Lighter Capital

JULY 20, 2023

Some founders may choose to spend months pursuing equity funding from angel investors and venture capitalists, while others leverage debt financing to grow quickly without giving up equity or control too soon. Why do startups use debt financing? It’s best to start with the basics.

Debt Financing 52

Debt Financing Finance Equity Equity Financing 52

Sun Acquisitions

APRIL 26, 2024

The risk-reward equation in M&A financing is a delicate balance, where potential pitfalls and gains play a pivotal role in shaping the merged entity’s future. This blog post delves into the intricacies of different financing models, shedding light on the associated risks and rewards.

Finance 59

Finance Debt Financing Equity Financing Equity 59

Sun Acquisitions

FEBRUARY 14, 2024

Consider options such as raising capital through equity financing or securing a bank loan to fund your expansion plans. Financial strategies involve leveraging existing assets as loan collateral or tapping into private equity partnerships to support this goal.

Debt Financing 59

Debt Financing Equity Financing Finance Equity 59

Sun Acquisitions

FEBRUARY 28, 2024

If you have substantial cash reserves, you may opt for an all-cash deal, reducing debt burden and interest costs. Debt Financing Debt financing involves borrowing money to fund the acquisition. It can be attractive if interest rates are low, and your cash flow can support the debt service.

Finance 59

Finance Debt Financing Equity Financing Equity 59

Andrew Stolz

AUGUST 6, 2020

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. Cost of debt. Cost of equity . Definition of Optimal Capital Structure.

Capital Structure 52

Capital Structure Debt Financing Equity Financing Finance 52

Andrew Stolz

AUGUST 6, 2020

The first proposition of the M&M says that the value of leveraged firms (capital structure with a mix of debt and equity) and unleveraged firms (capital structure with only equity) are the same. Where V (unlevered) = company with no debt financing and V (levered) = company with some debt financing).

Debt Financing 52

Debt Financing Capital Structure Equity Finance 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