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The Tax Advantages of Including Debt in a C Corporation Capital Structure

Machen McChesney

So for shareholders of closely held C corporations, it can be a tax-smart move to include in the corporation’s capital structure: You should know that the federal tax code treats corporate debt more favorably than corporate equity.

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Capital Structure in 5 Minutes

Auto Dealer Valuation Insights

Family businesses are built on long-term capital investments. Capital structure refers to the mix of debt and equity financing used to make those investments.

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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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Decisions, Decisions: 3 Questions to Start Thinking About Capital Structure

Auto Dealer Valuation Insights

Elevated interest rates and inflationary pressures have squeezed margins and hindered the liquidity of companies paying down debt. Since the pandemic, lenders have observed a shift from cash flow-based loans towards asset-based loans as companies look to recover flexibility in the face of an uncertain economic outlook.

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Silicon Valley Bank Demise: Causes and the Path Forward

Harvard Corporate Governance

In this paper we focus on the problems with bank fundamentals, namely, bank governance and bank capital structure, that allowed, or even encouraged, bank managers to ignore the growing mismatch between the assets and liabilities of their banks. more…)

Banking 139
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Regulatory Intensity and Firm-Specific Exposure

Harvard Corporate Governance

It triggers heated political debates, and it is also constantly on the minds of business owners, who cite regulation as a major factor that affects capital structure, employment, and innovation. Summary Regulation is a fundamental economic concept. Of course, many studies focus on cost-benefit analyses of specific rules.