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Financing Year in Review: Evolving Markets and New Trends

Harvard Corporate Governance

Widely held concerns about inflation, rising interest rates, and a possible recession combined to slow debt financing and deal activity in the first half of 2023. Borrowers deferred new debt deals, delayed planned refinancings, and paused major corporate transactions while waiting for interest rates to top out. more…)

Finance 133
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Modigliani-Miller Theorem - is it Any Good For Business Valuation?

Equilest

Are they useful in Business Valuation? The Modigliani-Miller theorem is a fundamental principle in finance that . Firm A has a higher proportion of debt financing, while Firm B has a higher proportion of equity financing. Debt financing: 60% * 100 million USD = $60 million. Let's discuss.

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SBA Loan for Business Purposes

Peak Business Valuation

Obtaining an SBA loan for business purposes can be a complex, multi-step process. For more guidance, schedule a free consultation with Peak Business Valuation. As a business appraiser , we help thousands of small businesses across the country. For more information, see Debt vs. Equity Financing.

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Secure an SBA Loan for a Restaurant

Peak Business Valuation

If you need funding, you can look into SBA financing for a restaurant. Peak Business Valuation can help you with SBA financing for a restaurant. We can also help you with a business appraisal to determine the fair market value of a restaurant. This type of loan offers flexible terms for small businesses.

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What Is Optimal Capital Structure?

Andrew Stolz

The optimal capital structure of a firm is the right combination of equity and debt financing. Debt financing may have the lowest cost, but having too much of it would increase risks to the shareholders. Because it is tax-deductible, debt financing tends to have a lower cost than equity financing.

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What is the Modigliani–Miller Theorem?

Andrew Stolz

Where V (unlevered) = company with no debt financing and V (levered) = company with some debt financing). Investors that purchase shares of a leveraged firm, one with a mix of debt and equity financing, would receive the same profits as when buying shares of an unleveraged firm, which is financed entirely by equity.

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Valuing Affiliated or Subsidiary Companies

BV Specialists

Under the second scenario, you are looking for new investment either through equity infusion or debt financing and the investor or bank needs to review the financial strength of the entire operation.