Musings on Markets

NOVEMBER 10, 2022

Accounting 101 I am not an accountant, and have no desire to be one, but I have used their output (accounting statements) as raw material in valuation and corporate finance. That skewing can affect valuation and pricing judgments about these firms, and correcting accounting inconsistencies is a key step towards leveling the playing field.

Finance 74

Finance Start-ups Equity Equity Financing 74

Benzinga

SEPTEMBER 28, 2022

year earnback) dilutive to tangible book value with and without purchase accounting interest rate marks, respectively. Both Provident and Lakeland have extensive experience successfully integrating with merger partners, and both are intensely focused on ensuring a smooth integration. The transaction is approximately 17% (3.6

Banking 40

Banking Book Value Finance Marketability 40

Reynolds Holding

APRIL 18, 2024

A basic tenant in finance is that risk and return go hand-in-hand, thus lower returns for CEFO firms suggest investors perceive them as less risky investments, thus requiring a rate of return lower than that of their non-CEFO counterparts of similar size and in the same industry.

Start-ups 64

Start-ups Book Value Compliance Finance 64

Equilest

NOVEMBER 25, 2023

Introduction In the fiercely competitive landscape of finance, succeeding in a valuation interview requires a unique blend of knowledge, confidence, and strategic preparation. These interviews are not just a mere formality but a critical component of the hiring process in finance, investment banking, and consulting.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Reynolds Holding

FEBRUARY 12, 2024

According to Bologna, if SoFi had elected to account for loans at amortized cost and had to take CECL reserves similar to peers, its tangible book value per share reported for the third quarter of 2023 would fall from $3.42 This higher revenue ultimately flows through to earnings and capital. and its CET1 ratio would be cut from 14.3

Banking 59

Banking Book Value Start-ups Technology 59

Benzinga

JUNE 12, 2023

per unit and the assumption of in-place financing Northview Residential REIT's portfolio will consist of 14,622 multi-family suites and execusuites and 1.25 per unit and the assumption of in-place financing Northview Residential REIT's portfolio will consist of 14,622 multi-family suites and execusuites and 1.25

Book Value 40

Book Value Marketability Fair Market Value Banking 40

Musings on Markets

FEBRUARY 27, 2023

The "Right" Financing Mix Is there an optimal mix of debt and equity for a business? The answer is yes, though the payoff, in terms of value, from moving to that optimal may be so small that it is sometimes better to hold back from borrowing. Do companies optimize financing mix?

Equity 52

Equity EBITDA Start-ups Net Debt 52

Sun Acquisitions

OCTOBER 5, 2022

It’s an excellent way to establish a business’ fair value as the valuation itself is conducted by an independent third party. Business valuation experts may look into the organization’s earnings multipliers, market cap, and book value in order to give an objective estimation of the company’s worth.

Business Valuation 52

Business Valuation Earnings Multiplier Private Equity Firm Book Value 52

Benzinga

JULY 10, 2023

With the completion of this transaction, SMGI's balance sheet is significantly improved, including a large increase in the book value of the combined company. Financing Structure: The transaction was financed through a $25.0 million (including $2.5 million of SMGI preferred stock and received a $3.0

EBITDA 40

EBITDA Book Value Capital Structure Marketability 40

Benzinga

APRIL 28, 2023

Book value per common share was $32.15 for the fourth quarter of 2022, while tangible book value per share (1) was $24.52 Resilient profitability: Earnings of $11.2 for the first quarter, compared to $32.24 at March 31, 2023, compared to $24.59, at December 31, 2022. million compared to net interest income of $38.6

Dividends 40

Dividends Banking Book Value Equity 40

Valutico

MAY 6, 2024

Valutico | May 7, 2024 Valuation is really important in finance. This guide talks about the main ways we figure out value during M&A deals, why they’re useful, and what challenges they bring. Some techniques include comparing companies in the market, estimating future cash flows, and assessing the value of tangible assets.

Discounted Cash Flow 52

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

Musings on Markets

FEBRUARY 27, 2022

To make comparisons, profits are scaled to common metrics, with revenues and book value of investment being the most common scalar. The Value of Growth As investor tastes have shifted from earnings power to growth, there has been a tendency to put growth on a pedestal, and view it as an unalloyed good, but it is not.

Start-ups 80

Start-ups Equity Book Value Marketability 80

Musings on Markets

JANUARY 5, 2024

I have also developed a practice in the last decade of spending much of January exploring what the data tells us, and does not tell us, about the investing, financing and dividend choices that companies made during the most recent year. Financing Flows 5. Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3.

Dividends 98

Dividends Risk Premium Equity Book Value 98

Reynolds Holding

MAY 11, 2023

For our analysis, we draw on an earlier post , in which we argued that the actions of the Swiss authorities made sense from a corporate finance, legal, and financial stability perspective. According to the 2022 CS Annual Report , the book value per share was 11.45 First, investors in CS did bear a significant part of the losses.

Banking 59

Banking Equity Book Value Treasury 59

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. The End Game in Business If you start a business, what is your end game?

