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M&A Deal Terms: Average Capital Structure

Exit Strategy

The following chart from GF Data shows the average capital structure over the past 5 years for middle market business acquisitions. The post M&A Deal Terms: Average Capital Structure appeared first on Exit Strategies Group, Inc. Overall there was a slight rise during COVID, but nothing major.

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What Is Optimal Capital Structure?

Andrew Stolz

Definition of Optimal Capital Structure. The optimal capital structure of a firm is the right combination of equity and debt financing. It allows the firm to have a minimum cost of capital while having the maximum market value. The lesser the cost of capital, the more the market value of the company.

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Chancery Court Provides Roadmap for Retroactive Validation of Shareholder Votes

Harvard Corporate Governance

By invalidating these votes, the Boxed decision cast doubt on the capital structure for dozens of post de-SPAC companies with billions worth of securities. Plaintiff, a Class A common stockholder, argued that the vote was invalid because holders of Class A shares had a right to vote on the amendments as a standalone class.

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North America Proxy Voting and Engagement Guidelines

Harvard Corporate Governance

State Street Global Advisors’ Proxy Voting and Engagement Guidelines for North America (United States [“US”] and Canada) address our market-specific approaches to topics including directors and boards, accounting and audit related issues, capital structure, reorganization and mergers, compensation, and other governance-related issues.

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Investment Stewardship Global Principles 2023

Harvard Corporate Governance

Shareholders should be able to vote on key board decisions that are material to the protection of their investment, including but not limited to, changes to the purpose of the business, dilution levels and preemptive rights, and the distribution of income and capital structure.

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The Quality of Earnings Information in Dual-Class Firms

Harvard Corporate Governance

When Google went public with a dual-class capital structure in which shares owned by the founders confer greater voting rights than shares issued to public investors, its cofounders, Larry Page and Sergey Brin, sent shareholders a letter promising to provide them with high-quality information about the company.

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Dual Class Share Structures: Is the Sun Setting Too Slowly?

Harvard Corporate Governance

To look at trends in unequal voting structures, we examined two data points from ISS Corporate Solutions Data Analytics: 1) whether a company has an unequal voting rights capital structure, and 2), if they do, whether there is any sunset clause attached to it.