Lighter Capital

FEBRUARY 13, 2024

Equity dilution is part of growing a successful startup. How to Prevent Excessive Equity Dilution in Your Startup 1. Bootstrap your way to early milestones If you can, focus on growing the business organically before you pursue equity funding. Take only as much capital as you need More isn’t always better.

Equity 52

Equity Finance Debt Financing Capital Structure 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

MARCH 20, 2020

Weight average cost of capital (WACC) is a calculation of a firm’s cost of capital which includes all sources of capital such as common stocks, preferred stocks, and bonds. A firm uses a mix of equity and debt to minimize the cost of capital. A firm borrows from banks or bondholders and it has to pay the interest.

Beta 52

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

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). DEBRA Proposal (« Debt-Equity Bias Reduction Allowance). DEBRA Proposal (« Debt-Equity Bias Reduction Allowance). Two major axes.

Equity 52

Equity Risk Premium Banking Finance 52

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

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. The resulting WACC represents the average cost of all the types of capital a company uses to finance its operations.

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. The resulting WACC represents the average cost of all the types of capital a company uses to finance its operations.

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. The resulting WACC represents the average cost of all the types of capital a company uses to finance its operations.

Weighted Average Cost of Capital 52

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

Andrew Stolz

APRIL 3, 2020

The buyer (the “sponsor”) raises debt and equity to acquire the target. It borrows the majority of the purchase price and contributes proportionately small equity investment. The LBO ratios can go to 90% of debt and 10% of equity. A private equity firm aims a target return of around 20 – 25% (WallStreetMojo, 2018).

Private Equity Firm 52

Private Equity Firm EBITDA Equity Finance 52

Musings on Markets

FEBRUARY 27, 2023

To fund the business, you can either use borrowed money (debt) or owner's funds (equity), and while both are sources of capital, they represent different claims on the business. Even government-owned businesses fall under its umbrella, with the key difference being that equity is provided by the taxpayers.

Equity 52

Equity EBITDA Start-ups Net Debt 52

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. equities) as it does today.

Banking 52

Banking Finance Start-ups Capital Structure 52

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

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 93

Banking Equity Book Value Capital Structure 93

Reynolds Holding

MAY 10, 2023

Some Chapter 11 proceedings yield a stand-alone restructuring where either (1) existing equity interests are eliminated and creditors emerge as the debtor’s new equity owners in exchange for their pre-bankruptcy claims or (2) a “plan sponsor” injects new capital in to the debtor in exchange for equity in the reorganized entity.

Going Concern Value 49

Going Concern Value Finance Equity Technology 49

Reynolds Holding

MAY 6, 2022

6] Similarly, J.Crew’s private equity owners transferred $250 million of intellectual property into an unrestricted subsidiary, freeing up assets that they turned around and pledged as collateral to borrow even more. [7] 18] Certain features of modern-day distressed capital structures exacerbate this problem. Banking & Fin.

Private Equity Firm 56

Private Equity Firm Capital Structure Equity Marketability 56

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

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

Brian DeChesare

SEPTEMBER 13, 2023

Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” Distressed investing offers equity-like returns with lower risk.” Distressed assets offer non-correlated returns, similar to global macro.”

Equity 83

Equity Banking EBITDA Start-ups 83

Brian DeChesare

MAY 24, 2023

Event-Driven Hedge Funds Definition: Event-driven hedge funds bet on specific corporate actions, such as M&A deals, divestitures, spin-offs, bankruptcies, and business reorganizations, and they profit based on changes in the value of a company’s debt or equity after the action.

Equity 64

Equity Start-ups EBITDA Banking 64

Valutico

MAY 6, 2024

These multiples are applied to target company’s latest financials such as revenue, earnings and book value of equity to arrive at an estimate of enterprise value or equity value. A significant portion of the purchase price in an LBO is funded through debt, which can include bank loans, bonds, and mezzanine finance.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Shephard Mullin M&A

APRIL 21, 2020

Just below the surface, however, lie significant issues that potential purchasers must consider when pursuing the acquisition of a distressed company out-of-court, including: Structure. Timing of Closing.

Capital Structure 52

Capital Structure Equity Banking Finance 52

Brian DeChesare

JULY 27, 2022

Anyone who’s ever traded stocks can understand long/short equity , and even simple global macro trades are easy to explain to the average person. To simplify, we can say that credit hedge funds operate in three main areas: Long/Short Credit – It’s similar to long/short equity , but with bonds rather than stocks. See the example above.

Equity 52

Equity Start-ups Private Equity Firm Beta 52

Appraiser Newsroom

JULY 5, 2022

Mr. Fries specializes in private-equity related valuations as well as providing valuations in the context of partner buy-outs and disputes. Mr. Fries has been a designated member of ASA for 14 years. Karl Schwabauer , CPA, CFF, CVA is a Senior Member of the Business Advisory Services Team at Rosenfield & Co.

Business Valuation 40

Business Valuation Intangible Assets Appraisal Finance 40

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