Equity Book Value Marketability 99

Benzinga

JUNE 14, 2023

The Transaction implies a multiple of less than 9x the projected forward Adjusted EBITDA and is immediately accretive, with DCF per share accretion in the mid-teens 4 , 5 , 6. The Terminal was officially placed in-service and loaded its first vessel in July 2020. million barrels of crude oil across 20 tanks.

Dividends 40

Dividends Equity Finance EBITDA 40

Benzinga

MAY 3, 2022

Q1 2022 consolidated Adjusted EBITDA (as defined and reconciled below) of $87.0 The effect of the series of transactions in the last couple of quarters as well as continued focus on operational cost resulted in sequential Adjusted EBITDA 8% greater than Q4 2021. Adjusted EBITDA. Equity Method Investment EBITDA.

EBITDA 40

EBITDA Equity Start-ups Marketability 40

Brian DeChesare

OCTOBER 12, 2022

If your investment thesis is “undervalued industrial companies with between $5 and $15 million in EBITDA,” try again. At an average 10x EBITDA multiple, each company will have ~$5 million in EBITDA, putting you in “small / lower-middle-market” territory. A proven strategy in a specific , differentiated niche.

Private Equity Firm 59

Private Equity Firm Equity Start-ups Marketability 59

Benzinga

JUNE 20, 2022

Combined Company targeting a low teen Adjusted EBITDA CAGR through 2023 from a 2021 base of $305 million 1. billion of Revenue and $305 million of Adjusted EBITDA in 2021 4. Combined Company Adjusted EBITDA. ($ in millions). Pro forma for the merger, Leonardo SpA and RADA shareholders will own approximately 80.5% 2,764. . .

Technology 40

Technology EBITDA Marketability Dividends 40

Musings on Markets

MARCH 8, 2023

This is the last of my data update posts for 2023, and in this one, I will focus on dividends and buybacks, perhaps the most most misunderstood and misplayed element of corporate finance. Viewed in that context, dividends as just as integral to a business, as the investing and financing decisions.

Dividends 102

Dividends Start-ups Corporate Finance Finance 102

Brian DeChesare

SEPTEMBER 11, 2024

A good example is the 2020 – 2021 period, when SPAC activity went vertical, and plenty of renewable energy companies used SPACs to go public. If you look at the presentations and valuations below, you will still see standard valuation multiples like TEV / Revenue, TEV / EBITDA, and P / E.

Banking 59

Banking Finance Start-ups Equity 59

Musings on Markets

NOVEMBER 15, 2022

Venture capitalist, raised on a diet of big stories and total addressable markets has little in common with bankers, trained to think in terms of EV to EBITDA multiples and accounting ROIC, and when put in a room together, it should come as no surprise that they find each other's language indecipherable.

Start-ups 99

Start-ups Marketability Market Capitalization Technology 99

Musings on Markets

OCTOBER 25, 2022

In the last two decades, I have seen free cash flow measures stretched to cover adjusted EBITDA, where stock-based compensation is added back to EBITDA, and with WeWork, to community-adjusted EBITDA, where almost all expenses get added back to get to the adjusted value.

Dividends 108

Dividends EBITDA Equity Start-ups 108

Brian DeChesare

NOVEMBER 20, 2024

Performance and Valuations – PE and VC funds raised in the 2011 – 2020 period have performed decently over the past few years (median IRRs of 15 – 20%), but growth equity has been lower, with a median closer to 10%, likely because there was a much bigger valuation reset in the late-stage funding market and a big drop in exits.

Equity 59

Equity Enterprise Value Start-ups Marketability 59