Harvard Corporate Governance

OCTOBER 21, 2022

Posted by Carine Smith Ihenacho, Wilhelm Mohn, and Alexis Wegerich, Norges Bank , on Wednesday, October 19, 2022. Tags: Capital structure , Carve-outs , Charter & bylaws , Mergers & acquisitions , Shareholder voting , Shareholders agreements. 2025 climate action plan – Driving portfolio companies towards net zero 2050.

Capital Structure 199

Capital Structure Equity Compliance Banking 199

Valutico

FEBRUARY 27, 2024

For central banks like the Federal Reserve, it helps control the economy. They set this rate to affect how much money moves through banks and influences short-term interest rates. We are going to focus on how discount rates are used in the context of investment, rather than in the context of central banks.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Beta 52

Brian DeChesare

MAY 3, 2023

But people who aim for investment banking roles are very much into those bells and whistles, so questions about the DDM and other “exotic” methodologies began rolling in. To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Andrew Stolz

NOVEMBER 17, 2021

A second method is when the company uses its own cash and cash borrowed from a bank. This usually happens when a company is making a deliberate and significant change to its capital structure. This is usually done in concert with the company’s banks and investment banks. Since 2008, the U.S.

Dividends 52

Dividends Banking Capital Structure Start-ups 52

Benzinga

OCTOBER 13, 2022

Discretionary cash flow will initially be directed at strengthening the Company's financial position, with Enerflex targeting its bank-adjusted net debt to EBITDA ratio to be below 2.5 CAPITAL STRUCTURE. times within 12 to 18 months.

Capital Structure 40

Capital Structure Net Debt EBITDA Banking 40

Andrew Stolz

MARCH 20, 2020

To calculate WACC, the cost of each capital component will be multiplied by its proportional weight. A firm borrows from banks or bondholders and it has to pay the interest. In practice, it is difficult for the firm to maintain its capital structure. It tends to add debt beyond the optimal capital structure.

Beta 52

Beta Capital Structure Risk-free Rate Weighted Average Cost of Capital 52

Lighter Capital

FEBRUARY 13, 2024

Explore non-dilutive capital sources Growth can sometimes be too anemic to show the traction you need to woo investors and raise equity at the terms you want. Explore alternative funding sources beyond venture capital, like debt financing that won’t dilute your equity.

Equity 52

Equity Finance Debt Financing Capital Structure 52

Brian DeChesare

JUNE 1, 2022

The power & utilities investment banking team has a reputation for being “boring.”. We’ll get into these fun developments, but I want to start with the basic definitions: Power & Utilities Investment Banking Defined. ” Different banks classify their power & utilities groups differently.

Banking 98

Banking Equity Book Value Capital Structure 98

Simply Treasury

MARCH 25, 2020

We are in the middle of the ford and will have to reach the opposite bank early on. We know the Central Banks and the States will be there. Central banks are kind of “paper tigers”. The States will take on even more debt, the central banks will buy back the new debts of these States. USD, AUD, GBP,).

Banking 52

Banking Finance Start-ups Capital Structure 52

Musings on Markets

JANUARY 11, 2024

I started in the MBA program at University of California at Los Angeles (UCLA) in 1979, at the tail-end of its basketball glory days, fully expecting to move on to a career in consulting or investment banking, when I was done.

Corporate Finance 128

Corporate Finance Finance Start-ups Dividends 128

Simply Treasury

AUGUST 2, 2022

The idea is not new to encourage companies to increase their capitalization and reduce their bank debt (partly through more recourse to the capital market - CMU project). The CMU aims to better balance bank financing against capital market financing. A very simple approach indeed.

Equity 52

Equity Risk Premium Banking Finance 52

Brian DeChesare

FEBRUARY 9, 2022

Recruiting: If you don’t work in one of the top groups at a bulge bracket bank (or an elite boutique ), you don’t have much of a chance at these firms. Recruiting is fast, highly structured, and open only to select candidates. Work Hours / Lifestyle: Expect the same hours as investment banking , or even worse in some cases (!).

Equity 53

Equity Banking Start-ups Finance 53

Andrew Stolz

APRIL 3, 2020

Senior Bank Debt / EBITDA 3.0x. Senior term bank debt. Capital Structure of an LBO. EBITDA / Interest Coverage > 2.0x. Sources of Funds and Sources of Revenue in LBO. Mezzanine debt. References.

Private Equity Firm 52

Private Equity Firm EBITDA Equity Finance 52

Valutico

APRIL 17, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 17, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 12, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Brian DeChesare

JUNE 29, 2022

The solutions usually involve replacing Board members or executives, divesting assets, changing the capital structure, cutting costs, adopting new strategies, and sometimes selling the entire company. Investment Banking & Private Equity: 17%. Elliott’s presentation to Suncor after they announced a 3.4% Exit Opportunities.

