RNC

MAY 21, 2024

When raising funds, the primary question is whether to opt for equity or debt financing. Equity financing risks diluting ownership stakes in the company, while debt financing entails hefty interest rates. What is Compulsory Convertible Debentures? How do CCDs Work?

Debt Financing 52

Debt Financing Equity Finance Business Valuation 52

Reynolds Holding

MARCH 20, 2025

Debt financing is particularly important for M&A because interest payments are deductible. However, interest limitation rules reduce their deductibility, raising the cost of debt financing and acquisitions. Investments in M&A play a critical role in economic growth and innovation, totaling nearly $2.6

Debt Financing 45

Debt Financing Finance Equity Financing Equity 45

Benchmark Report

JULY 1, 2022

First, the financing needs to be raised with consideration of the company's operating cash flows. For example, if the business uses debt financing, it should have sufficient funds to cover the interest and repay the debt.

Debt Financing 52

Debt Financing Finance Equity Financing Banking 52

Equilest

JANUARY 8, 2023

Modigliani-Miller Theorem in the no-tax world states that the value of a firm is independent of its capital structure, meaning that the mix of debt and equity used by the firm has no effect on its overall value. . . . Firm A has a higher proportion of debt financing, while Firm B has a higher proportion of equity financing.

Weighted Average Cost of Capital 40

Weighted Average Cost of Capital Business Valuation Capital Structure Debt Financing 40

Equilest

OCTOBER 9, 2024

Whether you're deciding how much debt to take on or how to manage equity financing, the right mix can lower your cost of capital and boost growth. Understanding Capital Structure Definition and components (equity, debt, and hybrid instruments). The Role of Debt in Capital Structure How debt impacts business growth.

Capital Structure 40

Capital Structure Equity Financing Equity Finance 40

Lighter Capital

APRIL 17, 2024

In the fast-paced tech world, startups and equity dilution are nearly inseparable. Cash-strapped founders can use their equity to raise capital, compensate advisors, and attract the talent they need to turn a clever idea into a successful business. These days, equity capital is as expensive as it is elusive.

Equity 52

Equity Finance Debt Financing Start-ups 52

Equilest

JANUARY 25, 2025

How to Value a Convertible Loan: A Comprehensive Guide Convertible loans are a critical instrument in the financial world, often bridging the gap between equity and debt financing. A convertible loan is a debt instrument that includes an option to convert the loan into equity under specified conditions.

Discounted Cash Flow 40

Discounted Cash Flow Equity Debt Financing Equity Financing 40

Reynolds Holding

APRIL 25, 2023

For example, a firm engages in a debt-financed repurchase if the negative impact of the increased interest expense on EPS (through the denominator) is smaller than the positive impact associated with decreasing the number of shares (through the numerator). Growth firms will issue equity to pay for acquisitions; value firms won’t.

Net Present Value 45

Net Present Value Corporate Finance Finance Equity 45

Peak Business Valuation

MAY 16, 2024

To finance these activities, you can sell equity ownership or take on debt. For more information, see Debt vs. Equity Financing. You may need cash to hire new employees or purchase more inventory. Both methods have their benefits.

Business Valuation 52

Business Valuation Appraisal Finance Debt Financing 52

Valutico

APRIL 17, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 17, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 12, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Lighter Capital

MARCH 3, 2025

Whats driving the surge in venture debt? Decline in VC funding: The reduction in VC investments has prompted more startups to seek alternative financing options. Cost of equity financing: The rising cost of equity has made venture debt a more attractive option for startups looking to minimize dilution and maintain control.

Equity 52

Equity Finance Equity Financing Debt Financing 52

Cooley M&A

FEBRUARY 3, 2025

Over the course of the year, many of the headwinds that have slowed tech M&A activity since 2022 began to abate as interest rates moderated, the acquisition financing market returned and equity markets reached new highs. billion acquisition of Altair, IBMs pending $6.4 billion take-private acquisition of Squarespace.

Equity 59

Equity Technology Marketability Start-ups 59