Equity 79

Equity Book Value Start-ups Corporate Finance 79

Benzinga

APRIL 26, 2023

Book value per common share of $22.79 Tangible book value per common share of $20.38 The unrealized losses, net of taxes, in the AFS portfolio were $18.0 million at March 31, 2023. at March 31, 2023 increased $0.66 from fourth quarter 2022 and increased $0.23 from first quarter 2022. at March 31, 2023 increased $0.67

Dividends 40

Dividends Banking Equity Book Value 40

Equilest

AUGUST 6, 2023

Whether you are an investor, a business owner, or a finance professional, the ability to accurately assess the worth of a company is crucial for making informed decisions. Liquidation Value: This method assesses the value of the company's assets if they were to be sold off in a liquidation scenario.

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Precedent Transaction Analysis Comparable Company Analysis 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 91

Dividends Start-ups Finance Corporate Finance 91

Shephard Mullin M&A

JUNE 8, 2023

There is no legal reason for this dynamic, which appears to be driven by generally accepted industry precedent and the disparate negotiating leverage that tends to exist in this industry between buyers, who are often large and well-finance consolidators, and sellers, many of whom are smaller, family-owned businesses looking for an exit.

Finance 52

Finance Going Concern Value Book Value Marketability 52

Brian DeChesare

JUNE 1, 2022

Companies tend to offer high, stable dividend yields, and they finance their massive capital expenditures primarily with debt , with the highest leverage ratios of any industry outside of financial institutions. Pacific Gas & Electric (PG&E) (JPM, BAML, Barclays, and Citi) – Bankruptcy and Debtor-in-Possession Financing.

Banking 93

Banking Equity Book Value Capital Structure 93

Musings on Markets

JANUARY 9, 2021

Challenge rules of thumb and conventional wisdom : Investing has always had rules of thumb on how and when to invest, ranging from using historical PE or CAPE ratios to decide if markets are over valued, to simplistic rules (eg. buy stocks that trade at less than book value or trade at PEG ratios less than one) for individual stocks.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

Farrel Fritz

FEBRUARY 14, 2022

Though Ho-Walker had an impressive pedigree – a degree in finance and economics from the Stern School of Business at New York University and 15 years of experience in investment banking and private equity – he was not an accredited business appraiser, nor an expert.

Book Value 59

Book Value Appraisal Business Valuation Fair Market Value 59

Musings on Markets

JANUARY 6, 2023

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. For example, I have seen it asserted that a stock that trades at less than book value is cheap or that a stock that trades at more than twenty times EBITDA is expensive. Cap Ex & Net Cap Ex ((including acquisitons) 2.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

Benzinga

JULY 26, 2023

Financial Highlights of the Transaction The total estimated consideration of $395 million: i) represents less than 2.75x of expected EBITDA in 2024, ii) is estimated to be less than the book value of MacKellar's assets and iii) is expected to be over 50% accretive based on incremental earnings per share.

EBIT 40

EBIT Debt Financing Book Value Finance 40

FE International

DECEMBER 31, 2021

How to Value an Advertising Business. How to Value an Affiliate Business. How to Value an App. As the father of value investing taught in his seminal investment book , value means different things to different people and, as a result, the price offered by different buyers for the same asset can be quite substantial.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Business Valuation Precedent Transaction Analysis Start-ups 52

Brian DeChesare

SEPTEMBER 13, 2023

The company still pays interest on the full $1000 and must repay it upon maturity, but you can buy the issuance at a steep discount because there’s a significant chance of default (see: book value vs. market value vs. face value ). A sharply declining stock price does not necessarily mean a company is “distressed.”

Equity 83

Equity Banking EBITDA Start-ups 83

Reynolds Holding

FEBRUARY 21, 2024

they opted for pooling accounting, in which goodwill was not recognized and therefore not amortized; the book value of the assets and liabilities of the two businesses were just added together. 2020) Stewardship and value-relevance in accounting for the depletion of purchased goodwill, in Amel-Zadeh and Meeks, eds. In the U.S.

Intangible Assets 45

Intangible Assets Book Value Banking Finance 45

Valutico

AUGUST 23, 2023

Asset-Based Approaches: Asset-based approaches determine a company’s value based on its net asset value (NAV). Two commonly used asset-based approaches are: a) Book Value Method: The book value method calculates a company’s net asset value by subtracting total liabilities from the fair market value of total assets.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

AUGUST 10, 2023

Asset-Based Approaches: Asset-based approaches determine a company’s value based on its net asset value (NAV). Two commonly used asset-based approaches are: a) Book Value Method: The book value method calculates a company’s net asset value by subtracting total liabilities from the fair market value of total assets.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Benzinga

SEPTEMBER 6, 2023

BVPS 3 is expected to increase by approximately 2% upon the issuance of common shares to finance the transaction. Intact will maintain a strong capital position after financing the transaction, with all regulatory capital ratios remaining at or above target operating levels.

Discounted Cash Flow 40

Discounted Cash Flow Net Present Value Book Value Dividends 40

IBG Business

MAY 31, 2023

They don’t require special financing; can be relied upon for a consistent, professional approach; and typically bring extensive expertise to the table. Your financial statements will be appropriately and accurately recast to show the business’s true earnings and book value.

EBITDA 52

EBITDA Marketability Equity Book Value 52

Musings on Markets

FEBRUARY 4, 2023

Adani's Debt Load The investment side of the Adani story is not complete without bringing in the financing part, since the money for these investments has to come from somewhere, either internally, residual cash flows from existing operations, or externally, from new debt or equity. times revenues in the most recent two years.

Start-ups 100

Start-ups Market Capitalization Marketability Equity 100