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Boom Or Bust? PacWest, Bank Of California Analysts React To Transformational Bank Merger

Benzinga

Here's what the street has to say about the transformational bank merger. PacWest's tangible book value had been improving since widespread banking issues rocked the industry earlier this year. The question is whether shareholders will approve the deal given the apparent valuation discount the bank accepted, he said.

Banking 52
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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

It is generally not suitable for valuing banks and financial institutions and early stage companies. Interest Expense: This represents the cost of borrowing money, such as the interest accrued on bank loans or equipment financing. Taxes: A fraction of a company’s earnings is paid as income taxes.

EBITDA 52
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Whether to Pay an M&A Advisor, or not?

A Neumann & Associates

The Mercer Capital study was done on banks, particularly small private banks, because it’s one of the few industries that has both enough available financial information about the banks themselves as well as about the transaction prices – the prices for which the banks were sold. Wilson, Jr.,

Banking 52
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Leveraged Buyouts

Andrew Stolz

The concept of an LBO transaction is simple – private equity buys a company, fixes it up, repays its debt and then sells the company for a higher price to earn the profit. Senior Bank Debt / EBITDA 3.0x. Senior term bank debt. Mezzanine debt. Seller notes.

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Business Sale: Prepare to Show Your Financials

IBG Business

Strengthen your ratios: working capital, debt-to-equity, “quick,” price-to-earnings, return on equity, etc. As examples: Make sure your inventory and asset records align with what is physically there.

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Methods of Business Valuation by Their Profitability

Equilest

This multiple is similar, by analogy, to the PER (Price to Earnings Ratio of listed companies). An example, however, makes it more transparent: Example: let's take a company without financial debts or cash, that is to say, without a loan or bank overdraft or a surplus bank account: it does not pay financial expenses.

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Business Valuation for Buying a Security Alarm Company

Equilest

Industry Multiples and Benchmarks Industry multiples, such as price-to-earnings (P/E) ratios, can provide additional context. Financing the Acquisition Funding Options There are several funding options available, including bank loans, private equity, and seller financing.