Remove Banking Remove Start-ups Remove Terminal Value
article thumbnail

Demystifying Valuation Clauses in LPAs for Emerging Managers

Equidam

On the flip side, weak or vague valuation terms can lead to disputes, erode confidence, and even affect governance if LPs feel the General Partner (GP) has too much leeway in marking up (or not marking down) investments. With a yearly cadence, there’s a risk that big changes (up or down) in a startup’s fortune go unreported for months.

article thumbnail

The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Brian DeChesare

When I started offering financial modeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). 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.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Metals & Mining Investment Banking: The Full Guide to Ground Zero for the Energy Transition

Brian DeChesare

Metals & mining investment banking used to be a “sleepy” group. The good news is that if you work in mining IB, and your clients produce the cobalt, copper, or lithium that ends up in EV batteries, you can feel good about saving the world. The metals & mining team’s classification varies based on the bank.

Banking 52
article thumbnail

Deja Vu #11: Can Restricted Stock Studies Be Used to Estimate DLOMs for Dividend-Paying Companies?

Chris Mercer

This 2008 version had information on 477 restricted stock transactions, up from 430 transactions in the 2004 version. There were 231 transactions after April 1997, when the SEC’s period of restriction was reduced from two years to one year (up from 182 transactions in the 2004 version). Conclusion. Refer to the initial figure.

article thumbnail

Venture Capital Interview Questions: What to Expect and How to Prepare

Brian DeChesare

A: Because you are passionate about working with startups, helping them grow, and finding promising new companies – and you prefer that to starting your own company or executing deals. So, the IPO market has largely been closed, but there are some signs that it’s now opening up with recent deals like ARM and Instacart.

article thumbnail

M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

These methods, such as the Discounted Cash Flow (DCF) analysis, estimate the present value of expected future cash flows generated by the business and directly link valuation to the underlying financial performance of the enterprise. The terminal value can be estimated using the perpetuity growth model or the exit multiple approach.

article thumbnail

Oil & Gas Investment Banking: The First Victim of the ESG Cult?

Brian DeChesare

With the possible exception of FIG , oil & gas investment banking generates the highest number of panicked emails and questions. But before delving into the exit opportunities and the long-term outlook, let’s start with the fundamentals: Oil & Gas Investment Banking Defined. How do I move around?

Banking 98