Private Equity Firm 52

Private Equity Firm Equity Banking Start-ups 52

Reynolds Holding

MAY 23, 2023

5] As Healy described it, failures at funds included 1) disregard of fiduciary standards, 2) lack of regulation of investment advisers, 3) complicated capital structures, 4) inadequate accounting, and 5) lack of supervision of mergers and consolidations. [6] 4] Ibid at 7. [5] 5] Ibid at 4. [6] 6] Ibid at 13. [7] 7] Ibid at 13. [8]

Banking 40

Banking Technology Marketability Capital Structure 40

Musings on Markets

FEBRUARY 27, 2023

Note that this framework applies for all businesses, from the smallest, privately owned businesses, where debt takes the form of bank loans and even credit card borrowing and equity is owner savings, the largest publicly traded companies, where debt can be in the form of corporate bonds and equity is shares held by public market investors.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Reynolds Holding

MAY 6, 2022

18] Certain features of modern-day distressed capital structures exacerbate this problem. Banking & Fin. 17] To the extent that their objectives differ – which is common, since unsecured creditors can be anyone from bondholders to unionized employees to tort victims – these differences are hard to reconcile. 165 (2008). [16]

Private Equity Firm 56

Private Equity Firm Capital Structure Equity Marketability 56

Class VI Partner

JULY 28, 2021

It is typically the highest risk/highest potential return portion of a company’s capital structure. It is the second-most risky portion of a company’s capital structure (after Common Equity), but can enjoy appreciation potential similar to Common Equity depending on the terms and conditions of the Preferred Equity.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52

Appraiser Newsroom

FEBRUARY 16, 2022

He has over 30 years of experience in investment banking and valuation, specializing in technology companies, rapidly-growing companies, closely-held businesses, professional practices, and intangible assets. Baker, ASA, CFA , is a member/partner at CapVal -American Business Appraisers. a registered SEC broker-dealer and FINRA/SIPC member.

Intangible Assets 52

Intangible Assets Business Valuation Appraisal Corporate Finance 52

Brian DeChesare

SEPTEMBER 13, 2023

How to Recruit for Distressed Debt Hedge Funds The best background is restructuring investment banking because the skill set is directly relevant. If you have a non-IB background, such as at a turnaround consulting firm , you might want to aim for operational roles in distressed PE or move to banking first to improve your chances.

Equity 96

Equity Banking EBITDA Start-ups 96

Shephard Mullin M&A

APRIL 21, 2020

To limit this risk, the purchaser should bolster the record that “fair consideration” or “reasonably equivalent value” was paid, and should consider the need for a fairness and solvency opinion from a qualified investment bank, and the thoroughness of the sale process in terms of its openness to as many bidders as possible.

Capital Structure 52

Capital Structure Equity Banking Finance 52

Reynolds Holding

MAY 10, 2023

million under senior secured, two-tranche term loan facility from Silicon Valley Bank $16.5 Industry: Technology/Software De-SPAC: February 4, 2022 Chapter 11: November 7, 2022 Debt: Total funded debt outstanding: $23.9 million $7.4

Going Concern Value 49

Going Concern Value Finance Equity Technology 49

Brian DeChesare

MAY 24, 2023

Capital Structure Trades – Or you could focus on Jacobs’ ~$4 billion in debt and long or short some of their bonds (or use credit default swaps) if you believe its credit rating will change once the deal takes place. should convertible arbitrage be in this category?) .): should convertible arbitrage be in this category?)

Equity 64

Equity Start-ups Banking EBITDA 64

Reynolds Holding

AUGUST 22, 2022

These companies would probably have gone bankrupt without the forbearance of banks or regulators or other types of government or lender support, but their rise reduces economic productivity, limits healthy firms’ growth, and deters the creation of new firms (Caballero et al, 2008; McGowan, Andrews, and Millot, 2017). REFERENCES. Andrews, D.,

Banking 45

Banking Finance Capital Structure Marketability 45

Appraiser Newsroom

JULY 5, 2022

Mr. Emroy has won several of profession awards, most notably including Finance Monthly’s M&A Award Winner of “Cross-Border Investment Banking Adviser of the Year” in 2017, and its M&A Award Winner of “US Leading Adviser of the Year – Varitronics Acquisition” in 2013, issued by Acquisition International.

Business Valuation 40

Business Valuation Intangible Assets Appraisal Finance 40

Brian DeChesare

JULY 27, 2022

In practice, that means: Any investment banking group that does a lot of debt issuances, including many industry groups and Leveraged Finance , but probably not DCM (less analysis). Here are the most common backgrounds I found when looking up professionals currently working at credit hedge funds on LinkedIn: Investment Banking: 37%.

Equity 52

Equity Start-ups Private Equity Firm Beta 52

Appraisal Rights

JUNE 5, 2017

Further to our prior post about Delaware’s two new appraisal decisions, SWS Group was a small, struggling bank holding company that merged on January 1, 2015 into one of its own substantial creditors, Hilltop Holdings. Stockholders of SWS received a mix of cash and Hilltop stock worth $6.92 at closing. below the merger price.

Beta 40

Beta Risk Premium Capital Structure Discounted Cash Flow 40

Reynolds Holding

NOVEMBER 15, 2022

These consequences include changes in investment, governance, and executive compensation, debt issuance and capital structure, innovation, employment, and financial reporting. In practice, covenant violations are associated with a series of economically significant consequences for borrowers.

Marketability 59

Marketability Capital Structure Banking 59