Brian DeChesare

SEPTEMBER 13, 2023

Distressed debt investing offers advantages over other hedge fund strategies , but the marketing often oversells the benefits. These percentages mean the market is pricing in a high likelihood of creditor losses in a restructuring or bankruptcy. “Distressed assets offer non-correlated returns, similar to global macro.”

Equity 88

Equity Banking EBITDA Start-ups 88

Brian DeChesare

DECEMBER 21, 2022

Just look at the financial markets, the crypto meltdown, deal volume at banks, inflation, energy prices, Russia/Ukraine, supply chains, and the hiring environment in tech and finance. But the problem is that revenue will also fall if advertisers flee, so even if the company’s margins improve, cash flow, EBITDA, etc.,

Banking 85

Banking Start-ups Finance EBITDA 85

Brian DeChesare

AUGUST 10, 2022

Oil & Gas Investment Banking Definition: In oil & gas investment banking, professionals advise companies that search for, produce, store, transport, refine, and market energy on raising debt and equity and completing mergers and acquisitions. Also, there are few “independent” Downstream companies in major markets like the U.S.,

Banking 88

Banking EBITDA Dividends Equity 88

Brian DeChesare

MARCH 8, 2023

Regional market dynamics are important here, as are your relationships with the buyers, sellers, and freighters. A Mixed Physical and Paper Trade You could earn a higher profit from this same trade if you bet on market prices first. But you could be wrong, so you also decide to hedge your risk by buying futures.

Finance 110

Finance Start-ups Banking Alpha 110

Brian DeChesare

APRIL 13, 2022

We recommended a long position because: The market overreacted to a bad earnings report with a 25% decrease in sales for the company’s key product (Xyrem), ignoring how most patients were being migrated to a similar but newer-and-better drug. Asset Management or Other Buy-Side Markets Roles: 5 (~16%). Investment Banking: 8 (~25%).

Equity 91

Equity Start-ups Banking Marketability 91

Musings on Markets

FEBRUARY 27, 2022

That said, about 31% of the net profits of all publicly traded firms listed globally in 2021 were generated by financial service firms; that percent is lower in the US and higher in emerging markets. IFRS and GAAP now treat as leases as debt, but that is still not the case in many other markets that are not covered by either standard).

Start-ups 80

Start-ups Equity Book Value Marketability 80

Musings on Markets

JANUARY 6, 2023

By the same token, it is impossible to use a pricing metric (PE or EV to EBITDA), without a sense of the cross sectional distribution of that metric at the time. Counter made-up numbers : It remains true that people (analysts, market experts, politicians) often make assertions based upon either incomplete or flawed data, or no data at all.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

Musings on Markets

JANUARY 5, 2024

Thus, looking at only the companies in the S&P 500 may give you more reliable data, with fewer missing observations, but your results will reflect what large market cap companies in any sector or industry do, rather than what is typical for that industry.

Dividends 98

Dividends Risk Premium Equity Book Value 98

Musings on Markets

JANUARY 31, 2024

In fact, that objective of value maximization drives every aspect of the business, as can be seen in this big picture perspective in corporate finance: For some companies, especially mature ones, value and profit maximization may converge, but for most, they will not.

Equity 79

Equity Book Value Start-ups Corporate Finance 79

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. billion assessed by accountants. billion, which results in an adjusted PE ratio of about 6.

Finance 74

Finance Start-ups Equity Equity Financing 74

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. To illustrate the heat that buybacks evoke, consider two stories in the last two weeks where they have been in the news.

Dividends 91

Dividends Start-ups Finance Corporate Finance 91

Brian DeChesare

JUNE 1, 2022

But over time, trends like market liberalization, deregulation, the shift to renewables, and the ESG religion “movement” have shaken up a sleepy sector. It is 100% possible to use standard valuation multiples, such as P / E and TEV / EBITDA , to value power/utility companies, and you’ll see many examples in the Fairness Opinions below.

Banking 96

Banking Equity Book Value Capital Structure 96